EPS 95- Higher Pension – Frequently Asked Questions

1. Reference articles EPS 95 Scheme – Eligibility For Higher Pension – Part-I & Part II, EPS 95 – Higher Pension Vs EPF –
Comparative Analysis dated 05.01.2023 & 04.02.2023 & 07.02.2023 respectively. In a significant ruling dated 04.11.2022,
the Supreme Court provided another opportunity to sections of subscribers and pensioners to opt for higher pension under
the Employees’ Pension Scheme (EPS), 1995. The option is to be exercised within 4 months from the date of judgment i.e.
03 March 2023. The four-month time fixed by the Supreme Court on 4th Nov 2022 is set to lapse soon and there are no
guidelines issued by the EPFO to date. The delay in issuing guidelines by the EPFO triggered anxieties among pensioners and
those nearing retirement. In this article, an attempt has been made to address Frequently Asked Questions by the members
about higher pension eligibility and submission of the Joint Option Form. 2. What if EPFO does not come up with any
guidelines till 03.3.2023? In case, the EPFO remains silent and does not come up with guidelines by 03 March 2023, it is
advisable to go ahead and submit a joint option form in a simple format. EPFO may decline to accept the option form now.
This is going to be another set of litigation in the future. Those members who submitted the forms now and declined by the
EPFO will be eligible to re-submit the Join Option Form in the future (EPFO vide circular dated 29.12.2022 allowed such
members who had submitted the form earlier and the same was rejected by the authorities)
Read more at: https://taxguru.in/corporate-law/eps-95-higher-pension-frequently-asked-questions.html
Copyright © Taxguru.in

Non-filing of the application within the time limit provided in the Supreme Court Judgment
may adversely affect the eligibility in the future. 3. Format for Joint Option Form: The
request for a higher pension should be made in Joint Option Form duly signed by both
the employee and the employer The EPFO has not issued any standard Format. The
organizations are providing Joint Option Form in its format. 3.1 The details required to
be filled up in Joint Option Form are as follows Particulars of Employees/ Ex-Employees
Read more at: https://taxguru.in/corporate-law/eps-95-higher-pension-frequently-
asked-questions.html
Copyright © Taxguru.in.

3.2 The Joint Option will be signed by the member and is to be attested by the employer. The employer shall
certify that the particular furnished by the employee is correct and that both the employee and employer
have contributed on actual salary towards PF. The employer has no objection to diverting the differential
amount @8.33% of the employer’s share of the PF Account to the Pension Fund maintained by EPFO. 3.3
In the case of exempted establishments, PF trust shall submit the undertaking. The undertaking shall be to
the effect that the due contribution along with interest up to the date of payment, will be deposited
within the specified period. 4. Calculation of Differential Amount to be diverted/ deposited: The
differential amount to be deposited /diverted to the pension fund varies in each case depending upon the
period of service, Salary, Date of retirement, etc. Let us try to understand the basics of calculations with
the help of a tabular Illustration:
Read more at: https://taxguru.in/corporate-law/eps-95-higher-pension-frequently-asked-questions.html
Copyright © Taxguru.in

5. Calculation of Pension Amount: – The formula to calculate the EPS pension is as follows: 5.1 Monthly pension
amount= (Pensionable salary X pensionable service)/70.” 5.2 Pensionable service: This refers to the number of
years for which contributions were made to the EPS account. The service w.e.f. Nov 1995 will be considered for
this purpose. The service period before Nov 1995 is not relevant for the calculation of pension and differential
amount. 5.3 In the case of the member who superannuates on attaining the age of 58 years, and who has
rendered 20 years’ pensionable service or more, the pensionable service shall be increased by adding a weightage
of 2 years. 5.4 Pensionable Salary: The pensionable salary has been defined as the average of the last 60 months’
salary. 6. How to apply for a higher Pension: Though EPFO has not issued any guidelines for the eligible
pensioners, the circular dated 29.12.2022 issued by EPFO for the specific category of eligible pensioners lays down
the following process to apply for a higher pension:- (a) The request will be made in such form and manner as may
be specified by the commissioner (b) The application form for validation will contain the disclaimer as ordered in
the aforesaid government notification (c ) In case of share requiring adjustment from a provident fund to a
pension fund and if any, re-deposit to the fund, the explicit consent of the pensioner will be given in the
application form. (d) In case of transfer of funds from exempted provident fund trust to the pension fund of EPFO,
an undertaking of the trustee shall be submitted. The undertaking shall be to the effect that due contribution
along with interest up to the date of payment, will be deposited within the specified period.
Read more at: https://taxguru.in/corporate-law/eps-95-higher-pension-frequently-asked-questions.html
Copyright © Taxguru.in

6.1 Documents required to apply for higher pension A pensioner is required to submit the (a) Joint Option Form
duly verified by the employer and (b) Proof of remittance in provident fund account on actual wages
[higher wages exceeding the prevalent wage ceiling of Rs 5,000/Rs 6,500] 6.2 Once the eligible pensioner
submits the application form, the EPFO authority i.e., the Regional PF commissioner will deal with it as
follows: (i) Each application will be registered and digitally logged. The receipt number will be provided to
the applicant. (ii) The application will land into the employer’s login whose verification with e-sign will be
essential for further processing. (iii) The RPFC will cause each application to be converted into an e-file, as
far as, possible. (iv) The Officer in charge shall examine each. each case of pension on a higher salary and
dispose of it by passing a speaking order that shall be intimated to the applicant through e-mail/post.
Efforts will be made to intimate them through telephone/SMS. (v) If an applicant has any grievance, then a
complaint can be raised on EPFiGMS after submission of his request form and payment of due
contribution if any.
Read more at: https://taxguru.in/corporate-law/eps-95-higher-pension-frequently-asked-questions.html
Copyright © Taxguru.in

7. Other relevant points (Frequently Asked Questions) 7.1 In case of the death of the member while in service, the spouse
becomes eligible for a 100% pension benefit. 7.2 In case of the death of the member after the commencement of the
monthly pension, the spouse becomes eligible for a 50% pension benefit. 7.3 In the case of children, a pension amount
equal to 25 percent widow/widower pension is given to each child subject to a maximum of 2 children at a time. Children’s
pension is payable to two children at a time, till 25 years of age. 7.4 If both the husband and wife are EPS members and have
contributed independently to the said scheme, the spouse will be eligible for pensions separately on the death of a member.
The pension under the EPS 95 is a direct consequence of the contributions made by the member of EPS 95; hence, the
pension to a spouse will not be stopped even if he or she is also a member of EPS and getting the pension from under the
scheme. 8. The decision to opt for a higher pension depends on the individual’s specific situation and factors like the ability
to invest the corpus in alternate funds, cash flow requirements, life expectancy, etc. 8.1 The author believes that higher
pension options cannot be viewed solely from the investment angle. The social security offered by the EPS higher pension
scheme is equally important. The purpose of the pension scheme is to give tension-free fixed income at the vulnerable old
age of a member 9. The delay in the implementation of higher pension may be due to various reasons. The field offices are
finding it difficult to answer queries from members and pensioners. The EPFO top brass feels that higher pension may
deplete the resource base in no time. Understandably, EPFO is facing genuine difficulties in implementing the Court’s
directions. The government and the EPFO must at least explain to the stakeholders the genuine difficulties in delaying the
implementation of the Court’s directions. ***** Disclaimer: The article is for educational purposes only. The author may be
approached at caanitabhadra@gmail.com Tags: EPF, EPFO, FAQs, Provident Fund, supreme court judgements
Read more at: https://taxguru.in/corporate-law/eps-95-higher-pension-frequently-asked-questions.html
Copyright © Taxguru.in