![EPFO-releases-guidelines-for-higher-pension](https://img.etimg.com/thumb/msid-98094312,width-300,height-225,imgsize-411275,resizemode-75/epfo-releases-guidelines-for-higher-pension.jpg)
Story outline
- EPFO has provided the guidelines on how eligible employees can apply for higher pension.
- At present, the deadline to apply for higher pension under EPS is March 3, 2023.
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
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:
(i) The request will be made in such form and manner, as may be specified by the Commissioner
(ii)The joint option will contain the disclaimer and declaration as may be specified therein
(iii) In case of share requiring adjustment from Provident Fund to Pension Fund and if any re-deposit to the fund , explicitly consent of the employee will be given in the joint option form
iv) 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
v) In case of employees of unexempted establishments, refund of requisite employer'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
Also read: Who is eligible and who is not eligible to apply for higher pension from EPS?
vi) The method of deposit and that of computation of pension will follow through subsequent circular
vii) Aforesaid joint option must contain the proof of remittance of employer's share in provident fund on higher wages exceeding the prevalent wage ceiling of Rs 5000/6500 and a proof of joint option under 26 (6) of the EPF scheme duly verified by the 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.
Also Read: Eligible employees who missed higher EPS pension option earlier can still apply: Latest EPFO circular
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.
What did the circular say about the eligible employees?
The circular said as follows: The employees who had exercised option under the proviso to paragraph 11(3) of the 1995 scheme and continued to be in service as on 1st September 2014, will be guided by the amended provisions of paragraph 11(4) of the pension scheme. The members of the scheme, who did not exercise option, as contemplated in the proviso to paragraph 11(3) of the pension scheme (as it was before the 2014 Amendment) would be entitled to exercise option under paragraph 11(4) of the post amendment scheme. Their right to exercise option before 1st September 2014 stands crystallised in the judgment of this Court in the case of R.C. Gupta (supra). The scheme as it stood before 1st September 2014 did not provide for any cut-off date and thus those members shall be entitled to exercise option in terms of paragraph 11(4) of the scheme, as it stands at present. Their exercise of option shall be in the natum of joint options covering pre-amended paragraph 11(3) as also the amended paragraph 11(4) of the pension scheme. There was uncertainty as regards validity of the post amendment scheme, which was quashed by the aforesaid judgments of the three High Courts. Thus, all the employees who did not exercise option but were entitled to do so but could not due to the interpretation on cut-off date by the authorities, ought to be given a further chance to exercise their option. Time to exercise option under paragraph 11(4) of the scheme, under these circumstances, shall stand extended by a further period of four months. We are giving this direction in exercise of our jurisdiction under Article 142 of the Constitution of India. Rest of the requirements as per the amended provision shall be complied with. The employees who had retired prior to 1st September 2014 without exercising any option under paragraph 11(3) of the pre-amendment scheme have already exited from the membership thereof. They would not be entitled to the benefit of this judgement."
(Catch all the Personal Finance News, Breaking News, Budget 2024 Events and Latest News Updates on The Economic Times.)
Subscribe to The Economic Times Prime and read the ET ePaper online.
Read More News on
(Catch all the Personal Finance News, Breaking News, Budget 2024 Events and Latest News Updates on The Economic Times.)
Subscribe to The Economic Times Prime and read the ET ePaper online.