EMPLOYEES PROVIDENT FUND PENSION SCHEME 1995- SUPREME COURT VERDICT

HIGHLIGHTS

1. The option exercised by the members prior to 01/09/2014 to contribute to pension scheme beyond Rs.6500  will continue.

2. Members retired prior to 01/09/2014 who did not exercise the option are barred from exercising the option under pension Scheme now.

3. Serving members  and members retired after 01/09/2014 can now exercise their option within four months under the pension Scheme

4. No difference between exempted and unexampled establishments under pension Scheme.

5. The requirement of members to contribute at 1.16%  extra towards the salary beyond Rs.15000/- is held as ultra vires under pension Scheme. Order is suspended for six months to generate funds under the pension Scheme

6. The judgment in RC Gupta case has been upheld.

7. EPFO is required to implement the directives of the Supreme Court within eight weeks.

By: T.Krishnadas Rai