Retirement fund body Employee Provident Fund Organisation (EPFO) has introduce a new process that helps employers and subscribers to jointly apply for larger pensions under the Employees’ Pension Scheme (EPS), as per reported.
The Employees Pension (Amendment) Scheme 2014 was upheld by the Supreme Court in November 2022 in which the pensionable salary cap was raise from Rs 6,500 to Rs 15,000 per month.
It was pass on 22nd August, 2014.
Both employers and members were able to contribute 8.33% of their actual salaries (if they exceed the quota) to the EPS.
In an office order, the EPFO outline the procedure for handling the ‘Joint Option Form‘ by its field offices.
As per the order, a URL (unique resource location) will be provide soon for this purpose.
EPFO said :
“A facility will be provide for which URL (unique resource location) will be inform shortly. Once receive, the regional PF commissioner shall put an adequate notice on the notice board and banners for wider public information”.
After getting the URL, the regional PF commissioner is need to show adequate notice on the notice board and banners to create widespread public awareness.
Each application will be register, and digitally log and the receipt number will be provide to the applicant, as per the office order.
It further said that the officer in charge of the pertinent regional provident fund office shall investigate each instance of a share choice on a higher pay and notify the applicant via e-mail/post and, later, SMS.
It also said that the applicant’s grievances can be file on EPFiGMS (grievance portal) after submitting his joint option form and making any required contributions.
These directions are being issue in compliance with the order of the Supreme Court on 4th November, 2022.
In compliance with the Supreme Court’s judgement, EPFO has direct its field offices to provide eligible subscribers the option of receiving higher pensions.
According to the EPFO circular dated 29th December, 2022, the central government has direct that the orders be follow in the correct order.
The Supreme Court had given all EPS members six months from 1st September, 2014, to opt for the amended scheme.
In its judgement, the Supreme Court grant eligible subscribers four more months to choose for higher pensions under EPS-95.
The court also overturn the requirement in the 2014 amendments for employees to contribute 1.16% of their monthly pay in excess of Rs 15,000 per month.
This will allow members to contribute more to the scheme and receive more advantages as a result.
The EPFO circular also include a higher pension option for eligible subscribers who either contribute on actual wages greater than Rs 5,000 or Rs 6,500 per month prevalent threshold pensionable salary, exercise their option for higher pension, or had their request for higher pension denied by EPFO authorities prior to the 2014 amendment to EPS-95.
The eligible subscribers would have to apply for the enhance benefit jointly with their employer on the application form given by the commissioner, together with all other need papers such as a joint declaration and other.
Eligible subscribers must submit a joint application for the enhance benefit with their employer using the application form specified by the commissioner and any other necessary materials, such as a joint declaration and other supporting documentation.
