Implementation of Judgment of Hon’ble Supreme Court dated 04.11.2022.

LegalitySimplified

Employer share of PF contribution has been remitted on employee’s pay exceeding the prevalent statutory wage ceiling of Rs.5000/6500/15000 per month from the day the pay exceeded the wage ceiling or 16.11.95 whichever is later, till date/ till the date of retirement or superannuation as the case may be Administrative charges payable by employer have been remitted. Provident Fund account of employee has been updated with interest as per Para 60 of Employees’ Provident Fund Organization ,1952 on the basis of such contribution received. Following documents have been submitted along with Applications for Validation of Option / Joint Options as proof of joint option and permission. Such documents are Any salary slip / letter from employer authenticated by employer, Wage Details submitted by the employer along with Applications for Validation of Option / Joint Options, Copy of joint request and undertaking from employer, Letter from PF office issued prior to 04.11.2022 indicating PF contribution on higher wages. Applicant who qualifies and have these documents are already contributing/ have contributed till retirement/superannuation on actual (higher) pay, if they have not submitted their joint requests and undertaking of employer, can submit the same at the time of final claim settlement through their last employer. Joint Request and Undertaking of employer for permission can be submitted by pensioners/members any time before the grant of pension on higher wages in accordance with decision of Hon’ble Supreme Court dated 04.11.2022.

Regional Provident Fund Commissioner will obtain any of the documents as mentioned as mentioned above from the employer and no Application for Validation of Option / Joint Option can be rejected only on this ground if otherwise eligible. It will be the duty of the Regional Provident Fund Commissioner to make sure that any of the proofs as mentioned above is obtained from the employer. The date of commencement of pension will determine the applicable formula for calculation of pensionable service, pensionable salary and pension. Since date of commencement of pension is prior to 01.09.2014, the pensionable salary shall be calculated based on the average monthly pay drawn during contributory period of service in the span of 12 months preceding the date of exit from the membership of the pension fund. Since date of commencement of pension is on or after 01.09.2014, the member pensionable salary shall be calculated based on the average monthly pay drawn during the contributory period of service in the span of 60 months preceding the date of exit from the membership of the pension fund. Arrears of pension will be paid to the pensioners in accordance with the existing process to comply with income tax provision relating to TDS.

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