Highlights of Supreme Court judgement dated 4.11.2022 on Employees Pension Scheme 1995:
1. Validity of EPS 1995 as amended in 2014 is upheld.
2. Employees who could not opt to join the scheme can do so within next 4 months.
3. Provision in the scheme for additional contribution by employees @ 1.16% of salary in excess of Rs.15,000 p.m. is invalid there is no such provision in the PF Act. However this part of the order is suspended for 6 months to enable the govt. to make suitable amendment in the Act.
4. Employees retired before 1.9.2014 will get benefit extended before the amendment. If they have not given option for higher salary yet, they cannot give option now.
5. Exempted establishments will also get benefit of the judgement.
6. Provision regarding consideration of last 5 years salary instead of last 12 months salary for the purpose of calculation of pension is upheld.
7. Fixation of threshold of maximum salary of Rs.15,000 p.m. for the purpose of calculation of pension is also upheld.
8. If the salary of persons who is yet to join service exceeds Rs.15,000, they cannot join the scheme.
9. Those who are currently in service should be in a position to opt for higher pension.
EPFO is likely to amend the scheme based on Supreme Court order and issue circular giving various clarifications and procedural aspects.
From India, Malappuram
14441. Validity of EPS 1995 as amended in 2014 is upheld.
2. Employees who could not opt to join the scheme can do so within next 4 months.
3. Provision in the scheme for additional contribution by employees @ 1.16% of salary in excess of Rs.15,000 p.m. is invalid there is no such provision in the PF Act. However this part of the order is suspended for 6 months to enable the govt. to make suitable amendment in the Act.
4. Employees retired before 1.9.2014 will get benefit extended before the amendment. If they have not given option for higher salary yet, they cannot give option now.
5. Exempted establishments will also get benefit of the judgement.
6. Provision regarding consideration of last 5 years salary instead of last 12 months salary for the purpose of calculation of pension is upheld.
7. Fixation of threshold of maximum salary of Rs.15,000 p.m. for the purpose of calculation of pension is also upheld.
8. If the salary of persons who is yet to join service exceeds Rs.15,000, they cannot join the scheme.
9. Those who are currently in service should be in a position to opt for higher pension.
EPFO is likely to amend the scheme based on Supreme Court order and issue circular giving various clarifications and procedural aspects.
From India, Malappuram
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Supreme Court Judgement on LTA.pdf
Judgement by supreme court.zip