The Employees’ Provident Fund Organisation (EPFO) has extended the date for filing applications to opt for a higher pension till June 26, 2023. This move is aimed at providing a larger window of opportunity for all eligible individuals to file their applications.
The EPFO had previously made arrangements for obtaining applications for validation of option/joint option from pensioners/members as per the Supreme Court order on November 4, 2022. The decision to extend the deadline was made to ensure that all eligible individuals have the opportunity to opt for a higher pension.
The EPFO provides a pension scheme under the Employees’ Pension Scheme (EPS), which is a government-backed scheme that ensures retirement benefits for employees. The scheme applies to all employees who are members of the EPFO and have contributed to the scheme for a minimum period of ten years.
Under the scheme, employees are eligible for a pension based on their length of service and their average monthly salary. The minimum monthly pension under the scheme is Rs. 1,000, while the maximum pension amount is Rs. 7,500 per month.
However, the scheme has been criticised in the past for providing low pension amounts, particularly for those who have served for long periods. To address this issue, the Supreme Court had directed the EPFO to allow individuals who had opted for the lower pension to switch to the higher pension scheme.
To be eligible for the higher pension scheme, individuals must have opted for the lower pension before September 26, 2008, and have completed a minimum of 20 years of service. They must also submit a joint application along with their spouse, if applicable.
The extension of the deadline for filing applications is expected to provide more individuals with the opportunity to opt for the higher pension scheme and receive a more substantial retirement benefit. The move is likely to be welcomed by pensioners who have served for a long time and are looking for a better quality of life in their retirement years.