Now, employees can opt for EPS increased pension within 4 mths
The Supreme Court on Friday struck down the requirement in the 2014 amendments mandating employee contribution of 1.16% of the salary exceeding Rs15,000 per month
image for illustrative purpose
New Delhi: Eligible employees who had not opted for enhanced pension coverage prior to 2014 can jointly do so with their employers within the next four months after the Supreme Court upheld the Employees' Pension (Amendment) Scheme, 2014.
Employees who were existing EPS members as on September 1, 2014 can contribute up to 8.33 per cent of their 'actual' salaries - as against 8.33 per cent of the pensionable salary capped at Rs 15,000 a month - towards pension. The court on Friday struck down the requirement in the 2014 amendments mandating employee contribution of 1.16 per cent of the salary exceeding Rs 15,000 per month. This will facilitate the subscribers to contribute higher to the scheme and get enhanced benefits accordingly.
Trade unions have demanded that the government call an extraordinary meeting of the central board of trustees of the retirement fund body EPFO for quick implementation of the apex court order. General Secretary, Hind Mazdoor Sabha, Harbhajan Singh Sidhu said, "The apex court has given relief to subscribers of the Employees' Provident Fund Organisation (EPFO) to opt for pension on higher earnings. Now we demand from the government to immediately call a special meeting of Central Board of Trustees (CBT) headed by the Union Labour Minister to discuss the order in detail and implement the relief given to members."
The apex court also held that the EPFO cannot ask subscribers for an additional 1.16 per cent of contribution of salary for opting pension on higher earnings without amending the existing law. The court has given the option of pension on higher earnings to subscribers of exempted provident fund trusts also. Another EPFO trustee and All India Vice-President of Bharatiya Mazdoor Sangh (BMS) Sunkari Mallesham also demanded an extraordinary meeting of the CBT.
"There is a need to call an extraordinarily meeting of the CBT to discuss the order thoroughly and provide relief given to members," Mallesham said. The apex court stated: "Time to exercise option under paragraph 11(4) of the scheme, under these circumstances, shall stand extended by a further period of four months. We are giving this direction in exercise of our jurisdiction under Article 142 of the Constitution of India."
