In what could bring cheer to subscribers, the Employees’ Provident Fund Organisation (EPFO) has issued guidelines to implement a part of the favourable Supreme Court ruling in November, on employees who had contributed on higher actual wages but whose request for a higher pension was denied.
Pensioners who, as employees, had contributed to the pension scheme on salaries exceeding the then prevalent wage caps of Rs 5,000 and Rs 6,000 and had jointly applied with their employers for such a contribution, but whose request was declined by the PF authorities, can now apply digitally or online on the EPFO website.
The application would have to include documents showing proof of joint option verified by the employer, proof of remittance in PF and pension on the higher wage over the prevalent wage ceiling, as well as written refusal by the PF official to the request.
Also read: EPFO asks field offices to ensure timely credit of contribution to members’ accounts
Regional PF commissioners will deal with all applications and a weekly report would be sent to the zonal offices, the EPFO has said.
“…field offices are directed to implement the directions contained in para 44 (ix) of the judgement dated November 4, 2022 of the Supreme Court within the stipulated timeline and to ensure adequate publicity of the decisions taken by EPFO to implement the said directions,” it said in a circular.
In its ruling last month, the Supreme Court had upheld the Employees’ Pension Scheme amendment of 2014, giving another opportunity to subscribers to opt for the higher pension payout. Employees who were existing EPS members as on September 1, 2014 can contribute up to 8.33% of their ‘actual’ salaries — as against 8.33% of the capped salary — towards pension. However, this part of the order has been suspended for six months, during which time the legislature may bring in amendments to generate additional source of funds to the EPS Scheme.
Para 44 (ix) of the ruling relates to the earlier RC Gupta case, where a cut-off date of eight weeks was given to implement the directions for employees who contributed on higher wages and had exercised the option for the higher payout, along with their employer, but their request was denied and their contribution was refunded.
The EPFO guidelines, however, do not deal with other pensioners.
Also read: EPFO to ensure claims not rejected on multiple grounds
The 2014 amendment of the EPS had hiked the pensionable salary with a cap of Rs 15,000 per month from the earlier Rs 6,500 per month. Employers and members had to contribute 8.33% of the actual salaries towards the scheme, if it exceeded the cap. All EPS members, as on September 1, 2014 were given a six-month window to opt for the amended scheme. Further, employees were required to contribute at the rate of 1.16% of the monthly salary exceeding Rs 15,000 towards the pension fund.