Gist of the Supreme Court's judgment dated 04th Nov 2022:
1. The provisions contained in the notification dated 22nd Aug 2014 issued under EPS are legal and valid.
2. The amendment made to the pension scheme is applicable to both the employees of the exempted and un-exempted establishments.
3. Employees who had exercised the option for a pension on a higher salary and continued to be in service as of 01st Sep 2014 can exercise the option afresh under paragraph 11(4) of the scheme within a period of 4 months from the date of judgment (i.e., 04th Nov 2022).
4. Members of the scheme who did not exercise the option but against whom the employer was depositing contributions on their full wages can exercise the option afresh under paragraph 11(4) of the scheme within a period of 4 months from the date of judgment (i.e., 04th Nov 2022).
5. Employees who retired prior to 01st Sep 2014 without exercising any option will not be entitled to the benefit of this judgment.
6. Employees who retired before 01st Sep 2014 upon exercising the option for a pension on a higher salary shall be eligible to receive the benefit as it stood prior to the amendment of 2014.
7. The amendment that mandated the members to continue to contribute at the rate of 1.16% of their salary exceeding Rs.15,000 per month as an additional contribution is held to be ultra vires to the provisions of the 1952 Act.
8. However, EPFO can collect this amount from the members for a period of 6 months as a stop-gap measure, and the same shall be adjusted in accordance with the alteration to the scheme which shall be made within a period of 6 months by EPFO.
9. Pensionable salary shall be computable on the average wages of 60 months instead of 12 months.
10. The directives contained in the judgment (RC Gupta v. RPFC) be implemented within a period of eight weeks subject to the aforementioned points.
1. The provisions contained in the notification dated 22nd Aug 2014 issued under EPS are legal and valid.
2. The amendment made to the pension scheme is applicable to both the employees of the exempted and un-exempted establishments.
3. Employees who had exercised the option for a pension on a higher salary and continued to be in service as of 01st Sep 2014 can exercise the option afresh under paragraph 11(4) of the scheme within a period of 4 months from the date of judgment (i.e., 04th Nov 2022).
4. Members of the scheme who did not exercise the option but against whom the employer was depositing contributions on their full wages can exercise the option afresh under paragraph 11(4) of the scheme within a period of 4 months from the date of judgment (i.e., 04th Nov 2022).
5. Employees who retired prior to 01st Sep 2014 without exercising any option will not be entitled to the benefit of this judgment.
6. Employees who retired before 01st Sep 2014 upon exercising the option for a pension on a higher salary shall be eligible to receive the benefit as it stood prior to the amendment of 2014.
7. The amendment that mandated the members to continue to contribute at the rate of 1.16% of their salary exceeding Rs.15,000 per month as an additional contribution is held to be ultra vires to the provisions of the 1952 Act.
8. However, EPFO can collect this amount from the members for a period of 6 months as a stop-gap measure, and the same shall be adjusted in accordance with the alteration to the scheme which shall be made within a period of 6 months by EPFO.
9. Pensionable salary shall be computable on the average wages of 60 months instead of 12 months.
10. The directives contained in the judgment (RC Gupta v. RPFC) be implemented within a period of eight weeks subject to the aforementioned points.
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