FAQ on EPFO Higher Pension Scheme 2024

Ques 1: Whether those who retired before 01.09.2014 can opt now?

Answer: Those who retired before 01.09.2014 can opt now if they had opted for a higher pension during their service period and such options were rejected by EPFO.

Ques 2: Whether those who are retired on or after 01.09. 2014 are eligible to opt now?

Answer: Those who retired on or after 01.09.2014 can opt now if they were contributing to EPF on the actual salary and did not opt for a higher pension before 01.09.2014.

Ques 3: Whether those who are presently working can opt now?

Answer: If the member joined before 01.09.2014 and continues now, can opt if the conditions in Answer 2 are satisfied.

Ques 4: Whether those who joined after 01.09.2014 are eligible to opt now?

Answer: Not eligible

Ques 5: What is para 26(6) of EPF??

Answer: Paragraph 26(6) of EPF is the provision by which a member can opt to contribute towards EPF on more than the statutory limit. For this, the member and employer have to submit an application in writing jointly, which in turn will be approved by an officer not less than the rank of APFC.

Ques 6: Whether option under para 26(6) is compulsory for opting now?

Answer: Yes. A higher pension option can be submitted only if a member is contributing towards EPF on his actual salary by exercising the option under para 26(6) from the date on which the salary exceeded the statutory limit.

Ques 7: What is para 11(3) of EPS 1995?

Answer: Para 11(3) of the pre-amended EPS 1995 provides for submitting the option to contribute towards the pension scheme on actual salary from 16.11.1995 or from the day the salary exceeded the statutory limit, whichever is later, by submitting a joint option with the employer.

Ques 8: What is para 11(4) of EPS 1995?

Answer: Paragraph 11(3) has been deleted with effect from 01.09.2014 on amendment of EPS 1995. However, a chance to continue the options already exercised under para 11(3) has been provided in para 11(4). As per this paragraph, those who had already opted under para 11(3) can renew their option by giving a joint option with the employer within six months from 01.09.2014 and within another six months extended by the RPFC.

Ques 9: If a member who had opted under para 11(3) does not renew his option within one year. What will happen?

Answer: If a member who had opted under para 11(3) has not renewed his option under para 11(4) within one year, his option will be cancelled and the contributions received more than the statutory limit will be diverted to EPF.

Ques 10: If a member opted under 11(3) and did not renew his option under 11(4) within one year, can he opt now?

Answer: No. As his option has been cancelled by his own inaction, he cannot renew his option now.

Ques 11: In a nutshell, who can opt now?

Answer: By summarising the above, the following members can opt-out now. (i) Those who left before 01.09.2014 and opted during their service but were rejected by EPFO. (ii) Those who are in service on or after 01.09.2014 and if they are contributing to EPF on actual salary but not opted for higher pension.

Ques 12: Who are all not eligible for higher pension options?

Answer: (i) Those who left before 01.09.2014 without exercising any option. (ii) Those who are contributing towards EPF on the statutory limit. (iii) Those who exercised option under 11(3) but not renewed within one year under 11(4). (iv) Those who joined after 01.09.2014