What is higher pension scheme

Employees seeking a higher pension can now submit a joint declaration with the employer. The Employees’ Provident Fund Organisation (EPFO) has defined the process of applying for a higher pension under the Employee Pension Scheme (EPS). Notably, in November last year, the Supreme Court instructed the EPFO to make the higher pension option available to member employees. Also Read: Pension Calculation To calculate the pension, the pensionable salary must be multiplied by the pensionable service years and then divided by 70. Before the notification issued on 22 August 2014, the pensionable salary was simply the average salary of the last 12 months. With the notification, this definition was changed to “average salary of 60 months”. Although the change was challenged, the Supreme Court upheld the EPFO’s notification. A person with a minimum of ten years of contributory service is eligible for a pension. Also Read: The Higher Pension Scenario There are various factors and effects related to the higher pension plan scenario. With the change in regulation, if the subscriber’s salary increased in the last 12 months, the subscriber’s pensionable wage would be lower. In the reverse scenario, the pensionable salary would be high if there was a reduction in pay during the last 12 months. Once you choose a higher pension, your past contribution and interest will be added to the EPS, while your accumulated PF balance will get reduced. Once you choose a higher pension, your past contribu...

Explained | A breakdown of the higher pension scheme Which judgment provided for the new provision under the Employees’ Pension Scheme of 1995? Who are the prospective beneficiaries? Will there be additional liabilities for the employers? What are the documents that need to be uploaded in order to avail of the higher pension? March 05, 2023 10:59 pm | Updated 11:01 pm IST The story so far: The long wait of subscribers of the Employees’ Provident Fund Organisation (EPFO) and those who retired after September 1, 2014 to apply for higher PF pension under the Employees’ Pension Scheme (EPS) of 1995 came to an end on February 27 with the Organisation providing a web link on its members’ page. The prospective beneficiaries fall under two categories — those who retired after September 1, 2014, and those who were in service prior to the date and continue to be in service. The critical element is that in either of the cases, employers must have made PF contributions in excess of the mandatory ceiling of the pensionable salary. Till now, 8,897 persons have sent their applications through their employers. The last date for availing the option of higher pension is May 3, 2023. Why is the EPFO doing this? The present exercise of the EPFO has been necessitated by the judgment of the Supreme Court given on November 4, 2022 in the EPFO versus Sunil Kumar B case. The verdict, apart from upholding the 2014 amendment brought in by the Union government, had given an opportunity to all employe...

EPFO higher pension calculation of dues: The Employees Provident Fund Organisation (EPFO) has issued details of how the dues will be calculated for the processing of applications/joint applications for higher pensions. For higher pension, some amount from the eligible members’ provident fund will be moved to the pension fund. Following are the details of how such dues will be calculated: Should Senior Citizens close old SCSS account and invest in a new one for higher interest? • Each member/pensioner’s case will be processed in a separate file, created in the e-office with clear marking of the Application ID (system-generated acknowledgement number for online application for validation/joint option). • In the case of exempted establishments, the wage details for the entire period and the matching contribution should be available with the exempted establishments and consistent with the records of the trust. Also Read: The dues will be calculated in the following manner: a. 8.33% of the employer’s share on higher pay (w.e.f 16-11-1995 or the date the pay exceeds the wage ceiling; whichever is later) will be calculated as per records). b. 1.16% of employer share on higher pay above Rs 15,000 per month (w.e.f. 01.09.2014) will be calculated as per records towards increased contribution. c. All amounts already deposited into the Pension Fund will be deducted from the sum of the above two. d. The interest to be charged on dues as calculated above will be the interest earned by t...

Metro Manila (CNN Philippines, June 6) — The state-run Social Security System (SSS) is crafting a new pension scheme that will allow its members to build a bigger nest egg come their retirement. Once approved by the SSS policy-making body of commissioners, the monthly retirement pension will breach the current ₱20,000 ceiling, its top official said on Tuesday. The plan will not need an executive order from Malacañang or any congressional approval. "The pension will be increased from the current say 5 [thousand pesos], 10 [thousand pesos], to as high as 30,000… 40,000," SSS President Rolando Macasaet told reporters. The SSS has set a timetable of two to three months to roll out the larger pension program, but the chief executive officer clarified that the higher pension scheme is voluntary. "Voluntary lang ito. Pero ang mga employers, kung gusto nilang mag-share, puwede din lalo na for their employees na gusto nilang i-retain," Macasaet explained. [Translation: This is voluntary. But if the employers want to share, they can share especially for the employees they want to retain.] The existing setup is that retirees get a pension within the ₱4,000 to ₱20,000 range per month, depending on how much they contributed to the fund. The logic is that the bigger amount of premium the member voluntarily contributes, the greater the benefit when he or she retires, unlike the current maximum monthly pension of just ₱20,000. The agency previously increased the contribution rate of its m...