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This story is from March 15, 2023

Weren’t consulted on higher pension scheme, say EPFO board members

Weren’t consulted on higher pension scheme, say EPFO board members
NEW DELHI: In the run up to a meeting of the Employees’ Provident Fund Organisation’s central board of trustees on March 27-28, several board members have said the EPFO did not inform or consult them over the implementation of the retirement fund agency’s higher pension scheme.
The last CBT meeting was convened in October 2022, days before the SC’s November 4 judgement on implementation of joint option for higher pension.
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Sources told TOIthat none of the EPFO circulars in this regard have since been shared with CBT members.
The Board is expected to finalise the interest rate on the retirement corpus for 2022-23. Board members also flagged the lack of comprehensive guidelines to assist retired and existing EPFO subscribers in opting for higher pension and the resultant confusion it has caused.
While EPFO has still not issued a circular clarifying the method of deposit or computation of pension, the agency has thrown in procedural complexities that make it virtually impossible for applicants to opt for higher pension. This is because EPFO expects employees and employers to submit proof that they jointly sought the EPFO’s permission to contribute on their actual basic salaries instead of the prescribed statutory limit for provident fund under the Employee Provident Fund (EPF) Scheme, 1952.
Trade unions and experts have dubbed the agency’s mandate to upload proof of joint option as per Para 26(6) of the EPF scheme as a “draconian condition” that is being imposed even though the SC has not accepted this contention.
The Centre of Indian Trade Unions and the Bharatiya Mazdoor Sangh have both flagged to the organisation and the labour ministry confusion regarding the implementation of the higher pension scheme.
Though EPFO had claimed that over 8,000 people applied to their employers through the unified portal, it did not say how many applicants were able to furnish proof of prior permission from EPFO’s offices, to contribute on actual or higher salaries.
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