EPFO news: Higher EPS pension linked to actual salary restored for eligible employees

In a recent move, the government has clarified that the higher Employees' Pension Scheme (EPS) linked to actual salary will be restored for eligible employees who opted for this benefit before the September 1, 2014, amendment. This decision comes as a relief to many who have been seeking clarity on their pension entitlements following changes in the scheme nearly a decade ago. The clarification specifically targets employees who had previously exercised the option for a higher pension based on their actual salary rather than the pensionable salary cap before it was amended. This means those eligible will see their pensions calculated on the basis of their actual earnings, potentially leading to a substantial increase in their retirement benefits. It's a significant development for those who planned their post-retirement finances on the higher pension promise. This restoration is part of ongoing efforts to address longstanding concerns and ensure fair treatment for employees who made informed decisions under the earlier scheme framework. The move underscores the importance of maintaining trust in pension systems and provides a measure of financial security for those nearing retirement. Eligible employees are advised to consult with their employers or the Employees' Provident Fund Organisation (EPFO) for detailed guidance on how to proceed with their claims.

— Authored by Next24 Live