The Employees' Provident Fund Organization (EPFO) has issued a circular explaining the documents needed to qualify for higher pensions under the Employees' Pension Scheme (EPS). 

To make it easier for eligible employees who lack proof of a joint request, undertaking, or permission from their employer, the application process has been simplified. 

The deadline for submitting applications is 26 June, so there is limited time remaining. Furthermore, the EPFO has provided instructions on how to calculate pensions based on a higher salary.

According to the EPFO circular, there is a situation where many applicants who have filed Applications for Validation of Option/Joint Options, as per the Hon'ble Supreme Court judgment dated 04.11.2022, do not have readily available joint requests, undertakings, or permissions as required under Para 26(6). 

In light of this, the EPFO has outlined a procedure for scrutinizing the eligibility of applicants for higher pensions based on the directions of the Supreme Court judgment. This procedure will be followed specifically for applicants who meet the criteria for assistance on higher wages.

The circular includes a list of documents that must be submitted alongside the joint pension application form by eligible employees in order to be eligible for a higher pension under the Employees' Pension Scheme (EPS). The field office responsible must verify two things:

• Employer's PF Contribution: They need to check if the employer's contribution to the PF (Provident Fund) exceeds the prevailing wage ceiling of ₹5,000/6,500/15,000 per month. This assessment should be done from the time the payment exceeded the wage ceiling or from 16.11.95 (whichever is later) until the date of retirement or superannuation, depending on the circumstances.

• Administrative Charges: The administrative charges payable by the employer must be remitted based on the higher wages mentioned above.

Additionally, it is required to ensure that the employee's EPF (Employees' Provident Fund) account has been updated with the appropriate interest, as per the provisions of Para 60 of EPFS (Employees' Provident Fund Scheme), 1952. 

This should be done based on the contributions received in accordance with the mentioned criteria. The circular outlines the necessary documents and verification procedures to be followed in order to qualify for a higher EPS pension.

Required Documents

To complete the joint pension application form, it is mandatory to include at least one of the following documents:

• Employer's wage information furnished with applications for option/joint validation.

• Authenticated salary slips or letters from employers.

• A copy of the joint request and undertaking submitted by the employer.

• A letter from the PF office, dated before 4.11.2022, indicating the PF contribution is based on higher wages.

Including one of these documents is necessary to support the joint pension application.

The formula to calculate higher pensions (For retirees before 1 September 2014)

The calculation of pensions is based on the average monthly salary earned during the contributory period, specifically within a 12-month timeframe prior to the date of exiting from the pension fund.

How to calculate a high pension on actual salary?

As aforementioned in the blog, there are different formulas for calculating higher pensions based on the retirement date. One formula applies to individuals who retire before September 1, 2014, while another formula applies to those retiring after this date.

If you retired before September 1, 2014, your pension will be calculated based on the average monthly salary you earned in the 12 months before your retirement or exit from the pension fund. 

On the other hand, if you retired after this date, your pension will be calculated based on the average monthly salary you earned during the 60 months leading up to your retirement.

At present, it is calculated as pension = pensionable salary (average of last 60 months’ salary) x number of years of contribution / 70, according to EPF.

How to apply for a higher EPS pension on the EPFO portal?

• Go to the Member e-Sewa portal: Visit the website at https://unifiedportal-mem.epfindia.gov.in/memberinterface. 

• Access the pension option: Click on "Pension on higher salary: Exercise of joint option".

• Select the joint options application form: Choose the option for "Application form for joint options - Joint options".

• Enter your UAN (Universal Account Number), name, date of birth, Aadhaar number, and Aadhaar-linked mobile number.

• Select "Get OTP" from the menu. You will receive a one-time password via SMS.

• Confirm that the provided information is accurate.

• Submit your application: Click on "Submit" to complete and submit your application.

• After successfully submitting the application form, an acknowledgment number will be generated.

What is the deadline to opt for the higher EPF pension

The deadline for applications for higher EPS pensions is 26 June.