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The Employees’ Provident Fund Organisation (EPFO) on Monday came out with a new circular to spell out the process through which it would validate as well as scrutinise the information and wage details submitted by the employer and employee in cases where application/joint options are submitted for availing higher pension under the Employees’ Pension Scheme.
With just 10 days to go before the May 3 deadline for applying for higher pension under the EPS comes to an end, the EPFO has now in its circular said that an online system has been set up and this facility will be active until May 3.
This online system will be used to receive (through employers) application forms for validation of joint options from employees who retired before September 1, 2014. It will also receive joint option forms from the employees who were members on September 1, 2014.
The circular highlighted that the applications/joint options will be examined by the field.
If all requirements are met, the employers’ submitted wage details will be cross-checked with data from the field offices.
If the details match, the dues will be calculated and APFC/RPFC-II/RPFC-I will issue an order to transfer/deposit the dues. If there is a discrepancy, the employer and employee/pensioner will be informed and given one month to provide the necessary information, according to EPFO circular.
If the joint application form is not approved by the employer, the circular stated 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).
One-month time
Such opportunity will be for a period of one month and under intimation to the employees and pensioners, according to the EPFO’s latest circular.
Also, in cases where the submitted information is incomplete or seems erroneous or any information in the application form needs correction, then EPFO will seek information from the employers within one month.
Also read: EPFO implements Supreme Court order, gives option for higher pension to eligible subscribers
If the above information is received, the joint application form will be accepted by the EPFO and then order will be issued for transferring/depositing dues.
However, If the complete information is not received within one month, the EPFO will pass an order on merit, the latest EPFO circular said.
The latest EPFO circular also provides mechanism for grievance redressal by the applicant under the specified category of higher pension with reference to Supreme Court judgement of November 4, 2022.
It maybe recalled that the Supreme Court had on November 4 last year allowed four months to apply for a higher pension under EPS. Consequently, the last date to apply for higher pension was set at March 3, 2023, but was later extended till May 3.
The window to apply for higher pension was available to only those employees who were members of EPS 95 on or after September 1,2014, but missed the opportunity to apply for higher pension before the expiry of earlier deadline.
Also read: EPFO’s higher pension scheme: What’s in it for you?
Also, only those employees who were contributing to the employees’ provident fund (EPF) in a higher proportion than the previous wage ceilings of ₹5,000 and ₹6,500 but could not opt for the higher contribution can now apply for the higher pension.
Those who want to avail the option of a higher pension will have to make a higher contribution towards EPS 95 from the employer’s share on the basis of their actual wages till the time they remain active members of EPF or retire.
Also read: Everything you need to know about the new EPFO guidelines
For those opting for a higher pension, a higher contribution from now onward is not enough. They will also have to pay the additional contributions for the previous years.
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