EPFO has issued a new guideline for those employees who do not contribute to the pension scheme or are paid incorrectly. EPFO said it has seen cases where employers either deposited EPS money for employees who were not entitled to pension, or did not contribute EPS for employees who were eligible under the scheme.
The organization said that due to such mistakes, there was difficulty in settling the pension related claims of the employees. To implement uniform procedure in these cases, EPFO has given correction rules for both exempted and non-exempt institutions.
Mistakes related to ineligible EPS members
In cases where EPS money was deposited for employees who were not eligible for it, EPFO said the wrongly deposited pension amount will be recalculated. The interest rate declared by EPFO will also be added to this. In case of non-exempt institutions, this entire amount will be transferred from the pension account (Account No. 10) to PF and the pension service will be removed from the employee’s records.
In case of exempted institutions, EPFO will transfer the wrongly deposited amount along with interest to the PF Trust related to account number 10. Also, the wrong pension service will also be removed from the employee’s account.
Mistakes related to eligible EPS members
In cases where employees eligible for pension were erroneously excluded from the EPS, EPFO said the amount of pension contribution made will be calculated along with interest and credited to the pension account. For non-exempt institutions, this amount will be transferred from account number 1 to account number 10. After this, the pension service of the employee will be added to the record, and the period where contribution was not made will also be included as per the rules.
For exempted institutions, the concerned PF Trust will calculate the EPS amount payable along with interest and transfer the same to the pension account of EPFO. After this EPFO will update the pension service record of the employee. EPFO said that wherever necessary, actual transfer of funds will be done for correct accounting. According to the organization, the objective of these guidelines is to protect the pension rights of employees and to implement them uniformly in all field offices.
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