To CPFC-Unlawful implementation of PoHW

 

By e-mail: cpfc@epfindia.gov.in  

Signed copy with enclosure attached

No. FORSE/CPFC/0125

11^th March 2025

To

Shri Ramesh Krishnamurthi, IRS,

Central Provident Fund Commissioner

Employees' Provident Fund Organization (EPFO). 

New Delhi

Sub:   Refusal, miscalculation, Interest on Demand Letters without a. reasonable cutoff date and unlawful implementation of Pension on Higher wages reg

Sir,

This is to thank you for implementing the Supreme Court order dated 04^th Nov 2022 for Pension on Higher Wages, though a little bit delayed. In this context we would like to draw your kind attention to the following points which need immediate lawful action from your end.

Ø  Prevalence of the Exempted PF Trust Rules over the EPS, 1995: Implementation of EPS -95 is not a subject matter of any exempted PF Trust of an Exempted Establishment. The Employer is under legal obligation to pay contributions payable under the EPF Scheme 1952 and Employees’ Pension Scheme,  1995 (Para 4 of the EPS 1995)

The payment of PF contribution of Employees Share and those of the Employer’s that remain after segregation of EPS Contribution @ 8.33% the Employer is required to pay to the PF Trust run and managed by the employer and the EPS Contribution segregated from the Employers’ share of PF contribution, the Employer is required to pay to the EPFO directly by filing ECR online through the EPFO website which is payable to Pension Fund Account No. 10 as per provision of Para 4 of the Eps 95 Scheme. The Provisions of Para 4 of the EPS -95 are obvious and without any ambiguity.

With this Legal position in existence, it is not justified to stop the higher pension of the employees of the exempted trust on any pretext. Here it is necessary to draw attention to another important point that the exempted trusts are audited every year by the EPFO officials and they have never found the trust of any guilty of violating any rule. “At the outset the Hon’ble Apex court in its judgment dated 04.11.2022 in EPFO vs B. Sunil Kumar has unequivocally held that the EPFO should not treat the Employees of Exempted and Unexampled trust differently. The Apex court has further held that both the Employees constitute one homogenous group and therefore no discrimination should be made merely on the ground the Employees belong to Exempted Trust”. May please consider the legal opinion of the Panel Advocate of EPFO Regional Office, Tiruchirappali as mentioned above is attached herewith.

Ø  Pro-rata Calculation of Pension :  The Proviso to Para 12 ( 2 ) was brought into effect w.e.f. 01.09.2014 which provides Pro-rata calculation of Pension was introduced when the decision to apply it on the basis of 60 months' average salary instead of 12 months' average salary came into effect, which in many cases even included wages below 01.09.2014 and this calculation was done for averaging up to 60 months, the period of Rs 6500 regime and partly post 01.09.2014 regime period of Rs 15000 pay ceiling. It was an interim provision just to regulate newly substituted 60 months average pay.  As soon as the average 60 months‘pay is covered under the regime of Rs 15000 per year post- 01.09.2014, say an employee superannuated after 01.09.2014 the Pro-rata calculation becomes unjustified and illogical. If the period beyond 01.09.2014 is applied then definitely it is more than 60 months. It is contravention of the provisions in amended Para 11 (1 ) and 11 (2 ) of EPS 95 Act. This is the clear and absolutely correct legal stand.  It is the violation of the affidavit filed by EPFO in SC which was considered while delivering the judgment on 04.11.2022.

Ø  Interest on amount mentioned in Demand Letters:  Demand Letters are being issued mentioning the 3 months time to deposit the said amount. But there is a vital point to consider. The DL is issued on 27^th or 28^th of the month and it attracts interest if the mentioned amount is not deposited/ realized in an RPFC account up to 31^st of the month. Is it possible to see the daily mail and to arrange such a heavy amount and fulfill the required formalities in 2 days or in 1 day. So our request is that if a demand letter is issued after 16^th of the month there should not be interest charged in the coming next month as there was no delay from the person concerned.

Ø  Amount of Pension fixed to be mentioned in Demand Letters:  People have to deposit a hefty amount and they are uncertain about the Pension Amount and getting arrears so this uncertainty is creating confusion in the minds of the pensioners. It may kindly be mentioned in detail in the Demand Letters

 With kind regards,  

Yours faithfully,

For and on behalf of Federation of Retired SAIL Employees

 

Dr V N Sharma Chairman

Ram Agar Singh  General Secretary

ncl:  Legal opinion of the Panel Advocate of EPFO Regional Office, Tiruchirappali