EPFO issues guidelines for higher pension from EPS
Employees Provident Fund Organisation (EPFO) has issued guidelines dated February 20, 2023, giving procedure for eligible employees to apply for higher pension under the Employees Pension Scheme (EPS). Even employees who had not earlier applied for higher pension but were entitled to do so can now do so. Currently, the deadline to apply for higher pension under EPS is March 3, 2023 as mandated by the recent Supreme Court judgement.
As per the circular, in compliance of the SC judgement, the following employees with their employers may submit joint option under para 11 (3) and 11 (4) to the concerned Regional office:
The employees and employers who had contributed under paragraph 26(6) of EPF scheme on salary exceeding the prevalent wage ceiling of Rs 5000 or Rs 6500 AND
Did not exercise joint option under the proviso to Para 11 (3) of the pre-amended scheme (since deleted) while being members of EPS, 1995; AND
Were members prior to 1.9.2014 and continued to be a member on or after 1.9.2014
Thus, any employee who was member of Employees’ Provident Fund (EPF) as on August 31, 2014 and did not opt for higher pension under the EPS, has an option to opt for the same on or before March 3, 2023.
How eligible employees can apply for higher pension from EPS
The circular has provided the guidelines on how eligible employees can apply for higher pension. As per the circular, the manner in which such employees have to apply to the concerned regional office is as follows:
The request will be made in such form and manner, as may be specified by the Commissioner
The joint option will contain the disclaimer and declaration as may be specified therein
In case of share requiring adjustment from Provident Fund to Pension Fund and if any re-deposit to the fund , explicity consent of the employee will be given in the joint option form
In case of transfer of funds from exempted provident fund trust to pension fund of EPFO an undertaking of the trustee shall be submitted. The undertaking shall be to the effect that due contribution along with interest up to the date of payment, will be deposited within the specified period
In case of employees of unexempted establishments, refund of requisite employers’s share of contribution, the same shall be deposited with interest at the rate declared under para 60 of EPF scheme 1952 till the date of actual refund
The method of deposit and that of computation of pension will follow through subsequent circular
Aforesaid joint option must contain the prooof of remittance of employer’s share in provident fund on higher wages exceeding the prevalent wage ceiling of Rs 5000/6500 and proof of joint option under para 26 (6) of EPF scheme duly verified by employer
What happens once the joint option form is submitted
Once the application form is submitted, the application will be dealt as specified under the circular. The above applications forms when received in the time period specified in the Joint Option Form will be dealt with in the following manner by the Regional P.F. Commissioner.
a) A facility will be provided for which URL will be informed shortly. Once received, the regional PF Commissioner will put up adequate notice on the notice board and banners for wider public information.
b) Each application will be registered and digitally logged. The receipt number will be provided to the applicant.
c) The application will land into the employer’s login whose verification with digital signature/e-sign will be essential for further processing.
d) RPFC will cause each application to be converted into e-file, as far as possible.
e) The concerned dealing assistant will examine the papers including the note on receipt of due amount in the pension fund, and mark the case to section supervisor/account officer.
f) The concerned SS/AO will mark out discrepancies, if any and send it after due examination, with the rule position to APFC/RPFC-II for deciding the case.
g) The concerned APF/RPFC-II shall examine each case of joint option on higher salary and the decision shall be intimated to the application through e-mail or post. Efforts will be made to intimate them through telephone/SMS also.
Officer-in charge of the concerned regional office will send a weekly monitoring report to the respective zonal office. Zonal office will also report the aggregate position of the zones weekly to the pension division at head office.
Read more at:
https://economictimes.indiatimes.com/wealth/invest/epfo-issues-guidelines-for-higher-pension-in-eps-95/articleshow/98094376.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst