The Employees’ Provident Fund Organisation (EPFO) on Thursday issued a circular, explaining how dues for the missing Employee Pension Scheme (EPS) contributions and accrued interest till date will be calculated for the subscribers who will be opting for the higher pension.
For higher pension, if there is sufficient balance in the Employee Provident Fund (EPF) account, the past dues will be transferred to Employees’ Pension Scheme (EPS) account from it. In case of a deficit, the subscriber will have to pay from their bank account.
This transfer will happen once the application form for higher pension is accepted by the social security organisation. Further, there will be interest clawback from the EPF account due to this transfer and historical interest rate announced by EPFO will be taken to calculate the interest amount that must be taken back from the EPF account to recover the accrued interest on past missing EPS contributions.
Earlier last week, the government in compliance with the Supreme Court order pronounced in last November, has enhanced the employer’s contribution to the EPS account from 8.33 per cent to 9.49 per cent on EPS contribution above Rs 15000 per month, for those employees who are eligible to opt for a higher pension from EPS.
According to the latest circular, once the total dues from the past missing EPS account is calculated, then the field office will inform the applicant through the last/current employer about the dues or any amount that needs to be deposited afresh or diverted from EPF account. Prior to any such transfer, written consent will be taken from the applicant.
A period of three months will be allowed by the EPFO for the applicant to deposit money and give consent for the diversion of money.
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The EPFO last week had also extended the date for submitting joint options with employers for availing higher pension till June 26. Till now, EPFO had received close to 12 lakh applications for availing the higher pension.
