The Employees’ Provident Fund Organisation (EPFO) is grappling with a substantial liability as it processes applications for higher pensions following a Supreme Court ruling. The organization claims that providing higher pensions could cost ₹1,86,920 crore, even if only 50% of the applicants are covered. However, pensioners’ rights activists and trade union representatives on the Central Board of Trustees (CBT) have expressed doubts about the EPFO’s claims.
They accuse the organization of inflating the liabilities to create unnecessary hype. The EPFO has received 17.49 lakh applications for higher pensions. As of February 14, 2.24 lakh applications had not been forwarded by employers, while 3.92 lakh were sent back for more information.
Currently, 1.92 lakh applications are under review, and the EPFO has issued 2,19,155 demand letters for payment of the additional pension amount. So far, 74,811 pensioners and 41,285 active employees have deposited the extra sums required. The EPFO has issued 24,001 pension payment orders but has also rejected 5.05 lakh applications.
Backlash over higher pension liabilities
Parveen Kohli, a pensioners’ rights activist, criticized the EPFO for overstating its liability to mislead stakeholders. Kohli stressed that the Supreme Court ruling must be implemented, providing higher pensions to those who contributed a higher percentage of their actual wages.
R. Karumalaiyan, a CBT member and a leader of the Centre of Indian Trade Unions, accused the EPFO of denying higher pensions and demanded transparency regarding the additional amounts collected. He urged the government to enforce the Supreme Court order.
The EPFO, which serves over 7.71 crore members, argued in court that higher pensions for a few could disadvantage the majority of subscribers. More than 81 lakh pensioners currently receive pensions under the Employees’ Pension Scheme (EPS). The issue remains controversial, with pensioners and workers demanding clarity and fairness in the implementation of higher pension payments.
The EPFO faces the challenge of balancing the financial implications of the Supreme Court ruling with the expectations of its members and pensioners.
Image Credits: Photo by Claire Anderson on Unsplash
