Around 10 days remain for those who wish to participate in the Employees’ Pension Scheme’s Higher Pension Scheme, which permits eligible individuals to earn a higher pension amount depending on specified conditions. Those interested should apply using the Employees’ Provident Fund Organisation’s Member e-Sewa site, which has a simple application process. Here’s all you need to know.
Calculation of Higher Pension for pre-September 2014 retirees:
To determine the pension amount, the average monthly pay earned during the contributory period of service in the 12 months before leaving the pension fund membership is considered.
Calculation of Higher Pension for post-September 2014 retirees:
To determine the pension amount, the average monthly pay earned during the contributory period of service in the 60 months before leaving the pension fund membership is taken into account.
Currently, the formula for calculating pension under the EPS scheme is as follows: Average salary of 60 months multiplied by the service period, divided by 70.
The pension calculation formula underwent revision by the government in September 2014. Prior to that date, the average salary in the 12 months before retirement was considered, but from September 1, 2014, it was extended to 60 months.
The last date to file the higher pension application or joint option form to June 26.
Who should choose this scheme?
Choosing a larger pension will increase your pension but EPF accumulation will decrease. So it is a much better option to secure a retirement life. However, if you do not choose it, you will be left with a sizable EPF corpus. Thus it may be beneficial for those who want to retire early.
How to apply for a higher pension under EPS?
Step 1: Open the EPFO website,
Step 2: Go to the Member e-Sewa portal
Step 3: Click on “Pension on higher salary: Exercise of joint option”
Step 4: Choose “Application form for joint options – Joint options.”
Step 5: Enter the necessary information, including your UAN, name, birthdate, Aadhaar number, the mobile number that is connected to your Aadhaar, and captcha.
Step 6: Select “Get OTP”
Step 7: You will receive a one-time password on your mobile device.
Step 8: Verify your information.
Step 9: Click “Submit” to complete your application
Step 10: An acknowledgement number will be generated when the application form has been submitted successfully.
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