The Employees Provident Fund Organisation (EPFO) recently released a circular delineating the process of validating and examining the details to be submitted by employees jointly with employers while applying for a higher pension.
The pension fund body also released the online facility for validation for wage details of subscribers applying for a higher pension.
One can apply for the higher pension till May 3, 2023.
This facility will be available for validation of joint options from the employees who retired prior to September 1, 2014 and those who were members on September 1, 2014.
The applications will be examined by Field. And in case the retirements are complete, the wage details submitted by the employers will be verified with the data available with the field offices (FO).
In cases where FO details and employers' details match, the dues will be calculated and an order will be passed for depositing /transferring the dues, reads the circular dated April 23, 2023.
When there is a mismatch, the same will be informed to the employer and the employee/ pensioner.
When not approved
In case submitted application form is not approved by the employer, an opportunity will be given — before any rejection — to the employer for providing any additional proof or evidence or correct any mistakes/ errors. This opportunity will be given for a period of one month.
Also, when the submitted information is not complete or seems erroneous, additional information will be sought from the employers under intimation to the employees within one month.
What is the EPFO’s higher pension all about?
After a Supreme Court order on November 4, 2022, the EPFO permitted the subscribers to opt for higher pension after retirement by opting for 8.33 percent contribution of their actual salary.
Earlier, this contribution (8.33%) was made on pensionable salary (basic and dearness allowance) and was capped at ₹15,000. With the cap of ₹15,000 removed, the subscribers will now be eligible to seek a higher pension.
The EPFO subscribers are meant to contribute 12 percent of their pensionable salary towards employees’ pension fund. At the same time, 12 percent contribution is made by the employer too.
But 8.33 percent of this 12 percent goes towards the EPS in case of eligible employees and the remaining 3.67 percent goes towards the EPF.
The change that has now been introduced pertains to 8.33 percent i.e., the portion of employer’s contribution.