EPFO stops higher pension for pre-2014 retirees, sparks concern among pensioners, demand to re-examine

EPFO stops higher pension for pre-2014 retirees, sparks concern among pensioners, demand to re-examine

HARISH MONGA

Ferozepur, February 8, 2023:  The latest circular by the Employees’ Provident Fund Organisation (EFPO) on reopening cases of higher pension for those who retired prior to September 2014 has evoked concern among sections of such pensioners that they may lose the benefit which they have been enjoying for the past five years or so. They questioned the EPFO’s stand that the cases of employees, who retired prior to September 1, 2014 without exercising any option under paragraph 11(3) of the pre-amended Employees’ Pension Scheme (EPS), 1995, and were availing higher pension on higher wages, “need to be re-examined.”

Thousands of employees have been impacted with the new guidelines of the EPFO’s decision, to recover higher pension from those employees who had retired before September 1, 2014 and not submitted a joint option under paragraph 11(3) of the Employees’ Pension Scheme (EPS).  Recovery will be a challenging proposition and it could also lead to fresh litigation on the issue.

There is great resentment among the retired employees whose family pension has been stopped from January 2023 by the Employees Provident Fund Commissioner.  The EPFO has issued a circular saying that it will re-examine the cases of pension on higher wages of employees who retired up to September 1, 2014, without exercising any option under Para 11(3) of the pre-amended EPS-95.  However, SC had given four months’ time to eligible employees to submit options for higher pension.

It is said that payment of higher pension should be stopped from January 2023, and pension should now be revised down to on the bass of the salary ceiling of Rs.5,000 or Rs.6,500, as had been fixed through the amendment.

The reasons to reopen the pension cases in the latest circular addressed to the regional offices of the EPFO, says that the employees who retired prior to September 1, 2014 without formally opting for the higher contribution option and were granted pension on higher wages, must be re-examined.

A few days back a huge rally was held at Chandigarh Sector -17, in front of the office of Regional Provident Fund Commissioner to register their protest, in which retired employees from nearby areas joined in good numbers.

The protesters said, instead of paying the pension on the full wages as per the orders of the Supreme Court, the same has been stopped on the indication of Modi-led government and notices are being issued to the retired employees. Not only this, rather the authorities have planned to make recovery of the already disbursed pension amount.

A meeting was held with the Commissioner, PF by the representatives of Joint Action Committee but the same ended without any fruitful results.

Speaking on the issue, Gulzar Singh, H.K.Maini and Subhash Gaakhar, Bahadur Singh, who have received the notices for the closures of the pension and others who too will become victim of this issue, said, it is very unfortunate that the stoppage/withdrawal of pension orders have been issued after a period of 10 years, without giving any cogent reasons.

Expressing deep concern, they said, the institutions like MARKFED, are paying administrative charges, say Rs.3.5 lakh by MARKFED, to safe-guard the interests of provident fund accounts holders and asking for certain documents after a period of 20 years, is not digestible. Asking for fresh documents again, too looks to be an immature decision, when the pension was revised after getting all the required documents, as per the orders of the Supreme Court, at that time and the same are available with the PF department.

They said, in the absence of regular pensions like government employees, we are dependent on interest on our savings but the banks too have reduced the deposit rates.  We appeal to the PF authorities to reconsider the decision and stop harassing the retirees at fag end of their lives by asking the fresh documents when the pension has already been revised from the date of retirement on the higher wages, after completing all the formalities.