Communist Party of India (Marxist) or CPI(M) Rajya Sabha MP John Brittas has written to Union minister of labour and employment Bhupender Yadav saying that the stipulation of uploading proof of joint option in the Employees’ Provident Fund Organisation (EPFO) website for providing higher pension to pensioners is “impractical” and a “subversion to the judgment of” the Supreme Court. He also urged the minister to withdraw the condition saying that it is becoming a hurdle for the pensioners.
Brittas noted that for an employee, who continued in service on or after September 1, 2014, the online portal made it obligatory to upload the ‘proof of joint option’.
“Even after the non-acceptance of this ground, EPFO surreptitiously tries to introduce in the newly rolled out online portal the requirement of submission of proof of joint option under para 26(6) of the EPF Scheme, thereby debilitating the already exhausted hapless pensioners. It would be highly appalling for EPFO to tacitly adopt such an insolent attitude,” Brittas said.
“Without prejudice to the above, it may also be noted that it would be impossible for the eligible members of the EPF Scheme to submit such a ‘non-existing’ joint option document as no employer, who paid Employer’s contribution to the Provident Fund in proportion to the actual salary, might have taken prior permission under para 26(6) of the EPF Scheme, 1952. As such, demanding of a non-existing joint option from pensioners by EPFO, with the clear knowledge of its non-existence, amounts to a breach of the Court directives. Such a contumacy attitude is highly unbecoming for an organization like EPFO,” he added.
In his letter, Brittas further stressed how the online facility required the linkage of the EPF pensioner’s Aadhaar card, which he claimed may be difficult for pensioners who do not have an Aadhaar card or whose Aadhaar card details are not up to date.
{{/usCountry}}In his letter, Brittas further stressed how the online facility required the linkage of the EPF pensioner’s Aadhaar card, which he claimed may be difficult for pensioners who do not have an Aadhaar card or whose Aadhaar card details are not up to date.
{{/usCountry}}He added, “Besides, the demand of Aadhaar in the online portal has to be reviewed in the light of the Puttaswamy Judgment wherein the personal privacy and data protection are held as sacrosanct. The online portal seeks details of Universal Account Number (UAN), name, Aadhaar number, mobile number (linked to Aadhaar), etc. which should match the EPFO records, which may not always be possible on practical considerations. Any mismatch, as it stands, may lead to the rejection of claim for higher pension. This is not what the Supreme Court has envisaged while promulgating the judgment.”
The Employees’ Provident Fund Organisation (EPFO) on 20 February issued guidelines to allow a section of its older members to opt for higher pension under the Employees’ Pension Scheme (EPS) almost 12 days before the end of the four-month window allowed to employees by the Supreme Court in its November 4, 2022 ruling that upheld the Employees’ Pension (Amendment) Scheme, 2014.
A three-judge Bench of then Chief Justice of India U U Lalit and justices Aniruddha Bose and Sudhanshu Dhulia upheld the 2014 amendments but extended the time to opt for the new scheme by four months. The operation of the amendment requiring members to make the 1.16% contribution was suspended by the court for six months.
The amendments of August 22, 2014 raised the pensionable salary cap to ₹15,000 a month from ₹6,500, and allowed members along with their employers to contribute 8.33% on their actual salaries (if it exceeded the cap) towards EPS. It gave all EPS members as on September 1, 2014 six months to opt for the amended scheme, extendable by another six months at the discretion of the Regional Provident Fund Commissioner.
The recent EPFO circular had noted that employees who had already contributed on higher wage but not exercised the option formally will be required to submit an application at the EPFO regional office. In case of the amount requiring adjustment from a provident fund to a pension fund, and any re-deposit to the fund, explicit consent of the employee will be given in the joint option form, the circular said, which was hindering pensioners to avail higher pensions, according to Brittas’ letter.