(EPFO Pension Orders) : In a significant move, the Employees’ Provident Fund Organization (EPFO) has issued 21,885 pension orders while directing 1.65 lakh employees to deposit additional amounts to qualify for higher pensions. This directive is a part of the ongoing process to align with the Supreme Court’s ruling on higher pension eligibility under the Employees’ Pension Scheme (EPS-95). The decision is expected to impact lakhs of pensioners and working professionals who have opted for higher contributions.
What Is the EPFO’s Latest Decision on Pension Orders?
EPFO has started issuing revised pension orders for employees who had opted for a higher pension under EPS-95. Here’s a breakdown of the latest developments:
- 21,885 pension orders have been issued under the revised scheme.
- 1.65 lakh employees are required to deposit additional funds to be eligible for the higher pension.
- The total pension claims processed so far under the higher pension scheme are over 3 lakh.
- EPFO is ensuring that all eligible employees receive their due benefits in a phased manner.
What Is the Higher Pension Scheme Under EPS-95?
The Employees’ Pension Scheme (EPS-95) is a retirement scheme managed by EPFO that provides monthly pension benefits to eligible employees. In November 2022, the Supreme Court ruled that employees who contributed higher amounts to their Provident Fund (PF) could also avail themselves of higher pensions under EPS.
Key Highlights of the Higher Pension Scheme:
- Employees who contributed above the ₹15,000 salary cap can now receive a pension based on their actual salary.
- Employees who had not opted for higher pension earlier were given a deadline to apply.
- Higher contributions mean an increase in pensionable salary, leading to larger monthly pensions.
How Many Employees Are Affected?
The latest numbers released by EPFO show a large-scale impact of the new pension structure.
| Category | Numbers Affected |
|---|---|
| Total Pension Orders Issued | 21,885 |
| Employees Required to Deposit More | 1.65 Lakh |
| Total Applications Received for Higher Pension | 3.5 Lakh |
| Claims Processed So Far | 3 Lakh |
| Employees Yet to Receive Approval | 50,000 |
This data suggests that while several claims have been settled, there are still many employees waiting for their revised pension orders.
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Who Needs to Deposit Additional Amounts for Higher Pension?
EPFO has instructed 1.65 lakh employees to deposit additional amounts to qualify for a higher pension. These employees fall into the following categories:
- Employees who did not contribute beyond the ₹15,000 salary limit but now wish to receive a higher pension.
- Those who had earlier opted out of higher pension contributions and are now seeking inclusion.
- Employees whose past contributions need adjustments to match the new pension calculation.
How Will the Additional Contribution Work?
To be eligible for the revised pension, these employees need to:
- Deposit a lump sum amount for the past shortfall in contributions.
- Provide proof of willingness to opt for a higher pension.
- Submit the required forms and documentation to EPFO before the deadline.
How Does This Impact Retirees and Working Employees?
The move is expected to have a major impact on pension calculations for both retirees and working professionals.
For Retirees:
- Pensioners who opted for higher contributions earlier will now receive an increase in their monthly pension.
- Those who had not opted before may now be required to deposit additional amounts to qualify.
For Working Employees:
- Employees currently in service will have the option to adjust past contributions to ensure they receive a higher pension after retirement.
- Future pension calculations will be based on the actual salary instead of the capped ₹15,000 limit.
Steps to Check Pension Status and Deposit Additional Amounts
Employees and pensioners who wish to verify their status can follow these steps:
- Visit the official EPFO portal (www.epfindia.gov.in).
- Log in to the Member e-Sewa portal using UAN and password.
- Check pension claim status under the ‘Pension’ section.
- If asked to deposit additional contributions, follow the provided instructions.
- Submit required forms and proofs as requested by EPFO.
Challenges and Concerns Regarding the Higher Pension Scheme
While the EPFO’s move aims to benefit employees, some challenges remain:
- Financial burden: Employees who need to deposit additional amounts may find it difficult to arrange large sums.
- Processing delays: EPFO has been facing delays in processing claims, leading to frustration among applicants.
- Lack of clarity: Many employees do not fully understand how the revised pension calculations work.
To address these concerns, EPFO is expected to issue more detailed guidelines and improve its claim processing speed.
Expected Increase in Pension Amounts
Based on past salary data, here’s an estimate of how much pension might increase under the new scheme:
| Monthly Salary (Previous) | Pension Under ₹15,000 Cap | New Pension with Full Contribution |
|---|---|---|
| ₹30,000 | ₹7,500 | ₹15,000 |
| ₹50,000 | ₹7,500 | ₹25,000 |
| ₹75,000 | ₹7,500 | ₹37,500 |
| ₹1,00,000 | ₹7,500 | ₹50,000 |
This table gives an idea of how much the pension can increase if the salary cap is removed and actual contributions are considered.
What Should Employees Do Next?
If you are an employee or pensioner affected by this decision, you should:
- Check your EPFO account for updates regarding your pension status.
- If required, deposit the additional amount before the deadline.
- Seek guidance from EPFO or financial advisors to understand the impact on your retirement benefits.
EPFO’s latest directive on higher pension contributions is set to benefit millions of pensioners and working employees. However, the requirement to deposit additional funds may create financial challenges for many. Employees should carefully review their options, verify their eligibility, and act promptly to secure their pension benefits.
The government and EPFO are expected to provide further clarifications in the coming months to ensure a smooth transition for all eligible employees.
The information in this article is based on official EPFO updates and industry reports. Employees should consult with EPFO or a financial advisor for personalized guidance.