Employees’ Provident Fund Organization (EPFO) move to extend the deadline for the third timeThere is limited relief for employees and pensioners to exercise the joint option for higher pension, as several issues remain unresolved. since the whole process is the result of Supreme Court’s decision of November 2022 On the validity of the amendments made in Employees’ Pension Scheme (EPS) in 2014, the matter pertains to two categories of applicants – those who retired from service before 1st September 2014, and those who left service after the date and those who Still in service. So far about 16 lakh applications have been received. Yet another detail cannot be ruled out. After all, it is too early to indicate that higher pension disbursements will start in this financial year, even if the applicants fulfill all the terms and conditions. The Union Ministry of Labor and Employment, which oversees the EPFO, told the relevant parliamentary standing committee earlier this year that the implications of the court verdict on EPS were not taken into account while preparing the budget estimates for 2023-24.
The most important issue of concern is the lack of clarity on the amount pension members and pensioners will get, whether their applications will be accepted. Their concern is understandable as they – especially those still in service – give their consent to transfer a major portion of their PF savings to the pension fund. Though pensioners will have to make additional payments to be considered eligible for higher pension, they would also be interested to know how much pension they will get. Against this backdrop, EPFO has sent demand letters to around 1,000 pensioners and employees to recover dues. Since the calculator on EPFO’s website only indicates the amount to be transferred, it is time that EPFO gives an indicative figure of pension, at least for those applicants who have been issued letters. In the case of pre-2014 retirees, it appears that the PF authorities are yet to officially initiate communication about the status of their applications, even though, under the rules, most of these do not qualify for scrutiny. Can get off Employers have the onerous task of preparing physical records for each applicant. Since not all establishments will have these records, the sensible option for the EPFO would be to share its database with employers for the limited purpose of establishing the genuineness of the applicant. The situation is more complicated for establishments that no longer exist – there does not appear to be any way for their employees and pensioners to apply for higher pensions. Given that the spirit of the judgment is to provide a better social security net, the Union Ministry and the EPFO should be proactive in simplifying the process and ensuring that every eligible person gets the benefit.