One of the World’s largest Social Security Organisations, Employees’ Provident Fund Organisation (EPFO) released a circular for eligible employees to opt for a higher pension under Employees Pension Scheme (EPS-95).
The earlier last date to apply for the provision of a higher pension was March 3, 2023. EPFO has extended the last day to opt for a higher pension by 60 days.
The EPFO updated the same on the EPFO website saying, “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 EPFO unified members’ portal has been activated. It also shows clearly that the last date for availing of the option of a higher pension is May 3, 2023. To redirect and visit the page Click Here.
EPFO released a new circular on February 20, 2023. The EPFO has issued instructions in compliance with orders contained in Para 44 (iii) & (iv) read with Para 44(v) of Hon’ble Supreme Court judgment dated 04.11.2022 in the matter of Special Leave Petition (C) Nos. 8658-8659 of 2019.
According to the circular “44 (iii) The employees who had exercised an option under the proviso to paragraph 11(3) of the 1995 scheme and continued to be in service as on 1st September 2014, will be guided by the amended provisions of paragraph 11(4) of the pension scheme”
“44 (v) The employees who had retired prior to 1st September 2014 without exercising any option under paragraph 11(3) of the pre-amendment scheme have already exited from the membership thereof. They would not be entitled
to the benefit of this judgment.” The circular can be seen by Clicking Here.
Benefits
There will be a reallocation of corpus from the EPF to the EPS scheme from the date of joining the scheme. The main advantage of opting for a higher pension is that it allows you to build a pension corpus, an assured income to dip into postretirement.
You now have the option to increase your pension amount from the Employees’ Provident Fund Organisation (EPFO) by increasing the contribution towards its Employees Pension Scheme or EPS. Under the new rules, you can now contribute 8.33 per cent of actual pay towards the scheme which earlier had a capping of Rs 15,000.
