#Higher pension:EPFO gives last chance to opt higher EPS pension@employeespensionerstv
Published at : February 24, 2023
The Employees Provident Fund Organisation (EPFO) has come out with new guidelines for employees to opt for higher pension. If they fail to follow, EPFO's new procedure, they might end up in getting lesser pension. The deadline to apply for higher pension under EPS was March 3, 2023 as mandated by the Supreme Court judgement.
EPFO subscribers can opt for higher pension now
EPFO, the retirement fund body has introduced a new procedure that allows subscribers and their employers to jointly apply for a higher pension under the Employees' Pension Scheme (EPS).
What does the new EPFO rule mean?
The retirement fund body has now allowed subscribers to go beyond the pensionable salary capped at ₹15,000 a month. The employers deduct a sum equal to 8.33% of the ‘actual basic salary’ towards pension under the Employee Pension Scheme (EPS).
The EPS amendment of August 22, 2014 had raised the pensionable salary cap to ₹15,000 a month from ₹6,500 a month, and allowed members along with their employers to contribute 8.33 per cent of their actual salaries (if it exceeded the cap) towards the EPS.
How can employees opt for higher pension now?
1) EPFO stated that "a facility will be provided for which URL (unique resource location) will be informed, PTI reported.
2) Each application will be registered, digitally logged and the receipt number will be provided to the applicant.
3) The office in-charge of the concerned regional provident fund office shall examine each case of joint option on higher salary and intimate the decision to the applicant through e-mail/post and later through SMS also.
4) Any grievance by the applicant can be registered on EPFiGMS (grievance portal) after submission of his joint option form and payment of due contributions, if any.
5) The eligible subscribers would have to apply jointly with their employer for the enhanced benefit in the application form prescribed by the commissioner and all other required documents like joint declaration etc.
The Supreme Court in its decision dated 4 November has also provided members who were registered before 1 September 2014, and have not yet retired, an additional period of four months to request for dual option and avail of higher pension.
"It is pertinent to note here that individuals who were members of EPF prior to 2014 had an option to allocate the entire 8.33% of the employer’s contribution amount towards pension fund—without any upper ceiling by exercising what was commonly called “dual option". Exercising a higher contribution towards the pension fund was financially more advantageous to the employees. However, the application of the dual option is where much of the debate started," wrote Neeraj Agarwala in an article published on Livemint.
Who are eligible for higher pension?
All existing employees, or those who retired after September 1, 2014 can claim higher pension based on actual salary beyond the prescribed ceiling in the Employees’ Pension Scheme (EPS) of 1995.
As a member of the EPF scheme, an employee is entitled to receive a lump sum amount at the time of retirement (provident fund), pension after attaining the age of 58 years (pension fund).
EPFO subscribers can opt for higher pension now
EPFO, the retirement fund body has introduced a new procedure that allows subscribers and their employers to jointly apply for a higher pension under the Employees' Pension Scheme (EPS).
What does the new EPFO rule mean?
The retirement fund body has now allowed subscribers to go beyond the pensionable salary capped at ₹15,000 a month. The employers deduct a sum equal to 8.33% of the ‘actual basic salary’ towards pension under the Employee Pension Scheme (EPS).
The EPS amendment of August 22, 2014 had raised the pensionable salary cap to ₹15,000 a month from ₹6,500 a month, and allowed members along with their employers to contribute 8.33 per cent of their actual salaries (if it exceeded the cap) towards the EPS.
How can employees opt for higher pension now?
1) EPFO stated that "a facility will be provided for which URL (unique resource location) will be informed, PTI reported.
2) Each application will be registered, digitally logged and the receipt number will be provided to the applicant.
3) The office in-charge of the concerned regional provident fund office shall examine each case of joint option on higher salary and intimate the decision to the applicant through e-mail/post and later through SMS also.
4) Any grievance by the applicant can be registered on EPFiGMS (grievance portal) after submission of his joint option form and payment of due contributions, if any.
5) The eligible subscribers would have to apply jointly with their employer for the enhanced benefit in the application form prescribed by the commissioner and all other required documents like joint declaration etc.
The Supreme Court in its decision dated 4 November has also provided members who were registered before 1 September 2014, and have not yet retired, an additional period of four months to request for dual option and avail of higher pension.
"It is pertinent to note here that individuals who were members of EPF prior to 2014 had an option to allocate the entire 8.33% of the employer’s contribution amount towards pension fund—without any upper ceiling by exercising what was commonly called “dual option". Exercising a higher contribution towards the pension fund was financially more advantageous to the employees. However, the application of the dual option is where much of the debate started," wrote Neeraj Agarwala in an article published on Livemint.
Who are eligible for higher pension?
All existing employees, or those who retired after September 1, 2014 can claim higher pension based on actual salary beyond the prescribed ceiling in the Employees’ Pension Scheme (EPS) of 1995.
As a member of the EPF scheme, an employee is entitled to receive a lump sum amount at the time of retirement (provident fund), pension after attaining the age of 58 years (pension fund).
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