EPFO FAQ on Higher Pension -

EPFO  FAQ on Higher Pension - 

1. Whether those who retired before 01.09.2014 can opt now?

A: Those who retired before 01.09.2014 can opt now if they had opted for higher pension during their service period and such options were rejected by EPFO.

2. Whether those who are retired on or after 01.09. 2014 are eligible to opt now?

A: Those who retired on or after 01.09.2014 can opt now if they were contributing to EPF on actual salary and did not opt for higher pension before 01.09.2014.

3. Whether those who are presently working can opt now?

A: If the member joined before 01.09.2014, and continuing now, can opt if the conditions in Answer 2 are satisfied.  .

4. Whether those joined after 01.09.2014 are eligible to opt now? .

A: Not eligible.

5. What is para 26(6) of EPF?

A: Paragraph 26(6) of EPF is the provision by which a member can opt to contribute towards EPF on more than the statutory limit. For this the member and Employer have to submit an application in writing jointly which in turns will be approved by an Officer not less than the rank of APFC. 

6. Whether option under para 26(6) is compulsory for opting now?

A: Yes. Higher Pension option can be submitted only if a member is contributing towards EPF on his actual salary by exercising option under para 26(6) from the date on which the salary exceeded the statutory limit.

7. What is para 11(3) of EPS 1995?

A:  Para 11(3) of pre-amended EPS 1995 provides for submitting option to contribute towards Pension Scheme on actual salary from 16.11.1995 or from the day the salary exceeded the statutory limit whichever is later by submitting a joint option with Employer.

8. What is para 11(4) of EPS 1995?

A:  The paragraph 11(3) has been deleted with effect from 01.09.2014 on amendment of EPS 1995. However, a chance to continue the options already exercised under para 11(3) has been provided in para 11(4). As per this paragraph, those who had already opted under para 11(3) can renew their option by giving a joint option with the Employer within six months from 01.09.2014 and within another six months extended by the RPFC. 

9. If a member who had opted under para 11(3) not renewed his option within one year. What will happen?

A: If a member who had opted under para 11(3) not renewed his option under para 11(4) within one year, his option will be cancelled and the contributions received in excess of statutory limit will be diverted to EPF.

10. If a member opted under 11(3) and not renewed his option under 11(4) within one year, can opt now?

A: No. As his option has been cancelled by his own inaction, he cannot renew his option now.

11. In nutshell, who can opt now?

A: By summarising the above the following members can opt now.
(i) Those who left before 01.09.2014 and opted during their service but rejected by EPFO.
(ii) Those who are in service on or after 01.09.2014 and if they are contributing to EPF on actual salary but not opted for higher pension.

12. Who are all not eligible for higher pension option?

A: (i) Those who left before 01.09.2014 without exercising any option.
(ii) Those who are contributing towards EPF on statutory limit.

(iii) Those who were exercised option under 11(3) but not renewed within one year under 11(4).
(iv) Those who joined after 01.09.2014.

Shared for learning purpose. Hope the below will helpful.

Rajan
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