There was a lack of clarity on various rules and delayed clarification from EPFO a number of employees are yet to exercise their hard-earned option to apply for higher pension. But they have few hours left as the last date to apply for a higher pension from the Employees’ Pension Scheme (EPS) is today i.e., June 26, 2023. The EPFO sources are mulling an extension of three months to provide further relief.
Also Read: EPFO launches calculator for higher EPS pension additional contribution after much delay
Here are a few reasons why EPFO may extend the deadline.
Excel utility to calculate dues released a few days before the deadline: Applying for higher pension is one of the most important decisions for the majority of eligible employees. Ideally, a person would like to go for this option only when they are sure that it would be an advantageous decision. However, there was no way they could have known this unless they are extremely good with calculations. Unless you know how much extra you need to pay and what kind of return you will get on this additional payment, going for the higher pension application would be like shooting in the dark. What they needed was a facility to calculate and get an estimate of these numbers.\
The irony is that the EPFO has released the Excel utility to calculate the amount that an employee has to pay for a higher pension just a few days before the expiry of the deadline. Along with this, the FAQs have also been released.Fragmented information to the employees: The EPFO has released the circulars related to how employees can apply, documents that are required, an additional 1.16% contribution, method of pension calculation etc. in a fragmented manner with the first circular coming on December 29, 2022, and latest one being on June 14, 2023. The entire chronology of these events kept the eligible members guessing about the possible next clarity from the EPFO. Though the online application was live and the deadline was extended twice, the last update coming so close to the current deadline makes it difficult for the employees to evaluate the pros and cons of higher pension in a limited time.
Several procedural clarity still awaited: As per the experts, EPFO still needs to provide clarity on certain procedural aspects of how to apply for higher EPS pension. A clarification is needed on the exit option, or if the employee’s records do not match with the EPFO’s records, or if the employer’s business has been shut down etc. There is no clarity on the employees who have long gaps in their service history as to how they should approach the pension application. After the introduction of the Universal Account Number (UAN), getting a consolidated history typically for service periods after 2012 has become easier however, there is a big problem for employees with a service history before the UAN era. If they do not have the EPF/EPS statement from previous years, then getting the same from EPFO or from previous employers has proven to be an uphill task.
There are a number of employees who have applied for EPF account transfer and service history consolidation which the EPFO is yet to process. Without such information, the higher pension application will not have complete details and accurate information. EPFO has not provided any way out or relief for members struggling with these issues.
Snag on the EPFO’s Member Sewa portal: The EPFO’s member Sewa portal has been hit with a snag in the past week leading to the deadline date. Many individuals have taken it up on Twitter, that they are either unable to submit their joint application form or their records are not matching up with the EPFO’s records making it difficult to submit their application form online.
The deadline has already been extended twice
It is important to note that the EPFO has already extended the deadline to apply for a higher EPS pension twice – first from March 3, 2023, to May 3, 2023, and then again to June 26, 2023. The extension was done as many clarifications were not issued by the EPFO till May 3, 2023. Further, the pension computation method was released by the EPFO on June 1, 2023 – just 25 days before the deadline. The missing contributions calculator being launched just a few days before the deadline adds to the continuing nightmare of the EPF members. They will need some time to arrange the numbers and do the calculation and assess whether they should go for higher pension application or not.
Recently, many employers have requested the EPFO to extend the deadline to apply for a higher EPS pension and also to simplify the process. These are genuine grievances felt by a number of employees which EPFO may take notice of and act accordingly.