Kochi: The Kerala High Court has ruled that employees who retired before September 1, 2014 and contributed higher pension shares proportionate to their actual salaries cannot be denied higher pension benefits simply because they failed to exercise an option prior to retirement.

Justice P Gopinath made this clarification in an order quashing the actions of the Employees' Provident Fund Organisation (EPFO) aimed at cancelling orders granting higher pensions and recovering disbursed amounts.

Key rulings by the high court

  • EPFO argument rejected: The court dismissed the EPFO’s contention that individuals who retired before 2014 without submitting an option had exited the scheme.
  • Supreme Court precedent applies: Allowing a batch of petitions challenging the denial of higher pension, the court observed that the Supreme Court's ruling in the R C Gupta case regarding higher pension applies to pre-2014 retirees as well. The court noted that no time limit for exercising the option was fixed in that judgment.
  • Four-month deadline: The High Court directed that benefits be made available to eligible pensioners within four months.

Advocates P N Mohanan and S Krishnamoorthy, among others, appeared for the petitioners.