The pension division of the Employees’ Provident Fund Organisation (EPFO) is set to expand its team, as it needs more hands to tackle the increasing workload. It has also been decided that an actuary will be established within EPFO so that work related to pension on higher wages can be easily handled in the future.
While an actuary is presently engaged to determine the effect of the Supere Court’s decision on the pension fund, the work is expected to take time. Therefore, the EPFO feels it is best to have an in-house actuarial facility.
Following the Supreme Court’s ruling, in case of the pensioners and EPF members who are eligible for pension on higher wages, demand notices have been issued to the pensioners/members. The pension amount will differ from one individual to another. Since a good number of members who are eligible to take the higher pension option are still in service, the work related to pension on higher wages is clearly an ongoing process. Therefore, EPFO feels the need to have separate staff to process the deluge of applications.
Under the EPS 1995, the pension fund is a pooled fund, with no individual accounts being maintained. Members of EPS, 1995 can enjoy withdrawal benefit or pension basis their eligibility, which depends on their number of years of service.
Union Minister of State for Labour and Employment Rameshwar Teli had informed in December 2023 that as per actuarial evaluation, the pension fund was in deficit as on 31.03.2019.
