EPFO Simplifies Claiming Higher Pensions: New Guidelines and Documentation Requirements

The Employees' Provident Fund Organisation (EPFO) has taken steps to make the process of claiming higher pensions more transparent. With the goal of providing more clarity on how to claim a larger pension, the Employees' Provident Fund Organisation (EPFO) issued a circular on what papers one can submit if they are unable to furnish a joint request under paragraph 26(6) of the EPF plan on Wednesday.

The Supreme Court declared in November 2022 that employees who were members of the EPF before or on September 1, 2014, but were unable to petition for a higher pension, can now submit new alternatives within four months, which was then extended to May 3, 2023, and then June 26, 2023. However, the process for filing a joint application by employees is exceedingly cumbersome, notably a mandatory condition in the form that required supplying information of the option under paragraph 26 (6) of the Scheme, 1952.

Who can apply?

According to the EPFO circular, the following employees, along with their employers, are eligible to submit a joint option to the relevant regional office:
Employees and employers who contributed on pay in excess of the Rs 5,000 or Rs 6,500 wage ceiling
Employees and employers who were EPS members but did not utilise the joint option in the previous window
Employees who were members prior to September 1, 2014 and remained members on or after that date

What are the documents required?

EPFO has supplied a list of documentation that an eligible employee must submit along with the joint pension application form in order to be considered for a larger EPS pension.
According to the circular, it is applicable for an eligible employee who does not have documentation of joint request/undertaking/permission (needed for making a contribution to the EPF account on full/higher salary for those whose basic salary exceeds the wage limit). In such instances, the EPFO field offices might accept increased pension applications using the approach outlined below.

Field Offices will verify that:

a) The employer's portion of the PF contribution has been paid for employees whose monthly pay exceeds the current statutory wage ceiling of Rs 5,000/6,500/15,000. This contribution has been made starting from the date when the pay exceeded the wage ceiling or 16.11.95, whichever is later. It continues until the employee's retirement or superannuation, as applicable, and

b) Administrative charges payable by the employer on such higher wages have been remitted; and

c) The employee's Provident Fund account has been updated with interest in accordance with Para 60 of the EPFS,1952 on the basis of such contribution received; and

d) Any of the following documents, along with Applications for Validation of Option / Joint Options, have been filed as proof of joint option and authorisation under Paragraph 26(6).

• Wage information provided by the employer in conjunction with applications for option validation / joint options
• Any salary slip or letter authenticated by the employer
• Copy of joint request and employer's undertaking
• Letter from the PF office stating PF contribution on higher pay given prior to 04.11.2022

"Applicants who qualify (i) above and are already contributing/have contributed until retirement/superannuation on actual (higher) pay, if they have not submitted their joint requests and employer undertaking, can do so at the time of final claim settlement through their previous employer." "Pensioners/members may submit a joint request and employer undertaking for permission under paragraph 26(6) (pro forma enclosed) at any time before the grant of pension on higher wages in accordance with the decision of the Hon'ble Supreme Court dated 04.11.2022," read the EPFO circular.

The EPFO currently permits members to earn more than the maximum pensionable wage of Rs 15,000 per month, from which employers deduct 8.33 percent of the real basic salary for pension purposes under EPS. Simply put, an employee and an employer can sign up together, requesting the EPFO to take 8.33 percent of the higher monthly basic income, assuring greater pension accumulation over their working lives.