Pension Scheme: The Supreme Court has extended the deadline for opting for the higher contribution option in the pension scheme to 6 months. Earlier this time limit was given for 4 months.
Through the Employees Provident Fund Organization (EPFO), the government runs the Employees Pension Scheme (EPS) to provide social security for retirement to the employees. In order to get more pension after retirement, the court has given relief in its decision last month for the employees to contribute more in the pension scheme.
The Supreme Court has extended the deadline for opting for the higher contribution option in the pension scheme to 6 months. Earlier this deadline was given for 4 months. In the case of the Employees’ Pension Scheme, the Supreme Court had said on November 4 that the employees who have not yet opted for enhanced pension coverage before 2014, have a chance to opt for it in the next four months from November 2022.
Explain that to choose this option, the employees along with the employer will have to give a declaration to EPFO. According to the report, the Supreme Court has said on Friday that the employees who have not exercised the option to join the pension scheme will have to do so within six months. The bench has said that the eligible employees who could not join the scheme till the last date should be given an additional chance as there was lack of clarity on the issue in the judgments issued by the High Courts of Kerala, Rajasthan and Delhi.
Got time till April 2023
After this decision of the court, the members of the flagship retirement savings scheme of the Employees’ Provident Fund Organization (EPFO) have got a big relief. Because now they have got 6 months instead of 4 to get more contribution option. Meaning, members can exercise the option from November 2022 to April 2023. Within this deadline, the employees along with their employer will have to give a declaration to the Employees’ Provident Fund Organization regarding excess contribution in the pension scheme.
The government gave this indication
The central government has already indicated that it is in the process of increasing the salary cap by contributing more amount to get pension. Currently, the salary limit for the Employees’ Provident Fund (EPF) scheme of EPFO is Rs 15,000 per month. It was last revised and increased from Rs 6,500 per month in the year 2014. The government can now increase this salary limit and add it to Rs 21,000 per month.
