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PSU officers knock PM’s door against EPFO’s way of calculating higher PF pension


The officers said the EPFO gave several extensions to its subscribers to submit the joint option with the employer to claim higher pension. File.

Irked over the Employees Provident Fund Organisation’s (EPFO) decision to calculate the higher PF pension according to pro rata basis, officers of several Public Sector Undertakings (PSUs) have knocked the doors of Prime Minister Narendra Modi. They have urged Mr. Modi to ask EPFO to provide higher pension as per the Supreme Court order of November, 2022 and not in proportion to the contribution to Employees Pension Scheme (EPS) made by the employees. The officers alleged in their complaints that the EPFO has issued pension payment orders to some of the recently retired officers without considering the contribution they made to the scheme before September 2014. 

The National Confederation of Officers’ Associations (NCOA), representing more than two lakh officers and an equal number of retirees of 255 Central Public Sector Enterprises (CPSEs) said in their letter to Mr. Modi, Union Labour Minister Mansukh Mandaviya and several MPs in Rajya Sabha and Lok Sabha that the EPFO is standing against the rightful enhancement of pensions for post-2014 retirees and serving employees. They allege that there is no reply from the EPFO on their grievances. 

The officers said the EPFO gave several extensions to its subscribers to submit the joint option with the employer to claim higher pension. “Four months are over after this extended date and no visible improvement found on the implementation part,” the NVOA said in the letter. 

They alleged that EPFO’s Zonal Offices in various locations have issued minimum number of pension award letters in which detailing a method of pension calculation on a pro-rata basis, which contradicts the Supreme Court’s order and EPFO’s own circulars. The officers argued in their letter that such a move is against the apex court verdict 

“Many Regional Offices of EPFO are rejecting the joint applications submitted by the Employees/Retired Employees of CPSEs as well as other Institutions which are coming under the category of Exempted Trusts, simply by placing a lame excuse of trust rules which is totally irrelevant and against the clear verdict of Hon’ble Supreme Court,” the letter said. 

They urged the government to expedite the processing of joint option applications and ensure the correct calculation method as per the Supreme Court’s order. They have demanded the withdrawal of pro-rata based calculation that contradicts the legal mandate. “Fairly compensate pensioners by paying interest on any arrears due to the delay in the pension disbursement. The ongoing delays and inconsistent directives have created unnecessary anxiety and financial distress among the retirees and employees,” they said. 

Similar letters have been presented to the Prime Minister through proper channels by the employees of various CPSEs in their individual capacities too. “Average salary for calculation of pension shall not be bifurcated into two: pre September, 1, 2014 and post September 1, 2014 i.e. pro rata method of calculation should not be forced upon us. Instead, average salary for pension calculation shall be 60 months of averages prior to exit from service, as per 2014 amendments,” one such letter said. 



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