EPFO Higher Pension Scheme: Under Pension Scheme EPFO Members opting for higher pension in the account will be given 3 months time to express their consent to pay the extra payment or arrears.
This was stated in an official circular on Thursday. Earlier, in November last year, the Supreme Court had asked the government to give 4 months to EPF members to opt for higher pension. EPFO has provided online facility for members to fill joint operation form with employer to opt for higher pension option. The last date to fill this form was May 3, which has been extended to June 26, 2023.
Many things were not clear regarding the Higher Pension Scheme
However, there is no clarity on how the option of additional contribution will work and the mode of payment if the higher pension is opted for. The member is also not yet aware whether he will get the option to opt out of the higher pension scheme in case the higher amount is demanded.
Regional officers will determine the extra payment
It has been clarified in the circular that the regional officers will determine the extra payment. Whatever amount will be determined including interest, it will be given to the members who opt for more pension. It states that members and pensioners will be given up to three months to deposit money and give consent for transfer of funds.
Information will be given to the members who choose more pension
The Regional Officer of EPFO will inform the pensioners or members about the need for payment of additional arrears for higher pension. Earlier this month, the labor ministry had clarified that an additional contribution of 1.16 per cent of the basic salary of members opting for the higher pension would be taken from the employer’s contribution to the EPFO-run social security scheme.
Government gives subsidy of 1.16% on basic salary of 15 thousand
At present, the government contributes 1.16 per cent as subsidy to the Employees’ Pension Scheme (EPS) on a basic salary limit of Rs 15,000. Employees contribute 12 per cent to the social security scheme of EPFO. At the same time, out of 12 percent contribution of the employer, 8.33 percent goes to EPS. While the remaining 3.67 percent goes to the Employees Provident Fund.
