EPFO higher pension: What we know so far on pending claims, processing, arrears

The government has said the Employees’ Provident Fund Organisation (EPFO) has taken steps to speed up the processing of applications for pension on higher wages under the Employees’ Pension Scheme (EPS). However, it has not announced a fresh time-bound mechanism for disposing of all pending cases or releasing pension arrears.

The clarification came in a Lok Sabha reply, in response to a question on pending higher-pension claims, including those in Kerala.

What has the government said?

The Labour and Employment Ministry said EPFO has taken action to implement the Supreme Court’s November 4, 2022 judgment in a time-bound manner.

According to the reply, EPFO has taken the following steps:

• It provided an online facility for validation of Joint Options and processed applications in accordance with the applicable provisions.
• It issued instructions from time to time to Regional Offices for timely disposal of pension-on-higher-wages cases.
• It held regular video conferences with all Zonal and Regional Offices to monitor the process.

The government also said it remains committed to ensuring maximum benefits for workers under EPS-2026, while taking into account the health of the pension fund and its future liabilities.

Has the government set a new deadline?

The Lok Sabha reply does not specify a fresh deadline by which all pending higher-pension cases must be disposed of.

This is important because the question specifically asked whether the government proposed a time-bound mechanism for disposal of pending cases and release of pension arrears. The response instead referred to the steps already being taken by EPFO to implement the Supreme Court judgment in a time-bound manner.

In other words, the reply does not amount to an assurance that every pending claim will be settled by a particular date or that arrears will be released within a newly specified timeframe.

Why is the higher-pension option important?

The higher-pension exercise follows the Supreme Court’s November 4, 2022 judgment, which upheld the validity of amendments to the Employees’ Pension Scheme and allowed eligible employees and pensioners to opt for pension contributions based on higher wages, subject to the applicable conditions.

EPFO subsequently opened an online facility for eligible members to submit applications for validation of Joint Options.

The process involves verification of wage and contribution records and, in cases where additional pension contributions are required, completion of the applicable formalities before enhanced pension benefits can be finalised.

What does the latest reply tell applicants?

For applicants still waiting for their cases to be processed, the response confirms that EPFO is continuing to monitor and expedite the exercise through its regional offices.

However, the government has not provided a new universal deadline for completion of all pending applications or payment of pension arrears in this reply.