The apex court had given six months to all EPS members from September 1, 2014, to opt for the revised scheme.
Last week, the EPFO introduced a process to enable employees and their employers to jointly apply for higher pension under the Employees’ Pension Scheme (EPS).
All eligible members can opt and apply jointly with their employers for higher pension on the portal of the unified members of the retirement fund body Employees’ Provident Fund Organization by May 3, 2023.
The recently activated URL on the EPFO Unified Members’ Portal clearly shows that the last date for availing the option of higher pension is May 3, 2023, news agency PTI informed of.
Last week, the EPFO introduced a process to enable employees and their employers to jointly apply for higher pension under the Employees’ Pension Scheme (EPS).
Earlier, there were apprehensions that March 3, 2023 is the last date to opt for higher pension.
Earlier, the Supreme Court in its order dated November 4, 2022 had ordered EPFO to give four months time to all eligible members to opt for higher pension.
The four-month period to opt for the higher pension was to end on March 3, 2023, in view of the apex court’s order. Thus, there was apprehension among the members that the deadline would lapse on March 3, 2023.
What was the order of the Supreme Court?
In November 2022, the Supreme Court upheld the Employees’ Pension (Amendment) Scheme 2014. The EPS revision of August 22, 2014 raised the pensionable salary cap from Rs 6,500 per month to Rs 15,000 per month, and allowed members with their employers. To contribute 8.33 per cent of his actual salary (if it exceeds the limit) to EPS.
In an office order, the EPFO had made provision for handling of “combined option forms” by the regional offices of the body.
EPFO said that ‘a facility will be provided for which URL (Unique Resource Location) information will be given soon. Once received, the Regional PF Commissioner shall put up adequate notices on notice boards and banners for wide public information.
Provided that every application shall be registered, logged digitally and a receipt number shall be provided to the applicant. It further said that the in-charge of the concerned Regional Provident Fund Office will examine each case of joint option on higher pay and inform the decision to the applicant through e-mail/post and subsequently also through SMS.
It also provides that any grievance can be lodged by the applicant on EPFIGMS (Grievance Portal) after submission of his Joint Option Form and payment of due contribution, if any.
EPFO has asked its field offices to provide the option of higher pension to eligible subscribers as per the Supreme Court order.
According to EPFO’s circular dated 29 December 2022, the Central Government has directed to implement the instructions given in the order. The apex court had given six months to all EPS members from September 1, 2014, to opt for the revised scheme.
The top court in its order gave four months more time to the eligible subscribers to opt for higher pension under EPS-95.
The court had also done away with the requirement of mandating employee contribution of 1.16 per cent of salary above Rs 15,000 per month in the 2014 amendment. This would facilitate the subscribers to contribute more to the scheme and accordingly avail more benefits.
Why was the limit increased?
The wage ceiling of Rs 6,500 per month provided in the Employees’ Pension Scheme was revised to Rs 15,000 per month in 2014, to provide wider coverage to formal sector workers who were not previously part of the scheme And later his retirement to assist the staff as well.
Eligible subscribers will have to apply jointly with their employer for the enhanced benefit in the application form prescribed by the Commissioner and all other necessary documents like joint declaration etc.
(With PTI inputs)
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