My last salary on retirement on 30/06/2013 is Rs.10000/- I have applied for Higher Pension. so far not Pension is not revised. my doubt is the average salary 12 months or 60 months for higher pension?
From India, Hyderabad
From India, Hyderabad
Thanks Madhu K .
Issue of exempted employees were under litigation & atleast Kerala HC has recently ruled in favour of exempted category. ( EPFO in their usual eagerness to deny benefits to subscribers had wrongly interpreted the SC judgement to exclude exempted funds).
I also learn that a move to increase minimum pension to 5000/7500 is also under final stages and as usual is being delayed by Govt though agreed. Now I learn that a morcha of pensioners are going to protest in Delhi on Nov 18 or 28 or some day in Nov.
From India, Thane
49Issue of exempted employees were under litigation & atleast Kerala HC has recently ruled in favour of exempted category. ( EPFO in their usual eagerness to deny benefits to subscribers had wrongly interpreted the SC judgement to exclude exempted funds).
I also learn that a move to increase minimum pension to 5000/7500 is also under final stages and as usual is being delayed by Govt though agreed. Now I learn that a morcha of pensioners are going to protest in Delhi on Nov 18 or 28 or some day in Nov.
From India, Thane
I retired on 31.3.2015 and started getting pension from EPF from 3.10.2015 upon attaining 58 years of age. From 1993 till 2005 I was in a exempted company thereafter after a two year gap I joined unexempted company till my retirement on 31.03.2015. Throughout my contribution was higher than the ceiling limit but since I did not know that I have to give option to avail higher pension I am now getting pension of Rs 2000/- . I would like to know if I am eligible for higher pension considering Supreme Court judgement, Kerala Court judgement and Orders issued by Head office of EPF department alternatively steps I need to take to make good the lost opportunity.
From India, Kolkata
From India, Kolkata
Since you have contributed to provident fund on a salary which was above the statutory ceiling of Rs 6500, will be entitled to get higher pension. On withdrawal of your PF accumulations, you would have received the amount your employer have paid to the provident fund in excess of the amount payable had it been limited to 12% of Rs 6500. That amount should be paid back to EPFO and then reprocess your pension based on the actual PF contributing salary.
Let us do a working assuming a salary of Rs 100000.
The PF contribution is not restricted to Rs 6500, but the employer was contributing it on Rs 100000. That means your employer contribution to PF was Rs 12000 as against Rs 780.
Now out of this 12000,only Rs 541 (6500 X 8.33%) was deposited into Pension Fund. The remaining amount of employer contribution,ie, 12000-541 or Rs 11459 is deposited in you Provident Fund account. If the PF authorities had accepted pension fund at the rate of 8.33% on the actual salary, ie, 8.33% of 100000, the amount of contribution to pension fund would be Rs 8333 and if that was the case the employer would be paying that 8333 to pension fund and the remaining, only Rs 3667 (12000 minus 8333) to Provident Fund.
In the first case the employer contribution to PF account will be Rs 11459 and you have withdrawn that amount with interest. Now the second case should be applied. In order to get higher pension you should have contributed on higher salary and if so the contribution to provident fund by the employer will be less, or 3667. This clearly says that as against 3667 you have taken back 11459. Therefore, you have to pay back Rs 7792 (11459 minus 3667) and then recalculate the pension as if the pensionable salary is Rs 100000.
What the PF authorities are saying is that they need time to calculate how much the employees should pay back. There is no system for calculating it in the present software. When we calculate it for one case, it sounds to be okay but when we start doing it for interest part also, then it will become complicated. In some cases where the salary is pretty good, the amount you would have received as withdrawal of PF accumulations would also be high and repaying it would make put a heady burden on you.
From India, Kannur
Let us do a working assuming a salary of Rs 100000.
The PF contribution is not restricted to Rs 6500, but the employer was contributing it on Rs 100000. That means your employer contribution to PF was Rs 12000 as against Rs 780.
Now out of this 12000,only Rs 541 (6500 X 8.33%) was deposited into Pension Fund. The remaining amount of employer contribution,ie, 12000-541 or Rs 11459 is deposited in you Provident Fund account. If the PF authorities had accepted pension fund at the rate of 8.33% on the actual salary, ie, 8.33% of 100000, the amount of contribution to pension fund would be Rs 8333 and if that was the case the employer would be paying that 8333 to pension fund and the remaining, only Rs 3667 (12000 minus 8333) to Provident Fund.
In the first case the employer contribution to PF account will be Rs 11459 and you have withdrawn that amount with interest. Now the second case should be applied. In order to get higher pension you should have contributed on higher salary and if so the contribution to provident fund by the employer will be less, or 3667. This clearly says that as against 3667 you have taken back 11459. Therefore, you have to pay back Rs 7792 (11459 minus 3667) and then recalculate the pension as if the pensionable salary is Rs 100000.
What the PF authorities are saying is that they need time to calculate how much the employees should pay back. There is no system for calculating it in the present software. When we calculate it for one case, it sounds to be okay but when we start doing it for interest part also, then it will become complicated. In some cases where the salary is pretty good, the amount you would have received as withdrawal of PF accumulations would also be high and repaying it would make put a heady burden on you.
From India, Kannur
Dear All,
There was a circular from EPFO on 22-01-2019 entitling all the EPF members to join for the EPF pension scheme based on the actual salary with the option of paying the additional amount with arrears with interest for this.
Since there is no mention on the Exempted / Non Exempted organizations in this EPFO order, is it application for all the EPF eligible members ?
When is the next Supreme Court hearing on the EPF pension scheme as lots of review petitions are pending in the Supreme Court. It was scheduled for 25-01-2019. Now again this date is postponed. Even the final verdict of the High Court of Kerala has come in favor of the EPF members.
Satheesh Kumar.P
ITI Limited, Palakkad
From India, Bengaluru
There was a circular from EPFO on 22-01-2019 entitling all the EPF members to join for the EPF pension scheme based on the actual salary with the option of paying the additional amount with arrears with interest for this.
Since there is no mention on the Exempted / Non Exempted organizations in this EPFO order, is it application for all the EPF eligible members ?
When is the next Supreme Court hearing on the EPF pension scheme as lots of review petitions are pending in the Supreme Court. It was scheduled for 25-01-2019. Now again this date is postponed. Even the final verdict of the High Court of Kerala has come in favor of the EPF members.
Satheesh Kumar.P
ITI Limited, Palakkad
From India, Bengaluru
Dear Madhuji,
This is with reference to my query dt.17/12/2017 & your reply dt.19/12/17 in this discussion.After issue of circular no.2896 dt,8/6/18 of Addl.CPFC(Pension),Mr. R.M.Verma,EPFO H.qrs.,Delhi,I had sent reminder mails at 10-20 days’ interval to all concerned RPFCs with copy to ACPFC,Odisha Zonal Office & CPFC,Delhi to intimate me the differential amt ( pension fund contribution on my actual wage/salary – pension contribution already deposited on my my wage/salary upto statutory ceiling) I have to deposit with EPFO and the actual amt of my revised pension amt per month.
Only on 4th March,2019,I received the response from RPFC Office about the amount of total refund to EPFO in the shape of DD towords differential amt of pension contribution together with interest accrued till end of the month and on deposit of the said amount I would be paid revised pension,which has also been informed by the said office.
Now I have the following 2 points to be clarified:
1.When I calculated the amt of my arrear pension for 69 months by simply multiplying the monthly arrear pension amt with 69 without taking into account any interest for the past 69 months,the amt so arrived at is 20 thousand more than the amount I am asked by EPFO to deposit.Why EPFO is not adjusting the amt of my refund to them against the total arrear Pension I am to get?Why I will incur addnl amt by way of DD charges on a huge amt of refund.Are not they doing injustice to a retired senior citizen?Is their such action justified & legally sustainable?
2. As the PFauthority is collecting interest with retrospective effect on the amt of my refund against higher pension contribution till today,whether it is entitled or not tol pay me interest on my arrear pension amt from the dt of my retirement till date ?
Your considered opinion on the matter is highly solicited.
With Regards,
S.K.Hota,
Bhubaneswar
Dt-9th Mar,2019
From India, Calcutta
This is with reference to my query dt.17/12/2017 & your reply dt.19/12/17 in this discussion.After issue of circular no.2896 dt,8/6/18 of Addl.CPFC(Pension),Mr. R.M.Verma,EPFO H.qrs.,Delhi,I had sent reminder mails at 10-20 days’ interval to all concerned RPFCs with copy to ACPFC,Odisha Zonal Office & CPFC,Delhi to intimate me the differential amt ( pension fund contribution on my actual wage/salary – pension contribution already deposited on my my wage/salary upto statutory ceiling) I have to deposit with EPFO and the actual amt of my revised pension amt per month.
Only on 4th March,2019,I received the response from RPFC Office about the amount of total refund to EPFO in the shape of DD towords differential amt of pension contribution together with interest accrued till end of the month and on deposit of the said amount I would be paid revised pension,which has also been informed by the said office.
Now I have the following 2 points to be clarified:
1.When I calculated the amt of my arrear pension for 69 months by simply multiplying the monthly arrear pension amt with 69 without taking into account any interest for the past 69 months,the amt so arrived at is 20 thousand more than the amount I am asked by EPFO to deposit.Why EPFO is not adjusting the amt of my refund to them against the total arrear Pension I am to get?Why I will incur addnl amt by way of DD charges on a huge amt of refund.Are not they doing injustice to a retired senior citizen?Is their such action justified & legally sustainable?
2. As the PFauthority is collecting interest with retrospective effect on the amt of my refund against higher pension contribution till today,whether it is entitled or not tol pay me interest on my arrear pension amt from the dt of my retirement till date ?
Your considered opinion on the matter is highly solicited.
With Regards,
S.K.Hota,
Bhubaneswar
Dt-9th Mar,2019
From India, Calcutta
Sathish ITi, please attach a circular dated 22/01/19 or any one else who has a copy pl.post it. I have on several occassions written on this site about the injustice SK Hota has mentioned, but no response from our lot, it is time we unitedly fight for this even if you have to file an PIL. I have written to BJP cyber cell on this because there was a mail from them asking for input for manifesto for 2019 election. The BJP minister who Jhavdekar who demanded minimumn pension of Rs 3000. form UPA kept mum inspite of being in the ministry which could have moved the issue. The minister Kushwah who negotiaited with Retired employees made some favourable noises & later on TV said that EPFO can't pay every retired employee & can pay only the employees who have got verdict from SC. He also said that Govt is working on minimum pension of Rs 2000/ as if he will be doing a big favour. Now he resigned on the eve of election to MP Rajasthan & MP. EPFO employees have a mind set that their duty is to deny or delay whatever is favourable to EPFO members. Dear Mr Hota, did you apply in the specified form 26 & 3A or just wrote to EPFO. Once again requesting any one to post the EPFO circular dated 22/01/2019.
From India, Thane
From India, Thane
I have got the circular dated 22/01/19 & the copy of Kerala Hc ruling dated 12/10/18. Both are attached. Kerala HC has up held the petitioner employees contentions 7 rejected Govts' contention. It reads like "For the foregoing reasons, the petitioners are entitled to succeed. The writ petitions are all allowed as
follows:
i) The Employee's Pension (Amendment) Scheme, 2014 brought into force by Notification
No. GSR. 609(E) dated 22.8.2014 evidenced by Ext.P8 in W.P.(C) No. 13120 of 2015 is set
aside;
ii) All consequential orders and proceedings issued by the Provident Fund
authorities/respondents on the basis of the impugned amendments shall also stand set aside.
W.P.(C). 13120/2015 & con.cases
iii) The various proceedings issued by the Employees Provident Fund Organization declining to grant
opportunities to the petitioners to exercise a joint option along with other employees to remit
contributions to the Employees Pension Scheme on the basis of the actual salaries drawn by them are
set aside.
iv) The employees shall be entitled to exercise the option stipulated by paragraph 26 of the EPF
Scheme without being restricted in doing so by the insistence on a date.
v) There will be no order as to costs.
Sd/-" Hence there was no reason to withdraw the circular, if we keep quiet the Govt current & future will take us for a ride.
From India, Thane
follows:
i) The Employee's Pension (Amendment) Scheme, 2014 brought into force by Notification
No. GSR. 609(E) dated 22.8.2014 evidenced by Ext.P8 in W.P.(C) No. 13120 of 2015 is set
aside;
ii) All consequential orders and proceedings issued by the Provident Fund
authorities/respondents on the basis of the impugned amendments shall also stand set aside.
W.P.(C). 13120/2015 & con.cases
iii) The various proceedings issued by the Employees Provident Fund Organization declining to grant
opportunities to the petitioners to exercise a joint option along with other employees to remit
contributions to the Employees Pension Scheme on the basis of the actual salaries drawn by them are
set aside.
iv) The employees shall be entitled to exercise the option stipulated by paragraph 26 of the EPF
Scheme without being restricted in doing so by the insistence on a date.
v) There will be no order as to costs.
Sd/-" Hence there was no reason to withdraw the circular, if we keep quiet the Govt current & future will take us for a ride.
From India, Thane
Dear Mr. Raghvant,
Since I have retired from service prior to sep,2014,I am entitled for higher pension as per Apex Court's order,there is no doubt of it.I have just received the letter from EPFO to deposit the refund amt to get higher pension w.e.f. from my retirement date i.e.1/7/2013.
Only I am to get clarification as to whether the EPFO is justified to ask me to deposit the refund amt without adjusting the said amt from my arrear revised pension amt ?
The EPFO circular dtd.22/1/2019 is attached
With Regards,
S.K.Hota
From India, Calcutta
Since I have retired from service prior to sep,2014,I am entitled for higher pension as per Apex Court's order,there is no doubt of it.I have just received the letter from EPFO to deposit the refund amt to get higher pension w.e.f. from my retirement date i.e.1/7/2013.
Only I am to get clarification as to whether the EPFO is justified to ask me to deposit the refund amt without adjusting the said amt from my arrear revised pension amt ?
The EPFO circular dtd.22/1/2019 is attached
With Regards,
S.K.Hota
From India, Calcutta
Dear Mr SK Hota,
You are lucky that you have at least got this letter, congratulations & go ahead, Did they inform you the enhanced pension amount? What is the difference between arrears to be paid & Arrears of pension you will get (you will get arrears from the date of retirement) According to me in your lifetime it self you will be able to recover much more than what you pay, don't forget that your wife will be entitled to half that amount as pension if anything happens to you(praying god to keep you healthy). Now your million dolllar question, if EPFO wanted to be rational they could have pro-actively calculated the arrears & enhanced pension of each pensioner & could have offered to adjust arrears & informed each and every pensioner, but un fortunately EPFO thinks that making the life of pensioners as miserable as possible is their job function. All the details which EPFO is asking to process your enhanced pension like form 26 & 3 A and it's attachments are already available with EPFO.
Now I request a few details from you .1. Did you apply in the specified form 26 & 3A or just shot of a letter ? If applied with the forms did you get your employer to sign those forms?
Now why asking these are; most of the pensioners must have changed jobs a few times & some employers must have even wound up or taken over by some other companies, in these situations it is almost impossible to get all the employers to sign these forms. I am in similar situation & I had retired in 2007, 12 years back, in the last employment a stupid lady with her "Thuglak " reforms stopped paying contribution on full salary. And technically there is no "EMPLOYER' in case of an already retired person. So if EPFO is subscriber friendly they should act pro actively as I mentioned.
I request all to post their experiences on this enhanced pension so that all retirees get benefited.
Now as for the circular of 22/01/2019 ,this has been with drawn citing a Kerala High court order, there was no reason to withdraw the circular because the HC had confimed that employees entitlement for higher pension, HC order i have already attached to my previous post. Now I am attaching the circular withdrawing the 22/01/2019 circular
From India, Thane
You are lucky that you have at least got this letter, congratulations & go ahead, Did they inform you the enhanced pension amount? What is the difference between arrears to be paid & Arrears of pension you will get (you will get arrears from the date of retirement) According to me in your lifetime it self you will be able to recover much more than what you pay, don't forget that your wife will be entitled to half that amount as pension if anything happens to you(praying god to keep you healthy). Now your million dolllar question, if EPFO wanted to be rational they could have pro-actively calculated the arrears & enhanced pension of each pensioner & could have offered to adjust arrears & informed each and every pensioner, but un fortunately EPFO thinks that making the life of pensioners as miserable as possible is their job function. All the details which EPFO is asking to process your enhanced pension like form 26 & 3 A and it's attachments are already available with EPFO.
Now I request a few details from you .1. Did you apply in the specified form 26 & 3A or just shot of a letter ? If applied with the forms did you get your employer to sign those forms?
Now why asking these are; most of the pensioners must have changed jobs a few times & some employers must have even wound up or taken over by some other companies, in these situations it is almost impossible to get all the employers to sign these forms. I am in similar situation & I had retired in 2007, 12 years back, in the last employment a stupid lady with her "Thuglak " reforms stopped paying contribution on full salary. And technically there is no "EMPLOYER' in case of an already retired person. So if EPFO is subscriber friendly they should act pro actively as I mentioned.
I request all to post their experiences on this enhanced pension so that all retirees get benefited.
Now as for the circular of 22/01/2019 ,this has been with drawn citing a Kerala High court order, there was no reason to withdraw the circular because the HC had confimed that employees entitlement for higher pension, HC order i have already attached to my previous post. Now I am attaching the circular withdrawing the 22/01/2019 circular
From India, Thane
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
PF guidleines for Pension fund.pdf