Supreme Court has passed new order on November 4, 2022 for higher pension if your provident fund is getting deducted. There are some restrictions to get the higher pension in terms of eligibility. EPFO has also issued a circular with the eligibility scenario and process to apply for a higher pension. For example, if your pension was around 2 or 3 thousand, you can get 12 to 15 thousand pensions as per the latest order. In this article, I will explain how you can get maximum pension and other benefits after your retirement. The last date to apply higher pension is 3 May, 2023. Let’s get a clear idea with easy concept and understand more about this circular.
Current Structure of Pension
Mostly, we all are aware of pension structure where both employee and employer do the contribution of 12% of their salary to the EPF. If your salary is 15,000 then your pf will be deducted.
Eligibility for Higher Pension
To be eligible for the higher pension, it is must to be an active EPS member and have the contribution of almost 10 years.
It is mandatory be to the member of the eps before 1 September, 2014.
If you have basic salary of 15000 or below, you are eligible for the EPFO pension scheme.
Higher pension contributions are available to employees whose EPF payments above the respective salary cap of Rs. 6,500 or Rs. 5,000. These employees couldn't choose larger pension contributions without submitting a joint statement with their company, and the EPF authorities would have denied their request.
If you have joined EPF after 1 September, 2014 then you will not be eligible for a higher pension as per the Supreme Court’s Order.
How to apply for a higher pension?
You can go to the EPFO portal where they have activated the link to apply. The last date to apply for higher pension is 3 May, 2023.
On the portal, You will find a link stating Pension on High Salary on which you can proceed with your details.
As for the details, you will need Universal Account number, date of birth, Name, Aadhar ID, and contact number.
After filling in your details, you will receive a pin to validate.
Your application will be submitted for review.
Important things to remember while applying for a higher Pension
You should be aware of some points while the procedure because sometimes a minor mistake can cause problems.
From the moment the employee joins the program, the funds will be transferred from the EPF to the EPS plan. To obtain a greater pension, this implies a sizeable sum of money must be transferred from the EPF to the EPS, depriving you of the advantages of compounding.
In contrast to the EPF, the Employee Savings Plan (EPS) does not offer interest on contributions. Additionally, you cannot choose to receive a lump payment upon retirement if you have an EPS account. Your pension is paid.
When you finish 10 years of service and attain 58, an EPFO member is only qualified to earn a pension. Therefore, picking a higher pension might not be advantageous if you want to retire early.
When an EPF member passes away, their nominee or the person with legal authority is entitled to inherit the whole amount deposited in the EPF fund. The EPS provides that, in the event of death, the spouse will get 50% of the pension.
Conclusion
Being eligible for the higher pension is very important as per the supreme court latest order. Before applying, prepare your checklist and go through all the documents to avoid any type of mistake. The process to apply for higher pension is not tricky if you are aware of all the steps. The court has decided the date to apply which is May 3, 2023 so mark the date and plan your retirement wisely. In case of help with your application, you can contact us anytime. Contact us on below given details for more knowledge and support
Contact Number - +919714390222
Email Id – support@anilrathore.com
Website - https://www.anilrathore.com
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