In a significant relief to subscribers, the Employees’ Provident Fund Organisation will permit them to apply for higher pension jointly with their employers until May 3 this year. Subscribers as well as employers were concerned that the window to apply for higher pensions would close by March 3 in line with the four-month timeline according to the Supreme Court ruling of November 4, 2022.
“Joint options under erstwhile para 11 (3) and para 11 (4) of EPS 1995 for employees who were in services prior to September 1, 2014 and continued to be in service on or after September 1, 2014 but could not exercise joint option under erstwhile provision to para 11(3) of EPS 1995 to be exercised on or before May 3, 2023,” the EPFO said on its website. It has also provided an online application for validation of the joint option.
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Earlier on February 20, the EPFO had issued a circular specifying the procedure for eligible employees to opt for higher pension under the Employees’ Pension Scheme. It had also said that a facility for filing joint option will be provided for which a URL will be informed shortly.
Subscribers are expected to file a form with proof of remittance of employer’s share in the provident fund on wages higher than the then prevalent wage cap of Rs 5,000 and Rs 6,500 per month as well as proof of joint option verified by the employer.
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The Supreme Court ruling of November 2022 had provided a four-month window to enable eligible subscribers to opt for the higher pension under the EPS. With no clarity on the joint option facility, there were concerns amongst employers and employees over the short time frame in which they were expected to opt for the higher pension.