PF: Retiree asked to pay extra Rs 28.29 lakh to avail Rs 35,594 monthly pension

Kochi: In response to the petition filed by a retired employee, EPFO (Employees Provident Fund Organisation) stated in the high court that as per their latest rules, he will be only entitled to a monthly pension of Rs 35,594, if he is willing to pay an additional amount of Rs 28.29 lakhs to pension fund for the ultimate purpose of availing a higher PF pension. The matter was notified while considering a petition filed by Thiruvananthapuram native V R Balu, who is a retired employee of the Kerala Industrial Infrastructure Development Corporation.         

Taking note of the proceedings, Justice Devan Ramachandran directed parties to pay the funds as per the requirements. The matter will be taken up by the court once again on April 2.

The petitioner had approached the high court questioning the EPFO circular mandating calculation of pensions of those who have availed options and paid large amounts to the pensions funds on a pro rata basis.     

The EPFO had issued a notice to the petitioner who had retired in 2022 to pay a hefty amount of Rs 28,29,782 to pension fund within April 30 to avail higher pensions. The petitioner highlighted that rightfully he should be eligible for a pension of Rs 52,361 if he pays the above mentioned money. But noted that if things are initiated on a pro rata basis as it is now, then he shall only receive Rs 31,161 doing the same. 

VR Balu argued that the specific circular on pro rata stands in violation with the SC order issued in  a Supreme Court employees provident fund and organisation case. Advocate P N Mohanan had appeared on behalf of the petitioner.