What you can do if your higher EPS pension application is stuck It may happen that an individual's higher pension application is stuck either due to wrong rejection by the employer or it is yet to be reviewed. What are the options an employee has in this case
The Employees' Provident Fund Organisation (EPFO) now allows those who have applied for higher pension under the Employees' Pension Scheme (EPS) to track their application. A link on the EPFO's Member Sewa portal allows individuals to log in and track the application.If an individual has worked with various organisations, the question arises if every employer (past and present) is required to approve the higher EPS pension application.
Is every employer required to approve application for higher EPS?
Radhika Viswanathan, Partner, Deloitte Haskins & Sells LLP, says, "A higher EPS application is sent to all employers (past or present) for validation and approval at their end before the EPFO takes it up for processing."All employers, past and present, have to approve the higher EPS applications of members, concurs Vaibhav Bhardwaj, Partner at law firm INDUSLAW. "The higher EPS application will automatically be reflected in the employer's login on the EPFO portal. The employer is required to verify the information submitted by the employee. Based on the same, the employer can either approve or reject the application for pension on higher wages. As per several circulars issued by the EPFO, the employer's verification of the application by providing their digital signature or e-sign is essential for further processing of the higher pension application."
EPFO mandated timeline to approve higher EPS pension applications
Viswanathan says the EPFO had in a press release dated June 26, 2023, indicated that employers have time till September 30 to complete the process at their end. "This could be viewed as a definitive timeline for review and validation of the applications by the employer," she says.However, Bhardwaj has a different take. "While the EPFO has taken steps to ensure expeditious processing of applications by it, the circulars appear to be silent regarding the timelines that an employer is required to follow for vetting and approving the applications in the first instance."
The EPFO has through various circulars stated the timeline available to employees to provide additional proof or correct errors in the relevant documents. However, employers' approval is mandatory for the EPFO to process the higher pension application. Experts point out that employers would have to deal with several applications and so that process might take time.
What an employee can do
An individual can face two scenarios: a previous employer may reject the applicant's higher EPS application even though the documents are correct or a past employer is yet to review the application. These situations can lead to the EPFO either rejecting the higher pension application or delaying the process of the application being accepted. What can an employee do in such cases?
Bhardwaj says, "The EPFO has implemented certain safeguards in this regard. An employer rejecting the application for higher pension has to provide the reasons. Such a rejection will be intimated to the applicant concerned."
An employee whose pension application is rejected will get a chance to make the required corrections in the application or provide additional documents, as the case may be. The action that an employee needs to take depends on the reason of rejection, if any. It will be shown on the EPFO's Member Sewa portal when an individual tracks the application status.
Viswanathan says, "As per an EPFO circular dated April 23, 2023, in case the employer has not approved the application, the EPFO will provide an opportunity to the employee for providing any additional proof or evidence or correct any mistakes or errors (including those made by the employees/pensioners). An individual will have a month from the issuance of the rejection letter to make corrections or changes in the pension application. In case the employer has wrongly rejected the application, the employee may have to take it up with the concerned office for resolution."
Employees and pensioners can also use the EPFiGMS portal to register their grievances on issues related to the higher pension, Bhardwaj adds. This EPFO portal helps individuals to resolve their complaints relating to higher pension from EPS, EPF account.
According to EPFO press release dated June 26, 2023, "Any eligible pensioner/member who on account of any issue in updation of KYC, faces difficulty in submitting online Application for Validation of Option / Joint Option, may immediately lodge such grievance on EPFiGMS for resolution. The grievance may please be submitted by selecting the grievance category of ' Higher Pensionary benefits on higher wages'. This will ensure proper record of such a grievance for further action."
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This story originally appeared on: India Times - Author:Faqs of Insurances
