Higher EPF Scheme | Extend deadline, simplify application process, employers tell EPFO

Employers claim the process has to be done meticulously and should be simplified; some pensioners object to validation process; Centre says sufficient time given, but all concerns will be addressed

Updated - June 23, 2023 10:30 am IST - NEW DELHI

Employers have demanded that the EPFO provide access to its data for individual employees since 1995. File  

Employers have demanded that the EPFO provide access to its data for individual employees since 1995. File   | Photo Credit: Reuters

Higher EPF Scheme

As the June 26 deadline to submit joint options to claim higher provident fund pensions nears, several employers and their representatives are learnt to have approached the Employees Provident Fund Organisation (EPFO), seeking an extension, as well as a simplified process.

The employers argued that since the process involved the transaction of an employee’s hard-earned money, it should be done meticulously and needed more time. Union Labour Minister Bhupender Yadav said sufficient time had been given, but added that the Centre would address all concerns.

Also Read | Explained: A breakdown of the higher pension scheme

‘Simplify process’

K.E. Raghunathan, who represents employers in the EPFO’s central board of trustees, confirmed that employers had raised certain grievances with the EPFO. “The process of ratifying joint options has to be done meticulously as it is involving money transactions. The employer will have to comply with certain formalities. But during COVID, several companies have stopped operations. Data of pensioners beyond seven-eight years might have been lost. Considering this, I am sure the EPFO will extend the date of joint submission,” he said, adding that such hurdles were beyond employers’ control.

“They are not able to fill up the details. The date has to be extended and a simplified process should be brought in place,” he added.

Once an employee submits the joint option, the employer will have to ratify it by uploading month-wise details from November 1995, the month from which the Employees Pension Scheme started. As the employers may not have maintained such details, they have demanded that the EPFO provide access to its data for individual employees since 1995.

Validation problems during process

Pensioners have also raised certain objections regarding the application process. Parveen Kohli, an activist for pensioners’ rights, said that the pensions of 24,672 retirees had been revised after they exercised the joint option in 2017-2018, on the basis of an EPFO HQ circular issued on March 23, 2017, implementing the R.C. Gupta judgement of the Supreme Court.

“Their pension had also been revised after acceptance/approval of the joint option. Now, we have been asked to apply for validation of these joint options. But when we apply, there is no opportunity to select any such date beyond August 31, 2014. Supreme Court has nowhere allowed EPFO to unsettle the settled cases, particularly when we were not a party to the litigation, as there was no cause of action/grievance because we were already getting higher pension after exercising a joint option in 2017/2018 in the format provided by EPFO,” Mr. Kohli said, adding that though he had submitted written complaints to the EPFO, the matter had not yet been solved.

Talking to reporters on Thursday, the Labour Minister said that the Centre had taken steps to implement the Supreme Court judgement on higher pensions. When asked if the date for submitting joint options would be extended, Mr. Yadav said that the Centre had given adequate time for submissions. “We will address all the concerns raised,” he added.

How to apply for the higher pension EPF scheme, eligibility criteria and deadline
As the June 26 deadline to submit joint options to claim higher provident fund pensions nears, find out how to apply for the higher pension scheme, the eligibility, and the deadline as of June 23, 2023:
EPF higher pension eligibility
According to the EPFO issued circular in December 2022 below are the eligibility criteria for a higher pension:
1. The employees retired before 01/09/2014.
2. The employees exercised the joint option under para 11(3) of EPS-95 while being a member of EPS-95.
3. The employees and employers contributed EPS on salaries exceeding the wage ceiling of ₹5,000 or ₹6,500. The EPFO declined the exercise of such an option.
Note: EPFO circular did not provide a higher pension option for employees who were part of the EPF before 01/09/2014 but still working/retired after 2014. As per the Supreme Court judgement, such employees were also eligible to claim a higher pension. Thus EPFO issued another circular in February mentioning higher pension eligibility criteria for employees in service/retired after 2014. Below are the eligibility criteria to file a joint option for getting a higher pension:
1. The employees who were members before 01/09/2014 continued to be members after that date.
2. The employees and employers contributed to EPS on salaries exceeding the wage ceiling of ₹5,000 or ₹6,500.
3. The employees and employers were members of EPS-95 and did not exercise the joint option provided under the deleted para 11(3) of the EPS and amendment of 2014.
3-step process to apply for the higher EPF scheme
Claim a higher pension amount for employees retired before 2014 in these three steps:
Step 1: Employees need to visit the EPFO Unified Member portal.
Step 2: Click on the ‘Pension on Higher Salary: Online application for validation of Joint Option’ option.
Step 3: Fill in the details and submit the form.
Deadline
The deadline to apply for the higher EPF scheme as of date June 23, 2023, is June 26, 2023. Please note that the deadline date may be updated.
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