Timeline to file higher pension applications under the Employees’ Pension Scheme, 1995 extended to 26 June 2023

As per the press release issued by the Ministry of Labour and Employment on 2 May 2023, the timeline for filing the joint option application by pensioners/ member employees under the Employees’ Pension Scheme, 1995 has been extended from 3 May 2023 to 26 June 2023.

For details on the higher pension option, the Supreme Court ruling of 4 November 2022 and the EPFO circular of 20 February 2023, please refer to our previous alert dated 21 February 2023 – please click here. 

The EPFO in its circulars dated 29 December 2022, 20 February 2023 and 23 April 2023 has issued the guidelines on the process for filing the applications by the pensioners/member employees and for review and scrutiny of the applications by the EPFO. However, the EPFO is yet to notify the method of deposit of corpus into the Pension Scheme and computation of pension.

For further details on the online application form for higher pension released by the EPFO – please click here.

Comments

The topic of higher pension option to be exercised jointly with the employer, by pensioners/member employees, has several facets such as: 

• Eligibility
  
• Amount of accumulated corpus to be diverted/ deposited into the Pension Scheme 
• The date from when such re-allocation needs to be effected
• Expected increase in monthly pension if the option is exercised
• Process of filing the application 
• Permission under Para 26(6) of the Provident Fund Scheme
• Process and timeline for the employer to approve the application
• Withdrawal of the application by the applicant after approval by the employer/order from the EPFO
• Whether the timeline of 26 June 2023 is for both employer and employee or only for the employee to file the application

Employers will need to address the above whilst facilitating the exercise of option for higher pension by the eligible retired/continuing employees.