high pension scheme epfo|higher pension scheme eligibility|epfo higher pension online apply link:When it comes to personal financial planning, prioritising retirement planning is essential. While loans can be obtained for other financial goals, there are no loans available for retirement expenses. Unfortunately, there are limited options for assured returns for long-term investments. However, the EPFO offers a solution for retirement planning with its EPS scheme that provides higher pension benefits, ensuring much-needed financial security.
Additionally, this scheme promotes the principle of saving before spending, which is a wise financial practice. However, it is important to note that opting for the EPS scheme should only be done after a thorough analysis of an individual’s financial status.
high pension scheme epfo
The deadline to choose a higher pension was extended by the Employees’ Provident Fund Organization (EPFO) on Monday to May 3. Workers who began working before September 1, 2014, and continued working on or after that date but were unable to activate their joint option under the Employees’ Pension Plan may now do so before May 3, 2023. Read below to get detailed information related to the EPFO Higher Pension Scheme.
In certain conditions, higher contributions may be suitable while in others might not. But while comparing the difference in a pension you also need to understand that The Employees’ Provident Fund Organisation (EPFO) offers only a monthly pension and does not provide the choice of a lump-sum amount. In the event of the subscriber’s demise, the widow/widower receives 50 per cent of the employee’s pension, and, for minor children, this amount is 25 per cent of the amount received by the widow/widower (maximum two children).
Unlike EPF, where you can choose to receive a lump sum at retirement, EPS pays out a pension amount determined at retirement using the formula: Average Salary for the last 60 monthsXPensionable Service/70. If you complete 10 years of service and reach the age of 58, you are qualified to obtain a pension from EPFO. If you withdraw early, you may do so after turning 50, but you will receive a reduced monthly payment.
Pension: Why EPFO extended June 27 deadline?
“The last opportunity of 15 days is being given to remove any difficulty faced by the eligible pensioners/members. Accordingly, the last date for submission of Applications for Validation of Option/Joint Options by employees is extended to July 11, 2023,” EPFO said in an official release on June 27.
Higher PF pension calculator
Employees can access this calculator from the Member Sewa portal of the EPFO, by clicking on the pension application link. The calculator is available under the Important Links head. To find out the additional amount for the higher pension, employees need to know the date of joining the Employees’ Provident Fund (EPF) scheme, an employee needs to enter the wage amount from the date of joining the EPF scheme or November 1995, whichever is later.
Here’s how your pension amount will be calculated if you opt for a higher pension
How is the higher pension amount calculated? By making a higher contribution, you can receive a higher pension since it is based on your actual salary (average of Basic salary + DA of the last 60 months) at the time of retirement and the number of years you served. For instance, a salaried person who retires after 30 years of service would have received a maximum pension of around Rs 96,000, assuming an average salary of Rs 2,10,000 for the last 60 months [(Pensionable Salary x Pensionable Service)/70 = (2,10,000x 32)/70 =]. Here 32 years are taken considering if an employee retires at the age of 58, having served for more than 20 years and is eligible for a pension, their service period will be increased by 2 years as a weightage. The maximum pensionable service period is capped at 35 years.
Higher pension from EPF deadline ends soon: The Employees’ Provident Fund Organisation (EPFO) deadline to apply for higher pension will end tomorrow, July 11, 2023. EPF subscribers who have still not applied for increasing their pension, should do it as soon as possible. The retirement fund body has already extended the deadline to apply for a higher pension thrice and another extension may not be allowed.
Documents to submit
The documents that an eligible employee must submit include an agreement to allow the transfer of funds from the provident fund to the pension fund, proof of the employer’s share in the provident fund on higher wages exceeding the standard wage ceiling of ₹5,000/ ₹6,500, and a joint option form with a declaration from the employer and employee
In other news, the Kerala High Court has directed EPFO to make provisions in their online system to allow employees and pensioners to opt for a higher contribution without furnishing proof of prior consent for the same.
Benefits of EPFO Higher Pension Scheme
Some of the key benefits of EPFO Higher Pension Scheme are as follows:
- If you have a greater pension, you’ll receive a larger monthly check during retirement.
- This can be very helpful if you don’t have any other sources of income.
- Your pension amount is fixed and unaffected by market movements because it is based on your years of service and average wage.
Eligibility Criteria for EPFO Higher Pension Scheme
The eligibility criteria for EPFO Higher Pension Scheme are as follows:
- Members of the Employees’ Provident Fund Organization (EPFO) are eligible for a pension following retirement.
- You must have been a member of the Employees’ Pension Plan (EPS) for at least 10 years and be 50 or 58 years old to qualify for a higher pension (depending on when you joined the EPS).
Higher Pension Scheme EPFO Online Apply
- First of all, go to the official website of the EPFO Unified Member portal
- The homepage of the website will open on the screen
- Under important links, click on the Pension on Higher Salary: Exercise of Joint Option under para 11(3) and para 11(4) of EPS-1995 on or before the 3rd May 2023 link
- A new page will open on the screen with two options:
- Application form for validation of joint options
- Application form for joint options
- Click on the Application form for the joint option link
- A new page will open on the screen with two options:
- Select “Validation of joint options who retired before 01.09.2014 and executed joint option” if you left your job before that year.
- Select “Exercise of joint option for employees who were in service before 01.09.2014 and continued to be in service 01.09.2014 but were unable to exercise the joint option” if you retired after that year.
- After selecting one of the options, an application form will open on the screen
- Now, fill in the form with all the required details
- After that, click on the Submit button
- Each application will be digitally registered by the EPFO, and the applicant will receive a receipt number. It will send the applications to the appropriate employers, who will check them through an e-signature or digital signature before continuing with the application process.
- All applications will be transformed into e-files by the RPFC.
- After reviewing the documents, the responsible dealing assistant will forward the matter to the section account officer or supervisor.
- Discrepancies would be noted by the concerned account officer or supervisor following examination and sent to the Assistant Provident Fund Commissioners (APFC)/RPFC-II.
- After reviewing the application, the APFC/RPFC-II will notify the applicants by email, mail, phone, or SMS of the higher pension decision.
How can I apply for higher pension in EPF online?
Below is the step to claim a higher pension amount for employees retired before 2014: Step 1: Employees need to visit the EPFO Unified Member portal. Step 2: Click on the ‘Pension on Higher Salary: Online application for validation of Joint Option’ option. Step 3: Fill in the details and submit the form.
Who is eligible for EPFO higher pension?
According to the Employees’ Pension Scheme rules, an individual is eligible for a pension from EPS if they have completed ten years of service. Employees and employers who had contributed on salary exceeding the standard wage ceiling of ₹5,000 or ₹6,500
What documents are required for higher pension?
Universal Account Number (UAN) for existing employees (b) Pension Payment Order (PPO) in case of retired employees (c) Mobile number linked with the Aadhaar number (d) Member’s Aadhaar number, name and date of birth should be available in the EPFO’s records.