EPFO Higher Pension Scheme: Last Chance To Opt For Post Retirement Money Under EPS; Heres How To Apply
EPFO Higher Pension Scheme: Last Chance To Opt For Post Retirement Money Under EPS; Here’s How To Apply
The EPS, which is administered by the EPFO, provides employees with pension after the age of 58. Both the employee and the employer contribute 12 per cent of the employee’s basic salary and dearness allowance to the EPF.
Dear member, we regret the inconvenience, the EPFO said in a tweet.
EPFO Pension Scheme latest news: The Employees’ Provident Fund Organisation (EPFO) has released guidelines has released guidelines on February 20, 2023, for employees who are entitled to more pension under the Employees’ Pension Scheme (EPS) but did not apply for it earlier.
The EPS, which is administered by the EPFO, provides employees with pension after the age of 58. Both the employee and the employer contribute 12 per cent of the employee’s basic salary and dearness allowance to the EPF.
The employee’s entire part goes to EPF, while the 12 per cent contribution made by the employer is split as 3.67 per cent contribution to EPF and 8.33 per cent contribution to EPS. Apart from this, the Government of India contributes 1.16 per cent as well for an employee’s pension. Employees do not contribute from their share of PF towards the pension scheme.
Earlier in November 2022, the Supreme Court had upheld Employees Pension (Amendment) Scheme 2014 and and laid out the procedures to apply for higher pension under the EPS scheme.
The EPS revision of August 22, 2014, increased the pensionable salary limit from Rs 6,500 per month to Rs 15,000 per month. Additionally, employees and employers were permitted to contribute 8.33 per cent of their actual salary to EPS. The Supreme Court upheld the Employees’ Pension (Amendment) Scheme, 2014, in November 2022.
EPFO Higher Pension Scheme: Who can apply?
According to the EPFO circular dated 20th February 2023, the following employees along with their employers can submit the joint option to the concerned regional office. Visit www.epfindia.gov.in for more details.
Employees and employers who had contributed on salary exceeding the wage ceiling of Rs 5,000 or Rs 6,500
Employees and employers who did not exercise the joint option in the previous window while being EPS members
Employees who were members before September 1, 2014, and continued to be a member on or after that date.
EPFO Higher Pension Scheme: How To Apply
The eligible subscribers would have to apply jointly with their employer for the enhanced benefit in the application form prescribed by the commissioner and all other required documents like joint declaration etc.
In the circular, the EPFO also provided for dealing with the ‘Joint Option Form’ by field offices of the body. Once the application form is submitted, the application will be dealt as specified under the circular.
EPFO stated that a facility will be provided for which URL (unique resource location) will be informed. Once received, the regional PF commissioner shall put adequate notice on the notice board and banners for wider public information.
Each application will be registered, digitally logged and the receipt number will be provided to the applicant.
It further stated that the office in-charge of the concerned regional provident fund office shall examine each case of joint option on higher salary and intimate the decision to the applicant through e-mail/post and later through SMS also.
It also provided that any grievance by the applicant can be registered on EPFiGMS (grievance portal) after submission of his joint option form and payment of due contributions, if any.
In case of transfer of funds from exempted provident fund trust to pension fund of EPFO, an undertaking of the trustee shall be submitted. The undertaking shall be to the effect that due contribution along with interest up to the date of payment, will be deposited within the specified period.
In case of transfer of funds from exempted provident fund trust to pension fund of EPFO an undertaking of the trustee shall be submitted. The undertaking shall be to the effect that due contribution along with interest up to the date of payment, will be deposited within the specified period
EPF contribution rule
Currently, employees and employers contribute 12% of the employee’s basic salary and dearness allowance towards EPF. While the employee’s entire contribution goes towards EPF, the employer’s 8.33% contribution goes to EPS and 3.67% to EPF.
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