EPFO has activated a link on its website for employees to opt for a higher pension.
The Employees Provident Fund Organisation (EPFO) earlier this week announced guidelines for employees who want to opt for a higher pension. The move is the result of a Supreme Court on November 4 that allowed employees to contribute up to 8.33 per cent of their actual salaries - as against 8.33 per cent of pensionable salary capped at Rs 15,000 a month - towards pension. The retirement fund body has activated a link on the unified members' portal where EPFO subscribers seeking a higher pension can apply by May 3, 2023.
Here are the steps to apply for higher pension:
- Log onto the member e-Sewa portal.
- The link activated on the website says "Pension on higher salary: Exercise of joint option on or before May 3, 2023". Click on that
- It will open a new page, which will have two options. The user needs to click on the second one: Application form for joint options
- Now, select "Application form for joint options - Joint options under erstwhile para 11 (3) and para 11 (4) of EPS 1995 for employees who were in service prior to 1st September 2014 and continued to the in service on or after 01.09.2014 but could not exercise joint option under erstwhile provision to para 11 (3) of EPS 1995 to be exercised on or before 3rd May 2023."
- The page that will open will ask the user to enter details like UAN, Name, Date of birth, Aadhaar number, Aadhaar linked mobile number and correctly enter the captcha.
- After filling the form, there will be an option to 'Get OTP', which will be received on mobile number linked with Aadhaar.
According to EPFO circular dated December 29, 2022, the central government has directed to implement the directions in the Supreme Court order. The court had given all EPS members, as on September 1, 2014, six months to opt for the amended scheme.
The court also gave four more months to eligible subscribers to opt for higher pension under EPS-95.
The court had also struck down the requirement in the 2014 amendments mandating employee contribution of 1.16 per cent of the salary exceeding Rs 15,000 per month. This will facilitate the subscribers to contribute higher to the scheme and get enhanced benefits accordingly.
The EPFO circular had also provided for the higher pension option for those eligible subscribers who either contributed on actual wages higher than Rs 5,000 or Rs 6,500 per month prevalent threshold pensionable salary or exercised their option for higher pension or their request for higher pension was declined by EPFO authorities before the amendment to EPS-95 in 2014.
The eligible subscribers would have to apply jointly with their employer for the enhanced benefit in the application form prescribed by the commissioner and all other required documents like joint declaration etc.