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The latest decision to implement the pro rata system will lead to a reduction in the pension amount for subscribers who had given the option for the higher pension scheme.
EPFO extends deadline to apply for higher pension till July 11
Currently, pension amount is arrived at by multiplying the average salary by the years of service and dividing the result by 70.
The deadline for submitting applications is April 26th.
In March 2022, EPFO had lowered the interest on EPF for 2021-22 to an over four-decade low of 8.1 per cent
The EPF is managed by the Employees' Provident Fund Organisation. Several retired and serving employees feel that the pension it disburses, which is not in proportion to their salary, is rendering a huge loss to all subscribers.
The excess amounts paid to those who retired before 2014 without exercising the option for higher pension are being recovered.
As per the order those who have not opted for the option to join the EPS and the eligible employees who couldn’t join the scheme before the cut-off date can do so within the next four months.
The court held that employees who have not exercised the option to join the Employees Pension Scheme must be given a further chance of 6 months to do so.
The Supreme Court posted the appeals to Friday (July 15) after counsel for EPFO pointed out that one of the judges in the division bench was part of the Rajasthan High Court Bench that had passed an order in the matter.