EPFO

EPS-95 Benefit of Supreme court order to exempted establishments. EPFO clarification

EPS-95 Benefit of Supreme court order to exempted establishments. EPFO clarifies that receiving contribution on full salary in EPFO account a must

EMPLOYEESPROVIDENT  FUND ORGANISATION
(Ministry of Labour & Employment, Govt. of India)

No: Pension-l/12/33/EPS  Amendment/96 Vol. II/4432

Dated: 31st May, 2017

To.                                                                                
All ACCs (Zonal Offices)
All Regional P.F. Commissioner (In-Charge of Regions),
All officers-in-charge of SROs. 

Subject:- Allowing members of the EPS’ 95 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 Civil Appeal NO(S) 10013-10014 of2016 arising out of SLP No. 33032-33033 of 2015 – reg.

Sir,

Please arrange to refer this office letter No. Pension-I/12/33/EPF/Amendtments/96/Vol-l dated 23.03.2017 on the above cited subject. Many references have been received from field offices to confirm if the aforesaid circular dated 23.03.2017 is applicable to employees of EPF exempted establishments. In  this context, it is informed as under:

(i) Approval to comply with the order of the Hon’ble Supreme Court  in the matter of Shri  R.C. Gupta and others is only in respect of the Provident Fund & Pension members whose accounts are maintained by EPFO and whose P.F. Contribution on higher wages has been received by EPFO.

(ii) All the appellant employees in the aforesaid case before the Hon’ble Supreme Court were from unexempted  establishment i.e. an establishment making P.F. contributions in the statutory Provident Fund managed by EPFO. The Employer’s contribution of 12 % under the Act in respect of the said employees was on actual salary and not on the ceiling limit of either Rs. 5,000 /- or Rs.6,500/-.

(iii) Exercise of option untler  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. The  appellant  employees in the aforesaid case had exercised option under para 26(6) of the EPF Scheme and contribution on full salary was received in the statutory Provident Fund.

(iv) Employees’ Pension Scheme remittances are being made by the establishments and not by the exempted Trusts. As such if establishments with exempted trusts are allowed to make balance remittances on full salary to the Employees Pension scheme afresh, the same will have to be considered for unexempted establishments also. It  is not contemplated in the judgment.

(v) In the case of exempted establishment the Provident Fund and Pension Fund are managed by separate legal entities. The Provident Fund of employees of exempted  establishments are managed by Exempted Trusts and Pension Fund is managed by EPFO. As such, adjustment  of contribution from Provident Fund Account to Pension Account as contemplated  in the judgment is not possible.

The matter was placed in the 40th PEIC meeting.  As decided in the 40th meeting of the PEIC the matter will be placed  before the CBT. In the interim,  it is advised that no member of EPS, 95 whose contribution on full salary has not been received in the account of the EPFO at the respective periods of contribution, shall be eligible for the benefits contemplated  in the judgment as  per the aforesaid  Hon’ ble  Supreme Court order.

(This iss ue s  with the a pprova l of CPFC)

Yours faithfully

(Mukesh Kurmar)
Regional PF Commissioner-I (Pension)

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  • EPFO is not willing to honour the verdicts of courts and are simply delaying providing enhanced pension, in spite of repeated failures in their arguments to deny such benefits before different courts. When High Powered Committees to study and suggest suitable recommendations have already been done in 2010 and 2012, where was the need for appointing one more HPC on 04.01.2018, which was to have submitted it's report within 6 months, was given another lease of 3 months but the recommendations have not yet been submitted, which shows that government is not sincere. Previous MOL&E Minister Shri Bandaru Dattareya had assured that irrespective of whether the pensioners were litigants or not, the benefit as specified by SV verdict of 04.10.2016 would be extended to all. Letter of 23.03.2017 has been issued after proper sanction by mol&e, peic and CBT in December 2016 whereas the letter of 31.05.2017 does not seem to have followed those procedures as CBT members had expressed their displeasure at they having not been taken into confidence before issue of 31.05.2017 letter, which states to have been issued with approval of CPFC. There is no clarity. Moreover, some pensioners from exempted establishments are being paid enhanced pension. How then can EPFO deny to others. These bureaucrats are working against the interests and objectives of EPS and indirectly directing the ire of EPS pensioners against the government. Government should realise this and also ensure that the disparity in payment of pension to civil servants and others are reduced. Government needs to step in and correct the situation before it results in serious repercussion for the ruling government.

    KUMAR k k

  • The maharashtra State Elect. Dist . Company is formed on 2005 and PF contribution of their employees is depositing in Maharashtra State Elect Board Employees POrovident Trust , where as MSEB Pf Turst is meant only for MSEB employees and MSEB establishment is closed during year 2005. Hence There is relation between MSEBPf Trust and MSEDCL employees provident fund. Same transaction is still continued since last 13 years illegal. MSEDCL and MSEB PF Trust have not applied to apporpriate Govt. for this transaction. Hence MSEDCL is comming under unexempted catagory. Now I may please be permitted to pay the difference amount on actual salary , as I retired employee during 2014 March. from MSEDCL. Pl, issue me 3-A form for the same.

  • supreme court does not differentiate exempted and nonexemptyed pensioners
    pensioners are not responsibe for the above reasons.

  • What ever may be All are playing with Senior citizen's lives who are leading a very miserable life due to carelessness of the Govt and officials .

  • As per EPS 95, there is no difference between exempted and Non- exempted establishments In the EPFO Annual Reports as per Para no.39 of EPS95 only three organizations were exempted from EPS95 scheme sofar by the Central Government remaining all are unexempted establishments. The EPFO also informed that there is no descrimination between exempted and non-exempted establishments (Trusts) to the petitioners under RTI ACT 2005.The Government is agreed/approved to allow pention to all the members of EPS95 as per supreme Court verdict . But the EPFO officials is intentionally denying to settle the pensions on maximum salary . So please settle the senior citizens issue on humanitarian ground.

  • THE UNNECESSARY CONTROVERSEY HAS BEEN CREATED BY EPFO ITSELF. SUPREME COURT HAS GIVEN JUDGEMENT THAT EPS CONTRIBUTION ABOVE CEILING BE REMITTED ALONG WITH CUMULATIVE INTEREST WITH THE CONSENT OF EMPLOYER AND EMPLOYEE, THEN HOW CAN EPFO MAKE A NEW DISCRIMNATORY CLASS OF EXMPTED ORGANISATIONS AND DEPRIVE SEVERAL LAKH EMPLOYEES OF ENHANCED PENSION.

  • It is very painful that exempted orgnisation employee are deprived benefit of higher pension. when pension is paid by EPF org. on ceiling limit. it is requested by the GOVT a chance be also given to all employee serving and retd both to exercise this option. and for future a premanent rule to be made so that employee can get higher pension. This is very sameful that employee is getting very less pension in which he.she can not maintain old age expenses.

    Pl do something either by approaching court of law or Govt

  • The stand taken by EPFO is tenuous. The 'exempted ' organisations were allowed to be exempted with due approval of EPFO / Govt. of India after due diligence. That the exempted organisations did deposit only the pension amount was surely in the mechanism of the 'exemption ' rule approved by the Govt. Whatever payment of additional pension contribution on the full basic salary of an employee shall have to be made may be borne by the employee. If the Govt. is gracious enough the EPFO can be be asked to adjust the payable amount of the retired employee against receivable pension on getting the Employer 's dues. Option of the employee for this exercise may be collected by the Employer concerned and submitted to the EPFO. In any case there is no ground to block the interest of employees when intention of the Hon'ble Supreme Court 's order is palpable.

  • PF and Pension are social security for retired employees. If they are deprived, how senior citizens can live in these sky rocketing price days and high cost of medical care who have no medical help from their employers. EPFO must implement Supreme Court orders and enhance pension at the earliest.

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