-Galla S Kiran Kumar,Bureau Chief Telagana (Andhra Pradesh)
The Employees’ Provident Fund Organization (EPFO) has given a shock to the aging EPF pensioners across the country. At the age of 70 years, they will be burdened with dues.
EPFO has canceled the pensions received on high salary, the maximum salary
limit is Rs.5 thousand and the decision to revise the pension according to Rs.6,500
orders to recover the excess payments made so far.
Today, Hyderabad: The Employees’ Provident Fund Organization (EPFO) has given a shock to the old age EPF pensioners across the country. At the age of 70 years, they will be burdened with dues. 2014 has canceled the higher pension for those pensioners who retired before September 2014 and were drawing higher pension on higher salary. It has announced that the existing high pension will be stopped for those who do not give a joint option with the employer to pay the contribution to the Employees’ Pension Fund (EPS) on actual wages before the revision of the pension scheme. From January 2023, the higher pension will be stopped and the revised pension will be decided on the maximum salary limit of Rs.5,000/Rs.6,500 fixed by EPFO. It has been revealed that the Regional PF Commissioners will take action regarding the recovery of the excess payments made so far.
It was fine then…now it’s a mouthful
As per the EPF Act, before the amendment of 2014, the maximum salary limit (basic + DA) for drawing pension was Rs.6,500. Employees who are getting higher salary than that have to contribute 8.33 percent of their salary to join EPS. But no deadline has been given for the employees to join the scheme. On September 1, 2014, the maximum salary limit was revised to Rs.15 thousand. According to the amendment act, only the employees who were given the option to contribute to EPS before this should be given a joint option with the employer to join EPS on higher salary in ARNELs. The subscribers told the Supreme Court in RC Gupta-EPFO case (year 2015) that till then there was no time limit on the joint option and after the revision of the pension scheme, they were deprived of the opportunity to give the option. Since no clear deadline is specified for joint option, The Supreme Court has suggested that those who have retired before September 2014 and paid higher salary to the EPF should be allowed to get higher pension. To this extent, in 2017, through a special circular, EPFO took an option from the subscribers on higher salary, and to that extent collected the additional EPS fund from the subscriber and granted higher pension. Recently, in the special circular given on higher pension a few months ago, it has been said that only those who have given option before September 1, 2014 will be granted higher pension. Copy of the Supreme Court judgment said that the employees who retired before the amendment of the pension scheme (September 1, 2014) had already withdrawn from the scheme and were ineligible for higher pension as per para. To this extent, in 2017, through a special circular, EPFO took an option from the subscribers on higher salary, and to that extent collected the additional EPS fund from the subscriber and granted higher pension. Recently, in the special circular given on higher pension a few months ago, it has been said that only those who have given option before September 1, 2014 will be granted higher pension. Copy of the Supreme Court judgment said that the employees who retired before the amendment of the pension scheme (September 1, 2014) had already withdrawn from the scheme and were ineligible for higher pension as per para. To this extent, in 2017, through a special circular, EPFO took an option from the subscribers on higher salary, and to that extent collected the additional EPS fund from the subscriber and granted higher pension. Recently, in the special circular given on higher pension a few months ago, it has been said that only those who have given option before September 1, 2014 will be granted higher pension. Copy of the Supreme Court judgment said that the employees who retired before the amendment of the pension scheme (September 1, 2014) had already withdrawn from the scheme and were ineligible for higher pension as per para.
All dues should be recovered
2014 has decided to suspend pension to those who are getting higher pension without giving option for higher pension till September 1, 2014. Regional PF Commissioners have been directed to issue advance notices for revision of pension as per previous maximum pay limit of Rs.5000/Rs.6,500. Proof of grant of joint option should be submitted before September 2014. Failure to do so will take steps to recover any arrears after amendment pension. It said that care should be taken in the matter of pension revision and that there should be no violations of Supreme Court guidelines. Pensioners are worried about the decision to collect dues. They are angry that EPFO has taken a decision to trouble the pensioners. He said that the previously issued circular is still valid. According to this circular, they are demanding to continue the high pension.
Hailing from Hyderabad, Venkateswara Rao retired in June 2011 while working in a private company. At the time of retirement, the salary of that employee (Basic + DA) is 16 thousand. The company paid the EPF contribution on his actual salary. As the maximum salary limit of EPFO is Rs.6,500, he was sanctioned a pension of Rs.2,070 on that salary. According to the 2015 RC Gupta case, in 2017, the employee made a joint option application with the employer to pay higher pension due to EPF contribution on higher salary. After examining the application, EPFO issued a demand notice to pay Rs. 2 lakh to EPS at the rate of 8.33 percent on the high salary. That amount has been deposited. According to the Supreme Court, the pension on high salary (final salary of Rs. 16 thousand) has been fixed as Rs. 6,500. Till 2017 Rs.3 lakhs was received under pension arrears. His pension will be finalized as Rs 2,070 with the latest EPFO orders. There is a situation where the huge pension arrears received so far have to be repaid. Daily life has become difficult for the elderly employee due to financial difficulties. The arrears have become unbearable.
