EPFO Pension: Shareholders and pensioners of EPFO’s pension scheme, who have opted for higher pension, will be given 3 months time to agree to pay additional contribution or arrears.
EPFO Pension Update: A new update has come from the government for those opting for higher pension. If you have selected the option of higher pension or are planning to do so, then this news is for you. Shareholders and pensioners of EPFO’s pension scheme, who have opted for higher pension, will be given 3 months time to agree to pay additional contribution or arrears. Earlier, in November 2022, the Supreme Court had asked the government to give four months time to the shareholders to choose the option of higher pension.
Online facility available to fill the form
EPFO has provided online facility to the subscribers to fill the joint option form with the employer for opting for higher pension. The deadline for this was earlier May 3, 2023, which has now been extended to June 26, 2023. There is no clarity on how the option of additional contribution will work and the mode of payment if the higher pension option is chosen.
Regional officers will determine the additional amount
EPFO shareholder does not even know whether he will get the option to opt out of the higher pension scheme in case of asking for a higher amount. It was clarified in the notification that the regional officers will decide the additional amount. Whatever amount will be determined, information about it along with interest will be given to the shareholders opting for higher pension.
Three months time given to give consent
It has been said that pensioners / members will be given three months time to deposit money and give consent for transfer of funds. The Regional Officer of EPFO will inform the pensioners or members about the need for payment of additional funds for higher pension.
Let us tell you that earlier this month, the Labor Ministry had made it clear that an additional contribution of 1.16 per cent of the basic salary of those opting for higher pension would be taken from the employer’s contribution to the EPFO-run social security scheme. At present, the government contributes 1.16 per cent in the form of subsidy to the EPS on the basic salary of Rs 15,000.
Employees contribute 12 percent 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. The remaining 3.67 percent goes to the Employees’ Provident Fund.
