If you are a member of the Employees’ Provident Fund Organisation (EPFO), there is some great news for you. The EPFO has started providing higher pensions under the Employees’ Pension Scheme (EPS) 1995. About 22,000 members are set to receive an increased pension amount. Additionally, notices have been sent to 1.65 lakh eligible members, asking them to contribute additional funds to qualify for this benefit.
This step comes after the Supreme Court’s decision on November 4, 2022, which allows eligible employees to opt for a higher pension by contributing more towards EPS. If you have been contributing to your provident fund for years, this could be a great opportunity to secure a better retirement. Let us understand what this scheme is all about and how you can check if you qualify.
What is the Higher Pension Scheme?
The Employees’ Pension Scheme (EPS) 1995 was introduced to provide monthly pensions to employees after retirement at the age of 58. Usually, the pension amount depends on the employee’s salary and years of service.
After the Supreme Court ruling, employees who had been contributing more than the standard wage limit of ₹15,000 per month towards the Employees’ Provident Fund (EPF) can now opt for a higher pension. This means if you had a higher salary and contributed accordingly, you can now receive an increased pension amount after retirement.
Who Can Apply for a Higher Pension?
To be eligible for this scheme, you must meet certain conditions:
- EPFO Membership Before 2014 – You should have been a member of EPFO before September 1, 2014.
- Higher Wage Contributions – Your EPF contributions should have been calculated on your full salary, not just on the ₹15,000 limit, before September 1, 2014.
- Joint Option Form Submission – You should have submitted the joint option form, signed by both you and your employer, to opt for higher pension contributions.
- Additional Contribution – You will need to contribute an extra 1.16 percent of your salary exceeding ₹15,000 to the EPS fund.
If you meet these conditions, you are eligible to apply for a higher pension under the revised scheme.
How to Check If You Will Receive a Higher Pension?
If you have already applied for a higher pension, you can check your pension status in the following ways:
1. EPFO Official Website
- Visit the official EPFO portal: www.epfindia.gov.in
- Go to the section of “Online Services” and select “Pensioner’s Portal.”
- Select “Know Your Pension Status”.
- Enter your Pension Payment Order (PPO) number, date of birth, and the captcha code.
- Click “Submit” to view your pension details.
2. UMANG Mobile App
- Download the UMANG app on your smartphone.
- Log in with your credentials.
- Navigate to EPFO services.
- Click on “Pension Payment Status” to check updates.
3. SMS Service
- Send an SMS to Number “7738299899” in this format: EPFOHO UAN ENG
(Replace “ENG” with your preferred language code, like “HIN” for Hindi). - Your UAN (Universal Account Number) should be linked to your registered mobile number.
4. EPFO Customer Support
- Call the EPFO helpline at 1800-118-005.
- Provide your PPO number and registered details to get your latest pension status.
How to Apply for a Higher Pension?
If you are eligible but have not applied yet, follow these steps to submit your application:
1. Collect Required Documents
- Form for choosing the joint option under Para 26(6) of the EPF Scheme, 1952.
- Salary slips that show contributions on higher wages.
- Any previous correspondence with EPFO about higher contributions.
2. Submit Joint Declaration
- Get the Higher Pension Joint Option Form from the EPFO website.
- Complete the form with the required details.
- Attach the necessary documents before submission.
- Submit the form to your employer for verification.
3. Employer’s Role
- Your employer will verify the details and forward your application to EPFO.
- If additional contributions are required, EPFO will send a notice for the same.
4. EPFO Approval Process
- Once your application is processed and approved, your pension amount will be updated accordingly.
Benefits and Challenges of the Higher Pension Scheme
Advantages:
- Higher Monthly Pension – Your post-retirement income will be significantly increased.
- Better Financial Security – It ensures a stable source of income for retired employees.
- Legal Backing – The Supreme Court decision provides clear guidelines and legal support.
Challenges:
- Additional Contribution Required – You may need to contribute extra from your EPF balance.
- Long Processing Time – Due to a high number of applications, approvals may take time.
- Limited Eligibility – Only employees who contributed before 2014 are eligible.
Final Thoughts
The higher pension scheme introduced by EPFO is a great step towards improving financial security for retired employees. However, before applying, make sure you understand the additional contribution requirements. If you are eligible, do not miss out on this opportunity to enhance your pension benefits.