EPFO extends deadline to opt for higher pension for members retired in Sep 2014

All eligible pensioners under the Employees' Pension Scheme 1995 (EPS 95) who retired before September 2014 can apply to opt for a higher pension by May 3 this year.

The deadline to opt for higher pensions for these pensioners had ended on March 3, 2023.

"Now, on demand of the employees'/employers' associations, the Chairman, Central Board of Trustees has extended the time for submitting applications for validation of joint options from such employees till 3rd May 2023," a labour ministry statement said on Monday.

The Supreme Court had earlier held that the employees who have retired before September 1, 2014, and exercised the option under paragraph 11 (3) prior to their retirement shall be eligible for pension on higher wages.

Also Read | What the higher pension option means for EPFO subscribers

Instructions in this regard had been issued to field offices vide circulars on December 29, 2022, and January 5, 2023.

Online facility for submitting applications for validation of joint options to the employees who retired before September 1, 2014, and exercised joint options before their retirement had been provided on the EPFO Website till March 3, 2023.

The deadline for all other categories of subscribers of the scheme is May 3, 2023.

On Monday, Parliament was informed that the deadline for eligible pensioners under the Employees Pension Scheme 1995 (EPS-95), who retired before September 2014, to opt for higher pension ended on March 3 this year.

In November last year, the Supreme Court in its order asked the retirement fund body Employees' Provident Fund Organisation (EPFO) to give four-month time to a different category of subscribers of the EPS-95 to opt for a higher pension.

Under this option, the subscribers are able to contribute to their actual basic wages, which are higher than the pensionable salary (threshold) of Rs 15,000 per month. Thus, they would get higher pensions eventually as their pensionable salary for fixing pension would increase.

"As per directions...of Supreme Court judgment on November 4, 2022, online applications were called by EPFO on December 29, 2022, from pensioners who had retired before September 1, 2014, and had exercised joint option for contributing in pension fund on salary exceeding wage ceiling before their retirement but whose joint options were rejected by the EPFO (on account of cut-off date).

"Joint options for this category of retirees were to be filed on or before March 3, 2023," stated Minister of State for Labour and Employment Rameshwar Teli in a written reply to the Lok Sabha.

The minister told the House that the instructions have been issued by the EPFO on February 20, 2023, for online joint options to be filed by the employees, who were in service prior to September 1, 2014, and continued to be in service on or after September 1, 2014, but could not exercise joint option under erstwhile proviso to paragraph 11 (3) of Employees’ Pension Scheme (EPS), 1995.

Joint options for this category of employees can be filed on or before May 3, 2023, he stated.