Higher EPS pension: Is it fair to ask EPFO members to accept unknown pension calculation?

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Key Points

The struggle of the Employee Provident Fund (EPF) members applying for higher pension under the Employees Pension Scheme (EPS) is becoming harder..

The Employees' Provident Fund Organisation (EPFO) has hardly been proactive in implementing the Supreme Court judgment for members who were in service prior to September 1, 2014, and continued to be in service on September 1, 2014, or after that..

Now with the deadline for the application approaching closer, in a last-minute rush to comply with the court order on higher pension application, the EPFO is asking its members to give consent to deduct an amount that is yet to be decided but will be calculated based on an yet-to-be announced new EPS contribution and past due deduction methodology..

If it was to be done in a fair way, the EPFO should have first issued the revised EPS contribution rate for higher pension and the pension computation methodology, then given time to members to make an informed decision..

In September 2014, the amended EPS rules required members going for higher EPS contribution on actual salary above the prevailing wage ceiling of Rs 15,000 to contribute 1.16% additional amount on the additional EPS contribution than what was allowed at the wage ceiling..

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