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CPI MP demands extension of deadline for EPS members to apply for higher pension
Communist Party of India member of Parliament Binoy Viswam also urged the Centre to introduce a thorough, transparent and agreeable plan for the process
The Communist Party of India (CPI) on Monday urged the Centre to extend the deadline for individuals applying for higher pensions under the Employees’ Pension Scheme (EPS) and introduce a “thorough, transparent and agreeable plan” for the process saying that it had till now been a “struggle”.
CPI member of Parliament (MP) Binoy Viswam in a letter to Union minister of labour and Employment Bhupendra Yadav said, “In compliance with the directives issued by the Supreme Court, the Employees’ Provident Fund Organization (EPFO) allowed employees and pensioners who retired after September 1, 2014 to submit joint options with employers to claim higher pensions. However, the process which includes multiple organisations, employees and retirees is not nearly complete when I write this letter to you. During the extension period, several issues have affected the exercise and employees and retirees have struggled to submit their credentials. The EPFO has remained largely inactive in assisting those who wanted to opt for higher pension.”
Vishwam added that to make matters “worse”, the EPFO had come out with another circular on April 23, 2023 asking its members to give consent to deduct an amount that is yet to be decided and would be calculated based on a yet-to-be announced new EPS contribution and past due deduction methodology. “When the last date is inching closer, the Union Government has decided to wait for the total number of applicants before revealing the procedure to calculate pensions indicating lack of clarity in the highest quarters and fueling confusion among the members of EPFO.”
The CPI leader further stressed that the process had not been user friendly for the ones seeking higher pension with several glitches and users had reported that the EPFO kept changing the interface to the last minute further making the whole process more confusing.
“Amidst the confusion and logistical issues, many are sure to be left out of the exercise, defeating the purpose of Supreme Court directives,” he said.
After a Supreme Court verdict in November 2022, the EPFO agreed to allow eligible members to opt for a pension calculated on a higher salary, and eligible employees were given four months from the date of the ruling to choose the higher pension. The application deadline was thus extended to March 3, 2023.
However, when multiple stakeholders including the EPFO approached the Ministry of Labour & Employment demanding an extension of the deadline, it was stretched to May 4.
Employees who were members of EPFO and EPS, prior to September 1, 2014, and who continue to be in service but missed availing the higher pension option earlier are eligible to apply. Those who retired before this date and had signed up for the higher pension option will have to validate the information.
The documents that an eligible employee must submit include 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 higher wages exceeding the standard wage ceiling of ₹5,000/ ₹6,500, and a joint option form with a declaration from the employer and employee.
Both employers and employees have to submit a joint declaration to the EPFO stating that they wish to opt for higher pension. The employer will have to approve the information.
