Pension Scheme: New Hopes For Higher Pension Of EPF Subscribers: After this decision by the Supreme Court, till September 1, 2014, employees who are members of EPS can contribute up to 8.33 percent of their ‘real’ salary towards pension.
Supreme Court gave the good news to the employees. With the latest verdict of the Supreme Court on the amendment of the Employees’ Provident Fund Pension Scheme (EPS)- 2014, the maximum wage limit of Rs.15 thousand has been given to employees who have not joined the pension scheme so far. The Supreme Court gave some more time to those who had not joined EPS before the 2014 amendment to get a higher pension. It is suggested to give a joint option with the employer within four months. It is suggested to divert the cash in the EPF account to EPS after giving the joint option. EPFO is studying the Supreme Court judgment and is planning to issue a notification soon as per the new rules. A study is being conducted to increase the share of pay (basic plus DA) from the current 8.33 percent to 12 percent for joining EPS. It seems that there is a possibility of an amendment to divert the 12 percent amount paid by the employer into EPS.
Besides this, the Supreme Court in the 2014 amendments struck down the condition that the employee must deposit 1.16 percent of the salary above 15,000 per month. Chief Justice U.U. Lalit, Justice Aniruddha Bose, and Justice Sudhanshu Dhulia upheld the Employees’ Pension (Amendment) Scheme 2014.
After the Supreme Court decision, EPS members till September 1, 2014, can contribute up to 8.33 percent of their ‘real’ salary towards pension. Earlier, they were contributing only 8.33 percent of the pension payments. The maximum limit per month is Rs. 15,000 was fixed. But now employees can contribute more to this scheme. You will also get more benefits from now on. In 2014, the maximum salary limit was revised to Rs.15 thousand. The employees who were given the option before this should be given the option to join the EPS on a higher salary within six months. Then the Supreme Court gave a fresh order giving another chance to those who were not given the option.
What did the Supreme Court say in its decision?
The Supreme Court held the Employees’ Pension (Amendment) Scheme, 2014 as “legal and valid”. The Supreme Court said that employees who have not yet opted to join the Employees’ Pension Scheme should be given another 6 months’ time and opportunity. Last week the Supreme Court issued this decision which gave relief to many employees.
In August 2014, the pension scheme was amended to raise the upper limit of pensionable salary from Rs 6,500 to Rs 15,000 per month. This made it possible for members.. their employers to contribute 8.33 percent of their actual salary. The employee unions have demanded that the government should hold an extraordinary meeting of the Central Board of Trustees of Pension Fund EPFO to implement the Supreme Court orders at the earliest.
However.. a portion of each employee’s salary is deposited in the Employees’ Provident Fund account. If you are an EPFO account holder, you must know about the EPS 95 scheme of the Employees Provident Fund Organization. This scheme is applicable from the year 1995. All the companies under the Employees Provident Fund Organization come under this scheme. Under this scheme, private sector employees also get pension facilities every month. Under the EPFO’s EPS scheme, from September 1, 2014, all pensioners will receive a minimum of Rs. 1,000 as a pension. This pension starts to be drawn after 58 years of age.
Who will get a pension facility?
Only Employees Provident Fund Organization account holders can avail of the benefit of this scheme. A portion of the EPFO subscriber’s salary is deposited into the EPFO account every month. To avail of the benefit of this scheme, you must have worked for at least 10 years. You can get a pension amount after 58 years. At the same time, after the age of 50, you can withdraw money from your PF account at a lower rate of interest as per your requirement.