EPFO Yet To Remove Controversial Clause On Prior Permission To Opt For Higher Pension
The Employees' Provident Fund Organization (EPFO) in India is yet to remove a controversial clause that requires applicants to submit proof of prior permission for PF contributions based on actual basic salaries to opt for higher pensions.
Interestingly, the Kerala High Court on April 12 had directed the Employees Provident Fund Organization to modify its online system to allow employees/pensioners to comply with the directives of the Supreme Court for opting for a higher pension without having to provide copies of the option under paragraph 26(6) of the Employees Provident Fund Scheme, 1952. Accordingly, the EPFO was asked to do away with the mandatory clause by the High Court.
The Supreme Court had earlier permitted the employees who could not submit the options in light of para 11(3) of the pre-amendment scheme, to submit fresh options within a period of four months. Though the said period expired on 3.03.2023, the same was further extended for two months i.e. up to 3.05.2023. The petitioners in these cases are employees intending to submit their options in the light of directions of the Supreme Court.
The EPF organization made available to the employees the facility to submit the options through online mode by providing necessary links for the same on their website.
The grievance highlighted by the petitioners is that one of the details to be furnished in the said option form is the copy of the permission under para 26(6) of the Employees Provident Fund Scheme, 1952. According to the petitioners, even though they were permitted to pay the contribution based on the salary, exceeding the ceiling limit prescribed (Rs 5,000/- and Rs 6,500/-), as contemplated under para 26(6) of the Scheme 1952, no formal option has been submitted.
According to them, submission of such an option was never necessitated or insisted upon, and instead, higher contributions were being accepted all along by the EPFO. Therefore, they are unable to fill up the said column in the online option form, and the said form is formulated in such a fashion that, unless the details of the option under para 26 (6) of the Scheme, 1952 are incorporated, they cannot successfully submit the online options. If they are not submitting their options on or before the cut-off date, i.e. 3.05.2023, they will be deprived of the benefits of the Scheme to which they are legally entitled. In such circumstances, the petitioners had approached the Kerala High Court seeking permission to submit options without insisting on the details/copies of the options submitted by them under para 26(6) of the Scheme 1952.
During the proceedings before the court, counsel for the petitioners had pointed out that higher contributions were being accepted by the EPFO all along, even without formal options from the employees and without any insistence for submission of options as referred to above. The petitioners relied on various circulars issued by the EPFO to substantiate the said contentions.
While the May 03 cut-off is approaching for submissions, it remains to be seen as to when EPFO clears the air in this regard.
