1. Reference articles EPS 95 Scheme – Eligibility For Higher Pension – Part-I & Part II, EPS 95 – Higher Pension Vs EPF – Comparative Analysis dated 05.01.2023 & 04.02.2023 & 07.02.2023 respectively.
In a significant ruling dated 04.11.2022, the Supreme Court provided another opportunity to sections of subscribers and pensioners to opt for higher pension under the Employees’ Pension Scheme (EPS), 1995. The option is to be exercised within 4 months from the date of judgment i.e. 03 March 2023.
The four-month time fixed by the Supreme Court on 4th Nov 2022 is set to lapse soon and there are no guidelines issued by the EPFO to date. The delay in issuing guidelines by the EPFO triggered anxieties among pensioners and those nearing retirement.
In this article, an attempt has been made to address Frequently Asked Questions by the members about higher pension eligibility and submission of the Joint Option Form.
2. What if EPFO does not come up with any guidelines till 03.3.2023? In case, the EPFO remains silent and does not come up with guidelines by 03 March 2023, it is advisable to go ahead and submit a joint option form in a simple format.
EPFO may decline to accept the option form now. This is going to be another set of litigation in the future. Those members who submitted the forms now and declined by the EPFO will be eligible to re-submit the Join Option Form in the future (EPFO vide circular dated 29.12.2022 allowed such members who had submitted the form earlier and the same was rejected by the authorities)
Non-filing of the application within the time limit provided in the Supreme Court Judgment may adversely affect the eligibility in the future.
3. Format for Joint Option Form: The request for a higher pension should be made in Joint Option Form duly signed by both the employee and the employer The EPFO has not issued any standard Format. The organizations are providing Joint Option Form in its format.
3.1 The details required to be filled up in Joint Option Form are as follows
Particulars of Employees/ Ex-Employees
| Sl | Particulars | Remarks |
| (a) | Name | |
| (b) | Staff No. | |
| (c ) | EPS Account No. | |
| (d) | UAN No. | Universal Account Number( UAN) is a 12-digit identification number, assigned by EPFO. |
| (e) | Aadhar No. | |
| (f) | Date of Birth | |
| (g) | Date of joining EPS 95 scheme | |
| (h) | Date of retirement or date of leaving service, whichever is earlier | The retirement date for EPS 95 is the date of attaining 58 years |
| (i ) | Correspondence Address with e-mail and mobile phone number | |
| (j) | PPO Number, if any | Applicable for retired employees, drawing pension on ceiling limit |
| (k) | Bank Details | Bank details where the pension is being credited to retired employees |
3.2 The Joint Option will be signed by the member and is to be attested by the employer. The employer shall certify that the particular furnished by the employee is correct and that both the employee and employer have contributed on actual salary towards PF. The employer has no objection to diverting the differential amount @8.33% of the employer’s share of the PF Account to the Pension Fund maintained by EPFO.
3.3 In the case of exempted establishments, PF trust shall submit the undertaking. The undertaking shall be to the effect that the due contribution along with interest up to the date of payment, will be deposited within the specified period.
4. Calculation of Differential Amount to be diverted/ deposited: The differential amount to be deposited /diverted to the pension fund varies in each case depending upon the period of service, Salary, Date of retirement, etc. Let us try to understand the basics of calculations with the help of a tabular Illustration:
| MMYY | Basic+DA (Rs.) | 8.33% of the Salary
(Rs.) |
Actual Amount remitted towards EPS | Differential Amount | Monthly Interest( received on the differential amount in EPF Account | Monthly Total (to be remitted | |||
| (a) | (b) | (c )= [(b)*8.33%] | (d) | (e) = (c )-(d) | (f) | (g)= ((e)+(f) | |||
| Nov-95 | 15000 | 1250 | 417 | 833 | (833*9%/12) *4 =25
Note (b) |
858 | |||
| Calculation of Annual Interest: | |||||||||
| O/B
|
Total amount to be remitted in the year (g) | Prevailing Rate of PF Interest in the particular year | Annual Interest | Amount to be remitted to EPS | Note: (a)Rs 935/- will be the opening balance of next year and the calculation will continue till the month of the retirement
(b) Monthly Interest on PF in Dec 95 will be a (differential amount *rate of Interest/ 12.)*4. (number of remaining months in the year)
|
||||
| (h)
(the first year O/B will be NIL)
|
(i ) | (j) | (k) = [(i)*(j)] | (l) = (i )+(k) | |||||
| 858 | 9% | 77 | 935 [Note(a)] | ||||||
5. Calculation of Pension Amount: – The formula to calculate the EPS pension is as follows:
5.1 Monthly pension amount= (Pensionable salary X pensionable service)/70.”
5.2 Pensionable service: This refers to the number of years for which contributions were made to the EPS account. The service w.e.f. Nov 1995 will be considered for this purpose. The service period before Nov 1995 is not relevant for the calculation of pension and differential amount.
5.3 In the case of the member who superannuates on attaining the age of 58 years, and who has rendered 20 years’ pensionable service or more, the pensionable service shall be increased by adding a weightage of 2 years.
5.4 Pensionable Salary: The pensionable salary has been defined as the average of the last 60 months’ salary.
6. How to apply for a higher Pension: Though EPFO has not issued any guidelines for the eligible pensioners, the circular dated 29.12.2022 issued by EPFO for the specific category of eligible pensioners lays down the following process to apply for a higher pension:-
(a) The request will be made in such form and manner as may be specified by the commissioner
(b) The application form for validation will contain the disclaimer as ordered in the aforesaid government notification
(c ) In case of share requiring adjustment from a provident fund to a pension fund and if any, re-deposit to the fund, the explicit consent of the pensioner will be given in the application form.
(d) In case of transfer of funds from exempted provident fund trust to the pension fund of EPFO, an undertaking of the trustee shall be submitted. The undertaking shall be to the effect that due contribution along with interest up to the date of payment, will be deposited within the specified period.
6.1 Documents required to apply for higher pension A pensioner is required to submit the (a) Joint Option Form duly verified by the employer and (b) Proof of remittance in provident fund account on actual wages [higher wages exceeding the prevalent wage ceiling of Rs 5,000/Rs 6,500]
6.2 Once the eligible pensioner submits the application form, the EPFO authority i.e., the Regional PF commissioner will deal with it as follows:
(i) Each application will be registered and digitally logged. The receipt number will be provided to the applicant.
(ii) The application will land into the employer’s login whose verification with e-sign will be essential for further processing.
(iii) The RPFC will cause each application to be converted into an e-file, as far as, possible.
(iv) The Officer in charge shall examine each. each case of pension on a higher salary and dispose of it by passing a speaking order that shall be intimated to the applicant through e-mail/post. Efforts will be made to intimate them through telephone/SMS.
(v) If an applicant has any grievance, then a complaint can be raised on EPFiGMS after submission of his request form and payment of due contribution if any.
7. Other relevant points (Frequently Asked Questions)
7.1 In case of the death of the member while in service, the spouse becomes eligible for a 100% pension benefit.
7.2 In case of the death of the member after the commencement of the monthly pension, the spouse becomes eligible for a 50% pension benefit.
7.3 In the case of children, a pension amount equal to 25 percent widow/widower pension is given to each child subject to a maximum of 2 children at a time. Children’s pension is payable to two children at a time, till 25 years of age.
7.4 If both the husband and wife are EPS members and have contributed independently to the said scheme, the spouse will be eligible for pensions separately on the death of a member. The pension under the EPS 95 is a direct consequence of the contributions made by the member of EPS 95; hence, the pension to a spouse will not be stopped even if he or she is also a member of EPS and getting the pension from under the scheme.
8. The decision to opt for a higher pension depends on the individual’s specific situation and factors like the ability to invest the corpus in alternate funds, cash flow requirements, life expectancy, etc.
8.1 The author believes that higher pension options cannot be viewed solely from the investment angle. The social security offered by the EPS higher pension scheme is equally important. The purpose of the pension scheme is to give tension-free fixed income at the vulnerable old age of a member
9. The delay in the implementation of higher pension may be due to various reasons. The field offices are finding it difficult to answer queries from members and pensioners. The EPFO top brass feels that higher pension may deplete the resource base in no time. Understandably, EPFO is facing genuine difficulties in implementing the Court’s directions. The government and the EPFO must at least explain to the stakeholders the genuine difficulties in delaying the implementation of the Court’s directions.
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Disclaimer: The article is for educational purposes only.
The author may be approached at [email protected]
Author Bio
I have applied for higher pension, my earlier 7 employer in which 5 employer approved but two employer are neither approved nor reject. and now status is blocked, then what is further procedure and how will employer react on it.
the last date for submission of higher pension whesther extensions or not
I have wrong DOE Date in jont option form. The date is given in Joint date and DOE date. So please give the any solution for my side or Establishment si
Dear Madam
I have applied for higher pension in EPS 95. . I retired in May 18. I have received my pay fixation difference (basic+DA) from 01/01/2016 to 31/07/2017 in Oct. 18. i.e. after my retirement. My company not considering revised salary for above period for submitting to EPFO.
Is it correct. If yes why? If not give solution to resolve this issue with company.
Hello Madam,
If EPS-95 member do not have living spouse (due to divorce or so), can he/she nominate his 27 year married son to receive pension after the death of member. If yes up to what age son can receive the pension and what shall be the amount?
My uncle has opted for Voluntary retirement scheme in 2003 at the age of 48 years and and attained the age of 58 years after 01.09.2014.
Will he be eligible for higher pension in EPS-95?
Hello Madam,
Current Basic pay/month = 254250
My current age: 53 years 10 months (approx. 54 years)
My retirement age = 60 years (however, since I am in private service I may retire in the next 3-5 years also)
My last 5 years average basic pay/month = 208859
Higher pension based on above average basic pay = 83544
Based on the EPFO higher pension excel calculator, corpus amount to be moved from EPF to EPS = approx. 51 lakhs.
My pensionable service started in 1998. So my total pensionable service is 25 years + 2 yrs bonus = 27 years.
Based on the above details, please advise whether it is worth to enroll for the higher pension scheme. Since I have only 2 days left, I need to make a decision ASAP.
Hi,
In the example provided, the Actual Amount remitted towards EPS 9d) is provided as 417. Can you please explain how was that calculated as EPS is 8.33% and ideally 1250 should have been deducted, and EPF is 3.67%.
As per the higher pension rule, is the employer EPS contribution going to be 8.33%+1.16% ? And EPF 3.67% – 1.16%, making it a total of 12%?
Also like how the employee has to pay the difference in amount with the interest from 2014, what is the employer’s liability? Is the employer only supposed to divert the differential amount employer’s share of the PF Account to the Pension Fund maintained by EPFO with current effect as 2.51% EPF and 9.49% EPS or the corrections need to be backdated from 2014 like how it is for employees?
Hi,
I am retired from service on Jul-2022.
In my PF contribution was on actual salary( more than wage sealing limit of Rs.6500) from Apr-2004 to Nov-2008,
later joined another organization they contributed only on wage sealing limit of 6500/15000 from dec-2008 to Jul-2022.
Shall I applied for higher pension
Thanks
Ayyappa S K
I am 51 yrs and in private service. If I leave job before reaching 58 yrs. Is it possible defer to start pension at 58 yrs (to get full pension)?
In my view, Yes.
Anyway you will start getting pension only when you attain the age of 58 years.
I retired in Dec’2021. Am I eligible for higher pension. I was under 6500/=
Yes
My pensionable retirement (58 yrs) was 25/02/2015 from a Govt PSU. Now I am getting Pension Rs.2315. I have opted higher pension online in EPFO Portal. My questions are
1) Whether they will calculate amount from 1995 to 2015 with interest till 2015 OR till today.
2) Whether They will give Higher Pension amount from 2015 till today with Interest or Not ?
3) Will they ask to deposit after adjusting (1) and (2) above or not ?
Gopinath Mishra, Bhubaneswar.
Hi. My issue is. My daughter disabled child at 100 %. Is pension applicable after my spouse death pl clear. It may that time age of my daughter 40 years Pl revert on my email. Regds
Is there an issue in declining the higher pension post the differential amount to be paid is ascertained by EPS and intimated to me for payment as i have already withdrawn my PF corpus.
Dear mam,
I’m an employee of KSCMF LTD and I’m handling monthly PF contribution and to any pf issues and matters. so as lastest higher pension applying by our ex-employees and in service employee I need how to calculate wage details in excel for uploading higher pensions of approval from the employer so share me r
Hello Mam,
My father retired in 2019. and his monthly pension as per old pension scheme is around 3000. If he opt for new pension scheme, it will get increased to 30000 (estimated). My question is will he get the differential amount from 2019 for all these years. if he opt for higher pension scheme.
He should get the arrears of pension ( though EPFO has not clarified on this isssue till date.)
Ma’am, My father expired in March 2014 and I don’t have UAN number. also, Aadhar is not linked to the mobile number. so How can I apply higher pension for my mother’s pension? I already visited the PF office but know the information getting. so please help me.
I am really sorry , do not have knowledge of all these issues.
Guidelines from EPFO regarding higher pension, in case of death of a member , is still awaited.
MADAME
I am eligible for higher pension or not got left the organisation after 2014 in May 2015.
if eligible for submitting my application can you send me link from where I can submit my details for higher pension
Regards
Sunil Kapadia
If attend 58 years of age after Sep 2014, you are eligible for higher pension.
The link is https://unifiedportal-mem.epfindia.gov.in/memberinterface/
I exercised joint options in the years 1995 and 2014 and I am now receiving a monthly pension of Rs 30493.00.
I want to know if I need to submit joint option now before 3.5.2023 or no need to submit now to sustain my monthly pension at this present condition.
No need to submit the application.
Madam….wish to know about the contribution for higher pension for already retired persons… do they have to pay the contribution with interest upto their date age of 58 or till now?
They need to pay the differential contribution till the date of retirement ( 58 years of age).
They will get arrears for pension from the date of retirement till date.
The interest may be applicable till the date.
Hello Mam,
I have 2 questions.
1.I retired in 2019. and my monthly pension as per old pension scheme is around 3000. If I opt for new pension scheme, it will get increased to 25000 (estimated). My question is will I get the differential amount from 2019, i.e. (25000-3000) = 22000 per month*12*no. of years, if I opt for higher pension scheme.
2. The amount which will get deducted from pf will be from employer’s pf contribution with interest, right? will my interest after the retirement i.e., 2019 will also get deducted if I opt for higher pension scheme? Please help.
The EPFO has not issued any clarifications on these issues till date.
Hello Mam, I have 2 questions.
1.I retired in 2019. and my monthly pension as per old pension scheme is around 3000. If I opt for new pension scheme, it will get increased to 25000 (estimated).
My question is will I get the differential amount from 2019, i.e. (25000-3000) = 22000 per month*12*no. of years, if I opt for higher pension scheme.
2. also, the amount which will get deducted from pf will be from employer’s pf contribution with interest, right?
will my interest after the retirement i.e., 2019 will also get deducted if I opt for higher pension scheme?
Please help.
The EPFO has not issued any clarifications on these issues till date.
can a person file revised from under joint option for pension, as already filed from was rejected by the eomployer due to wrong data ?
Even if the application rejected by the employer , you will get chance from EPFO to do corrections thru the employer.
For further details , please refer the article dated 24.04.2023 on tax guru :-Eps 95 Higher Pension Application – Validation Process By Employer / EPFO”
https://taxguru.in/corporate-law/eps-95-higher-pension-application-aevalidation-process-employer-epfo.html
Dear Team,I am Niranjan aged 52 and I joined into IT in April 2009 and my Last working day with my Last organization is 9th Dec 2022. I am trying for New job but not got yet. In Joint Option for Higher Pension scheme it is mentioned that we need to get employer Signatures for Permission which is not possible as i quit that company and not working any where right now. Please guide me on this.
Since EPS contribution flows from employer’s share only , application can be submitted thru employer thru employer only
Hi,
My brother passed away in 2007 during the service and mother getting pension as dependent. Now she is eligible for higher pension?. Please let me know the answer.
Dear Madam,
Can you kindly share the format of undertaking for : Whether member is giving undertaking to deposit the contributions along with interest due till date of payment through his last employer [only when PF account has no/ insufficient balance].
Also, do I need to Notarise this undertaking ?
I am still in employment and my EPF account is with EPFO Bangalore.
Many Thanks & Regards,
Sanjay
Employer will provide the undertaking format and you need to notarized the same
my father is expired on 11/11/2014….. is my mother elligible for higher pension
I am in service as of now. If i resign or take vrs, when will the pension start if i had opted for Higher pension scheme?
is diversion of Employer’s EPF Contribution (A/c no. 2) to EPS (A/c No. 10) needed ? as EPS contribution in A/c No. 10 is already made for Capped salary of Rs.5000/6500/15000?
How much contribution is to be divert 12% or 8.33% – already contributed EPS ?
if Yes, what are the dates of diversion for Diversion A/c No. 2 to A/c No. 10 ? or What is the exact date of Diversion from that EPF to be transfer to EPS?
EPS contribution was made on Capped salary. Now 8.33% on the difference (actual- capped) need to be diverted from EPS 2 to EPS 10
Date of diversion is with effect from 16.11.1995
if someone salary is less then 15000 then old service duration or previous organisation pensionable service not necessary to club.
For pension calculation , the term pensionable service includes total service ( including the year of service when salary is less than Rs 15000/-)
dear mam,
my father was retired in 2018 and expired in 2020.My mother is receiving pension monthly. is my mother eligible to opt for higher pension. incase yes what is the process. pls do let me know. appreciate your support.
She is eligible for pension . EPFO has not come up with separate guidelines in such cases.
good information latest update on joint option on higher pension submitted online but Employer not received . DOJ Eps95 is 16-11-1995 and Exit in 2026 . Contributed on higher wages . Any feedback or review
DOJ 16.11.1995 & Exit date is correct.
Did not get the query on ” Employer not received”
What does it mean ? kindly elaborate.
I was a member of EPF. My EPF contribution stopped from April 2016. I did not opt for higher contribution because of lack of information then.
Am I eligible to opt for higher pension after depositing the differential amount
Contribution to EPF stop for what and by whom ?
In case, PF contribution itself stopped then not eligible for higher pension.
Dear Madam,
My dad passed away in 2017 while in service and mother is receiving eps 95 pension till date. Is she eligible to apply for enhanced pension ?.
Thank you
Yes
what is the contribution rate from 1995 towards PF & PS
PF rates :-10% / 12%
EPS : 8.33% on capped salary of Rs.5000/6500/15000
today i have taken undertaking from exempted employer.(Trust).If i submit online joint option form by uploading undertaking letter isuued by employer then whether my fund will be tranfered to EPS without asking final acceptnce from Employee .Final acceptance of employee is required after submitting joint option form?Pl.clarify. I wil take decestion after knowing outstanding amount to be paid .
There is no clarity on these issues from EPFO. Everybody is waiting for guidelines and clear instructions from EPFO in this regard
I want to know,whether the DA increase by govt. Also increases pension of epfo pensioners
No
EPFO is fooling us through the joint option form. Many documents are not available to the employees . Lastly they will not respond. Main aim of EPFO is to deny the order of the hon’ble Supreme court order. I am in doubt
Madam,
i am worked in the private factory from aug 90 to apr 2019. i am resigned at the age of 55. now the company says that old data is not available with them. i have data from 2010 to 2019 what to do suggest me in this regards
If you have PF details / passbook , do the back calculations .
PF must be 12% of Salary. Get the salary amount by working back :- PF amount/ 12%.
Now calculate 8.33% of salary – pension already remitted on ceiling amount of salary. You will get the differential amount to be paid.
Dear Madam,
Thanks for your immediate response. I dont have any PF passbook below 2010. I have data from 2010 please suggest me