The Supreme Court will pronounce TODAY the Judgement in appeals filed by the Employees Provident Fund (EPF) Organization and the Union Government challenging the Kerala, Rajasthan and Delhi High Court judgments which had quashed the Employee's Pension (Amendment) Scheme, 2014.A bench comprising Chief Justice of India Uday Umesh Lalit, Justices Aniruddha Bose and Sudhanshu DhuliaThe Kerala...
The Supreme Court will pronounce TODAY the Judgement in appeals filed by the Employees Provident Fund (EPF) Organization and the Union Government challenging the Kerala, Rajasthan and Delhi High Court judgments which had quashed the Employee's Pension (Amendment) Scheme, 2014.
A bench comprising Chief Justice of India Uday Umesh Lalit, Justices Aniruddha Bose and Sudhanshu Dhulia
The Kerala High Court had set aside the 2014 amendment by holding that the threshold limit of Rs 15,000/-monthly salary for joining the pension fund is unreasonable. The High Court allowed paying pension in proportion to the salary above the threshold limit of Rs 15,000 per month and held that there can be no cut-off date for joining the pension scheme.
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JJustice Aniruddha Bose read out the operative portion of the judgment as follows :
The provisions contained in notification no. GSR 609E dated 22nd August 2014 are legal and valid. So far as so far as the present members of the fund are concerned, we have read down certain provisions of the scheme.
Amendment to the Pension Scheme brought by notification no. GSR 609E brought shall apply to employees of exempted establishments as employees of regular establishments. Transfer of Funds from the exempted establishments shall be in the manner that we have already directed.
Employees who exercised option under proviso under Paragraph 11 (3) of the 1995 scheme and continue to be in service as on Sept 1, 2014 will be guided by the amended provisions of 11(4) of the scheme.
The members of the scheme who did not exercise option under proviso to para 11(3) under Pension Scheme as it was before 2014 Amendment, would be entitled to exercise option under 11(4) of the post amendment scheme. Their right to exercise option before Sept 1, 2014 is crystallised in RC Gupta case judgment.
The scheme as it stood before 2014 did not provide for any cut off date and thus, those members shall be entitled to exercise option in terms of paragraph 11(4) of the scheme as it stands at present.
Their option shall be in the nature of joint option covered in pre amended para 11(3) and as also the amended para 11(4). There was uncertainty regarding validity of the post amendment scheme, which was quashed by the High Courts. Thus, all employees who did not exercise option but are entitled to do so, but could not due to interpretation of the cut off date, ought to be given a further chance to exercise their option.
Time to exercise option under para 11(4) of the scheme under the circumstances shall stand extended by a further period of four months. We are giving this direction in exercise of our jurisdiction under Art 142 of the Constitution. Rest of the requirements as per amended provision shall be complied with
The Employees who had retired before 1st September 2014 without exercising option under para 11(3) of the pre-amendment scheme, have already exited from the membership. They would not be entitled to the benefit of this judgement.
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 is held to be ULTRA VIRES of the 1952 Act. But for the reasons mentioned above, this part of the order suspended for SIX MONTHS. We do so to enable authorities to make adjustments in the scheme so that additional contribution can be generated from other legitimate sources within the scope of the Act.... We are not speculating on what steps the authorities should take as it is for the legislature and framers of the scheme to make necessary amendments. 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.
We do not find any flaw in altering the basis of computation of pensionable salary.
We agree with the view taken by the division bench in RC Gupta case so far as the interpretation of proviso to 11(3) pre-amendment provision is concerned.
Fund Authorities shall implement directives contained in the said judgement within EIGHT WEEKS subject to earlier directions.
All appeals which we have heard are allowed in the above terms and the judgements which are impugned are modified accordingly.
Bench : Existing employees have been given a chance to come within the scheme.
Bench : We have suspended this part of our order for 6 months so that authorities can generate the funds..
BREAKING| Supreme Court holds the requirement of the members to contribute of 1.16% on the salary exceeding Rs.15,000/- to be invalid. But this part of the judgment to be kept in suspension for 6 months.
Bench : Employees who retired prior to September 1, 2014 without exercising option will not be entitled to the benefit of the judgment.
Bench : Employees who could not exercise option due to the cut-off date shall be given a further chance to exercise option. They shall be given a further chance of 4 months.
Bench : Employees who could not exercise option due to the cut-off date shall be given a further chance to exercise option. They shall be given a further chance of 4 months.
Bench : Members who did not exercise option as it was before September 1, 2014, shall be eligible to exercise option under 11(4)
Bench : Employees who have exercised option who have exercised the option and continue to be in service as on September 1, 2014 will continue to be governed on para 11(3).
Justice Bose reading the operative part : Provisions contained in GSR notice dated...are legal and valid. We have read down the provisions of the scheme.