EPFO head office flags concerns over delay in finalising higher pension cases

Union Minister of Labour and Employment Mansukh Mandaviya has been taking regular meetings with EPFO officials to reappraisal the presumption of higher pension cases. Pending applications of implicit 1 lakh cases person been examined successful the past period and 21,000 request letters person been issued, the EPF’s Executive Committee had discussed successful a gathering connected Saturday. “The disposal of cases has accrued by astir 58,000,” the Ministry of Labour and Employment said successful a connection aft the meeting.

The EPF Executive Committee nether the Ministry has recommended holding regular video conferences with employers to velocity up the correction successful reverted cases and their submission of associated options for which the past day is January 31, 2025. “It was directed to implicit maximum enactment wrong the approved model by the extremity of the existent fiscal year. Cases involving precocious amounts pertaining to PSUs were directed to beryllium expedited arsenic well,” it said.

The EPFO caput bureau successful its latest missive said the advancement successful disposal of pension connected higher wages has been reviewed, and it is disappointing to enactment that, with fewer exceptions, astir offices are “significantly lagging successful finalising cases”. “A caller show reappraisal conducted by the pension division, peculiarly for offices handling less than 5,000 applications with associated options, revealed important delays. The missed deadline of January 10 by galore offices is peculiarly concerning,” the missive stated.

The missive besides said that the delays successful finalising higher pension cases is the “lack of mounting due precedence to this area”. “It is made wide that this country of enactment indispensable beryllium accorded highest precedence on with the task of activation of UANs. Raising repeated frivolous issues, which could beryllium addressed by RPFCs oregon Zonal ACCS, should beryllium avoided. Officers indispensable actively prosecute with their Zonal Commissioners to resoluteness specified issues promptly,” it said.

Pro rata pension formula

Meanwhile, successful different acceptable of clarifications, EPFO has stated that it volition usage the pro rata method for calculation of pension connected higher wages. “The pro-rata calculation of pension is provided successful Para 12 of the EPS and is equitable, treating some categories of pensioners i.e. pensioners nether wage ceiling and those with higher wages connected an adjacent footing. Further, the Hon’ble Supreme Court had besides not recovered the aforesaid ultra-virés. Accordingly, MoL&E has agreed with the computation of pension connected pro-rata ground for the pension connected higher wages cases,” it said.

As per the EPFO, determination is nary abstracted look successful EPS, 1995 for calculation of pension connected higher wages and mean EPS members. Therefore, the pension formula, which calculates the pensionable wage by multiplying the pensionable work by the salary, divided by 70 volition beryllium calculated separately for the play anterior to September 1, 2014 and station that.

For pensionable work anterior to September 1, 2014, pro-rata pensionable wage volition beryllium the highest monthly wage anterior to the date, oregon 60 months mean of wage preceding the day of exit from the rank of the pension fund, whichever beryllium less. For pensionable work station September 1, 2014, pro-rata pensionable wage volition beryllium the highest monthly wage station that day oregon 60 months mean of wage preceding the day of exit from the rank of the pension fund, whichever beryllium less.