Benefits and Guidelines of Employees Pension Scheme

The Employees Pension Scheme (EPS) has a provision for penal interest at 12% per annum to be paid to employees if their pension settlement is not done within 20 days, as per the answer provided by the Minister of State for Labour and Employment. The EPS settled pension claims for 28,43,203 employees between January 1, 2014, and December 31, 2022. The Employees Provident Fund Organisation (EPFO) has initiated an online application process for pensioners who exercised joint options for contributing to the pension fund before their retirement, in compliance with the Supreme Court’s directions.

Employees Pension Scheme

GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
LOK SABHA
UNSTARRED QUESTION NO. 1803
TO BE ANSWERED ON 13.02.2023

EMPLOYEES PENSION SCHEME

  1. SHRI GIRIDHARI YADAV:
    DR. PON GAUTHAM SIGAMANI:
    Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

(a) whether Rule 17 (payment of pension) of the Employees Pension Scheme, 1995 has been simplified and there is a provision to pay penal interest at the rate of 12 per cent to the employee if the pension is not settled within 20 days;

(b) if so, the number of employees for whom settlement of pension was done during the year 1.1.2014 to 31.12.2022;

(c) the amount paid as interest in the above said cases where settlement of pension could not be done within the prescribed period of 20 days;

(d) whether it is a fact that the Employees’ Provident Fund Organisation (EPFO) has made a provision in the Member’s Portal so that retired workers can opt for higher pension and if so, the details thereof; and

(e) whether it is also true that the EPFO has started taking registration requests from employees for application from validation of joint options with the employers and if so, the details thereof?

ANSWER
MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SHRI RAMESWAR TELI)

(a) to (e): The paragraph 17-A of Employees’ Pension Scheme (EPS), 1995 provides for ‘Payment of Pension’. As per the said paragraph, in case, the Commissioner fails without sufficient cause to settle a claim complete in all respects within 20 days, the Commissioner shall be liable for the delay beyond the said period and penal interest at the rate of 12 per cent. per annum may be charged on the benefit amount and the same may be deducted from the salary of the Commissioner. The number of employees for whom settlement of pension claims was done during the year 01.01.2014 to 31.12.2022 is 28,43,203.

The Employees’ Provident Fund Organisation (EPFO) on 29.12.2022 has issued instructions to call for online applications from pensioners who had retired before 01.09.2014 and had exercised joint options for contributing to pension fund on salary exceeding wage ceiling before their retirement but whose joint options were rejected by the EPFO (on account of cut-off date). This is in compliance with the directions of the Hon’ble Supreme Court as contained in paragraph 44(ix) read with paragraph 44(v) & (vi) of the judgment dated 04.11.2022 in SLP (Civil) No. 8658-8659 of 2019.

Source: Lok Sabha

Employees Pension Scheme

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