EPS 1995-Benefit of actual salary exceeding wage limit as per Supreme Court Judgment. Member cannot be debarred from exercising higher wages to pension fund
EMPLOYEES’ PROVDENT FUND ORGANISATION
Ministry or Labour & Employment, Govt. of India
No: Pension-I/12/33/EPS Amendment/96/Vol.II/34007 Dated: 23 March, 2017
To
All Regional P.F. Commissioner,
Regional Office/Sub-Regional Office
Subject – Allowing members of the Employees’ Pension Scheme, 1995 the benefit of the actual salary in the Pension Fund exceeding wage limit of either Rs. 5000/– or Rs. 6500 per month from the effective date respectively as per the Hon’ble Supreme Court’s order in SLP No.33032-33033 of 2015 – Regarding
Sir,
The matter of determination of pensionable salary exceeding statutory wages ceiling and exercise of option under deleted proviso to Para 11(3) of the EPS, 95 was examined in the light of the Hon’ble Supreme Court’s Order in SLP No.33032-33033 of 2015.
2. The Hon’ble Apex court in SLP No. 33032-33033 of 2015 observed that the reference to the date of commencement of the Scheme or the date on which the salary exceeds the ceiling limit are dates from which the option exercised are to be reckoned with for calculation of pensionable salary. The said dates are not cut-off dates to determine the eligibility of the employer-employee to indicate their option under the proviso to Clause 11(3) of the Pension Scheme . It has further been observed that a beneficial Scheme, ought not to be allowed to be defeated by reference to a cut-off date, particularly, in a situation where (as in the present case) the employer had deposited 12% of the actual salary and not 12% of the ceiling limit of Rs. 5000/- or Rs. 6500/- per month, as the case may be.
In a situation wher the deposit of the employer’s share at 12% has been on the actual salary and not the ceiling amount, the Provident Fund Commissioner could seek a return of all such amounts that the concerned employees may have taken or withdrawn from their Provident fund Account before granting them the benefits of the proviso to Clause 11(3) of the Pension Scheme. Once such a return is made in whichever cases such return is due, consequential benefits in terms of this order will be granted to the said employees.
Thus a member contributing to the Provident Fund on the wages exceeding the statutory ceiling or who had contributed to the Provident Fund on the wages exceeding the Statutory ceiling cannot be debarred from exercising higher wages to the pension fund. (Copy of the order of the Hon’ble Supreme Court enclosed)
3. Accordingly a proposal was sent to MOL&E to allow members of the Employees’ Pension Scheme, 1995 who had contributed on higher wages exceeding the statutory wage ceiling of Rs. 6500/- in the Provident Fund to divert 8.33% of the salary exceeding Rs 6500/- to the Pension Fund with up to date interest as declared under EPF Scheme, 1952 from time to time to get the benefit of pension on higher salary on receipt of joint option of the Employer and Employee.
4. The MOL&E vide letter dated 03.2017 has conveyed its approval to allow members of the Employees’ Pension Scheme, 1995 who had contributed on higher wages exceeding the statutory wage ceiling of Rs. 6500/- in the Provident Fund to divert 8.33% of the salary exceeding Rs.6500/- to the Pension Fund with up to date interest as declared under EPF Scheme, 1952 from time to time to get the benefit of pension on higher salary on receipt of joint option of the Employer and Employee. (copy enclosed for ready reference)
5. The officers in charge of all field offices are directed to take necessary action accordingly in accordance with the order of the Hon’ble Supreme Court in SLP No.33032- 33033 of 2015 as approved by the Government and as per the provisions of the EPF & MP Act, 1952 and Schemes framed there under.
(This issues with the approval of CPFC.)
Yours faithfully ,
(Dr. S.K. Thakur)
Addl. Central PF Commissioner , HQ (Pension)
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i have joined on 24.10.1989 in private pharmaceutical company where pf in trusty. I will retire on 31.3.2019. how much pension can i get through eps 95 ?
Whether ur fund was managed by EPFO,or other entity/trust.? You may apply for,to EPFO fulfilling ur willingness to pay deferential amount with interest to EPFO for considering ur request for enhancement in pension.Take acknowledge receipt for the same
Can I get 10 times to existing pension,i.e..Rs.17460/-p.m.?My details are as below:-Abhyudaya Co-Op.Bank Ltd, Mumbai , Employer,1Retied as Manager,on 30.09.2008.2.Last Salary drawn Approx Rs 40,000/-+other allow, bonus 20%of total annual salaries,I m ready to pay differential amount with interest to EPFO . According to the decision/Order of SC ,shall I eligible to apply to EPFO?
Respected Sir,
I started my job with M/s Elecon Engg.Ltd. in 1978eith 5000 rs. Salary
Is was mamber of EPF 1995
I have retired in 1998.
At oresant I am geting 1082 Rs. per month Pension.
Can I get Banifits of More then this Amount in my monthly pension.
Thank and regards
Anton Macwan
I HAD RETIRED IN 2010 AND SUBMITTED MY CLAIM PETITION FOR THE ENHANCED PENSION AS PER SC ORDER DATED 04/10/2016 IN FEBRUARY, 2018. I WAS SUMMONED TO APPEAR IN REGIONAL EPFO, TIRUNELVELI, TAMILNADU FOR SOME CLARIFICATION AND CONFIRMED ALL ARE IN ORDER. BUT, THEY ASKED FOR A COPY OF 'EXERCISE OF OPTION FORM' TO JOINT THE SCHEME, SITING EPFO LETTER NO.PENSION-1/12/33/EPS AMENDMENT/96 VOL.II DATED 31 MAY 2017 PARA iii WHICH SAYS THUS 'EXERCISE OF OPTION UNDER PARA 26 (6)OF THE EPF SCHEME 1952 IS A PRECURSOR TO EXERCISE OF OPTION UNDER PROVISO TO CLAUSE 11 (3) OF THE PENSION SCHEME.' THEY SAID WITHOUT A COPY OF SUCH EXERCISE OF OPTION LETTER I CANNOT BE ELIGIBLE FOR THE ENHANCED PENSION, ALSO THEY REFUSED TO GIVE THE SAME IN WRITING. PLEASE ADVISE. THANKS.
Ref Pension Payment order PBCHD00022086
Account no xxxxxxxxxx
Aadar no xxxxxxxxxxxx
Dear Sir,
Kindly refer my above EPF details,presently I am getting a monthly pension of Rs 1960/-
I was retired on 1-12-2011,
Now please let me know how much I will get as monthly pension as per the order of Hon'ble Supre court order for revised pension for full amount, and what are the formalities to be doen from my side for getting the revised pension.
Please revert.
Regards
Balakrishnan
Dear sir,
As per the supreme court order the Ministry of labour and employment has also issued the order to give the minimum pension under EPS 95 scheme. but even after writing to the minister of Finance and Ministry of labour and em ployement so many times and also to the Honourable prime minister of india the sr,aged people who are eligible for pension are eagarly awaiting this implementation. but the centre govt is still not taking any action upon the EPFO to carryout the order as per the S.C order 33032 and 33033. Atleast considering the old age and minimum period of life the EPFO commissioner should do the implementation to all the states EPF office to release the minimum pension. Pl. do it immediately.
Dear Sir,
My salary was well above the ceiling amount (2500, 5000, 6500). For me, PF deduction & employer share (both 12%) were on the actuals. The pension contribution was paid as per ceilng and the balance was paid with employer share. I retired on 23.08.2016 and i am getting pension as per ceiling.
I am eligible for the higher pension. When I approached EPFO, they are asking Form 3A again which the employer's are refusing. How to get the higher pension?
Kindy help. I am from Chennai.
Regards, N.VELRAJAN,
In this situation the Central PF COMMISSIONER should issue very clear directions to all the Regional PF Commissioners to settle/revise the pension amount of all the employees comes under 1995 pension scheme
At the same time CPFC should publish notification in the prominent news papers including Regional news papers the procedure to be adopted by the retired employees for consideration for payment of enhanced pension amount to the employee, in view of the recent supreme court verdict.
At present the bunches of applications are pouring in the office of the Regional PF Commissioners
office those may be incomplete and lying unattended. Even concern Trusts/Offices are in confused stage.
I hope the concerned employee"s Organisation should take up this matter with the Central Provident Commissioner Office to sort out this long pending and most confused issue.
I retired in 2007 at present my pension 1078
I worked from 2091 to 2009 and pension mature in 2007 what increased in pension after court decide