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Online facility released by the Employees’ Provident Fund Organisation for members to opt for higher pension under the Employees’ Pension Scheme, 1995
This Alert summarizes the requirement of filing the online application form for availing higher pension benefit by domestic employees contributing to the Employees’ Pension Scheme, 1995 (Pension Scheme) pursuant to the Supreme Court of India ruling[1] dated 4 November 2022 and the circular issued by the Employees’ Provident Fund Organisation (EPFO) dated 20 February 2023.
Basis the said Supreme Court ruling and the EPFO circular, the employees who satisfy the following conditions may, along with their employers, submit joint option application with the EPFO under the Pension Scheme to avail higher pension:
- Employees and employers who had contributed to the Provident Fund Scheme on salary exceeding the prevalent statutory ceiling
- Who did not exercise the option for higher pension earlier
- Who were members of the Pension Scheme prior to 1 September 2014 and continued to be members on or after 1 September 2014
The applications were required to be filed within 4 months from the date of the ruling (i.e., on or before 3 March 2023). For further details on higher pension option, the Supreme Court ruling of 4 November 2022 and the EPFO circular of 20 February 2023, please refer to our previous alert dated 21 February 2023 – please click here.
On 27 February 2023, the EPFO has activated an online facility for members to submit the higher pension option application form. Further, the EPFO has specified on the online portal that such option can be exercised till 3 May 2023 (as against 3 March 2023 as per the Supreme Court ruling).
Employees need to submit specific personal details, Pension Scheme membership details, provide response to various questions relating to joint option and transfer of corpus from the Provident Fund Scheme to the Pension Scheme, attach documents showing contributions to the Provident Fund Scheme on higher salary and confirm on various declarations.
The EPFO is yet to issue guidelines on how these applications will be processed, method of deposit/adjustment of past corpus and method of computation of pension.
[1] Special Leave Petition (C) Nos. 8658-8659 of 2019