The EPFO sent letters asking for around Rs 2,000 crore from people wanting a higher pension. This is seen as the first step in figuring out the financial impact of the Supreme Court ruling.
Recent data shows that the EPFO has sent out 32,951 letters asking for a total of Rs 1,974 crore from people who want a higher pension following the Supreme Court decision in November 2022. If applicants pay the amount, they’ll be eligible for a higher pension.
EPFO Higher Pension in Process
In a recent meeting of the EPFO’s Central Board of Trustees, it was mentioned that processing these applications takes a lot of time.
In a recent meeting of the EPFO’s decision-making body, the CBT, they shared that the actuarial study can only happen after they’ve dealt with all the applications. The EPFO has already sent out letters to the Actuary for the actuarial work related to the Supreme Court ruling’s impact.
The EPFO is currently looking at the first financial impact calculated by the Actuary using certain assumptions. This analysis will continue for every 50,000 demand letters issued and will be followed by a final evaluation when all cases are settled.
To make sure everything is accurate, the EPFO is thinking of setting up an actuarial cell at its main office. This cell will check and verify the reports received from the valuer or consultant actuary, using realistic assumptions.
EPFO got 17.49 lakh applications for a higher pension. They’ve checked 629,000 forms, written to employers for more details on 527,000, and rejected about 3,618 forms.
Before, the EPFO created a calculator for members to figure out how much they need to deposit for a higher pension under the Employees’ Pension Scheme. Officials say there’s no separate formula in the EPS 1995 for those eligible for a pension based on higher wages.