EPFO may delay increased EPS pension by three months: Sources
Sources claimed the
EPFO may extend the higher EPS pension application deadline by three months.
Many employees have complained about difficulty filing for EPS pension
increases, thus the extension is expected.
Many workers have
failed to submit an application for a pension increase because of confusion
about the requirements and a lack of timely clarification from EPFO. The
deadline to apply for an increased pension under the Employees’ Pension Scheme
(EPS) is today, June 26, 2023, so they better get going. EPFO insiders are
considering a three-month delay as a possible solution.
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Most pensionable
workers rank applying for a rise as one of their top priorities. A person
should only choose this path if they are positive that doing so would result in
a positive outcome. But unless they’re exceptionally good at maths, there’s no
way they could have known that. The increased pension application is a shot in
the dark if you don’t know how much more you need to pay and what kind of
return you will get on this additional payment. What they needed was a place
where they could plug in some figures and obtain an approximate amount.
Ironically, the EPFO
only released the Excel utility a few days before the deadline passed so that
workers could figure out how much they would have to pay for a larger pension.
The Frequently Asked Questions have also been made public.
With the first circular
published on December 29, 2022, and the most recent on June 14, 2023, the EPFO
has released the circulars regarding the application process, the necessary
documents, the additional 1.16% contribution, the method of pension
calculation, etc. in a disconnected way. The sequence of these occurrences left
eligible members uncertain about when they could receive clarification from the
EPFO.
Even though the online
application was available and the deadline was extended twice, the close
proximity of the most recent update to the current deadline makes it difficult
for employees to weigh the benefits and drawbacks of a higher pension in a
short amount of time.
According to the
experts, EPFO must still clarify certain procedural facets of how to file for a
higher EPS pension. Clarification is required regarding the withdrawal option,
if the employee’s records do not match those of the EPFO, if the employer has
ceased operations, etc. How personnel with extensive gaps in their service
history should approach the pension application is not specified.
After the introduction
of the Universal Account Number (UAN), it has become simpler to obtain a
consolidated service record for service periods after 2012; however, there is a
significant obstacle for employees with service records prior to the UAN era.
If they do not have EPF/EPS statements from previous years, it has proven
difficult to obtain them from EPFO or previous employers.
The EPFO has yet to
process the EPF account transfer and service history consolidation requests of
a number of employees. Without such information, the application for a higher
pension will lack comprehensive and accurate information. EPFO has not provided
members struggling with these issues with a solution or relief.
In the week preceding the deadline, the EPFO’s member Sewa portal encountered a technical
issue. Many individuals have complained on Twitter that they are unable to
submit their joint application form or that their records do not match those of
the EPFO, making it challenging for them to submit their applications online.
Notably, the EPFO has
already extended the application deadline for a higher EPS pension twice: first
from March 3, 2023, to May 3, 2023, and then again to June 26, 2023. The
extension was granted because the EPFO would not issue many clarifications
until May 3, 2023. In addition, the EPFO released the pension calculation
procedure on June 1, 2023, just 25 days before the deadline.
The fact that the
missing contributions tool came out just a few days before the deadline added
to the EPF members’ ongoing nightmare. They will need some time to put the
numbers in order, do the maths, and decide whether or not to apply for a higher
salary.
Recently, a lot of
employers have asked the EPFO to make it easier to apply for a higher EPS
pension and to extend the date for doing so. These are real problems that a
number of workers have, and EPFO may take note of them and do something about
them.
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