New Delhi: In compliance with the Supreme Court’s verdict ordering payment of pension in proportion to the salary drawn by workers, the Employees Provident Fund Organisation (EPFO) has initiated steps to facilitate the exercise of joint option by those who are eligible.
The circular issued to the regional EPF officials directs them to complete the formalities within the time-limit fixed by the court. The deadline within which the options have to be exercised is just 10 days away.
Although the authorities had indicated that the process would be digital, no relevant link has been made available till now. It is expected to made available soon.
Three conditions
Three conditions have been laid down for those who can exercise the joint option with the establishment where the employee had worked.
1) They should have been in service before September 1, 2014, and retired later or are still in employment.
2) They should have paid the provident fund contribution in proportion to their salary higher than Rs, 5,000 or Rs 6,500 which were the applicable limits at specific times under the EPF Scheme 26(6).
3) They should not have exercised the option under Para 11(3) while being a member of the EPS 95 scheme.
The circular states that if those who exercised the option under Para 11(3) before the amendment on September 1, 2014, did not exercise the revised option under Para 11(4) of the amendment within the time limit, they cannot exercise the option now. The Supreme Court verdict, however, did not contain this condition.
The circular also says that while submitting the new option, the employer must produce proof of having remitted the provident fund contribution proportional to the higher salary and the option given for paying the higher contribution under the 26(6) scheme.
It was made clear that a separate circular would be issued on the higher contribution that should be remitted in proportion to the higher salaries drawn in the past and the method of calculating the pension.