EPFO Simplifies Application Process For Higher Pension Under EPS Scheme

The Employees' Provident Fund Organisation (EPFO) has taken considerable steps to simplify the application process for a higher pension under the Employees' Pension Scheme (EPS) for eligible employees. The ease in the process has come as a boon for those who lack a joint request or permission from their employer, opening new avenues for increased pension benefits, following last year’s Supreme Court Order.

As per a circular issued on June 14, 2023, EPFO has outlined the required documents and the procedure for accepting higher pension applications. The process involves verification by the employer, digital conversion, examination by supervisors and account officers, and final communication to the applicants.

The new guidelines facilitate calculating pensions based on salaries that exceed the statutory limit of Rs 15,000 under the EPS of 1995. It's noteworthy that only EPF members as of September 1, 2014, can opt for a higher pension.

EPFO field offices are now equipped to accept applications for higher pensions under the EPF scheme.

Field officers are required to follow due procedures, such as:

·        Ensuring that the employer's provident fund contributions have been made based on an employee's pay exceeding the statutory wage ceiling of Rs 5,000 / Rs 6,500 / Rs 15,000 per month.

·        Calculating contributions from the day the payment exceeded the wage ceiling or from November 16, 1995, whichever is later, up until the present day or the date of retirement or superannuation.

·        Checking that employers have paid the requisite administrative charges on these higher wages.

·        Updating the employee's EPF account with interest according to Para 60 of EPFS, 1952, based on the contributions received.

When submitting the joint pension application form, EPFO field offices need to verify that at least one of the following documents is included:

·        Details of wages provided by the employer in relation to applications for validation of option / joint options.

·        An authenticated salary slip or salary receipt letter.

·        A copy of a joint request and undertaking from the employer.

·        A letter from the PF office showing PF contribution on higher wages, which must be dated before November 4, 2022.

In the event of an employer's refusal or non-cooperation in providing the required documents, the employee can now submit self-attested documents for their claim. This process, however, requires a declaration stating that the applicant has approached the employer for the documentation, and they were unable to get it. In such cases, the employer’s role would be limited to the verification of documents submitted by the employee.

This is a significant shift from earlier, where the employee and employer had to jointly apply for the higher pension.

In a landmark judgement in November 2022, the Supreme Court decreed that employees who were part of the EPF scheme before or on September 1, 2014, but had not applied for a higher pension, could now present fresh applications within a four-month timeframe. This deadline was subsequently extended to June 26, 2023, granting more time to employees who might have missed the initial deadline.