EPS 95- Higher Pension – Frequently Asked Questions

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EPS 95- Higher Pension Frequently Asked
Questions
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• 1. Reference articles EPS 95 Scheme Eligibility
  For Higher Pension Part-I Part II, EPS 95
  Higher Pension Vs EPF Comparative Analysis
  dated 05.01.2023 04.02.2023 07.02.2023
  respectively. In a significant ruling dated
  04.11.2022, the Supreme Court provided another
  opportunity to sections of subscribers and
  pensioners to opt for higher pension under the
  Employees Pension Scheme (EPS), 1995. The option
  is to be exercised within 4 months from the date
  of judgment i.e. 03 March 2023. The four-month
  time fixed by the Supreme Court on 4th Nov 2022
  is set to lapse soon and there are no guidelines
  issued by the EPFO to date. The delay in issuing
  guidelines by the EPFO triggered anxieties among
  pensioners and those nearing retirement. In this
  article, an attempt has been made to address
  Frequently Asked Questions by the members about
  higher pension eligibility and submission of the
  Joint Option Form. 2. What if EPFO does not come
  up with any guidelines till 03.3.2023? In case,
  the EPFO remains silent and does not come up with
  guidelines by 03 March 2023, it is advisable to
  go ahead and submit a joint option form in a
  simple format. EPFO may decline to accept the
  option form now. This is going to be another set
  of litigation in the future. Those members who
  submitted the forms now and declined by the EPFO
  will be eligible to re-submit the Join Option
  Form in the future (EPFO vide circular dated
  29.12.2022 allowed such members who had submitted
  the form earlier and the same was rejected by the
  authorities)Read more at https//taxguru.in/cor
  porate-law/eps-95-higher-pension-frequently-asked-
  questions.htmlCopyright Taxguru.in

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• Non-filing of the application within the time
  limit provided in the Supreme Court Judgment may
  adversely affect the eligibility in the future.
  3. Format for Joint Option Form The request for
  a higher pension should be made in Joint Option
  Form duly signed by both the employee and the
  employer The EPFO has not issued any standard
  Format. The organizations are providing Joint
  Option Form in its format. 3.1 The details
  required to be filled up in Joint Option Form are
  as follows Particulars of Employees/
  Ex-EmployeesRead more at https//taxguru.in/cor
  porate-law/eps-95-higher-pension-frequently-asked-
  questions.htmlCopyright Taxguru.in.

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• 3.2 The Joint Option will be signed by the member
  and is to be attested by the employer. The
  employer shall certify that the particular
  furnished by the employee is correct and that
  both the employee and employer have contributed
  on actual salary towards PF. The employer has no
  objection to diverting the differential amount
  _at_8.33 of the employers share of the PF Account
  to the Pension Fund maintained by EPFO. 3.3 In
  the case of exempted establishments, PF trust
  shall submit the undertaking. The undertaking
  shall be to the effect that the due contribution
  along with interest up to the date of payment,
  will be deposited within the specified period. 4.
  Calculation of Differential Amount to be
  diverted/ deposited The differential amount to
  be deposited /diverted to the pension fund varies
  in each case depending upon the period of
  service, Salary, Date of retirement, etc. Let us
  try to understand the basics of calculations with
  the help of a tabular IllustrationRead more
  at https//taxguru.in/corporate-law/eps-95-higher
  -pension-frequently-asked-questions.htmlCopyright
  Taxguru.in

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• 5. Calculation of Pension Amount The formula
  to calculate the EPS pension is as follows 5.1
  Monthly pension amount (Pensionable salary X
  pensionable service)/70. 5.2 Pensionable
  service This refers to the number of years for
  which contributions were made to the EPS account.
  The service w.e.f. Nov 1995 will be considered
  for this purpose. The service period before Nov
  1995 is not relevant for the calculation of
  pension and differential amount. 5.3 In the case
  of the member who superannuates on attaining the
  age of 58 years, and who has rendered 20 years
  pensionable service or more, the pensionable
  service shall be increased by adding a weightage
  of 2 years. 5.4 Pensionable Salary The
  pensionable salary has been defined as the
  average of the last 60 months salary. 6. How to
  apply for a higher Pension Though EPFO has not
  issued any guidelines for the eligible
  pensioners, the circular dated 29.12.2022 issued
  by EPFO for the specific category of eligible
  pensioners lays down the following process to
  apply for a higher pension- (a) The request will
  be made in such form and manner as may be
  specified by the commissioner (b) The application
  form for validation will contain the disclaimer
  as ordered in the aforesaid government
  notification (c ) In case of share requiring
  adjustment from a provident fund to a pension
  fund and if any, re-deposit to the fund, the
  explicit consent of the pensioner will be given
  in the application form. (d) In case of transfer
  of funds from exempted provident fund trust to
  the pension fund of EPFO, an undertaking of the
  trustee shall be submitted. The undertaking shall
  be to the effect that due contribution along with
  interest up to the date of payment, will be
  deposited within the specified period.Read more
  at https//taxguru.in/corporate-law/eps-95-higher
  -pension-frequently-asked-questions.htmlCopyright
  Taxguru.in

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• 6.1 Documents required to apply for higher
  pension A pensioner is required to submit the (a)
  Joint Option Form duly verified by the employer
  and (b) Proof of remittance in provident fund
  account on actual wages higher wages exceeding
  the prevalent wage ceiling of Rs 5,000/Rs 6,500
  6.2 Once the eligible pensioner submits the
  application form, the EPFO authority i.e., the
  Regional PF commissioner will deal with it as
  follows (i) Each application will be registered
  and digitally logged. The receipt number will be
  provided to the applicant. (ii) The application
  will land into the employers login whose
  verification with e-sign will be essential for
  further processing. (iii) The RPFC will cause
  each application to be converted into an e-file,
  as far as, possible. (iv) The Officer in charge
  shall examine each. each case of pension on a
  higher salary and dispose of it by passing a
  speaking order that shall be intimated to the
  applicant through e-mail/post. Efforts will be
  made to intimate them through telephone/SMS. (v)
  If an applicant has any grievance, then a
  complaint can be raised on EPFiGMS after
  submission of his request form and payment of due
  contribution if any.Read more
  at https//taxguru.in/corporate-law/eps-95-higher
  -pension-frequently-asked-questions.htmlCopyright
  Taxguru.in

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• 7. Other relevant points (Frequently Asked
  Questions) 7.1 In case of the death of the member
  while in service, the spouse becomes eligible for
  a 100 pension benefit. 7.2 In case of the death
  of the member after the commencement of the
  monthly pension, the spouse becomes eligible for
  a 50 pension benefit. 7.3 In the case of
  children, a pension amount equal to 25 percent
  widow/widower pension is given to each child
  subject to a maximum of 2 children at a time.
  Childrens pension is payable to two children at
  a time, till 25 years of age. 7.4 If both the
  husband and wife are EPS members and have
  contributed independently to the said scheme, the
  spouse will be eligible for pensions separately
  on the death of a member. The pension under the
  EPS 95 is a direct consequence of the
  contributions made by the member of EPS 95
  hence, the pension to a spouse will not be
  stopped even if he or she is also a member of EPS
  and getting the pension from under the scheme. 8.
  The decision to opt for a higher pension depends
  on the individuals specific situation and
  factors like the ability to invest the corpus in
  alternate funds, cash flow requirements, life
  expectancy, etc. 8.1 The author believes that
  higher pension options cannot be viewed solely
  from the investment angle. The social security
  offered by the EPS higher pension scheme is
  equally important. The purpose of the pension
  scheme is to give tension-free fixed income at
  the vulnerable old age of a member 9. The delay
  in the implementation of higher pension may be
  due to various reasons. The field offices are
  finding it difficult to answer queries from
  members and pensioners. The EPFO top brass feels
  that higher pension may deplete the resource base
  in no time. Understandably, EPFO is facing
  genuine difficulties in implementing the Courts
  directions. The government and the EPFO must at
  least explain to the stakeholders the genuine
  difficulties in delaying the implementation of
  the Courts directions. Disclaimer The
  article is for educational purposes only. The
  author may be approached at caanitabhadra_at_gmail.co
  m Tags EPF, EPFO, FAQs, Provident Fund, supreme
  court judgementsRead more at https//taxguru.in
  /corporate-law/eps-95-higher-pension-frequently-as
  ked-questions.htmlCopyright Taxguru.in