EPS Contribution: Are employees contributing to the private EPF trust eligible for higher pensions? know the rules
Contents News/Article Date: 19th January 2023
Relating to which Act: The Employees Provident Funds & Miscellaneous Provisions Act, 1952
Applicable to which State: All the establishments in the States with PF coverage
Type: Newspaper report in the light of the Employees’ Provident Fund Organization (EPFO) circular issued that it is going to give more pensions to the employees under the direction of the Supreme Court.
Pertains to: employers and employees
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In the current instance, – Private EPF trust employees have higher pension rules: EPFO has cleared the conditions regarding higher pension eligibility for employees contributing to private EPF trusts.
Eligibility of employees contributing to private PF trust
Private PF trusts to manage the PF money of a large number of employees. Here the employees get the benefit of the same interest rate or a higher interest rate of EPFO on behalf of PF Trust. Now EPFO has already cleared the circular of 29th November regarding the benefit of increased pensions to the employees who contributed to the private PF trust. In such a situation, the employees who had earlier applied for higher contribution and their application was rejected, only those employees are now eligible to apply for higher pension.
Subject: EPS Contribution: Are employees contributing to the private EPF trust eligible for higher pensions?
For greater details, appended below is the complete news item
EPS Contribution: Are employees contributing to the private EPF trust eligible for higher pensions? know the rules
Private EPF trusts employees higher pension rule: EPFO has cleared the conditions regarding higher pension eligibility for employees contributing to private EPF trust.
BUSINESS LEAGUE – New Delhi: The way for the contribution of higher amounts has been cleared for the members of the Employees’ Pension Scheme (EPS) to get more pensions. After the Supreme Court’s decision, the Employees’ Provident Fund Organization (EPFO) has also clarified the eligibility conditions. In such a situation, there is still a question of whether the employees contributing to the Private PF Trust are also eligible for higher pensions and can apply for the same. Let us know what the circular of EPFO says.
Employees’ Provident Fund Organization (EPFO) has said in its circular issued that it is going to give more pensions to the employees under the direction of the Supreme Court. Regarding the exemption of excess contribution to EPS members to get more pension, the Supreme Court had said in the decision on 4 November 2022 that the August 2014 notification of EPFO is valid. The court had said that the employees who have not yet opted for enhanced pension coverage before 2014 are being given a chance to choose it in the next 6 months.
EPFO issued a circular on December 29, 2022, to comply with the Supreme Court’s directive on higher pensions for eligible employees, in which the eligibility conditions have been clearly stated for the employees to get a higher pension. According to the EPFO circular, only those employees will be eligible for higher pension who had compulsorily contributed more salary under the Employees’ Provident Fund (EPF) scheme and exercised their option for higher pension before their retirement, but The request of those employees was rejected by the EPFO.
These employees are eligible for more pension and can apply
- According to EPFO, pensioners who had contributed salaries in excess of the then wage limit of Rs 5,000 or Rs 6,500 as employees. EPFO has said that the employees who had opted under the Employees’ Pension Scheme (EPS) with the pre-revised scheme while being members of EPS-95.
- EPFO rejected the application of the employees who opted for the enhanced pension coverage option. According to the new circular, now they will be able to get the benefit of an increased pension.
Eligibility of employees contributing to private PF trust
Private PF trusts to manage the PF money of a large number of employees. Here the employees get the benefit of the same interest rate or a higher interest rate of EPFO on behalf of PF Trust. Now EPFO has already cleared the circular of 29th November regarding the benefit of increased pensions to the employees who contributed to the private PF trust. In such a situation, the employees who had earlier applied for higher contribution and their application was rejected, only those employees are now eligible to apply for higher pension.