New Delhi: The Employees' Provident Fund Organisation (EPFO) has decided to strongly oppose the 2016 RC Gupta case verdict, which enabled higher PF pensions for those who retired before September 1, 2014, without prior options.

In the 2016 RC Gupta case, the Supreme Court had ruled that a strict deadline could not be imposed on exercising the option for a higher pension. Based on this, many individuals began receiving higher pensions; however, these payments were halted for several following the 2022 Supreme Court judgment in Sunil Kumar case.

Setback for pre-2014 retirees

The 2022 Sunil Kumar case verdict by the Supreme Court stated that those who retired before September 1, 2014, without exercising the option, are ineligible for higher pensions. This led to thousands being denied the benefits they were already receiving, resulting in numerous legal challenges across various High Courts.

The Kerala High Court currently holds the highest number of such cases, with 574 petitions related to higher pensions—most of which challenge the discontinuation of payments. Recently, a Single Bench of the Kerala High Court observed that the RC Gupta verdict remains valid. Fearing major financial implications, the EPFO has directed its panel of Supreme Court advocates to represent the organisation in the Kerala High Court. Currently, several individuals continue to receive higher pensions based on interim orders from various High Courts.

Support for pro-rata calculation

The EPFO has also decided to strongly defend the pro-rata method in court, despite the fact that it hugely reduces pension amounts. Furthermore, the EPFO clarified that the transfer of additional contributions to the pension fund will only be permitted if the specific rules of exempted trusts allow for such provisions.