Here's how employees can apply for higher EPS pension post Kerala High Court order

Following the interim order by the High Court of Kerala, employees are allowed to apply for a higher pension without submitting documents such as Form 10-D and Form 26(6). This move came as a relief to many employees who were finding it difficult to procure the required documents. However, there has been no modification of the online facility yet. However, EPFO has time till April 22, 2023 to provide modified arrangement for filing. Meanwhile, the last date to apply for a higher pension under Employee’s Pension Scheme (EPS) to the Employees’ Provident Fund Organisation (EPFO) is May 3, 2023. 

As per the interim order by the Kerala High Court permission for higher salary deduction under Clause 26(6) of the Employees’ Provident Fund Scheme, 1952 is not a mandatory document for claiming higher pension under Clause 11(4) of the Employees' Pension Scheme, 1995. The Clause 26(6) enables the employee to submit a joint request along with the employer to contribute a salary higher than Rs15,000 to the fund in order to be able to claim a higher pension. The ceiling of Rs 15,000 was introduced in the EPS Scheme in 2014. The Supreme Court held that employees who were part of the EPF before 01.09.2014 but have not exercised the joint option can exercise it by May 3, 2023.

To get more clarity on the subject Business Today spoke with a few experts on how one can apply for higher EPS after the recent interim order of the High Court of Kerala. Here's what they say:

Himanshu Sachdeva, Senior Associate, TAS Law: The Supreme Court by its November 2022 order permitted the employees who could not submit the options earlier to submit fresh options within a period of four months which has now been extended up to 3.05.2023. However, the process for submission of joint application by the employees was extremely complicated particularly a mandatory requirement in the form that required furnishing details of the option under para 26 (6) of the Scheme, 1952. The Kerala High Court has exempted this mandatory requirement and directed the EPFO that adequate provision should be made in the online facility to enable the pensioners to furnish the options without the production of the copies of option under para 26 (6) of the Scheme, 1952. The Court further directed that if the online facility cannot be altered, then necessary arrangements for filing including granting permission to submit hard copies of the options be made. There has been no modification of the online facility yet. However, EPFO has time till 22.04.2023 to provide modified/alternative arrangement for filing.

Soayib Qureshi, Associate Partner, PSL Advocates & Solicitors: The Petitioners before the Hon’ble High Court of Kerala intended to submit their options in light of the decision of the Hon’ble Supreme Court. However, they were unable to do so as the document under Clause 26(6) of the EPF Scheme was a mandatory document for such submission. The Hon’ble High Court while recognising the enabling nature of Clause 26(6) and the proximity of the cut off date i.e. 03.05.2023 has directed the EPFO to make provisions in the online facility to furnish options without production of document under Clause 26(6). While the said order is an interim order, it serves as a relief to similarly situated employees who seek to submit their options.

Pratyush Miglani, Managing Partner, Miglani Verma & Co: To apply for a higher EPS pension, employees can submit a joint application with their spouse or nominee. The application should be addressed to the Regional Provident Fund Commissioner (RPFC) and should include details such as the employee's name, PF account number, and the reason for applying for a higher pension. While the court order has made it easier for employees to apply for a higher EPS pension, it is important to note that the eligibility criteria for the same remain the same. Employees who have completed 10 years of service and have attained the age of 58 years are eligible for a pension under the EPS scheme. In a nutshell, employees who are looking to secure their retirement and ensure a steady income can consider applying for a higher EPS pension. With the recent Kerala High Court order, the process of applying for the same has become easier. However, it is important to fulfil the eligibility criteria and provide accurate information in the joint application.

Rohit Jain, Managing Partner, Singhania & Co: The EPFO Department has created a unified portal on its website for the exercise of the joint option by employees for submitting application under the EPS-1995. In its November 4 order, the apex court had opened a 4-month window (ending March 3) to subscribe for the higher pension option. The EPFO, however, activated the unified portal for submitting the applications only on February 27. Therefore, the deadline for submitting the joint application has been extended till May 3. It was reported that the unified portal was not functioning in between however, it seems to be working now. There is however, some confusion regarding the exempted establishments. Though the Supreme Court has first held that the employees in such establishments will not be covered in the judgment however, later has given its views on the issue, thereby creating some ambiguity.

Also Read: Does my health insurance policy or OPD plan cover Covid-19? Here's all you need to know