The extended deadline to apply for a higher pension under the Employees’ Pension Scheme (EPS), i.e., June 26, is just a day away. Applicants, however, are facing multiple technical snags in submitting their application through the unified Employees’ Provident Fund Organisation (EPFO) portal.
What were the earlier deadlines?
On November 4 last year, the Supreme Court allowed employees who were part of the EPFO prior to September 1, 2014, and remained in service after the said date, but could not exercise the joint option under the EPS, to do so within 4 months of the order.
Accordingly, the original deadline was March 3, which got extended twice, first to May 3, and then June 26.
Will the deadline be extended again?
According to a Times of India report, the central government may grant a third extension, keeping in mind representations sent by the employees to simplify the application process, and because of technical glitches on the unified portal.
What is the formula to calculate higher pension for those who retired before September 1, 2014?
This shall be done on the basis of the average monthly pay drawn during the contributory period of service in the 12 months leading up to the date of exit from the membership of the pension fund.
What about those who retired/will retire on or after September 1, 2014?
For them, the average monthly pay drawn during the contributory period of service across 60 months leading up to the expiration of membership will be taken into account.
Who should opt for EPS?
Speaking to HT’s sister publication Mint, Archit Gupta, Founder-CEO, Clear Tax, said taxpayers looking at a higher monthly pension income (fully taxable; EPF withdrawal fully tax-free) must go for EPS. This, Gupta said, is when they don’t need a large corpus on retirement, and would prefer a monthly payout.
Click here for details on how to apply, documents required, etc.
