EPFO Higher Pension Joint Declaration Date Extended?

One of the viewers of our YouTube Channel has shared a circular issued by Karnataka Employers’ Association with Every Paisa Matters (EPM), the contents of which seems to suggest that EPFO will be extending the date for Joint Declaration submission for Higher Pension by 2 months.

Though it seems legitimate, EPM has not been able to independently verify the authenticity of the said circular.

The key points mentioned in the circular are:

• EPFO will design the format of joint declaration and it will be available on the website of EPFO during the week commencing from 27.02.2023. The employers/employees may upload the Joint declaration online and the portal will be ready for receiving such declaration during next week.

We can already see a notification on the EPFO portal stating the facility to give the joint declaration will soon be made available.

• Joint declaration should be made online to ensure that the declaration is available with the EPFO and also with the employer and there is no scope for anyone to complain that they had made declaration but it was not forwarded by the employer to the respective Regional Offices. Further, RPFC concerned will have the Joint declaration on the system and there will be no scope for misplacement or missing at the Provident Fund office.

This is a good move by EPFO and they have followed the same principle previously while seeking the declaration from employees who had retired before 01.09.2014.

• The last date for submitting joint declaration will be extended by two months. Once the Member/Establishment logs in for uploading joint declaration, the system itself would display the last date for submitting declaration. The EPFO, HO, may not issue any Circular in this behalf.

This is a good move and was expected as well because the small time window that people thought they had in compliance of the Hon’ble Supreme Court judgement dated 01.11.2022 in the matter of Special Leave Petition (C) Nos. 8658-8659 of 2019.

• In case of employees who have worked with multiple employers, wages drawn, month wise, are necessary for the purpose of calculating quantum of pension. The employee should, therefore, ensure that certificate issued by the previous employer along with monthly salary drawn for the entire period of service and the contribution made to the Provident Fund and Pension Fund, month wise, should be furnished. Joint declaration should contain complete data to enable PF department to calculate the additional amount to be deposited and sanction higher pension, if eligible.

This is going to be challenging for those who have moved across jobs. I believe the modalities of what that certificate would like be shared as well. However what about employees of the companies who have shut shop and no longer exist? Since the PF passbook has all the entries clearly written and the salary against which also mentioned, providing this documentation really seems to be a moot point and an overhead.

• In case of multiple employers, if any deposit is required to be made to the Pension Fund, the PF department would direct only the current employer to deposit the amount. It is for the current employer and the employee concerned to ensure that the amount is deposited, as demanded by PF department.

Its great to have this simplicity being there otherwise this would have some challenges similar to what I have stated previously.

• The employee/employer should submit Joint declaration complete in all respect. However, if declaration under para 26(6) of the EPF Scheme is not available and is not attached to the Joint declaration, Joint declaration may be submitted without such declaration and as and when such declaration is traced, it should be submitted. The EPFO, Head office would decide whether declaration under para 26(6) is to be insisted or otherwise, if warranted at later stage.

As I have explained in my post previously that not everyone is eligible for the higher pension as per the criteria published by EPFO vide its circular dated 20^th February 2023.

• The retired employees who have withdrawn their PF shall have to remit the amount specified by the EPFO. However, before making Joint declaration, the member concerned should workout and decide whether it is beneficial to them to opt for higher pension or not? They shall have to take into consideration all the financial aspects and personal health before deciding to opt.

You can use this calculator to see whether the extra amount you will be depositing be worth getting the extra pension or not. I have also explained the same via a YouTube video.

• Widow or the other dependents who are already drawing pension due to deceased employee, may also apply but, they should first examine whether exercising option and refunding the amount determined by EPFO, is a viable proposition?

This is again a frequently asked question on my channel and is something where there is maximum gap. Rather than leaving it to individuals, EPFO should ideally have provided some guidance/mock calculations which would have helped people in taking the decision.

• All employers should educate their employees, existing or retired with regard to the benefits available to the retired employees.

Education is the key and since EPFO has not provided much clarity, we have tried to create a video around whether taking the higher pension is a Good idea or not.

Having said all this, one the things that I am most worried about is a clause that was listed on EPFO’s website at the time of submission of Joint Options for retired employees which leaves a lot to imagination. What will I be doing is what I will be sharing with you in the next post/video so don’t forget to Subscribe using the button below.