EPFO Higher Pension Scheme: Check Eligibility & How to Apply, Deadline Extends to May 3rd

Members of the Employees' Provident Fund Organisation (EPFO) are entitled to a pension upon retirement. All eligible members can choose and apply for a higher pension with their employers through the EPFO's unified members' portal until May 3, 2023. There were fears that March 3, 2023 would be the last day to opt for a higher pension. The URL on the newly activated EPFO unified members' portal clearly states that the deadline for taking advantage of the higher pension option is May 3, 2023. Previously, the Supreme Court ordered for the EPFO's higher pension scheme to give all eligible members four months from November 4, 2022 to choose a higher pension. Here is what is epf higher pension, eligibility, and its claim process.

What is the EPF higher pension scheme?

The Government established a pension scheme under Section 6A of the EPF Act in 1995. The Employees Pension Scheme, 1995 (EPS-95) mandated that the employer contribute 8.33% to the pension scheme. The maximum monthly pension under the EPS-95 was Rs.5,000 or Rs.6,000. Employers were thus required to contribute 8.33% of Rs.5,000, which was later increased to Rs.6,500, to the pension scheme.
The government changed the EPS-95 scheme on September 1, 2014. It raised the maximum pensionable salary to Rs.15,000 per month. It also omitted the provision in paragraph 11(3), which required the employer and employee to exercise the option to contribute EPS on a higher salary amount.

EPF higher pension eligibility

In December 2022, EPFO issued a circular outlining the eligibility criteria and application process for claiming a higher pension. The following are the eligibility requirements for a higher pension:

• Employees retired prior to September 1, 2014.
• While members of EPS-95, the employees exercised the joint option under EPS-95 para 11(3).
• Employees and employers both contributed EPS on salaries above the Rs.5,000 or Rs.6,500 wage ceiling.
• The EPFO declined to exercise such a choice.

However, the EPFO circular did not include a higher pension option for employees who were members of the EPF prior to September 1, 2014 but are still working/retired after that date. According to the Supreme Court decision, such employees were also entitled to a higher pension.

Eligibility requirements for filing a joint option for a higher pension:

• Employees who were members prior to September 1, 2014, remained members after that date.
• Employees and employers both contributed to EPS on salaries that exceeded the Rs.5,000 or Rs.6,500 wage ceiling.
• Employees and employers were members of EPS-95 and did not exercise the joint option provided by the EPS's deleted para 11(3) and the 2014 amendment.
• Employees who were members of EPS-95 and exercised joint options under the EPS's deleted para 11(3) but did not file new joint options after the 2014 amendment are not eligible for a higher pension. Regardless of their actual salaries, such employees' EPS contributions will be 8.33% up to a maximum of Rs.15,000.

Application Process for higher pension scheme

• Employees must use the joint option/higher pension claim application form specified by the Regional Provident Fund Commissioner (RPFC). The EPFO will also provide a URL where applicants can apply online.
• The EPFO will digitally register each application and provide the applicant with a receipt number.
• The EPFO will forward the applications to the appropriate employers, who will verify them via e-sign/digital signature before proceeding with the processing.
• All applications will be converted into e-files by the RPFC.
• The dealing assistant in charge will review the papers and forward the case to the section account officer/supervisor.
• After examination, the concerned account officer/supervisor will mark discrepancies and forward them to the Assistant Provident Fund Commissioners.
• It will investigate the case and notify the applicants via email, post, phone, or SMS of the higher pension decision.