For EPS members who missed the earlier window to apply for a higher pension, the Employees Provident Fund Organisation (EPFO) has enabled the link for an online application form. These eligible employees have until June 26, 2023, according to information on the EPFO Member e-Sewa portal, to submit an application and the necessary supporting documentation for a higher pension. On the basis of this, it may be said that EPFO has extended the deadline for applications for increased pensions under EPS until June 26, 2023.
The window to apply for a higher pension till June 26, 2023, is only available to those employees who were members of EPF on September 1, 2014, and continued to be members of the EPF on or after September 1, 2014, but missed the opportunity to apply for higher pension before the expiry of earlier deadline.
Only employees who were EPF members on September 1, 2014, and continued to be EPF members on or after September 1, 2014, but missed the opportunity to apply for a higher pension before the expiration of an earlier deadline, i.e. May 3, 2023, are eligible for the window to apply for a higher pension until June 26, 2023.
Employees who retired before September 1, 2014, elected to get a higher pension under the pension plan, and whose application was ultimately denied by the EPFO must submit their application form by March 3, 2023, at the latest. This is due to the fact that such employees have not received an extension. On December 29, 2022, a circular for these personnel was released, and in January 2023, an online application form followed.
EPF higher pension calculation formula
The following is the EPS pension formula:
Monthly Pension Amount = (Pensionable wage X Pensionable Service) / 70
The average of the last 60 months’ wages is referred to as the pensionable pay. The number of years that payments were made to the EPS account is referred to as pensionable service.
A weightage of 2 years will be added to the service period if an employee retires at age 58 with more than 20 years of pensionable service. The maximum amount of pensionable service is 35 years, nevertheless.
Let’s examine how the formula above is used to determine the monthly pension amount:
In order to get a greater pension, Mr. “X” exercised the joint option. For the past five years, he has received an average monthly pay of Rs. 50,000. For 25 years, he provided his services. He reached retirement age at 58.
According to the formula for calculating pensions, the monthly pension will be Rs. 19,285 [50000 x 27 (25+2)]/70].
Guidelines for a higher pension from EPFO
1. A disclaimer or declaration should be included in the application for the joint option/higher pension claim.
2. An employee must expressly agree to the share adjustment from PF to EPS and the re-deposit of the funds on the joint option/application form.
3. For a share transfer of money from an exempted PF trust to the EPFO pension fund, an employee must provide the trustee with an undertaking. The commitment is valid for the timely deposit of all owed contributions and interest up to the payment date.
4. For employees of non-exempt establishments, the employer’s contribution share refund will be deposited with the interest rate specified in paragraph 60 of the EPF Scheme, 1952.
5. The enhanced pension claim must be accompanied by the following paperwork.