According to ET report, Employees’ Provident Fund Organisation (EPFO) is gearing up to fast-track the processing of higher pension applications, raising hopes that eligible pensioners could start receiving revised pension payouts by the end of 2025.
- Fast-Tracking Begins: EPFO is expediting the processing of higher pension applications, with payouts expected by the end of 2025.
- Priority to State-Run Firms: Initial focus is on state-run and unexempted companies where pension contributions are already in place.
- Massive Volume of Requests: Of 7.8 million pensioners, 1.75 million have applied for higher pension benefits under the revised scheme.
- Support Measures in Place: EPFO is assigning 10–15 regional offices and hiring legal experts and CAG-approved firms to accelerate the process.
- Significant Progress Made: Over 34,500 pensioners have received new orders, with 100,000+ retirees and 47,000 active employees paying the required additional contributions.
The move comes in response to the Supreme Court November 2022 ruling, which allowed employees to opt for a higher pension based on their full salary.
Following this, EPFO had invited joint applications from employees and employers in February 2023 for those seeking to avail of the higher pension benefit.
Who Will Gett Preference?
EPFO will initially focus on processing applications from state-run enterprises and unexempted establishments—organizations where the necessary pension contributions have already been received.
This targeted approach will enable quicker turnaround and reduce the burden on the system.
Current Landscape
Out of approximately 7.8 million pensioners, EPFO has received nearly 1.75 million applications for higher pensions. However, the organization’s current capacity is strained, prompting the need for a streamlined effort.
To tackle this, EPFO plans to dedicate 10–15 regional offices solely for handling higher pension cases. Additional manpower, including legal experts and firms approved by the Comptroller and Auditor General (CAG), will also be brought in to accelerate the process.
So far, around 34,500 pensioners have received their revised pension orders, and another 19,000 are currently in the final processing stages.
More than 100,000 retired employees and 47,000 active workers have already paid the additional contributions required for the higher pension option, following the issuance of demand letters to over 368,000 applicants.
Challenges and Rejections
Roughly 102,000 applications had to be returned to employers due to incomplete information.
While the Ministry of Labour and Employment has not disclosed the number of rejections officially, it is estimated that more than 500,000 applications may have been turned down.
This has led to growing calls from both employees and employers urging EPFO to review rejected applications to ensure no eligible beneficiary is left out.
This accelerated push reflects the government’s intent to honour the Supreme Court verdict and provide pensioners with their rightful entitlements, signaling a more efficient and responsive social security mechanism in the months ahead.
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