New EPFO guidelines! Now, EPFO subscribers can opt for higher pension; here's how

Retirement fund body Employee Provident Fund Organisation (EPFO) has introduced a new process that helps employers and subscribers to jointly apply for larger pensions under the Employees’ Pension Scheme (EPS), news agency PTI reported.

The Employees Pension (Amendment) Scheme 2014 was upheld by the Supreme Court in November 2022 in which the pensionable salary cap was raised from Rs 6,500 to Rs 15,000 per month. It was passed on August 22, 2014. Furthermore, both employers and members were able to contribute 8.33 percent of their actual salaries (if they exceeded the quota) to the EPS.

In an office order, the EPFO outlined the procedure for handling the 'Joint Option Form' by its field offices. According to the order, a URL (unique resource location) will be provided soon for this purpose.

EPFO stated that "a facility will be provided for which URL (unique resource location) will be informed shortly. Once received, the regional PF commissioner shall put an adequate notice on the notice board and banners for wider public information".

After getting the URL, the regional PF commissioner is needed to show adequate notice on the notice board and banners to create widespread public awareness.

Each application will be registered, and digitally logged and the receipt number will be provided to the applicant, stated the office order.

It further said that the officer in charge of the pertinent regional provident fund office shall investigate each instance of a shared choice on a higher pay and notify the applicant via e-mail/post and, later, SMS.

It also stated that the applicant's grievances can be filed on EPFiGMS (grievance portal) after submitting his joint option form and making any required contributions.

These directions are being issued in compliance with the order of the Supreme Court on November 4, 2022.

In compliance with the Supreme Court's judgement, EPFO has directed its field offices to provide eligible subscribers the option of receiving higher pensions.

According to the EPFO circular dated December 29, 2022, the central government has directed that the orders be followed in the correct order.

The Supreme Court had given all EPS members six months from September 1, 2014, to opt for the amended scheme. In its judgement, the Supreme Court granted eligible subscribers four more months to choose for higher pensions under EPS-95.

The court also overturned the requirement in the 2014 amendments for employees to contribute 1.16 percent of their monthly pay in excess of Rs 15,000 per month. This will allow members to contribute more to the scheme and receive more advantages as a result.

The EPFO circular also included a higher pension option for eligible subscribers who either contributed on actual wages greater than Rs 5,000 or Rs 6,500 per month prevalent threshold pensionable salary, exercised their option for higher pension, or had their request for higher pension denied by EPFO authorities prior to the 2014 amendment to EPS-95.

The eligible subscribers would have to apply for the enhanced benefit jointly with their employer on the application form given by the commissioner, together with all other needed papers such as a joint declaration, etc.

The eligible subscribers must submit a joint application for the enhanced benefit with their employer using the application form specified by the commissioner and any other necessary materials, such as a joint declaration and other supporting documentation.

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