Can EPS-95 family pensioners apply for higher pension? However, it may happen that an individual is receiving family pension from EPS. Can he or she apply for higher EPS pension now? Read on to know more about whether family pensioner can apply or not
The deadline to apply for a higher pension from the Employees' Pension Scheme (EPS) is July 11. It is clear from Supreme Court guidelines that certain eligible employees can apply for the higher EPS pension.In some cases, it is likely that an employee who was working on September 1, 2014, would have died later. The current rules of EPF allow the spouses of such employees to receive a family pension from the EPS, provided the employee has completed 10 years of service.
However, the question is can an individual receiving the family pension from the EPS apply for the higher pension?
ET Wealth reached out to experts to know if an EPS family pensioner is eligible to apply for the higher pension. Here is what they had to say:
Tapati Ghose, Partner, Deloitte India: "Higher pension from EPS can be applied for only by an eligible employee or member of the Employees' Pension Scheme. Beneficiaries such as family pensioners are not eligible to apply for the higher pension from EPS."
Vaibhav Bhardwaj, Partner, INDUSLAW: "Given that the recent circulars issued by the EPFO as well as the EPF Scheme refer to eligible members, the definition of which includes employees and not family members, this remains a grey area. However, it appears unlikely that a spouse who is getting EPS family pension will be allowed to apply for the higher pension. It remains to be seen if the EPFO will issue a clarification in this regard."
Akhil Chandna, Partner, Grant Thorton: "The Supreme Court in its judgment has clarified that employees who were in service on or before September 1, 2014, and pensioners who retired before September 1, 2014, are eligible to apply for the higher pension. The family of the deceased pensioner already getting pension from the EPFO is not eligible for availing the pension on higher wages as the option to opt-in for pension on higher wages can be done by employee and not by his legal heir or beneficiary."
What Supreme Court said in its judgment
The Supreme Court in its judgment dated November 4, 2022, had clarified that the option for pension on higher wages is available only to those employees who were contributing to EPF account on salary exceeding the wage ceiling of Rs 5,000 or Rs 6,500, as applicable before September 1, 2014, subject to fulfilment of other conditions.
On the basis of that, the following employees are eligible to apply for the higher pension from EPS:
Employees who retired before September 1, 2014- Those employees who have exercised the option for higher contributions before retirement as per the erstwhile paragraph 11(3) of the EPS or their request for higher pension was rejected by the EPF authorities.Employees who were in service on or before September 1, 2014, and continued to be in service on September 1, 2014- The members of the scheme who did not exercise option as contemplated in the proviso to paragraph 11(3) of the pension scheme.It is important to note that employees whose basic salary (wages) exceeded Rs 15,000 per month at the time of joining the EPF scheme are not allowed to join the EPS scheme from September 1, 2014. Further, those who joined the EPS scheme on or after September 1, 2014, are not eligible to opt for the higher pension.
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This story originally appeared on: India Times - Author:Faqs of Insurances
