There is great news for employee pensioners. They will get the benefit of higher pension. Notification has been issued for this. Rules and instructions have been fixed by issuing circulars. Along with this, the time limit has also been extended. A uniform time limit has been issued for the employees to opt for higher pension.
Pensioners Pension Hike: There is good news for lakhs of employee pensioners of the country. Actually they will be given the benefit of higher pension. Preparations have been made by the government for this. At the same time, the date for applying for higher pension for all eligible pensioners under the Employees Pension Scheme 1985 (EPS 1985) has also been extended.
Now till May 3, 2023, pensioners can apply to get higher pension. Orders for this have been issued by the Ministry of Labor on Monday. All eligible pensioners who retired before September 2014 will be given the benefit of higher pension under the Employees’ Pension Scheme, 1995.
Last date extended to 3rd May 2023
The Supreme Court had said in its order that those who retired before September 1, 2014 and are exercising the option under Para 11(3) earlier in their retirement. They will be eligible for pension on higher pay. Guidelines in this matter were issued to the field offices vide circular dated 29 December 2022 to 5 February 2023. At the same time, after the deadline expired on March 3, 2023, a request was made by the Employees’ and Employers’ Association to extend the deadline. On which once again the last date for the application of pension to all the eligible under the Employees Pension Scheme 1995 has been extended to May 3, 2023.
Clients Benefit Through Options
Explain that through this option, customers are allowed to contribute their actual basic salary. If the pensionable salary is more than Rs. 15000 per month, they get the benefit of pension. EPFO had issued instructions on 20 January 2023 for filing of online joint option by all employees who were in service before 1 September 2014 and continued to be in service on that date, but subject to para 11(3) of the EPS 1995. The joint option could not be exercised under the provision.
Another circular will be issued clarifying the method of pension calculation
EPFO has issued a circular saying that the deadline has been extended once again due to the short number of days given. At the same time, another circular will be issued clarifying the method of pension calculation. Earlier, the Supreme Court in its judgment on 4 November 2022 had ordered to allow eligible employees to opt for pension within 4 months from the date of judgment. At the same time, the period of 4 months was ending on 3 March. Which has been extended once again.
Uniform time limit for employees to opt for higher pension
The latest extension provides for a uniform time limit for all eligible employees to opt for higher pension. How will the additional contribution of 1.16% be taken from the employees? At present no clarification has been issued by EPFO on this. While retaining a 2014 notification, the provision for additional 1.16% contribution from employees drawing basic pay of more than Rs 15,000 has been cancelled. However, this provision was deferred for 6 months to allow the retirement fund body to come up with an alternative solution.
