The Employees’ Provident Fund Organisation (EPFO)’s recent clarification on the implementation of the 2022 Supreme Court verdict on higher Provident Fund (PF) pension seems to have added to the woes of pensioners and PF members.
The EPFO, the administering body for the Employees’ Pension Scheme (EPS) of 1995, has issued the clarification in the form of frequently asked questions to enable proper implementation of the Court’s judgment. As a matter of principle, the Court had approved the payment of higher pension subject to certain conditions. It upheld the 2014 amendments where the pensionable salary cap was raised to ₹15,000 a month from ₹6,500 a month; employers were allowed to contribute 8.33% of the employees’ actual pay (even if it exceeds the cap) towards EPS; and the basis for computation of pensionable salary was altered. Later, the EPFO came up with two sets of procedures — one for those who retired before September 1, 2014 (the date of effect of amendments), and one for those who retired after 2014.
Also Read: One year after Supreme Court verdict, EPFO releases FAQs for implementing higher pension
