On December 29, 2022, the Employee Provident Fund Organization (EPFO) issued a circular outlining how to apply for a higher pension to comply with the Supreme Court ruling of November 4, 2022.

*_{As per the current circular, the employees who contributed to a higher wage will be eligible for a higher pension as mandated under the Employees Provident Fund (EPFO-EPS) Employee Pension Scheme.}*

HIGHLIGHTS:

EPFO issued Higher Pension Circular
Circular Define Term and Conditions for Higher pension.
EPFO member who already paid higher contribution are eligible
EPFO will adjust the pension fund from epf account upon joint consent.

——————————————————————————————————————–

EPFO issued Higher Pension Circular to Comply SC Guidelines

On November 4, 2022, the Supereme Court of India held an judgement in favouring the higher pension applicability for EPFO subscribers. In its order Supreme Court directed Central Government to clerify the regulations for higher pension benefits under ‘Employee Pension Scheme (EPS).

On December 29, 2022, the Employee Provident Fund Organization (EPFO) issued a circular outlining the direction how to apply for a higher pension to comply with the Supreme Court ruling of November 4, 2022.

To comply with the Supreme Court’s direction on higher pension for eligible employees. The circular issued lays down the eligibility criteria for employees to get higher pension and the process how to apply for higher pension under the scheme.

Employees Provident Fund Organisation (EPFO), one of the World’s largest Social Security Organisations, in its recent circular which complies the Supreme Court’s order dated November 4, 2022 has laid down the terms and conditions for an EPFO subscriber for getting a higher pension under the mandated scheme.

EPFO Guidelines for Higher Pension Eligibility

As per the EPFO circular, only those employees are eligible to get higher pension who has contributed to higher wages as mandated under the Employees’ Provident Fund (EPF) – Pension Scheme.
Secondly, the circular laid down the guideline of eligilibity that those employee has exercised their option for higher pension prior to their retirement but their request was explicitly denied by the EPFO.
The EPFO subscribers who have retired before 1st September 2014 upon exercising option under paragraph 11(3) of the 1995 scheme shall be covered by the provisions of the paragraph 11(3) of the pension scheme as it stood prior to the amendment of 2014, the circular mentioned.
The EPS member who had contributed on higher salary exceeding the then prevalent wage ceiling of Rs 5,000 or Rs 6,500.
The EPFO subscriber who exercised joint option under the Employees’ Pension Scheme (EPS) of the pre-amendment scheme while being members of EPS-95.
The EPFO pensioner, who has exercised such option were declined by the EPFO.

EPFO Guidelines for Higher Pension Application

The EPF subscriber upon visit the concerned regional EPFO office submit required application form along with proper documents. How :

The application will be made in such form and manner as may be specified by the EPFO Central commissioner.
The application form for validation will contain the disclaimer as ordered in the aforesaid government notification.
One explicit consent of the pensioner will be given in the application form in case of share requiring adjustment from provident fund to pension fund.
For transfer of funds from exempted provident fund trust to pension fund of EPFO, an undertaking of the trustee shall be submitted.
The process of deposit of such funds will follow through subsequent circulars

The circular notified, “The employees who have retired before 1st September 2014 upon exercising option under paragraph 11(3) of the 1995 scheme shall be covered by the provisions of the paragraph 11(3) of the employee pension scheme (EPS) as it stood prior to the EPFO ceiling amendment of 2014.”

Additionally the circular also mentioned that once the eligible pensioner submits the application form, the EPFO authority “the Regional PF commissioner” will be responsible to deal with it appropraitely.