EPFO Higher Pension Scheme | How to opt for EPFO Higher Pension | EPFO Higher Pension Scheme Rules
EPFO Higher Pension Scheme: Guidelines were released by the Employees Provident Fund Organization (EPFO) on February 20, 2023, outlining the process for eligible employees to apply for a higher pension under the Employees Pension Plan (EPS). Even employees who were eligible but did not previously apply for greater pension under EPS are now able to do so. Now, March 3, 2023, is the cutoff date for EPS higher pension applications. The most recent Supreme Court decision, dated November 4, 2022, enforced this deadline.
The EPFO now permits members to earn more than the maximum monthly pensionable salary of 15,000 rupees. Yet, under EPS, employers withhold from employees’ actual basic salaries an amount equal to 8.33% of that amount for pension purposes.
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| Recruiter | EPFO | ||||
| Designation | Higher Pension Scheme | ||||
| Official Website | http://epfindia.gov.in | ||||
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The EPS adjustment from August 2014 raised the monthly pensionable salary cap from 6,500 to 15,000. The same legislation also let members who earned more than the cap to jointly contribute 8.33% of their actual salary to EPS with their employers.
Who is eligible to receive higher pension as per EPFO?
According to the circular, only those employees are qualified who made higher pay contributions as required by the Employees’ Provident Fund (EPF) Scheme and who invoked their right to a higher pension before retiring but whose application was expressly turned down by the EPFO.
Therefore, the following pensioners are eligible to apply for higher pensions
- Pensioners who, as employees, made contributions on salaries that exceeded the then-applicable wage ceiling of Rs. 5,000 or Rs. 6,500;
- Pensioners who exercised a joint option under the Employees’ Pension Scheme (EPS) of the pre-amendment scheme while members of EPS-95;
- Pensioners whose exercise of a joint option was rejected by the EPFO.
Who are not eligible for a higher pension from EPFO?
After the Supreme Court judgement from November 4, 2022, certain employees will not be entitled for enhanced pensions, according to the circular:
- The pre-amendment plan’s membership has already been terminated for the employees who retired before September 1, 2014, but did not exercise any option under paragraph 11(3) of the pre-amendment scheme. They would not be qualified to benefit from this decision, as a result.
- The terms of paragraph 11(3) of the pension plan as it was in effect before to the amendment will apply to the employees who have retired before September 1, 2014, upon exercising their choice under that provision of the 1995 scheme.
How eligible pensioners can apply for higher pension
To apply for a higher pension, eligible retirees must visit the regional EPFO office in their area with the relevant paperwork and an application that has been properly filled out.
The following steps must be followed to apply for a higher pension at the regional EPFO office:
- The request will be submitted in the format and manner that the commissioner may specify.
- The disclaimer specified in the aforementioned government announcement must be included in the application form for approval.
- In case of share requiring adjustment from provident fund to pension fund and if any, re-deposit to the fund, the explicit consent of the pensioner will be given in the application form.
- An undertaking from the trustee must be given in the event that money is transferred from an exempted provident fund trust to the EPFO pension fund. The commitment must state that all required contributions, as well as interest accrued up to the date of payment, will be deposited within the time frame.
- The circular dated December 29, 2022 states that more announcements will be made regarding how the requisite cash will be submitted for greater pension.
How to opt for EPFO Higher Pension
- The retiring body said that a facility would be made available for applications and that the Universal Resource Locator (URL) would be informed of this.
- Each application will be digitally encrypted and recorded, and the applicant will be given the receipt number.
- The office in charge of the relevant regional provident fund (PF) office shall assess each instance of joint option on higher compensation.
- The applicant will get notification of the application’s outcome through email or post. An SMS could potentially be sent afterwards.
- After submitting the joint option form and making the necessary contributions, a grievance, if any, may be lodged on the EPFiGMS (grievance portal) (if any).
- Eligible subscribers must submit a joint application with their employers in order to take advantage of the additional benefit on the application form.
- The application deadline for a larger pension is March 3.
To know more details about EPFO Higher Pension Scheme, you need to visit our website (naukrimessenger.com).
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