What the Supreme Court said on EPFO pension scheme ?
Employees who were existing EPS members as on September 1, 2014 can contribute up to 8.33 per cent of their 'actual' salaries —as against 8.33 per cent of the pensionable salary capped at Rs 15,000 a month — towards pension.
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The EPS, which is administered by the EPFO, aims to provide employees with pension after the age of 58. (File)
In a significant ruling, the Supreme Court Friday (November 4) upheld the Employees’ Pension (Amendment) Scheme, 2014, allowing another opportunity to members of the Employees’ Provident Fund Organisation (EPFO), who have availed of the EPS, to opt for higher annuity over the next four months.
Employees who were existing EPS members as on September 1, 2014 can contribute up to 8.33 per cent of their ‘actual’ salaries — as against 8.33 per cent of the pensionable salary capped at Rs 15,000 a month — towards pension.
The court, however, read down certain provisions concerning the current subscribers to the scheme.