Major development yesterday in Employees’ Pension Scheme (EPS) as around 22000 members of the Employees’ Provident Fund Organisation have started receiving higher pensions after the latest modification made by the government. On the contrary, over more than 1.65 lakh applicants have to furnish more contributions to get eligible for the increased pension benefits.
This particular verdict comes after the one passed by the Supreme Court in November 2022 which stated that eligible EPFO members might opt for greater pensions based on their real salary instead of the pensionable salary ceiling of ₹15,000. Now that the judgment has been passed, it opened a window for lakhs of EPFO subscribers who had retired or were retiring soon to lay one-time contributions to avail of the higher pension option within the EPS scheme.
Higher Pension Disbursed To Early Compliers:
EPFO stated that more than 22,000 beneficiaries have already started receiving increased pensions following the new formula. These are mainly the individuals who completed the mandatory formalities early, submitted joint options with their employers and contributed the necessary funds. Many of these were part of exempted establishments and proactively opted for higher contributions during service.
On The Other Hand, Over 1.65 Lakh Members
who applied for higher pensions will have the differential amount to pay between the capped pension contribution and that which would normally have been required based on their actual salaries during employment. This is a complicated process involving extensive calculations of past salaries, interest rates, and periods of employment, and EPFO has sent notice to members to make these additional payments for eligibility under the revised pension benefit.
To facilitate the smooth implementation of this reform, EPFO has initiated a massive verification drive to match employment records with salary history and employer certifications. Over 17 lakh applications have been received from EPFO members seeking the revision of their pension benefit and are being processed in phases, with priority given to members who retired before March 2023.
Conclusion
Dispersion of increased pensions to some 22000 members is considered a step towards fulfilling the promise made by the government regarding retirement benefits. However, additional contribution impacts affordability and transparency concerns among the applicants for higher pensions. While the process continues, one expects the EPFO to offer further communication and simplification of procedures for the fair and timely rollout of the higher pension benefits.
Also Read: RS 7,000 Minimum EPS Pension Approved With DA, Big Boost For EPFO Pensioners