Employees’ Pension Scheme : Deadline ends to register for higher pension, over 8000 EPS members apply

More than 8,000 members have already applied online to opt for higher pension in the recently allowed joint option for employers and employees in the Employees’ Pension Scheme under the Employees’ Provident Fund Organisation (EPFO), a government release on Saturday said. The statement comes after several subscribers and trade unions flagged concerns about issues in opting for higher pension online including documentation and a disclaimer for pension formula.

The EPFO said it closed the option on March 4, 2023 for the retired EPS members (prior to September 1, 2014 and whose options were not considered earlier) and under this category of employees, it received 91,258 online applications as on March 4. For persons who were EPF members as on September 1, 2014, the online applications have been allowed from the employees since February 27 and 8,897 members have applied to their employers, the labour ministry release said.

“…the contributions of both the employee and employer on higher wages are involved, the EPF and EPS-95 schemes require the joint request when they contribute on higher salary. This is not a new requirement and predates the EPS-95 and the position has been affirmed by SC in the RC Gupta case stating that it is a necessary pre-cursor for exercising joint option on higher salary under EPS…EPFO has been making all-out efforts to publicize the process of joint option which can be submitted online till 03rd May, 2023,” it said.

Meanwhile, Centre of Indian Trade Unions (CITU) in another letter for the second consecutive day to the EPFO’s Central Provident Fund Commissioner on Saturday highlighted issues in the online portal to opt for the higher pension scheme. “…you have unnecessarily invoked the para 26(6) of EPF Scheme and asked the employees and pensioners to attach “permission” document from EPFO supposed to be granted under para 26(6). Not a single employee or retiree is in possession of any such document of deduction of PF on their actual wage from the date of his employment,” the letter said.

It also pointed out issues with a disclaimer put out by the EPFO on the portal. “Please see the last line in the Disclaimer in your portal – to quote “I undertake that the pension will be calculated subject to formula determined under the Scheme for this purpose”. And similarly another undertaking in the long lists of declarations numbered as 3- to quote “I further undertake that the Central government is empowered to amend the scheme as it may deem fit”. It is well known to everybody that the pension formula is legally defined and the power of the Central government thereon is also obviously clear. As such the pension calculation formula has already been specified/defined in the Scheme…then why such disclaimer is inserted?,” the letter said.