EPS 95 Pension Scheme: How to make up for low contribution before opting for higher EPS pension

EPS 95 Pension Scheme: Employees’ Provident Fund Organization (Employees’ Provident Fund Organization) after the Supreme Court’s decision on November 4 last year to allow higher pension to eligible employees under the Employees’ Pension Scheme, 1995 (Employee Pension Scheme) Now a circular has been issued and told how it will be implemented.

EPS 95 Pension Scheme

Only those employees who were members of EPS (Employee Pension Scheme) 95 on or after 1 September 2014! eligible for higher pension. Apart from this, only those employees who were contributing to the Employees’ Provident Fund Organization in excess of the previous wage limit of Rs 5,000 and Rs 6,500. But could not opt for higher contribution. So now you can apply for higher pension!

Employees’ Provident Fund Organization

All eligible EPS (Employee Pension Scheme) 95 members who want to apply for higher pension! They will have to make higher contribution towards EPS 95 from the employer’s share on the basis of actual salary. As long as they remain active members of EPFO (Employees’ Provident Fund Organisation) or retire! However, contributing more than ever is not enough! Because they will also have to pay the additional contribution for the previous years.

This EPS (Employee Pension Scheme) higher contribution for previous years will be applicable from that time. When his actual pay exceeded the notified pay limit of Rs 5,000 and Rs 6,500. Unless deduction of higher contribution starts from current salary or till retirement. This EPFO (Employees’ Provident Fund Organisation) rule is applicable for those employees! Those who have retired after 1 September 2014!

Employees’ Provident Fund Organization

How much to deposit for the missed EPS (Employee Pension Scheme) contributions of the past! There is a lack of clarity regarding the calculations regarding this. To clarify the issue, the present EPFO (Employees’ Provident Fund Organisation) circular says! The method of deposit and calculation of pension will be done through subsequent circular.

This is largely done by diverting the EPFO (Employees’ Provident Fund Organisation) balance to meet the losses of those employees. Whose EPF account has sufficient balance! It has been said in the EPFO circular! In case of shares, adjustment from provident fund to pension fund is required. And if any EPS (Employee Pension Scheme) is re-deposited in the fund! So the explicit consent of the employee will be given in the joint option form.

Employee Pension Scheme

In case of transfer of funds from Exempted Provident Fund Trust to Pension Fund of EPFO (Employees’ Provident Fund Organisation), an undertaking of the trustee has to be submitted. Commitment will be there for sure! That the due contribution, including interest till the date of payment, is deposited in the EPS (Employee Pension Scheme) within the specified period.

EPS 95 Pension Scheme

In the case of employees of non-exempt establishments, the refund of employer’s contribution required shall be credited along with interest at the rate declared under Para 60 of the EPF Scheme of 1952 till the date of actual refund. Employees who have sufficient EPFO (Employees’ Provident Fund Organisation) balance!

Will be able to easily divert money to overcome the deficit of previous contributions. However, those who do not have sufficient balance! Or there is less balance due to EPS (Employee Pension Scheme) withdrawal! They may have to pay from their own pocket!

Employee Pension Scheme

The method of applying to such EPFO (Employees’ Provident Fund Organisation) employees in the concerned regional office has been explained in the circular. For this, the employee and the employer will have to jointly apply for more deduction.

The employee will have to provide all relevant proofs related to his eligibility. And the employer has to verify it! The commissioner will later specify the form and manner in which the eligible employees should submit the request for higher contribution to the EPS (Employee Pension Scheme).