The Supreme Court delivered its crucial judgment in the EPF Pension case which impacts several employees across the country.Here are the highlights of the judgment delivered by a bench comprising Chief Justice of India, Justice Aniruddha Bose and Justice Sudhanshu Dhulia : The provisions of the Employees' Pension (Amendment) Scheme, 2014 are legal and valid. Certain provisions have been read...
The Supreme Court delivered its crucial judgment in the EPF Pension case which impacts several employees across the country.
Here are the highlights of the judgment delivered by a bench comprising Chief Justice of India, Justice Aniruddha Bose and Justice Sudhanshu Dhulia :
The provisions of the Employees' Pension (Amendment) Scheme, 2014 are legal and valid. Certain provisions have been read down for existing members.
Deadline to join the scheme has been extended for a period of 4 months for all employees who did not exercise option but are entitled to do so. Rest of the requirements as per amended provisions shall be complied with.
The Employees who had retired before 1st September 2014 without exercising the option under the pre-amendment scheme would not be entitled to the benefit of this judgement as they have already exited the scheme.
The employees who retired before September 1, 2014 and who exercised the option shall be covered by 11(3) of Pension scheme as it stood prior to the 2014 Amendment.
The requirement of members to contribute at 1.16% if the salary exceeds Rs 15,000 as an additional contribution under the Amended scheme has been held to be invalid. But this part of the judgment is suspended for 6 months to enable authorities to make adjustments in the scheme so that additional contribution can be generated from other legitimate sources. For the above said period of 6 months or till such time any Amendment is made, whichever is earlier, employee contribution shall be a stop gap measure.The said sum shall be adjustable on the basis of the alteration to the scheme that may be made.
No flaw found in altering the basis of computation of pensionable salary.
The judgment of the division bench in RC Gupta vs Regional Provident Fund Commissioner (2016) accepted as regards interpretation to paragraph 11(3) of the pre-amended scheme. Fund authorities shall implement the direction in RC Gupta judgment within 8 weeks.
All appeals of the EPFO and the Union Government against the High Courts judgments are allowed in the above terms and the judgements which are impugned are modified accordingly.
For detailed report, refer to this story : Supreme Court Upholds Employees Pension (Amendment) Scheme 2014; Extends Cut-Off Date For Present Members; Holds Condition For Additional Contribution As Invalid
For detailed report on the reasoning in the judgment, refer to this story : EPF Pension Case : 2014 Amendment Not Whimsical, Classification Based On Salary Reasonable - Reasons Cited By Supreme Court