Higher pension scheme eligibility

Synopsis Higher EPS pension: As per the circular, once the joint application form is submitted, the EPFO field offices will be examined by the EPFO field offices. Once the requirements are complete and the wage details submitted by the employers, then it will be verified with the data available with the EPFO. As per the circular, once the joint application form is submitted, it will be examined by the EPFO field office. Once the requirements are complete and the wage details are submitted by the employers, then it will be verified with the data available with the EPFO. Once the data is verified, the EPFO will calculate the dues and an order will be passed for depositing/transferring of dues. Also Read: What will happen if there is a mismatch in the data It may happen that there is a mismatch in the data available with the EPFO and the information submitted by the employer and employee. The circular has clarified that in case there is a mismatch, the same will be informed to the employer and the employee/pensioner by the EPFO. They will be given one month to provide the correct information. What if the joint application form is not approved by the employer It may happen that the joint application form is not approved by the employer. The circular states that before any rejection, an opportunity will be given to the employer for providing additional proof or evidence or correcting any mistakes/errors (including those made by the employees/pensioners). Such opportunity will b...

The Employees Provident Fund Organization (EPFO) launched the Employees Pension Scheme (EPS) in the year 1995. Through this scheme EPFO members are entitled to a pension after retirement. The employee’s contribution of 12% of salary was fully utilised towards EPF, whereas from the employer’s contribution 8.33% goes to EPS and 3.67% to the EPF. Initially, the pensionable salary was capped at ₹ 5000 and was subsequently raised to ₹ 6500. In March 1996, a provision was added to para 11(3) of the EPS-95 act giving the option to the employee and employer to contribute at the actual salary (above the cap of ₹ 6,500) to the EPS. However, the members were given 6 months to file a joint option form for higher pension contribution to the EPS. On 01-09-2014, the Government amended the EPS-95 through the Employees Pension (Amendment) Scheme, 2014 in which the maximum pensionable salary was raised to ₹ 15,000. However, the provision to para 11(3) that allowed the option of joint filing by the employee and employer for higher contribution to the EPS has been omitted. Employees who joined the EPS after 01-09-2014 can only make the contribution at 8.33% of the maximum pensionable salary of ₹ 15,000, even though they drew a higher salary. Employees who joined before 01-09-2014 could, however, contribute to EPS on the actual salary as against the cap of ₹ 15,000 if they filed a new joint option with the EPFO within 6 months, i.e., 28-02-2015. Pension Contribution on Higher Salary under EPS ...

The joint applications (by employee and employer) for higher pensions under the Employees' Pension Scheme (EPS) will have to be scrutinised within 20 days of receipt, the Employees' Provident Fund Organisation (EPFO) has directed its field officers. EPFO head office bhikaji cama place New Delhi EPFO Head office (Pradeep Gaur/Mint File Photo) Also Read: The directive came in the form of a circular on Friday. “Hence, it is reiterated that each Applications for Validation of Joint Option/Joint Option shall be scrutinized expeditiously and it shall be ensured that Demand Letter to Employer/Communication to Employer is issued for providing any additional proof or evidence or correct any mistakes/errors (including made by employers/pensioners) in respect of each Application for Validation of Joint Option/Joint Option within 20 days of receipt of the application in the login of the Dealing Assistant,” point (4.) of the circular read. The deadline to apply for higher pension on actual salary under the EPS is June 26; earlier, the deadline was May 3, but was extended by the retirement fund body. Who are eligible for higher pension under EPS? People who were EPFO members and EPS subscribers prior to September 1, 2014, and who continue to be in service, but had missed choosing the higher pension option earlier, can apply for a higher pension. On the other hand, those who retired before the said date, but had signed up for the option, must validate the information. The validation will...

Synopsis The SC in its judgement dated November 4, 2022, has upheld the EPFO notification issued in 2014 and also provided certain employees to apply for higher pension. However, there may be confusion among employees who is eligible and who is not eligible to apply for higher pension. Read on to know whether you can apply for higher pension from EPS or not. Now that the Supreme Court has given an opportunity to employees to opt for higher pension from the Employees' Pension Scheme ( The Supreme Court in its judgment dated November 4, 2022, has upheld the validity of a 2014 amendment brought about by the central government barring some exceptions. The part of 2014 amendment, which was not impacted by this SC judgement, set a monthly basic salary ceiling of Rs 15,000 for an Employees' Provident Fund (EPF) member to also be eligible to become a first-time member of the Employees' Pension Scheme (EPS) The amendment also provided certain employees an opportunity to make higher contributions towards their pension fund under the EPS. All this stir about a higher contribution towards EPS is only because a higher contribution due to higher basic salary makes a member eligible to receive higher pension under current pension calculation. After the SC judgment, employees have an opportunity till March 3, 2023, to make higher contributions under the EPS. Who is eligible to apply for higher contributions under EPS? Anshul Prakash, Partner-Employment Labour & Benefits, Khaitan & Co, say...

• Employees who were members of EPS before September 1, 2014, and continued to be a member on or after that date; and • Employees and employers who had contributed on salary exceeding the standard wage ceiling of ₹5,000 or ₹6,500. • Also read: Who are not eligible? Employees with a basic salary exceeding ₹15,000 are restricted from joining the EPS. EPF higher pension: How to apply Also, if an employee retired before September 1, 2014, and did not exercise the option to opt for higher pension contributions, such an employee will not be eligible to opt for higher pension contributions now. Eligible employees will have to submit an application in the prescribed format by accessing the EPFO’s UAN Member e-SEWA portal. Comments Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.

With an aim to provide more clarity on how to claim higher pension, the The Supreme Court, in its November 2022 order, ruled that employees who were part of the EPF before or on September 1, 2014, but could not apply for higher pension, can now submit fresh options within four months, which later got extended up to May 3, 2023, and then June 26, 2023. However, the process for submitting joint application by the employees is extremely complicated, particularly a mandatory requirement in the form that required furnishing details of the option under para 26 (6) of the Scheme, 1952. Clause 26(6) allows employees to jointly request with their employer to contribute a higher amount to the fund, exceeding Rs 15,000, to claim a higher pension. Given that the document was not available with most of the applicants, the Kerala High Court, while recognising the enabling nature of Clause 26(6), and the proximity of the cut-off date, directed the EPFO to make provisions in the online facility to furnish options without production of the document under Clause 26(6).  Given the situation, EPFO has on Wednesday released a list of documents that can be submitted if one is not able to furnish joint form under para 26(6). Also Read: The EPFO circular stated:  Whereas a situation has arisen where joint request/ undertaking/ permission under Para 26(6) are not readily available with most of the applicants who have filed Applications for Validation of Option / Joint Options covered under Hon...

Synopsis Employees Provident Fund Organisation has activated the link on the Member e-Sewa portal for the eligible EPF members to submit their application for higher pension under Employees' Pension Scheme. Here is a step by step guide on how to submit application for higher pension under EPS on the EPFO portal. The Employees' Provident Fund Organisation (EPFO) issued circulars on December 29, 2022, and February 20, 2023, providing instructions to eligible employees on submitting applications for higher pension under the Employees' Pension Scheme ( Mallika Noorani, Senior Partner, Parinam Law Associates, says, "The EPFO had opened the online portal for employees who retired prior to September 1, 2014, and were eligible for higher pension under the EPS. The online portal was opened after the issuance of a circular on December 29, 2022. For existing members of the EPFO who are eligible to apply for the higher pension under the EPS, the online portal has been opened after the issuance of a circular on February 20, 2023." EPFO has extended the deadline to apply for higher pension from Employees' Pension Scheme (EPS) to June 26,2023 from May 3, 2023. The announcement for extension for new deadline was made on Tuesday i.e., on May 2, 2023. This is the second time that EPFO has extended the deadline to apply for higher pension from EPS. Step 2: A new homepage will open. Select "Application form for joint options - Joint options under erstwhile para 11 (3) and para 11 (4) of EPS 1...

Confusion over EPFO note on higher pension As per Amit Gupta, MD, SAG Infotech, EPFO in India has not been able to provide any explanation for the issue of a rise in pension applications. The EPFO published a notification stating that the member was responsible for establishing eligibility and that the process for asking for a higher pension was not automated. However, the announcement was vague regarding the eligibility requirements and the process for verifying eligibility, which led to members' confusion. Documents to submit The documents that an eligible employee must submit include an agreement to allow the transfer of funds from the provident fund to the pension fund, proof of the employer's share in the provident fund on higher wages exceeding the standard wage ceiling of ₹5,000/ ₹6,500, and a joint option form with a declaration from the employer and employee for a higher contribution to the EPS as high as 8.33% of the actual wages in the future, said Amit Gupta, MD, SAG Infotech. Who all are eligible for higher pensions now? 1) Employees who were members before 1 September 2014, and continued to be a member on or after that date 2)Employees and employers who had contributed on salary exceeding the standard wage ceiling of ₹5,000 or ₹6,500. “In the cases where FO details and employers' details match, the dues will be calculated and an order will be passed by APFC/RPFC-II/ RPFC-I for depositing/transferring the dues. In the cases where there is a mismatch, the same ...