Chandigarh March 3 : The process of implementing the Higher Provident Fund (PF) Pension scheme for the applications submitted to the Employees’ Provident Fund Organization (EPFO) will be completed by the end of March this year. There are strong indications that the members who chose the higher pension under EPF will start receiving their pension from April-May this year. However, during this period, more than 7 lakh EPF members and pensioners have received disappointing news.
According to EPFO, out of 17.49 lakh applicants who demanded a higher PF pension based on their salary, 7.35 lakh are not eligible for this benefit. Even after two years of the Supreme Court’s decision on Higher PF Pension, only 24,006 individuals have received the revised pension so far. Meanwhile, 2.14 lakh applications are still under review by EPFO, and 2.24 lakh applications are yet to be sent to the agency by employers. In the meantime, EPFO has returned 3.92 lakh applications due to incomplete details, while 2.19 lakh applicants have been issued demand letters for additional payment.
Kerala Behind in Resolving Applications
Kerala has lagged behind in approving applications for the Joint Option Scheme. So far, only 27.35% of the applications in the state have been processed. At the national level, the settlement rate is 58.95%. Of the 72,712 applications submitted from Kerala, only 19,886 have been processed. This includes rejected applications and those for which demand letters have been issued.
EPFO estimates that a minimum of 1.86 lakh crore rupees will be required to approve at least half of the joint option applications for the Higher PF Pension. The organization has long cited this financial burden as the reason for delays in granting approval. A sample check of 38,000 applications revealed that offering the higher pension would result in a loss of 9,500 crore rupees to the pension fund. EPFO has stated that it will use the collected data to calculate the additional financial liabilities. These estimates were recently revealed in documents from the EPFO Trustee Board meeting.
This Plan Was Implemented After the Supreme Court’s Decision
EPFO’s popular Higher PF Pension scheme is being implemented following the Supreme Court’s decision on November 4, 2022. Under this scheme, individuals who had originally applied are now receiving their pension. However, due to various complexities in the process, the implementation of the scheme for all interested EPFO members, offering the option of a higher pension, has not been fully carried out yet.
Summary: EPFO announces a major update on higher PF pensions, revealing that 42% of applications were rejected due to incomplete or incorrect documentation.