The Employees’ Provision Fund Organisation ( EPFO) Head Office has written to field offices in its EPFO head office informing them of the large number of higher pension requests rejected as compared to the volume of demand letters that were issued.This letter, which was issued on the 23rd of May, is a response to a directive from the Ministry of Labour and Employment in requesting EPFO to review every case that is rejected for more pension-related applications.
Application Status and Rejections
In response to an Supreme Court order, 17.49 thousands individuals sought the more pension plan. At the time of writing, the 31st of March, 2025 around 1.02 thousand of them were rejected by employers because of insufficient information.Additionally, 3.68 lakh were issued demand letters sent out. As of now, more than 1 lakh pensioners as well as 47,000 employees are currently deposited the amount that was requested by EPFO.
From these, 34.500 PPOs or pension payments (PPOs) have been issued. Another 19,000 are yet to be completed.
Complaints and Errors
The EPFO Head Office said they received numerous complaints by both employers and employees concerning rejections which could have been prevented.
The majority of instances, the issues were small and could have been resolved quickly with better assistance. The letter also stated the fact that some offices rejected applicants for reasons that were not backed in the guidelines.
In a few instances, police officials were more interested in the reasons for rejecting instead of assisting in the procedure.
EPFO has now instructed its staff to adhere to the regulations strictly and refuse applications with solid proof.
Members also need to be provided with a the opportunity to rectify minor mistakes made on form.
Rules and Deposits
In 2022 in 2022, The Supreme Court upheld modifications to the pension system which allowed EPF members of the EPF from September 1st in 2014, to make 8.33 percent of their total pay, instead of an unassailable $15,000.
If the amount required is in the EPF fund, then it could be transferred directly to a pension fund. If it’s not, then the employee or employer must transfer the money directly.
The EPFO further pointed out the fact that some of the rejections were caused by an insufficient knowledge of the rules or terms. As an example instances were in which EPF trusts were incorrectly believed to be able to stop pension payments.
Audit and Deadlines
In order to address the problem to address the problem, to address the issue, Ministry has demanded the body that manages retirement funds to perform an audit by using teams comprised composed of chartered accountants as part of the Comptroller and Auditor General (CAG).
EPFO might also deploy its teams to examine cases rejected by the EPFO including those that are involved in cases involving courts.
As early as January 20, 2025 the EPFO was already warning the field offices of insufficient progress, despite numerous notifications.
The new deadlines have been set for January 25 2025, 2025, for offices with less than 5,000 cases. 7 February 2025 for all other offices. Clear cases must have their PPOs in place on or before January 24, 2025.
