The Workers’ Provident Fund Organisation (EPFO) head workplace has written to its area formations flagging the “exceptionally excessive” rejection of utility vis-à-vis issuance of demand letters within the case of upper pension instances. The missive, dated Might 23, has come after the Ministry of Labour and Employment directions to the retirement fund physique to undertake an audit for all such instances of rejection of upper pension purposes.
A complete of 17.49 lakh purposes had been obtained for the upper pension choice after the Supreme Court docket directed the EPFO to open a window for pensioners and members to use for it. Out of the 17.49 lakh purposes, 1.02 lakh purposes had been referred again to employers for full info and demand letters had been issued to three.68 lakh candidates as of March 31 this 12 months, an official instructed The Indian Categorical.
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Over 1 lakh pensioners have deposited the extra quantity sought by the EPFO and over 47,000 members, who’re nonetheless in service, have additionally deposited the upper quantity, the official stated. As per the information on the finish of the earlier monetary 12 months, the EPFO has issued over 34,500 pension cost orders (PPOs), out of which round 19,000 are in course of, the official stated.
In its letter, the EPFO head workplace acknowledged that it has obtained quite a few grievances from stakeholders concerning the rejection of purposes as a consequence of minor deficiencies that would have been rectified by employers if that they had been supplied with ample steering and alternative to deal with them.
“Arbitrary rejections at numerous workplaces have resulted in quite a few complaints and have made it troublesome for the Head Workplace to reply successfully. Officers are suggested to make sure that purposes are processed strictly adhering to the rules and directions offered by the top workplace. Rejections must be primarily based on substantial and justifiable causes, and candidates should be given ample alternative to rectify minor deficiencies of their submissions. Employers and staff must be adequately facilitated to adjust to the necessities, thereby guaranteeing truthful and environment friendly processing of purposes,” the letter acknowledged.
The SC in a ruling on November 4, 2022 had upheld the amendments to the Workers’ Pension (Modification) Scheme, 2014, offering one other likelihood for workers who had been current EPS members as on September 1, 2014, to contribute as much as 8.33 per cent of their ‘precise’ salaries — as in opposition to 8.33 per cent of the pensionable wage capped at Rs 15,000 a month — in direction of pension.
Purposes which are full with the required info are processed and demand letters issued by the EPFO point out the extra due quantities to the pension fund. If the candidates for increased pension underneath EPS have the due quantity obtainable of their provident fund accounts maintained with the EPFO, then solely a diversion is required. In instances the place the due quantity is just not obtainable with the EPFO, then it must be deposited by the member instantly or by way of the employer.
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Within the letter despatched final week, the EPFO head workplace additionally identified cases of rejections whereby the exempted provident fund belief guidelines didn’t comprise any express bar on contribution to EPS 95 past wage ceiling or instances the place the interpretation of the time period “wages” have been interpreted incorrectly. “There are even references the place the method of verification has been transformed right into a probing train to look out for justification for rejection of purposes,” it stated.
The EPFO letter famous that the Ministry of Labour and Employment has requested the retirement fund physique to hold out an audit by a specialised crew of chartered accountants empanelled underneath Comptroller and Auditor Normal (CAG). The EPFO may also deploy its personal audit groups to look at instances of rejection, particularly these that are underneath litigation, it stated, asking officers to assessment the instances and take essential motion.
Earlier, in January this 12 months, the EPFO head workplace in a letter to its area workplaces had stated that regardless of issuance of a number of circulars and clarifications to facilitate the immediate disposal of upper pension purposes, the “general progress stays under expectations as a consequence of delays in disposal of purposes”. The EPFO head workplace had set recent deadlines of January 24 and February 7 for its area workplaces to finish processing of the upper pension purposes. “For workplaces having lower than 5,000 purposes with joint choices, the ultimate deadline for finishing the examination of all pending purposes will likely be January 25, 2025. For all different workplaces the deadline is ready for February 7, 2025. All clear instances for PPO issuance must be accomplished in any respect workplaces by January 24, 2025,” the EPFO chief had stated in his letter.
EPFO increased pension purposes
|
Nov-end 2024 |
Mar-end 2025 |
|
|
Demand letters issued |
1.19 lakh |
3.68 lakh |
|
Pension Cost Orders |
16,282 |
34,500 |