In a recent development, the Employees’ Provident Fund Organisation (EPFO) has released an updated set of Frequently Asked Questions (FAQs) shedding light on the implementation of higher pension as mandated by the Supreme Court in November of the previous year.
One key aspect addressed in the FAQs is the disbursement of arrears of pension. The EPFO clarified that pensioners would receive their arrears in accordance with the existing process to ensure compliance with income tax provisions related to tax deducted at source. This response comes in response to queries about whether pension arrears would be adjusted against the demand for higher contributions.
The updated FAQs also reiterate the formula for computing pension and provide a list of documentary evidence required for submitting the joint option for higher pension under the Employees’ Pension Scheme, 1995. This information serves as a comprehensive guide for applicants seeking higher pension benefits. Notably, similar FAQs were issued by the EPFO in June of the current year to address issues faced by pensioners applying for increased pension benefits.
Despite these clarifications, there remains a degree of uncertainty regarding the timeline for the EPFO to commence the implementation of the higher pension. Currently, the organization is in the process of reviewing and processing the numerous applications received. It is anticipated that there may be further developments in this regard by January. Impressively, the EPFO has received an overwhelming 17.49 lakh applications for higher pension, reflecting the significant interest and demand for this enhanced benefit.
K.E. Raghunathan, a member of the EPFO’s Central Board of Trustees representing employers, has welcomed the release of these FAQs. He expressed that issuing this information earlier would have alleviated confusion among pensioners and EPFO officers. Nevertheless, he acknowledged the positive step taken by the EPFO, emphasizing that it is better late than never.
This comprehensive set of FAQs aims to provide clarity and guidance to pensioners and applicants navigating the process of securing higher pension benefits. As the EPFO continues to process applications, stakeholders await further updates and progress towards the implementation of the Supreme Court-mandated higher pension.
