The retirement fund body, the Employees’ Provident Fund Organisation (EPFO), has successfully processed nearly 99% of the applications seeking higher pensions under the Employees’ Pension Scheme (EPS) 1995, as informed to the Lok Sabha by Minister of State for Labour & Employment, Shobha Karandlaje.
Thank you for reading this post, don't forget to subscribe!This effort was undertaken to implement the directions given by the Supreme Court in its November 4, 2022, judgment.
Application and Disposal Highlights
- Total Submissions: $17.49 lakh members/pensioners submitted applications (joint options) through the online facility by the deadline of July 11, 2023.
- Employer Verification: Out of these, $15.24$ lakh applications were forwarded by employers to the EPFO by January 31, 2025.
- Disposal Rate: As of November 24, 2025, approximately $99 of the received applications have been disposed of.
Demand and Eligibility Status
The Minister provided detailed figures on the financial and eligibility checks:
- Demand Letters: $4,27,308 demand letters were issued to applicants.
- Ineligibility: $34,060 cases were later found ineligible, primarily because the applicants failed to remit the demanded amount.
- Demand Paid: $2,33,303 applicants have successfully deposited the required demand amount or consent.
- This group includes $96,274 members still in service and $1,37,029$ members who have already retired.
Pension Disbursement for Retirees
Significant progress has been made in issuing Pension Payment Orders (PPOs) for retired applicants who paid the demand amount ($1,37,029 total):
- PPOs Issued: $1,24,457 PPOs have already been issued.
- PPOs Pending: $12,572 PPOs are currently under finalisation.
Principles of the EPS, 1995
The Minister also clarified key aspects of the EPS, 1995:
- Pension Calculation: The pension is calculated on a pro-rata basis (as per Para 12 of the Scheme), a method the Supreme Court deemed equitable and valid, as it treats pensioners under the wage ceiling and those with higher wages equally.
- Fund Structure: The scheme is a ‘Defined Contribution-Defined Benefit’ system.
- The fund consists of an $8.33 contribution from the employer and a $1.16 Central Government contribution (up to 15,000$ wages).
- Financial Health and Commitment: An actuarial deficit was noted in the fund’s valuation as of March 31, 2019. Despite this, the government is committed to worker welfare by providing a minimum pension of 1,000$ per month through budgetary support, in addition to the annual $1.16 contribution.
