EPFO link programmed to deny benefits of SC order on higher pension: Union

Centre of Indian Trade Union - a trade union body has raised concerns over practical issues in uploading the higher pension option application on the Employee Provident Fund Organisation (EPFO) portal and sought necessary direction to comply with the recent Supreme Court directions with respect to the Employee Pension Scheme (EPS)- 95.

In a communique to the Central Provident Fund Commissioner (CPFC) Neelam Shami Rao, the trade union’ general secretary Tapan Sen highlighted the practical concerns said “there are more than three circulars piece-meal dealing with different aspects that have led to a lot of confusion among the beneficiary-pensioners. There must be a cohesive instruction from EPFO and more pensioners/employee-friendly hassle-free mechanism to avail the benefits.

Thus, EPFO should come out with detailed statements on what are the arrangements made to ensure that all those who are eligible according to the SC Judgment would be able to submit applications.”, according to the union trade body letter.

Besides, the letter also highlighted “practical problems” being faced by the pensioners who are opting for higher pension options and said that the commissioner should take immediate action.

The former Rajya Sabha member says that since the option to avail higher benefits itself was made available after the SC judgement, obviously, no one had opted for higher pension benefits while joining the scheme, since there was no such amenable provision for the employees to independently opt for higher pension, whereas the online link asks whether you have already opted for higher pension benefits while joining in the EPS-95.

“Consequently, if the worker responds “NO” to the very first query whether he had opted for higher pension during the initial launch of EPS-95, and/or fails to submit that document of option for higher pension while first joining EPS-95, then she/he will not get any further response from EPFO link. In such a way, it is programmed eventually to deny the benefits of the Supreme Court Judgment to the eligible pensioners”, the letter says.

Also, the link asks to upload the PDF format of the document which was supposed to be submitted for recording the option. Obviously the employees and ex-employees do not have such documents because they never had an opportunity to record their option for higher pension when they joined the scheme.

“So the link and the related programme should be positively oriented for implementation of the SC Judgment on higher pension and it should be made hassle-free for all the eligible pensioners. At the same time, the EPFO should also make a provisional arrangement to receive/ accept all the options in hard-copies also. We urge upon you to look into the problem urgently, restructure the link and the related programme and issue necessary directions to your officers”, the letter reads.

Business Standard has reviewed the letter.