Higher pension: EPFO issues notice to pensioners seeking repayment of excess amount

Kannur (Kerala): The Employees’ Provident Fund Organisation (EPFO) has issued notices to pensioners who retired after September 1, 2014 and are receiving higher pensions, demanding repayment of the excess amount with retrospective effect. According to the notice, many are required to repay sums ranging from Rs 1 lakh to Rs 4 lakh. The notice also warns that monthly pensions will be cancelled if the amount is not repaid.

Pensioners allege that despite approaching the EPF Office here with Kerala High Court stay order, officials are not accepting them. Besides, several individuals allege that their pensions have been withheld for the past two months even without receiving any notice.

The EPFO is reportedly issuing these notices citing the Supreme Court’s judgement dated November 4, 2022. However, pensioners argue that the ruling does not mention retrospective recovery of payments.

Based on the High Court verdict, those who retired after September 1, 2014 were receiving pensions based on the average of their last 12 months' salary. 

EPFO, however, states that the Supreme Court ruling mandates calculating pension based on the average salary of the last 60 months. With the shift from one year to five years, the pension amount naturally decreases.

Now, under the higher pension option, the increased amount is granted only after calculating the pension based on the 60-month average salary and upon repayment of the excess already received.

Meanwhile, pensioners point out that various High Court rulings across different states have held that the additional pension already being disbursed, as per court orders, cannot be denied.