Last date to apply for higher pension. Experts raise concerns over lack of awareness and clarity in uploading claims

The deadline to apply for a higher pension from the Employees’ Provident Fund Organisation (EPFO) ends today. However, experts are holding out hope for a possible extension of the deadline. This optimism stems from the delay by EPFO in providing clarifications regarding certain aspects, as well as concerns surrounding how transfers from the EPF to the EPS account will be undertaken.

One of the main hurdles faced by claimants was the EPFO’s insistence that they upload the Joint Option exercised by the employer as well as the employee in accordance with paragraph 26(6) of the EPF Scheme.  During the first week of June, the EPFO circulated a revised format of exercising joint option under paragraph 26(6) of the EPF Scheme.

“The department has not issued any press release etc., for information of claimants of higher pension. Only an internal circular has been issued. As the claimants for higher pension are spread over throughout the country and in some cases, in remote areas, it would take time for them to know about revised instructions and upload the claims along with revised format of Joint Option. In the event time is not extended, the claimants will face multiple difficulties and many of eligible claimants may not be able to upload their claims,” said BC Prabhakar, Advocate and President of Karnataka Employers’ Association.

On these grounds he has also requested EPFO to extend the deadline. “I as a President of Karnataka Employers’ Association have taken, up the matter with the EPFO, Head Office, New Delhi, for extending the time limit.”

Clarifications have also been demanded on how funds will be reallocated from EPF to EPS. “Once the EPFO scrutinises each application, there could be lack of clarity on how transfers from the EPF account to the EPS account will be undertaken and how discrepancies between wage records maintained at EPFO level and that maintained at the level of employer will be resolved. What would happen if one of the employers is no longer in existence or has merged? These are some of the open questions,” Sowmya Kumar, Partner at INDUSLAW, told Business Today.

“One more hurdle that is yet to be cleared by EPFO is the method of calculating amount of provident fund received by the claimants for higher pension,” said Rao.

The Supreme Court, in its November 2022 order, ruled that employees who were part of the EPF before or on September 1, 2014, but could not apply for a higher pension, could submit fresh options within four months, which was extended to May 3, 2023, and then June 26.

Earlier EPFO also released two circulars explaining how to compute higher pension and what all documents can be submitted if one cannot furnish a joint request under para 26(6) of EPF scheme.

“EPFO is yet to lay down the method of calculating the said amount to enable eligible pensioners to take an informed decision to make or not to make claim for higher pension,” said Rao.