News | Retirement

Significant Progress in Higher Pension Applications Under EPS, Demand Letters Issued

MAS Team 10 November 2023
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The Employees’ Provident Fund Organisation (EPFO) has issued a total of 32,591 demand letters, reflecting a cumulative demand of Rs1,974 crore as of October 12. This development comes from applicants who have chosen a higher pension under the Employees’ Pension Scheme (EPS). The progress of these applications, totaling around 17.49 lakh, was a key topic of discussion in the recent meeting of the Central Board of Trustees (CBT) held on October 31.
 
Breaking down the demand letters, 19,957 are for subscribers from exempted establishments, while 12,634 are from un-exempted establishments, according to data shared during the CBT meeting. Employers have submitted approximately 11.51 lakh forms to the field offices of the EPFO, with 5.97 lakh forms pending.
 
An official mentioned, “Demand letters for a total demand of Rs 1,974 crore have been raised from the applicants for deposit/diversion. Upon deposit/diversion, the applicants shall become eligible for pension on higher wages.” Notably, around 52% of the workload related to pension linked to higher wages is associated with exempted establishments.
 
For applicants seeking a higher pension under EPS, if the due amount is available in their provident fund accounts with the EPFO, only diversion is required. In cases where the due amount is not available with the EPFO, the member must deposit it directly or through the employer. It's crucial to note that the option for a higher pension becomes valid only after the amounts due to the pension fund are received for that specific individual.
 
Regarding the actuarial analysis, the EPFO plans to complete it once all applications for the validation of the joint option are disposed of. Currently, data from 13,059 cases, where demand letters were issued by field offices in mid-August, has been shared with the consultant actuary. The ongoing actuarial evaluation will continue for every 50,000 demand letters issued, followed by a final consolidated evaluation after all cases are finalized.
 
This progress marks a significant step forward in facilitating higher pensions for eligible individuals under EPS, showcasing the organization's commitment to addressing pension-related demands effectively.
 

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