Employees Provident Fund Organization (EPFO) customers can now opt for a higher pension by taking contributions towards the Employees Pension Scheme (EPS). According to the new rules, EPF members can increase their EPFO ​​pension by contributing 8.33% of their basic salary to the EPS. The earlier limit for pensionable salary was Rs 15,000 per month. EPS aims to provide retirement income for 58-year-old employees.

The only people who can choose a higher pension are those who were EPF members as of September 1, 2014. Under the new regulations, subscribers and their employers may apply together for an increased pension under the EPS. By May 3, 2023, eligible EPF members may apply for an increased pension. Read the article below to learn more about the EPFO Higher Pension Scheme.

The Employees’ Provident Fund Organisation (EPFO) offers the Employees’ Pension Scheme, a social security programme. Under the scheme, workers in the organised sector will be eligible for a pension upon reaching retirement age 58. However, in order to get the benefits of the programme, an employee must have worked for at least ten years (but not continuously). Both new and current EPF members are eligible to enrol in the plan.

Employer and employee each contribute 12% of the employee’s salary to the Employee Provident Fund (EPF). All of the employee’s part is, however, contributed to the Employees’ Provident Fund (EPF), with 8.33% of the employer’s portion going to the Employees’ Pension Scheme (EPS) and 3.67% going to the monthly EPF contribution. 

How to Apply for a Higher Pension in EPF?

1. First of all, the EPFO Unified Member site must be accessed by employees.
2. Select the “Pension on Higher Salary: Online application for validation of Joint Option” option.
3. Complete the form and send it. 
4. Every application will be digitally registered by the EPFO, which will also give the applicant a receipt number. The applications will be forwarded to the relevant employers, who will process them further after verifying them using an electronic signature (e-signature). After reviewing the case, the APFC/RPFC-II will notify the applicants by phone, email, or SMS of the higher pension decision.
5. The application will be reviewed by the field officers. The wage information provided by the employers will be cross-checked with the field offices’ data if the form is filled out completely. When the information provided by the employers and the field officers matches, the dues will be computed, and RPFC-II/RPFC-I/APFC will pass an order for the dues to be deposited or transferred. When there is a discrepancy, the APFC/RPFC-II will notify the pensioner and the employer, and they will have one month to make the necessary corrections.
6. If the employer does not approve the application, they will have a chance to remedy any problems or provide more supporting documentation before the form is rejected. The older people will be notified of this change, which will be available for a month

Submit an Online Pension Form for a Shared Option in the EPF?

The process for exercising or applying for a joint option under EPS-95 paragraphs 11(3) and 11(4) in order to claim a higher pension for employees who are members of the programme but were hired after 2014 or retired is outlined below.

• The EPFO Unified Member site must be accessed by employees.
• Select the option “Exercise of Joint Option under Paragraphs 11(3) and 11(4) of EPS-1995 on or before May 3, 2023” for the pension on higher salary.
  Complete the form and send it in.

The joint option forms will be reviewed by the field officers. The wage information provided by the employers will be cross-checked with the field offices’ data if the form is filled out completely. When the information provided by the employers and the field officers matches, the dues will be computed, and RPFC-II/RPFC-I/APFC will pass an order for the dues to be deposited or transferred. When there is a discrepancy, the APFC/RPFC-II will notify both the employer and the employee, and they will have one month to make the necessary corrections.

If the employer does not approve the join option, they will have a chance to remedy any issues or submit more supporting documentation before the form is rejected. This chance will be provided to employees with notice and for a duration of one month

 FaQ

Q. Is the higher pension plan advantageous?

Ans. The greater pension plan is an option for those who have other investments and will get a lump sum payment when it matures. Nonetheless, the lump sum EPF payment received upon retirement is tax-exempt, but the monthly pension is taxable.

Q. How can I choose an EPFO pension that is higher?

Ans. Workers in service or retired after 2014 who are EPS-95 members may choose to get a larger pension by submitting a joint option application to the regional PF commissioner by November 7, 2023.

Q. How can I increase my EPF pension?

Ans. To receive a higher pension, qualified workers should apply for a higher pension through a joint claim or directly to the relevant regional PF commissioners.