Centre

Re-examination of cases of pension on Higher Wages

The EPFO has released a circular to all its concerned authorities, directing re-examination of cases of pension on higher wages, of employees who had retired upto 01 September 2014 who without exercising any option under Para 11(3) of pre-amended EPS'95. This is in light of directions contained in Para 44(ix) read with Para 44(v) and (vi) of Hon'ble Supreme Court judgement dt. 04.11.2022 in the matter of Special Leave Petition (C) No. 8658-8659 of 2019.

Accordingly, the direction of the Hon'ble Supreme Court in R.C. Gupta judgement pertains to such employees who had contributed on higher wages under paragraph 26(6) of EPF Scheme, and had further exercised their option under the proviso to erstwhile Para 11 (3) prior to their retirement, and their joint option request under the proviso to paragraph 11(3) was explicitly denied by concerned office of the RPFC and /or contribution on higher salary was refunded / diverted back to provident fund accounts.

Meanwhile, in order to stop over payment, if any, in respect of employees who had retired prior to 1st September 2014 without exercising any option under Para 11(3) or the pre amended scheme, and have been granted pension on higher wages, their cases need to be re-examined to ensure that they are not given higher pension from the month of January 2023 onwards. Pension in such cases may be immediately restored to pension on wages up to the ceiling of Rs. 5000/- or Rs. 6500/-.

However, before revising any pension entitlement, an advance notice should be issued to the pensioner so that he/ she has an opportunity to prove the exercise of option under Para 11(3) before his retirement prior to 1st September 2014. Further, any recovery which may arise after such revision should be done in a staggered and persuasive manner. The RPFC-I/ officer incharge of the region will be the competent authority to re-determine the pension entitlement and initiate recovery, if any.

ACC Zones and RPFCs of the regions are advised to ensure that pension on wages exceeding wage ceiling of Rs. 5000/- or Rs 6500/- is sanctioned/ continued only in cases which fall within the directions contained in Para 44(ix) read with Para 44 (vi) of Hon'ble Supreme Court judgement dated 04.11.2022. Accordingly, if in any case, pension was revised erroneously, such pension may be immediately stopped and restored to pension on wages up to the ceiling of Rs. 5000/- or Rs 6500/- only, in accordance with directions contained in Para 44 (x) read with Para 44 (V) of Hon'ble Supreme Court judgement dated 04.11.2022.

Utmost care should be taken to identify such cases where higher pension was granted on account of judgement of any Court. In such cases a favourable order shall be obtained from the concerned Court citing the order of Hon'ble Supreme Court dated 04.11.2022 before going ahead with stopping/ restoration of pension to wages up to ceilling of Rs. 5000 or Rs 6500/-.

Related Acts
  • PF Act

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