Higher EPF Pension: Centre’s ₹10 Lakh Cr claim collapses; EPFO shows ₹78,500 Cr additional liability

New Delhi: The Centre’s claim that allowing higher pensions to members of the Employees' Provident Fund Organisation (EPFO) would create a liability of ₹10 lakh crore and destabilise the scheme has been contradicted by official figures. EPFO data shows that the additional liability arising from granting higher pensions is ₹78,501 crore.

While strongly opposing the grant of higher pensions in the Supreme Court of India, the Centre had argued that the financial burden would reach ₹10 lakh crore. It had also maintained that implementing the higher pension ordered by the Kerala High Court would disrupt the Employees’ Pension Scheme. However, figures presented at the meeting of the EPFO Central Board of Trustees indicate that the additional liability is ₹78,501 crore. On average, the liability works out to about ₹25 lakh per beneficiary.

According to the EPFO, 99.2 per cent of the applications submitted following the Supreme Court’s November 2022 judgment enabling higher pension options have been processed.

Out of a total of 17.49 lakh applications received, only 3.78 lakh were found eligible. Out of the total, 2.24 lakh applications were not forwarded to the EPFO by employers.

Demand letters seeking the required additional contributions to the pension fund were issued to 4.31 lakh applicants who were found eligible. However, 58,113 applications were later declared ineligible due to non-payment of the required amount or other reasons. So far, 1.39 lakh people have begun receiving the higher pension.

In Kerala, 72,713 people had applied for the higher pension option, of whom 44,700 have been granted approval. About 98.95 per cent of the applications from the state have been processed.

Several cases related to higher EPF pensions are still pending in various High Courts and the Supreme Court.