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EPFO Sets New Deadlines for Higher Pension Cases Processing

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The Employees’ Provident Fund Organisation (EPFO) has raised concerns about delays in processing pension applications for higher wages under the Employees’ Pension Scheme.

Central Provident Fund Commissioner Ramesh Krishnamurthi emphasized the urgency of addressing these delays, particularly given the Supreme Court’s timeline for completing the process.

Despite multiple guidelines issued to streamline the process, progress remains slow, prompting the EPFO to set new deadlines for field offices.

Revised Deadlines for Application Processing

According to the latest EPFO circular released on Jan 18, to expedite pending cases, the EPFO has set January 25, 2025, as the final deadline for offices having less than 5,000 joint-option applications.

Offices handling more than 5,000 applications must complete their review by February 7, 2025.

Clear cases for issuing Pension Payment Orders (PPOs) are expected to be finalized by January 24, 2025.

Government Oversight and Progress

Union Minister of Labour and Employment Mansukh Mandaviya has been closely monitoring the progress of these cases.

Over 1 lakh applications were reviewed last month, with 21,000 demand letters issued.

The EPFO Executive Committee noted a significant increase in case resolution, reporting disposal of 58,000 applications.

To further accelerate the process, the Ministry has recommended regular video conferences with employers to address corrections and ensure timely submission of joint options before January 31, 2025.

Prioritizing Pension on Higher Wages

The EPFO’s recent review of its field offices highlighted delays caused by inadequate prioritization of higher pension cases. Offices were asked to treat this work with top priority, alongside the activation of UANs.

The letter emphasized resolving issues at local levels and reducing unnecessary escalations to Zonal Commissioners.

Clarification on Pro Rata Pension Formula

The EPFO clarified that the pro rata method will be used to calculate pensions on higher wages.

This method ensures equitable treatment for all pensioners, regardless of wage category, and aligns with the provisions of the Employees’ Pension Scheme, 1995.

For periods prior to September 1, 2014, pensions will be calculated based on the highest monthly salary or the 60-month average salary, whichever is lower.

The same method applies to periods after this date, maintaining consistency in calculations.

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