EPFO Higher Pension Scheme Updates: The Employees’ Provident Fund Organization (EPFO) is set to complete the processing of applications for the Higher Pension Scheme by the end of March this year. There are strong indications that members who have opted for a higher pension under EPF will start receiving it from April to May. However, there is disappointing news for more than 7 lakh EPF members and pensioners. EPFO has stated that out of 17.49 lakh applicants seeking a PF pension based on their salary, 7.35 lakh are not eligible for this benefit.

2.14 Lakh Applications Still Under Review

Even after two years of the Supreme Court’s verdict on higher PF pensions, only 24,006 people have received the revised pension so far. Meanwhile, 2.14 lakh applications are still under review by EPFO, and 2.24 lakh applications are yet to be forwarded by employers. Additionally, EPFO has returned 3.92 lakh applications to employers due to incomplete details, while 2.19 lakh applicants have been issued demand letters for additional payments.

Kerala Behind in Processing Applications

Kerala has been slow in processing applications for the Joint Option Scheme. Only 27.35% of applications have been processed in the state, compared to the national clearance rate of 58.95%. Out of 72,712 applications submitted from Kerala, only 19,886 have been processed, including both rejected applications and those for which demand letters have been issued.

Financial Burden a Major Concern for EPFO

EPFO estimates that Rs 1.86 lakh crore will be needed to approve at least half of the applications for higher PF pensions. The financial burden has been a key reason for delays. A sample check of 38,000 applications revealed that approving higher pensions could result in a Rs 9,500 crore loss to the pension fund. EPFO has stated that it will analyze data further to calculate the exact financial liability. These estimates were presented in recent documents of the EPFO Board of Trustees meeting.

Scheme Implemented After Supreme Court Ruling

EPFO’s Higher Pension Scheme is being implemented based on the Supreme Court’s 4 November 2022 judgment. While those who applied initially have started receiving pensions, applications for the higher pension option for all EPFO members have faced delays due to several complications.