4 mths to opt for pension on higher earnings: SC

In a relief to lakhs of subscribers, Supreme Court held Friday that the Employees’ Provident Fund Organisation cannot seek an additional contribution of 1.16% of salary from those drawing over Rs 15,000 without the government amending the law.

New Delhi: It also opened a 4-month window to opt for pension on higher earnings, reports Amit Anand Choudhary. Upholding the validity of the 2014 amendments, the bench said higher pension option should be given to members of “exempted trusts” too, subject to conditions.

The bench of Chief JusticeUU Lalit, Justices Anirudd-ha Bose and Sudhanshu Dhulia upheld the validity of the 2014 amendments.

EPFO offers provident fund and pension scheme for its subscribers. From September 1, 2014, members were allowed a maximum pensionable monthly salary of Rs 15,000 instead of Rs 6,500. For those with a higher salary, an option was given to contribute 1.16% of the salary exceeding Rs 15,000 to get the benefit of higher pension. And, the option had to be exercised within six months from the date of the new scheme coming into effect.