New Delhi: The National Confederation of Officers’ Associations (NCOA), representing over two lakh officers and an equal number of retirees from 255 Central Public Sector Enterprises (CPSEs), has expressed concerns in a letter addressed to Prime Minister Narendra Modi, Union Labour Minister Mansukh Mandaviya, and multiple MPs in both the Rajya Sabha and Lok Sabha. They allege that the Employees’ Provident Fund Organisation (EPFO) is obstructing rightful pension enhancements for post-2014 retirees and current employees, with no response to their repeated grievances.
The officers noted that, although the EPFO provided multiple extensions for subscribers to submit the joint option with their employer to claim a higher pension, over four months have passed since the last extended deadline without any visible progress on implementing the changes, as stated in the NCOA’s letter.
In a letter addressed to Prime Minister Narendra Modi, Union Labour Minister Mansukh Mandaviya, and multiple Members of Parliament from both the Rajya Sabha and Lok Sabha, officers from 255 Central Public Sector Enterprises (CPSEs) expressed deep concerns regarding the Employees’ Provident Fund Organisation’s (EPFO) stance on enhancing pensions for post-2014 retirees and active employees. They reported a lack of response from the EPFO to their grievances, despite repeated attempts to engage.
The officers pointed out that the EPFO had provided several extensions for subscribers to submit the joint option with their employers to claim a higher pension. However, they noted that four months have passed since the last extension deadline, with no visible improvement in implementation. EPFO’s Zonal Offices have issued a limited number of pension award letters. These letters use a pro-rata method for pension calculation, which, they argued, directly contradicts both Supreme Court rulings and EPFO’s own circulars.
According to the letter, Regional Offices of the EPFO have been rejecting joint applications from employees and retirees of CPSEs and other institutions that fall under Exempted Trusts. The EPFO, they claim, is using trust rules as an excuse for these rejections, despite this stance being irrelevant and counter to the Supreme Court’s verdict.
The officers have urged the government to expedite the processing of joint option applications and to implement the Supreme Court’s prescribed method for calculating pensions. They demanded the withdrawal of the pro-rata calculation method, arguing it is inconsistent with the legal mandate. Additionally, they requested fair compensation for pensioners, including interest on arrears resulting from delays, noting that these delays and inconsistent directives have led to undue anxiety and financial strain for retirees and employees.
Employees from various CPSEs have similarly submitted letters to the Prime Minister, urging that the pension calculation method not bifurcate salaries into two periods—pre- and post-September 1, 2014. Instead, they argued, pensions should be based on the average salary from the last 60 months of service, in line with the 2014 amendments.
When breaking Odisha reporter spoke to Mr Trinath Lenka (CFP), Managing Director, Wallet4Wealth, who is renowned Independent consultant and Retirement fund investment planner in the country expressed his views that “what NCOA has represented is praiseworthy and it is a matter of concern as it has been delayed to get the higher pension for all . Approximately 90000 applications has been processed out of 13.5 lakh applicants. Where as only 9000 PPO has been issued as per last data revealed few days before . There has to be clear communication to RPFC from central office to implementation of PoHW(Pension on higher wages) as it has been seen some RPFC are issuing DL & PPO but some are not which is a matter of concern. Pension is a like umbrella for pensioners . In other part the calculations are made on prorata basis , and there is a clause that EPFO can change the formula of pension calculations. Mr Lenka said the PoHW must be sustainable be it last 60M average or prorata under para 12. As it is a retirement fund investment to EPFO for PoHW , pensioner should check their own financials and take right decisions. On the question to Trust rule where it has been rejected to get PoHW , Mr Lenka said , as contributions has been made to PF on higher wages , it should be considered. Like at the time of JOF, form 26(6) certificate has been issued by Employer and application gone through and now form 26(6) has been asked to submit at the time of depositing the amount to EPFO . He also expressed if PoHW can be implemented on fast-track then he will be more happy .
