The Employees' Provident Fund Organisation (EPFO) has introduced measures to facilitate the application process for a higher EPS pension. There are still 12 days left for employees to submit their applications; the deadline is June 26, 2023. The EPFO has issued a circular outlining the necessary paperwork and the formula for calculating pensions based on a higher wage in an effort to clarify the process of requesting a higher pension.

 

For individuals who retired before September 1, 2014, the pension calculation formula involves averaging the monthly pay during the contributory period of service within the 12 months preceding the date of exiting the pension fund membership. On the other hand, those who retired or will retire on or after September 1, 2014, will have their pensions calculated based on the average monthly pay over a contributory period of service spanning 60 months prior to the exit date from the pension fund membership. Currently, the formula used for calculating pensions under the EPS scheme is as follows: (Average salary of 60 months X service period) divided by 70.

 

Additionally, in another circular released by the EPFO, field officials have been directed to verify applications with a list of documents in cases where proof of joint request/undertaking/permission from the employer is not readily available. This procedure is intended to make it easier for applicants who are qualified for a higher pension under the Honourable Supreme Court decision from November 4, 2022.

 

Individuals must submit their application by June 26, 2023, or earlier to opt for a higher EPS pension. Failure to apply for a higher pension will result in a larger accumulation in the EPF corpus, but if you expect to retire early, this option might be better. This is due to the fact that EPS pension eligibility is only awarded after ten years of employment and reaching 58. Individuals receive a formula-based pension from the EPS and a lump sum tax-free amount from the EPF account when they retire.

 

The EPFO circular stated: Whereas a situation has arisen where joint request/ undertaking/ permission under Para 26(6) are not readily available with most of the applicants who have filed Applications for Validation of Option / Joint Options covered under Hon’ble Supreme Court judgment dated 04.11.2022. Accordingly, only in case of applicants otherwise eligible for pension on higher wages as per the directions of the Hon’ble Supreme Court judgment dated 04.11.2022, for scrutiny regarding Para 26(6), the following procedure may be followed:

 

(i) Field Offices will verify that

a) Employer share of PF contribution has been remitted on employee’s pay exceeding the prevalent statutory wage ceiling of Rs5,000/6,500/15,000 per month from the day the payment exceeded the wage ceiling or 16.11.95 whichever is later, till date/ till the date of retirement or superannuation as the case may be; and

 

b) Administrative charges payable by the employee have been remitted on such higher wages; and

 

c)  Provident Fund account of the employee has been updated with interest as per Para 60 of EPFS,1952 on the basis of such contribution received; and

 

d) Any of the following documents have been submitted along with Applications for Validation of Option / Joint Options as proof of joint option and permission under Para 26(6).

 

To apply for a higher pension under EPS through the EPFO portal, employees can follow these steps:

1. Visit the Member e-Sewa portal: https://unifiedportal-mem.epfindia.gov.in/memberinterface/

2. Select the option "Pension on higher salary: Exercise of joint option"

3. Choose the "Application form for joint options - Joint options"

4. Enter the necessary details, including UAN, Name, Date of birth, Aadhaar number, Aadhaar linked mobile number, and captcha.

5. Click on "Get OTP" to receive a one-time password on the registered mobile number.

6. Validate the details provided.

7. Click on "Submit" to complete the application process.

 

After successfully submitting the application, an acknowledgment number will be generated.

 

These recent measures by the EPFO aim to streamline the application process for a higher EPS pension, ensuring that employees have the necessary information and guidance to make informed decisions about their retirement benefits.