EPFO implements SC order, Option for higher pension to eligible

On December 29, 2022, the Employees Provident Fund Organization (EPFO) issued a circular directing the central government to carry out the ruling of the Supreme Court. The retirement fund organisation EPFO has instructed its field offices to give eligible subscribers the choice of a greater pension in compliance with a Supreme Court judgement issued on November 4, 2022.The field offices have been told to follow "the directions stated in para 44 (ix) of the Supreme Court judgement of November 4, 2022" within the allotted time frame and to make sure the EPFO's decision to follow the abovementioned directions is adequately publicised, according to the circular.

As per the circular, only those employees are eligible who contributed to higher wages as mandated under the Employees’ Provident Fund (EPF) Scheme and have exercised their option for higher pension prior to their retirement but their request was explicitly denied by the EPFO.

Hence, the following pensioners can apply for higher pension:
a) The pensioners who as employees had contributed on salary exceeding the then prevalent wage ceiling of Rs 5,000 or Rs 6,500; and
b) Exercised joint option under the Employees’ Pension Scheme (EPS) of the pre-amendment scheme while being members of EPS-95, and
c) Their exercise of such option was declined by the EPFO.

In its ruling, the apex court extended the time period for eligible subscribers to choose a higher pension under EPS-95 by four months. The 2014 amendments' provision for an employee contribution of 1.16 percent of salaries above Rs 15,000 per month was also repealed by the court. This will make it easier for subscribers to make larger contributions to the plan and receive higher rewards as a result.

For those eligible subscribers who either contributed on actual wages higher than the then-current threshold pensionable salary of Rs 5,000 or Rs 6,500 per month, exercised their option for a higher pension, or had their request for a higher pension turned down by EPFO authorities prior to the amendment to EPS-95 in 2014, the EPFO circular also offers a higher pension option. The qualified subscribers would have to submit an application for the enhanced benefit in the form provided by the Commissioner along with all other necessary documents, such as a joint declaration and other supporting documentation.