Dear Sir Please guide us about PF Eligibility for Higher Pension.
From India, Warangal
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12From India, Warangal
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Basically, only those who have paid contributions on higher wages without restricting the same to Rs 15,000 (previously Rs 6,500) will be eligible for a higher pension. Therefore, if your PF contribution has been limited to 12% of Rs 15,000, then forget about the higher pension.
Again, if you have contributed on a higher salary, in order to get a higher pension, you have to overcome a few other hurdles. The EPFO has interpreted the High Court of Kerala verdict and the Supreme Court verdict in this matter differently to deceive the members. They have started recovering the amount overpaid to those who are already receiving a higher pension. They are stating that a higher pension will only be available to those who opted in 2014. This was challenged in court, and the court has granted time to submit fresh options. However, the EPFO has taken a new approach now. They have created a link on the portal, but it is not accessible to those who did not opt in 2014 or whose higher contribution options were not rejected by the EPFO.
Therefore, to understand what will happen to you, you will need to await the fresh circulars from the EPFO.
From India, Kannur
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Again, if you have contributed on a higher salary, in order to get a higher pension, you have to overcome a few other hurdles. The EPFO has interpreted the High Court of Kerala verdict and the Supreme Court verdict in this matter differently to deceive the members. They have started recovering the amount overpaid to those who are already receiving a higher pension. They are stating that a higher pension will only be available to those who opted in 2014. This was challenged in court, and the court has granted time to submit fresh options. However, the EPFO has taken a new approach now. They have created a link on the portal, but it is not accessible to those who did not opt in 2014 or whose higher contribution options were not rejected by the EPFO.
Therefore, to understand what will happen to you, you will need to await the fresh circulars from the EPFO.
From India, Kannur
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Sir, Contributions on higher wages by employees and employers were made between 16.11.1995 and 31.08.2014. However, from 01.09.2014, employee contributions were made on higher wages, whereas "employer contributions" were limited to 12% of 15000 (550+1250). In this case, is the eligibility for a pension based on higher wages during 16.11.1995 to 31.08.2014 still existing? Are the employees eligible to exercise the option?
Thanks & Regards,
Kiran Raj
From India, Mumbai
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Thanks & Regards,
Kiran Raj
From India, Mumbai
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No. The employer should contribute to higher wages, and the same higher wages should be considered for contribution to the pension fund. That is, instead of contributing 8.33% of Rs 15,000, the employer should contribute 8.33% of wages higher than Rs 15,000. Only then will the employee be able to receive a higher pension. This is why the EPFO is requesting a joint declaration. The employer's contribution towards EPF is a cost to the company, and the offer is always on a CTC basis, so there is no issue for the employer to pay it on a higher salary.
Employee Contribution for Higher Pension
Now, moving on to the case of an employee still in service, the period before 2014 when the employee and the employer had made contributions based on a higher salary is not relevant. What matters is the salary of the 60 months before the retirement date that will be considered for the pension. However, the option for both the employee and the employer to contribute based on a higher salary should be given now. Nobody can predict if the employee will remain with the same employer in the future or if a new employer will contribute based on a higher salary. But if the current employer is willing to provide a joint declaration, that should be accepted. If the option is not given, the opportunity to receive a higher pension will be lost forever.
From India, Kannur
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Employee Contribution for Higher Pension
Now, moving on to the case of an employee still in service, the period before 2014 when the employee and the employer had made contributions based on a higher salary is not relevant. What matters is the salary of the 60 months before the retirement date that will be considered for the pension. However, the option for both the employee and the employer to contribute based on a higher salary should be given now. Nobody can predict if the employee will remain with the same employer in the future or if a new employer will contribute based on a higher salary. But if the current employer is willing to provide a joint declaration, that should be accepted. If the option is not given, the opportunity to receive a higher pension will be lost forever.
From India, Kannur
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Dear Rupeshkumar Kiran, Please find the link to the registration request for the application form for the validation of joint options. This validation is for the employees who retired before 01.09.2014 and exercised joint options under para 11(3) of the EPS Scheme prior to 01.09.2014.
https://unifiedportal-mem.epfindia.g...InterfacePohw/
Please note that a duly signed joint declaration is necessary.
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https://unifiedportal-mem.epfindia.g...InterfacePohw/
Please note that a duly signed joint declaration is necessary.
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Dear Members, Please find attached an EPS option format for pre and post-retirees, as well as a joint option form for a higher pension for the benefit of all. Regards, Suresh
From India, Thane
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From India, Thane
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Dear Madhu Sir, The employee joined in January 2014, and his basic salary is currently 14,000. Now, if the present employer agrees to contribute to the Provident Fund (PF) based on higher wages for the employee, my question is: will he be eligible for a higher pension in the future or at present?
Thank you.
From India, Warangal
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Thank you.
From India, Warangal
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Ok. The first part of the requirement, i.e., joined before Sept 2014, is satisfied. However, he has been contributing Rs 14,000. Therefore, the second part of the requirement, i.e., contributing to EPF on a salary above Rs 15,000, is not satisfied. He will contribute based on a higher basic/actual salary. I need to recheck if this future tense will be permitted because all extensions are based on Constitutional rights, providing an opportunity once again. Therefore, I doubt he will not receive the benefit of a higher pension.
From India, Kannur
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From India, Kannur
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Sir Please clarify, he is eligible to higher pension or not, if we contribute on higher basic i.e., more than 15000/- statutory limit.
From India, Warangal
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From India, Warangal
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Option for Higher Pension Under EPS Scheme
Paragraph 11(3) of the EPS scheme provided an option (earlier) for those contributing on a higher salary. According to this, such employees were supposed to exercise the option within a certain time frame, i.e., by 1st September 2014. This was crystallized, and the Court allowed time up to 2nd March 2023. This means that this option can only be given to employees who have been contributing on a higher salary.
Please note that "all employees who did not exercise their option but were entitled to do so and could not due to the interpretation of the cut-off date (1st September 2014) ... time is extended for four months ..." This means, first of all, they should be the ones who have been contributing on a higher salary before September 2014. Therefore, you are not entitled to receive a higher pension even if you contribute on a higher salary in the future.
From India, Kannur
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Paragraph 11(3) of the EPS scheme provided an option (earlier) for those contributing on a higher salary. According to this, such employees were supposed to exercise the option within a certain time frame, i.e., by 1st September 2014. This was crystallized, and the Court allowed time up to 2nd March 2023. This means that this option can only be given to employees who have been contributing on a higher salary.
Please note that "all employees who did not exercise their option but were entitled to do so and could not due to the interpretation of the cut-off date (1st September 2014) ... time is extended for four months ..." This means, first of all, they should be the ones who have been contributing on a higher salary before September 2014. Therefore, you are not entitled to receive a higher pension even if you contribute on a higher salary in the future.
From India, Kannur
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Dear friends,
EPFO's latest move on higher pension recipients
The EPFO, in their latest move, has served notice on those pensioners who are receiving higher pension amounts as per various High Court and Honorable Supreme Court judgments, and also with the approval of MOL@E. They are required to submit evidence for contribution as per EPS Proviso 26(6) and proof of EPFO rejection of the option made while in service, jointly by the employee and employer under Proviso 11(3). The notice warns that if these records are not submitted within 15 days, the higher pension will be withdrawn.
Challenges faced by pensioners
The pensioners who are currently receiving higher pensions have already submitted records of 11(3) and 26(6) remittance in pursuit of that judgment. In fact, these records are not readily available with the pensioner. As per provident fund rules, no employee directly deals with EPFO. All transactions are conducted between the employer and EPFO. Obtaining such documents from the employer after 10-15 years of retirement within the specified time frame is not a simple task. However, for an agency determined to harass its members, such considerations are often overlooked.
Misinterpretation of the Supreme Court judgment
EPFO is misinterpreting the Supreme Court judgment, and it is on this basis that they have initiated this controversial move. Paragraph 41 of the Honorable Supreme Court judgment dated 4.11.22 has reaffirmed the decision in the R C Gupta case. The Honorable Court excluded pre-1.9.2014 retirees from the scope of this new judgment as they were already covered by the earlier judgment dated 4.10.2016 in the R C Gupta case. Unfortunately, this seems to have been disregarded.
Potential implications for pensioners
This latest move appears to be yet another attempt to push pensioners into litigation and prolong the case for another 5-10 years. Furthermore, there are indications that EPFO may be planning to apply a 60-month average salary for pensions instead of the 12-month average that pre-01-09-2014 retirees are currently receiving. They may cite the 04.11.22 judgment to support this change, as the Honorable Supreme Court had endorsed the adjustment.
Issues with the document submission portal
The portal provided for uploading documents is a reflection of the mindset of EPFO authorities. It appears to be unstable, as from yesterday early morning until now, the portal remains inaccessible. The deadline of March 03 remains unchanged!
Harid Vallyakam
Ernakulam.
From India , Thiruvananthapuram
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EPFO's latest move on higher pension recipients
The EPFO, in their latest move, has served notice on those pensioners who are receiving higher pension amounts as per various High Court and Honorable Supreme Court judgments, and also with the approval of MOL@E. They are required to submit evidence for contribution as per EPS Proviso 26(6) and proof of EPFO rejection of the option made while in service, jointly by the employee and employer under Proviso 11(3). The notice warns that if these records are not submitted within 15 days, the higher pension will be withdrawn.
Challenges faced by pensioners
The pensioners who are currently receiving higher pensions have already submitted records of 11(3) and 26(6) remittance in pursuit of that judgment. In fact, these records are not readily available with the pensioner. As per provident fund rules, no employee directly deals with EPFO. All transactions are conducted between the employer and EPFO. Obtaining such documents from the employer after 10-15 years of retirement within the specified time frame is not a simple task. However, for an agency determined to harass its members, such considerations are often overlooked.
Misinterpretation of the Supreme Court judgment
EPFO is misinterpreting the Supreme Court judgment, and it is on this basis that they have initiated this controversial move. Paragraph 41 of the Honorable Supreme Court judgment dated 4.11.22 has reaffirmed the decision in the R C Gupta case. The Honorable Court excluded pre-1.9.2014 retirees from the scope of this new judgment as they were already covered by the earlier judgment dated 4.10.2016 in the R C Gupta case. Unfortunately, this seems to have been disregarded.
Potential implications for pensioners
This latest move appears to be yet another attempt to push pensioners into litigation and prolong the case for another 5-10 years. Furthermore, there are indications that EPFO may be planning to apply a 60-month average salary for pensions instead of the 12-month average that pre-01-09-2014 retirees are currently receiving. They may cite the 04.11.22 judgment to support this change, as the Honorable Supreme Court had endorsed the adjustment.
Issues with the document submission portal
The portal provided for uploading documents is a reflection of the mindset of EPFO authorities. It appears to be unstable, as from yesterday early morning until now, the portal remains inaccessible. The deadline of March 03 remains unchanged!
Harid Vallyakam
Ernakulam.
From India , Thiruvananthapuram
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Very well said. The EPFO has dropped to the level of an organization that has no public interest and is not meant for the benefit of the employees. The proof required under 26(6) cannot be submitted by many pensioners due to various reasons. There are offices that have been closed in the due course.
Payments Made by Employers
At the same time, all payments made by the employer should be available in the EPFO server itself. However, they insist that pensioners should bring it just to delay the process.
From India, Kannur
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Payments Made by Employers
At the same time, all payments made by the employer should be available in the EPFO server itself. However, they insist that pensioners should bring it just to delay the process.
From India, Kannur
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Higher Pension Eligibility.jpg
EPFO Circular PF - Correction in Name.pdf