EPFO Customers Big News: All eligible members can opt and apply jointly with their employers for higher pension till May 3, 2023 at unified members’ portal of retirement fund body EPFO. Earlier, there were apprehensions that March 3, 2023 is the last date for opting for higher pension. The URL on the EPFO unified members’ portal activated recently shows clearly that the last date for availing the option of higher pension is May 3, 2023.
“In an important move, EPFO has extended the timeline from 3 March 2023 to 3 May 2023 to enable exercise of the option of higher contributions towards employees’ pension scheme by employees who were members of the scheme as of 1 September 2014 but did not exercise their option for higher pension benefits under both the scheme as it stood prior to 2014 amendment and under the amended scheme. Notably, from the details available on the social security regulator’s website, this facility has not been extended to those members of the scheme who had exercised their option for higher pension benefits under the erstwhile provisions of the scheme but did not provide a fresh option to EPFO once the 2014 amendment was effectuated. Notwithstanding that, the development holds relevance when viewed from the perspective of the time taken by EPFO to roll out a framework for such higher contributions since the ruling of the Supreme Court in this regard (4 November 2022) and the apprehension of the likely spate of petitions from employee-members before the apex court for extension of the timeline,” said Anshul Prakash, Partner Employment Labour & Benefits, Khaitan & Co.
Earlier, the Supreme Court in its order on November 4, 2022 had mandated the Employees’ Provident Fund Organisation (EPFO) to provide four months to all eligible members to opt for higher pension.
The four-month period for opting for higher pension was to end on March 3, 2023 in view of apex court order. Thus, there were apprehensions among members that the deadline will end on March 3, 2023.
Last week, EPFO came out with a procedure to enable subscribers and their employers to jointly apply for higher pension under Employees’ Pension Scheme (EPS).
In November 2022, the Supreme Court had upheld Employees’ Pension (Amendment) Scheme 2014. The EPS amendment of August 22, 2014 had raised the pensionable salary cap to ₹15,000 a month from ₹6,500 a month, and allowed members along with their employers to contribute 8.33 per cent of their actual salaries (if it exceeded the cap) towards EPS.
