New Delhi, January 6, 2025: A wave of uncertainty and distress has swept across members of the Employees’ Provident Fund Organization (EPFO) following the abrupt halting of the implementation of the Supreme Court’s directive on higher pension entitlements.
The judgment, delivered on November 4, 2022, by a full bench of the Hon’ble Supreme Court of India in SLP(C) Nos. 8658-8659 of 2019 (EPFO vs. Sunil Kumar & Others), mandated the provision of pensions on higher wages to eligible members of the EPF scheme. This includes individuals who were members on September 1, 2014, and continued thereafter, provided they exercised the option within the stipulated extended time period outlined in the judgment.
Initially, the EPFO had taken steps to comply with the court’s order. Higher wage contributions were accepted, and, in some cases, pensions on higher wages were disbursed to retired members. However, without prior notice or explanation, the process was abruptly stalled. Reports indicate that contributions made on higher wages were refunded to in-service members, and the difference between higher pensions and statutory pensions was deducted from retired members.
This sudden halt has left members in a state of confusion and financial distress. Many retired members, who had begun to receive higher pensions, are now facing deductions, which have further burdened them amidst rising living costs. For in-service members, the refund of contributions has raised concerns about the security of their retirement benefits.
The EPFO’s actions have been widely criticized for flouting the Supreme Court’s directive. Members have expressed frustration over the lack of communication from the organization. The arbitrary suspension of the process has been perceived as a violation of fundamental rights, as members are left without clarity on their financial futures.
Legal experts and affected individuals have called for immediate intervention to ensure compliance with the court’s orders. “The EPFO’s actions have not only disregarded the judgment but have also caused immense suffering to those who depend on their pensions for survival,” said a retired member who has been impacted by the deductions.
As the issue remains unresolved, thousands of members are awaiting a clear response and just resolution. The delay and lack of transparency have further eroded trust in the organization tasked with safeguarding the financial security of its members.