EPFO Senior Retirement Planning: When it comes to personal financial planning, there are few retirement options. However, the Employee Provident Fund Organization (EPFO) offers a retirement planning solution with the EPS program. The organization recently decided to offer a higher pension plan under EPS.
The last date to submit was May 3, 2023 and has now been extended to June 26, 2023. Here’s everything you need to know about eligibility, benefits, and how to apply.
To know more about EPFO’s Senior Retirement Program, click this link 👇https://t.co/wE46qhnSmV#AmritMahotsav #epfowithy #pension #greater pension @PMOIndia @byadavbjp @Rameswar_Teli @Ministry of Labor @PIB_India @MIB_India @AmritMahotsav
— EPFO (@socialepfo)
May 17, 2023
What is EPS?
EPS stands for Employee Pension Scheme and it is a pension savings scheme introduced by the Government of India for employees working in the organized sector.
Under this scheme, both the employee and the employer contribute to the worker’s pension savings.
According to EPFO “The employee shall cease to be a member of the Pension Fund from the date of reaching the age of 58 or from the date of receipt of benefits permitted under the System.”
EPS was introduced in 1951. Organization claims “The Employee Provident Fund was established by the enactment of the Employee Provident Funds Ordinance on November 15, 1951. It was replaced by the Employee Provident Funds Act of 1952.”
What is a Senior Retirement Plan?
The EPFO recently announced changes to its EPS premium pension plan.
A web circular from the EPFO . states “(i) For members who have exercised a joint option to pay the contributions under paragraph 11 of the 1995 Employee’s Pension Plan and who are deemed eligible, the the employer’s contribution shall be nine and forty-nine percent (9.49%) of each member’s base salary, family allowance and living expenses up to
one and sixteen percent increase. (1.16%) compared with 8 and 1/3 percent previously. (8.33%);
“And (ii) the enhanced contribution shall be applied to the base salary, the petty allowance, and the maintenance allowance to the extent that the base salary, the petty allowance, and the maintenance allowance exceed ten five thousand rupees per month.”
According to this circular, EPFO will take an additional 1.16% of the contribution from the contribution of the employer to the EPF fund. This means workers will still receive a higher pension.
However, the allocation of funds to the Employee Provident Fund (EPF) and Employee Pension Plan (EPS) will vary. This will lead to a decrease in EPF volume and an increase in EPS balance.
Who is entitled to a higher pension?
By order of the Supreme Court, an employee is entitled to a higher pension if:
- The employee retired on September 1, 2014 and is contributing more to his or her EPF account. However, their request for a higher contribution was denied by EPFO.
- Employees who became members of EPS or EPF on September 1, 2014 and continue to be members of the plan after retirement.
Here is the circular saying: “44 (iii) Employees exercising their options under section 11(3) of the 1995 program and continuing to serve on September 1, 2014, will be governed by the revised provisions of paragraph 11(3). 11(4) of the pension system”.
“44(iv) Plan members do not exercise options, as offered in the provisions of paragraph 11, paragraph 3 of the pension system (as before 2014 modifier) will have the right to exercise the option under paragraph 11(4) of the post amendment project.
“Their right to exercise their option prior to September 1, 2014 was crystallized in this Court’s decision in the case of RC Gupta (supra).
“The program as before September 1, 2014 does not announce any end date and therefore, such members will have the right to exercise their option under clause 11(4) of the program as is.
“The exercise of their options will be of the nature of general options including the previous revised 11(3) paragraph as well as the revised 11(4) pension scheme.
“There is uncertainty about the validity of the subsequent amendment scheme, which has been overturned by the above rulings of the three Supreme Courts.
“So all employees who did not use the option, but had the right to do so, but could not due to the interpretation of the administration on the date of the cut, should have an additional opportunity to use their option.
“The option exercise period under section 11(4) of the program will, in these cases, be extended by another four months. We give this direction in the exercise our jurisdiction under Article 142 of the Constitution of India. Other requirements under the terms of the amendment, it will be respected”.
Furthermore, EPFO mentioned that “The field office will examine each case and classify it into the following categories:
- Calculation fees have been fully transferred to EPS in the due months
- The accrued allowances have not yet been transferred to the EPS, but the higher salary contributions have been fully transferred into the EPF and have a corresponding balance in the PF account.
- The accrued allowances have not yet been transferred to the EPS, but the higher salary contributions have been fully transferred to the EPF and the balance in the PF account is insufficient or the PF account is entrusted to exempt organizations. minus from PF.”
How to apply for a higher pension?
Eligible employees can apply for a higher pension through the online portal by following the steps below or by visiting EPF regional offices.
- EPFO has provided an option to apply for the program online through its EPFO portal
- After accessing the page, the user has to click on the “Personal pension with higher salary” option.
- The user then has to fill in the information and submit the form
- Once submitted, the website will register the information and provide a confirmation of receipt to the applicant.
Categories: Trends
Source: newstars.edu.vn