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| Photo Credit: KAMAL NARANG
The Employees Provident Fund Organisation fears that it may have to spend ₹1,86,920 crore to pay just 50% of the total applicants for a higher pension. In a note circulated to the Central Board of Trustees (CBT) at a recent meeting, the EPFO provided an actuarial analysis of the current situation, which was termed incomplete by the workers’ representatives. They have asked the EPFO to present a detailed picture of the scenario.
The EPFO, in the note, told the CBT that a detailed study can be completed only after all the higher pension applications are finally processed. It said interim actuarial evaluations will continue for every 50,000 demand letters issued to the Employees Pension Scheme subscribers who had submitted joint options with their employers. “Evaluation of sample data of around 38,000 applicants for pension on higher wages shows deficit of around ₹9,500 crore i.e., approximately ₹25 lakh per person. An initial estimate suggested that approximately a sum of ₹1,86,920 crore will be depleted out of the fund on settlement of even as less as 50% of the joint options (post 2014 cases),” the EPFO told the CBT members in the note.
It added that after the closure of receipt of fresh applications on January 31, 2025, the details of all applicants with joint options were now available. “Accordingly, a more precise estimate of probable liabilities will be obtained based on the data that is consistent and error free,” it added. The EPFO received about 17.49 lakh applications for higher pension. Of this, as on February 14, 2.24 lakh applications were not forwarded by the employers to the EPFO while 3.92 lakh applications were referred back to employers for complete information. The EPFO is examining 1.92 lakh applications at present and 2,19,155 demand letters had been issued to the applicants for payment of additional amount as per the higher wages. Also, 74,811 pensioners have deposited the additional amount sought by the EPFO and 41,285 members who are still on service have also deposited the higher amount. It had issued 24,001 pension payment orders and 5.05 lakh applications have been rejected.
Pensioners’ rights activists and trade union representatives in the CBT questioned the EPFO’s stand. “Supreme Court verdict is the law of the land. Higher pension will have to be given to those subscribers of the EPS [Employees’ Pension Scheme] who had been contributing 10% to 12% on their actual wages and paid the differential amount between 8.33% of actual wages and 8.33% on ceiling wages. The EPFO is highlighting the inflated liability just to create wrong hype based on different hypothetical yardsticks by taking the shelter of actuary. Earlier, they stated liability of ₹15 lakh crore and now, it has come down. So EPFO can’t be trusted,” said pensioners’ rights activist Parveen Kohli.
CBT member and leader of Centre of Indian Trade Unions R. Karumalaiyan said the EPFO should publish how much additional amount it has collected from those workers who has submitted joint options. “This is to deny the higher pension. They are in denial mode. Government has to own up the responsibility to implement the supreme court order,” he added.
The EPFO has about 7.71 crore members contributing to the provident fund and pension scheme. More than 81 lakh pensioners receive pension under the EPS. The EPFO had argued in the top court that higher pension for a few lakh employees will be at the cost of majority of the subscribers.
Published – March 02, 2025 11:15 pm IST