All necessary changes were made to comply with a Supreme Court (SC) order on higher EPS pension, the labour & employment ministry said in a statement issued late on May 3, 2023.
While giving an order in the Employees Provident Fund Organisation & Another, etc., versus Sunil Kumar B and Others, etc., on November 4, 2022, the apex court held that pensioners who had retired before September 1, 2014, should be given the option to exercise joint options under Paragraph 11(3) of the Employees’ Pension Scheme, 1995.
The apex court also held that all members who were in service prior to September 1, 2014, and continued to be in service after this date be given a chance to exercise the option. The SC said those who did not exercise the joint option due to interpretation on the cut-off date be given four months’ time to do so.
The SC also declared that a 2014 notification by the EPFO which made it mandatory for members opting for EPS contribution above the wage ceiling of Rs 15,000 to pay 1.16% of basic salary above Rs 15,000 towards the pension as invalid. It asked the EPFO that necessary adjustments be made in the scheme in six months.
Following this, the EPFO issued a circular on December 29, 2022, for filing online applications for validation of joint options by the eligible pensioners. The last day to use this option was first March 3, 2023. The date was later extended to May 3, 2023. The EPFO has further extended it to June 26, 2023. The pension fund body also issued instructions on February 20, 2023 for online joint options to be filed by the above employees/pensioners. Joint options were to be filed on or before May 3, 2023. This date has also been extended to June 26, 2023.
“For implementing the above direction, it was decided that since the Code on Social Security, 2020, has already been notified, it would be appropriate to bring relevant provisions of the Code into effect. Earlier also, Section 142 of the Code was operationalised as a singular provision. The Code also provides for repeal of EPF & MP Act,” the labour & employment ministry said in a statement.
Certain provisions of the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, (EPF & MP Act) got repealed while giving effect to the relevant provisions of the Code, it added.
“The spirit of the Act as well as the Code do not envisage contribution from the employees into the pension fund. Accordingly, it has been decided to draw 1.16% additional contribution from within the overall 12% of the contribution of the employers into the provident fund. This provision is retrospective in nature in line with the directions given by the Supreme Court,” it added.
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An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.
In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
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