EPFO Shocks Pensioners, Hopes for Higher Pension Crushed?

The Employees’ Provident Fund Organisation (EPFO) has recently implemented measures that have sparked concerns among pensioners seeking higher pensions under the Employees’ Pension Scheme (EPS). Despite a Supreme Court ruling on November 4, 2022, that allowed eligible employees to opt for higher pensions based on their actual salaries, the EPFO’s strict implementation process has created significant challenges for many.

EPFO Shocks Pensioners

While the Supreme Court had given pensioners hope for higher pensions under EPS, the EPFO’s strict documentation requirements have made it challenging for many to benefit. The government has approved pensions for a limited number of people, but trade unions are demanding broader reforms. If you’re eligible, it’s crucial to apply as soon as possible and ensure that you have the necessary documents to avoid rejection.

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EPFO Shocks Pensioners The Higher Pension Challenge: What’s the Issue?

Under the EPS-95 pension scheme, pensioners have long demanded higher pensions based on their full salaries rather than a capped salary of ₹15,000 per month. While the Supreme Court ruling in 2022 provided relief, the EPFO’s implementation process has made it difficult for many employees to actually avail the benefit.

Strict Documentation Requirements

EPFO has introduced an online application system, requiring pensioners to provide proof of previous joint applications with their employers requesting higher contributions. This is problematic because:

1. Most employees did not formally submit such applications in the past.
2. Many employers do not maintain old records of such contributions.
3. The requirement was not a common practice, making it impossible for many pensioners to comply.

Who Is Eligible for Higher Pension?

Employees who meet the following criteria can opt for a higher pension:

1. Were EPF members before September 1, 2014.
2. Made contributions beyond the salary ceiling of ₹5,000 or ₹6,500.
3. Have their employers’ consent for joint applications.
4. Submit proof of contributions exceeding wage limits.

EPFO Shocks Pensioners Government Initiatives: What’s Being Done?

Despite the documentation hurdles, the government has taken some steps to ease the process:

Approval of Higher Pensions

1. So far, 22,000 pensioners have received confirmation of higher pensions.
2. Additional 1.65 lakh pensioners have been asked to deposit the required amounts to qualify.
3. A total of 17.48 lakh applications have been submitted for higher pensions under EPS-95.

Trade Union Demands: Pushing for a Fairer System

Several trade unions have criticized the EPFO’s restrictive policies and have made the following demands to the government:

1. Increase the minimum EPFO pension to ₹5,000 per month (from the current ₹1,000 per month).
2. Implementation of the 8th Pay Commission to ensure fair salary and pension revisions.
3. Higher taxation on the super-rich to improve pension schemes.
4. Income tax exemption for pensioners to ease their financial burden.
5. Social security for gig workers and agricultural laborers.
6. Restoration of the Old Pension Scheme (OPS), which was more beneficial for retirees.

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EPFO Shocks Pensioners What Pensioners Can Do: A Step-by-Step Guide to Applying for Higher Pension

If you believe you are eligible for a higher pension, follow these steps:

Check Eligibility

Visit the EPFO portal and confirm whether you qualify for a higher pension.

Gather Required Documents

Ensure you have the following:

1. EPF account details
2. Salary slips showing PF deductions beyond the ceiling limit
3. Employer’s joint declaration (if available)

Submit an Online Application

1. Log in to the EPFO member portal.
2. Select the Higher Pension Scheme application.
3. Upload necessary documents and submit.

Follow Up with Your Employer

Ensure your employer validates and approves your application before submission.

Track Your Application Status

Keep an eye on your EPFO account for updates.

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EPFO Shocks Pensioners (FAQs)