July 11 is the last day to apply for higher pension from the Employees’ Pension Scheme (EPS) and certain employees who are eligible for this can apply for higher pension as per the guidelines of the Supreme Court.
According to a report by The Economic Times, it is likely than an employee who was working on September 1, 2014 would have died later. The current rules of the EPF allow the spouses of such employees to receive a family pension from the EPS, provided the employee has completed 10 years of service.
Read More: Why Every Parent Must Consider Opening A PPF Account For Their Child
So now, the question remains as to whether an individual receiving family pension from the EPS apply for the higher pension?
The Economic Times, spoke to experts to know whether an EPS Family Pensioner is eligible to apply for higher pension from EPS.
“Higher pension from EPS can be applied for only by an eligible employee or member of the Employees’ Pension scheme. Beneficiaries such as family pensioners are not eligible to apply for the higher pension from EPS,” said Tapati Ghose, Partner, Deloitte India.
Vaivhav Bhardwaj, Partner, INDUSLAW on the other hand said that whether a family pensioner will get higher pension or not remains a grey area.
Read More: Register EPFO Grievances In Just 4 Simple Steps, Check Details Here
“Given that the recent circulars issued by the EPFO as well as the EPF scheme refer to eligible members, the definition of which includes employees and not family members, this remains a grey area. However, it appears unlikely that a spouse who is getting EPS family pension will be allowed to apply for higher pension. It remain to be seen if the EPFO will issue a clarification in this regard,” said Bhardwaj to The Economic Times.
Akhil Chandna, Partner, Grant Thorton echoed the words of Ghose and said that the family of the deceased pensioner already getting pension from EPFO is not eligible for availing the pension on higher wages.
Read More: PPF Account: Check Features, Tax Benefits, Interest Rates Comparison With Bank FD
“The Supreme Court in its judgement has clarified that employees who were in service on or before September 1, 2014 and pensioners who retired before September 1, 2014, are eligible to apply for higher pension. The family of the deceased pensioner already getting pension from the EPFO is not eligible for availing the pension higher wages as the option to opt-in for pension on higher wages can be done by employee and not by his legal heir or beneficiary,” he said.
