EPS - Monthly pension withdrawal

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An employee wants to withdraw her monthly pension. After applying it got rejected stating the reason as “ELIGIBLE FOR MEMBERSHIP OF EPS-1995 AS WAGES AS ON DATE OF JOINING EXCEEDED RS. 15000” but the employee joined on 01st April 2011 and the wage ceiling for EPS contributions to 15000 is effective 01st Sep 2014. As per the EPS rules, any employee who joined the EPF scheme before September 1, 2014, is eligible for EPS, regardless of their salary. Can anyone help me in resolving this or suggest me if I’m missing any point here.

Thanks

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Hi Alekhya,

As per Employees’ Pension Scheme (EPS), 1995, any employee who joined the EPF scheme before September 1, 2014, is eligible for EPS contributions regardless of their salary at the time of joining.

Since the employee in question joined on April 1, 2011, the rejection reason in my humble opinion appears to be incorrect, probably due to lack of any information or error or glitch or any other reasons.

Steps to Resolve the Issue:

  1. Re-examine the EPFO records:
  • Verify the employee’s EPF enrollment date in the EPFO records and UAN portal.
  • Ensure that EPS contributions (8.33% of the pensionable salary, up to the wage ceiling applicable at the time) were deducted during the employment tenure.
  1. Check for Incorrect Data Entries:
  • Confirm that there were EPS contributions between April 2011 and the last working day.
  • If contributions are missing or wrongly recorded, the employer may need to rectify the data through EPFO’s employer portal.
  1. Draft a Grievance Letter to EPFO:
  • Submit an online grievance on the EPFiGMS (EPFO Grievance Management System): https://epfigms.gov.in/
  • Attach supporting documents such as:
    • UAN details
    • EPF passbook showing EPS deductions
    • Employment proof (appointment letter, pay slips)
    • Employer’s declaration of EPS contributions before September 2014
  1. Employer Representation to EPFO:
  • The employer can submit a formal letter to the EPFO Regional Provident Fund Commissioner (RPFC) stating that the employee joined before 1st September 2014 and should be eligible for EPS membership.
  • The letter should cite the EPS-1995 rules and the applicable wage ceiling at the time of joining.
  1. *Appeal to the Regional Provident Fund Commissioner (RPFC):
  • If the grievance is not resolved, file an appeal under Para 26A and 38 of the EPF Scheme, 1952.
  • Approach the RPFC or the Central PF Commissioner (CPFC) for reconsideration.

Key Reference Points to Mention in the Appeal:

  • EPS-1995 Rule: Employees who joined before 01-09-2014 are eligible for EPS contributions irrespective of their salary.
  • EPFO Circular dated 22-08-2014: Clarifies the Rs. 15,000 wage ceiling applicability from 01-09-2014 and does not affect employees already part of the scheme.
  • EPF Passbook Entries: If the employee’s EPS contributions were made, this strengthens the case.

If the rejection is due to a systemic issue, EPFO may correct the error upon official communication.
Note: Please discuss with your EPFO consultant to expedite the rectification.

Regards,
Bhuvana Anand

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Hi Bhuvana,

Thank you so much for your response. I have already informed the employee to raise the grievance and from the employer end also the contributions are correct and I have validated the details too.

Awaiting for the reply from the EPFO for the grievance raised. Once again thank you for your response.

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