The historic move is that EPFO is gearing itself towards rejecting about 5 lakh applications for higher pension under the Employees’ Pension Scheme. It has been a matter of the very big scrutiny of applications filed by employees to claim higher pension based on the actual salary instead of the limit imposed. Such application rejection would most likely affect thousands of retirees who were anticipating possible improvements in pension benefits.
Reason For Higher Pension Application Rejection
A rejection of applications contains the eligibility criteria under which an employee can claim their higher pension under EPS based on the list of rejections. Other reasons for the rejection include:
- Application Papers Not Correct or Complete – Many fill out either wrong forms or leave out important documentation like earlier employer verification and salary slips.
- EPS Norms Not Abided By – Employees who didn’t contribute full salary earlier towards EPS, don’t get eligible for taking higher pension option.
- Mismatch With Employer Contribution – In this case, if the employer has not contributed 8.33% of the actual salary towards EPS, this could result in rejection of the application.
- Expiry of Application Deadline – Some might not have applied within the extended time period set by EPFO.
- Delay in Employer Verification – This might happen in the case of a delay in employer verification or denial of verification.
EPFO’s Stance On The Rejections
Regarding rejection, EPFO has considered the eligibility required for which the organization intends to maintain the fitness and not grant a higher pension to ineligible applicants. With more than 12 lakh applications regarding higher pensions introduced to the EPFO, reports are now suggesting that almost 5 lakh of these applications can scamper in an invitation of rejection merely due to eligibility issues.
The EPFO is speaking out now on the said fairplay, saying that all employees should check on the application status and also let in any missing documents or clarifications that could help in an application before any final decisions are made.
So What Should Affected Employees Do Now?
- Check Your Application Status – Employees must check whether the application is on review or rejected through the EPFO portal.
- Submit Additional Documents – In case, the application is lacking in any documents, those have to be uploaded as soon as possible.
- Verify from Employers – Employees need to follow up with their concerned employers to approve necessary documents.
- Appeal- An appeal should be filed with EPFO for re-consideration in case of wrongful rejection.
Conclusion
Unfortunately, the rejection has come as a setback for supposed beneficiaries, among whom is a section of retirees waiting for increased financial benefits, since 5 lakh higher pension applications have been rejected. However, there is still room for correction of mistakes by affected employees.
Also Read: EPFO Rule Change: Update Name & DOB Without Documents – Check Details