EPFO: Pension of about 25,000 pensioners can be cut. The pension fund body has ordered a ban on the higher pension of these people from this month itself. It is possible that this decision may now have to face opposition.
About 25,000 pensioners of the Employees’ Provident Fund Organization (EPFO) are facing the sword of pension reduction. The Retirement Fund Organization has instructed its local authorities to stop paying higher pensions to those who retired before 2014. Along with this, the additional amount given to them under this arrangement should also be recovered. In this regard, EPFO ​​had issued a circular on Wednesday. The organization says that such cases will be reviewed who retired before September 1, 2014 and have not subscribed to the pension facility on higher pay.
EPFO has said in the circular that from January 2023, the higher pension of such pensioners should be banned. After this, their pension will be revised on the basis of salary of Rs 5,000 or Rs 6,500. EPFO has referred to paragraph 11(3) of EPS-95 in this circular which talks about the maximum pensionable salary of an employee.
EPFO has said in the circular that advance notice should be given to the pensioner before the pension is revised.
About 25,000 pensioners of the Employees’ Provident Fund Organization (EPFO) are facing the sword of pension reduction. The Retirement Fund Organization has instructed its local authorities to stop paying higher pensions to those who retired before 2014. Along with this, the additional amount given to them under this arrangement should also be recovered. In this regard, EPFO ​​had issued a circular on Wednesday.
The organization says that such cases will be reviewed who retired before September 1, 2014 and have not subscribed to the pension facility on higher pay.
EPFO has said in the circular that from January 2023, the higher pension of such pensioners should be banned. After this, their pension will be revised on the basis of salary of Rs 5,000 or Rs 6,500. EPFO has referred to paragraph 11(3) of EPS-95 in this circular which talks about the maximum pensionable salary of an employee. EPFO has said in the circular that advance notice should be given to the pensioner before the pension is revised.
May have to face protest
Social activist Praveen Kohli, who advocates for the rights of pensioners, says that this is the pride of EPFO. He said that the circular is distorting the truth and many information has also been suppressed. According to Kohli, the court had upheld the EPS-95 in 2003 itself and after that the pension of 24,672 pensioners was revised. After this, many other pensioners also got a decision in their favor from various courts.
What is Para 11(3)
In this para, employees have been allowed that you can invest more than the limit fixed for pension from monthly salary. But the employees will have to take advantage of this facility jointly with their employer. This means that before increasing the money in the pension fund, the employee will also need the consent of the employer. Now EPFO ​​is saying that those who retired before September 1, 2014, should not be given more pension if they had not opted for this facility.
