Experts pointing EPFO for misinterpretation of Pre-retirees of 2014
Experts pointing EPFO for misinterpretation of Pre-retirees of 2014
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Justice may be delayed but cannot be refused.
Legal experts have said that EPFO’s exclusion of those who retired before September 1, 2014 from giving the option of higher PF pension is a misinterpretation of the Supreme Court verdict There are many cases in the High Courts and the Supreme Court citing this.
Around 600 employees have approached the Kerala High Court. More than 20 cases are pending before the Supreme Court. There is also a case in the Supreme Court against Central PF Commissioner Neelam Shami Rao against RC Gupta, who paved the way for many people to get higher pension through legal battles.
In the order issued by the Supreme Court on November 4 last in the pension case, it was only said that those who retired before September 1, 2014 have no opportunity to give a new option. They have not said that they should have given the option before 2014.
After December 1, 2004, EPFO did not take the option under clause 11(3) till the retirement of persons belonging to this category. EPFO has issued 3 circulars clarifying this even before 2014.
Moreover, in RC Gupta’s judgment, which has now been upheld by the Supreme Court, nowhere has it been said that the option should be given before retirement.
About a quarter of a lakh people, including RC Gupta, bought a higher pension through options given after retirement.
EPFO circulars as evidence
11(3) option to transfer more salary proportional contribution to pension fund was withdrawn by EPFO vide circular issued on 1st December, 2004.
Later on 25th April 2006 and 22nd November 2006 this was reiterated and further clarifications were given. The circular dated November 8, 2013 had directed all PF offices not to sanction payment of contributions to the higher pension scheme till further notice as it would create additional liability.
After the Supreme Court issued an order in the RC Gupta case on October 4, 2016, canceling the cut- off date for granting the option, EPFO will restore the opportunity for the option on March 23, 2017.
That is, anyone who was paying contribution to PF in proportion to higher salary from 1st December 2004 to 23rd March 2017 had no opportunity to give option 11(3).
This has been clarified by EPFO itself in the Central Board of Trustee meetings.
“EPFO is trying to misinterpret the Supreme Court judgment and make it favorable. There is no provision in the EPS Act or the court judgment to revalidate the previously given option.
The court has clarified that the RC Gupta case judgment of 2016 will be applicable to those who retired before 2014. The options issued following the circular issued by EPFO in 2017 should be recognized re-establishing the opportunity for option.
Thanks and credits to
Adv. R. Sanjit (Lawyer defending PF case in High Court)
Unquote:-
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