The Employees’ Pension Fund Organization (EPFO) has begun to comprehend the financial ramifications of the Supreme Court decision by requesting approximately Rs 2,000 crore in letters from applicants seeking greater pensions.
Details on EPFO requests Rs 1947 crore in over 33000 letters for Higher pension
According to the most recent statistics available, the EPFO has sent 32,951 demand letters to petitioners requesting an increase in pension for a total of Rs 1,974 crore after the Supreme Court’s November 2022 ruling. Those who turn in the funds would be qualified for a larger pension.
The retirement fund manager brought up the time-consuming nature of the application processing pace during the most recent EPFO Central Board of Trustees meeting.
Additionally, it was communicated to the CBT, the EPFO’s highest decision-making body, that the actuarial analysis or study could not be finished until all applications had been processed. These letters, addressed to the consultant actuary who would conduct actuarial work regarding the implications of the Supreme Court ruling, have already been sent by the EPFO.
It is thought that the Actuary’s initial financial impact, which was determined on specific assumptions, is already being examined by the EPFO. Still, the actuarial study will be done as a continuous process, one for each 50,000 demand letters that are sent out. After all of the cases are resolved, there will be a final, combined evaluation.
In order to guarantee realistic assumptions and appropriate actuarial assessment of reports received from the valuer or consultant actuary, the EPFO also plans to establish an actuarial cell at its head office.
The EPFO has reviewed 629,000 forms out of the 17.49 lakh applications for increased pension that it has received overall. It has also written to the employers in roughly 527,000 forms, asking for more information or the rectification of irregularities. In addition, over 3,618 forms have been rejected.
In the past, the EPFO also made available a calculator tool so that members could figure out how much money they would need to contribute to the Employees’ Pension Scheme in order to obtain a greater pension. The EPS 1995 does not contain a special formula for members who will be eligible for pensions based on greater income, according to officials.
As per the source, “the pension on higher wages will be calculated using the same methodology of pro-rata determination of pensionable salary taking average monthly pay drawn during contributory period of service in the span of 60 months preceding the date of exit from the membership of the pension fund for post September 1, 2014 retirees.”
Only a diversion is necessary if the outstanding balance is present in the PF account kept with EPFO. In the event that the required amount is not available with EPFO, the member will need to deposit it either directly or via their employer.
