Implementation of Supreme Court Verdict in EPF Pension case on 4th November 2022

Contents News/Article Date: 5th December 2023 Relating to which Act: The Employees Provident Funds & Miscellaneous Provisions Act, 1952; Penalty under the Act: Whoever, for the purpose of avoiding any payment to be made by himself under this Act [the Scheme, the [Pension] Scheme] or the Insurance Scheme] or of enabling any other person to avoid such payment knowingly makes or causes to be made any false statement or false representation shall be punishable with imprisonment for a term which may extend to one year, or with fine of five thousand rupees, or with both]. Applicable to which State: Whole of India Type: Minister of State for Labour and Employment (Shri Rameswar Teli) Gives Answers to The Questions in Lok Sabha Pertains to: All PF Establishments and PF Members including PF pensioners Relevance of this news: Karma Global is in the business of HR Services, Payroll, Outsourcing and Regulatory Compliances right from its inception in 2004 and since then, has brought in a lot of efficiencies and technological upgradations with experts on its roll, to ease the hassles of Payroll Processing, Temp Staffing, On-boarding, Employee Life Cycle, Statutory, Regulatory and Payroll compliances by providing customized solutions to all its elite clients. Now Karma Global is also fully into labour compliances for nearly 18 years and is helping both establishments and workers for fulfilment of obligations as per the laws of the land. It has over 200 staff, both direct and indirect on its rolls and operates on pan India basis. Recently, it has diversified into foreign shores as well, into countries like US, UK, UAE, Canada, Philippines, and Asia for handling payroll, outsourcing, recruitment and governance. And in the current instance: Government of India Ministry of Labour and Employment Lok Sabha Unstarred Question No. 156 To Be Answered On 04.12.2023 Implementation of Supreme Court Verdict in EPF Will The Minister of Labour and Employment Be Pleased to State:? Gives Answers to The Questions Raised in Lok Subject: Minister of State for Labour and Employment (Shri Rameswar Teli) Gives Answers to The Questions in Lok Sabha

Appended is the complete news item

Implementation of Supreme Court Verdict in EPF Pension case on 4th November 2022- Details of steps taken.

Government of India

Ministry of Labour and Employment

Lok Sabha

Unstarred Question No. 156

To Be Answered On 04.12.2023

Implementation of Supreme Court Verdict in EPF

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:? (a) whether the Government has taken any steps for implementing the Supreme Court verdict in the EPF Pension case on 4th November 2022, if so, the details thereof; (b)whether the Government has calculated the amount required for payment of EPF pension to subscribers proportionate to salary as ordered by the Supreme Court, if so, the details thereof; (c)whether the Government is aware that huge amount is remaining in the EPF pension fund without claimants/legal heirs, if so, the details of such balance in the pension fund as on date; and (d)whether the Government proposes to consider utilisation of the above said balance for payment of pension proportionate to salary, if not, the reasons therefor?

ANSWER

Minister Of State For Labour And Employment (Shri Rameswar Teli)

(a): As per directions contained in paragraph 44(ix) read with paragraph 44(v) and 44(vi) of the Hon’ble Supreme Court judgment dated 04.11.2022, online applications were called by Employees’ Provident Fund Organisation (EPFO) on 29.12.2022, followed by corrigendum dated 05.01.2023, from pensioners who had retired before 01.09.2014 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 were to be filed on or before 03.03.2023. The date upto which online joint options were to be filed was extended upto 03.05.2023, thereafter upto 26.06.2023 and thereafter up to 11.07.2023. As per directions contained in paragraph 44(iii) & paragraph 44 (iv) read with paragraph 44(v) of the judgment of Hon’ble Supreme Court dated 04.11.2022, instructions were issued by EPFO on 20.02.2023 for online joint options to be filed by the employees who were in service prior to 01.09.2014 and continued to be in service on or after 01.09.2014 but could not exercise joint option under erstwhile proviso to paragraph 11(3) of Employees’ Pension Scheme (EPS), 1995. Joint option form was to be filled on or before 03.05.2023. The date upto which joint options were to be filled was extended upto 26.06.2023 and thereafter up to 11.07.2023. In order to implement the directions contained in paragraph 44(vii) of the judgment, the Government has issued two notifications viz. S.O. 2060(E) and S.O. 2061(E) dated 3 May, 2023. (b): In case of pensioners/members found eligible for pension on higher wages, in compliance of Hon’ble Supreme Court judgement dated 04.11.2022, demand notices are being issued to the pensioners/members. The amount of pension payable on higher salary will vary from case to case. (c) & (d): The pension fund under the EPS, 1995 is a pooled fund. In the pension fund, individual accounts are not maintained. Members of EPS, 1995 are eligible for Withdrawal Benefit or Pension depending on their eligibility based on the number of years of Service. As per actuarial evaluation of the fund as on 31.03.2019, the pension fund is in deficit.

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