As EPFO higher pension scheme deadline arrives, check eligibility, interest rate and other details
In its April 23 order, the EPFO said that applications for higher pension will be vetted and verified by the field office.
The Employees’ Provident Fund Organisation (EPFO) has set May 3 as the last date to submit an application for higher pension under the Employees' Pension Scheme (EPS). With the looming deadline, the EPFO has shared new information on checking wage details of employee and employer. In its April 23 order, the EPFO said that applications for higher pension will be vetted and verified by the field office.
Amit Gupta, MD, SAG Infotech, told HT’s sister publication LiveMint that there has been no reason provided for a spike in applications for pension. An EPFO circular announced that the process to avail higher pension was not automated and that the member was responsible for meeting the eligibility requirements.
Documents to submit
Employees should share an agreement to allow the transfer of funds from the provident fund to the pension fund, proof of the employer's share in the provident fund on wages surpassing the standard ₹5,000/ ₹6,500, and a joint option form with a declaration from the employer and employee for a higher contribution to the EPS as high as 8.33% of the actual wages in the future, said Gupta.
Who all are eligible now?
1) Employees who became members before 1 September 2014 and continue to be one
2)Employees and employers who had contributed a salary exceeding the standard wage ceiling of ₹5,000 or ₹6,500.
“In the cases where FO details and employers' details match, the dues will be calculated and an order will be passed by APFC/RPFC-II/ RPFC-I for depositing/transferring the dues. In the cases where there is a mismatch, the same will be informed to the employer and the employee/pensioner by APFC/ RPFC-II. They will be given a time of one month to complete the information. If complete information is received, the case shall be processed further as at 3 above. However, if complete information is not received within one month, the order will be passed on merit by the APFC/RPFC-II/RPFC-1," EPFO said in its order.
How to apply
After submitting the application on the EPFO portal (https://unifiedportal-mem.epfindia.gov.in/memberinterface/) along with the necessary documents, it will be monitored by the employer post-submission by the EPFO officer.
If the information provided is found to be accurate, the eligible dues will be calculated and transferred.
If there are any missing details, the employee and employer will be contacted by EPFO and given a month’s time to rectify the errors..
The interest rate on EPF rose to 8.15% in FY23, the highest in the small savings category.