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EPFO Higher Pension:There is good news regarding pension after retirement! In a major blow to EPFO, the Calcutta High Court has cleared the way for higher pension for the retired employees of the Central Marketing Organization (CMO) unit of Steel Authority of India Limited (SAIL). The court canceled the order of EPFO, in which the option of higher pension of these employees was rejected.

Delivering the verdict on the petitions on November 14, Justice Shampa Dutt (Paul) clearly directed that any joint option application submitted on or before January 31, 2025 (or till that date if the authority extends the time) will have to be accepted by EPFO. Also, if the employees deposit the difference amount along with interest in the pension scheme, then they will start getting more pension from the next month itself.

What was the complaint of the employees?

Retired employees of SAIL-CMO unit had filed a petition in the court. He challenged the rejection order dated 5 February 2025, in which his application for higher pension was rejected. The employees said that they retired at the age of 58 and their unit is exempted under Section 17(1) of the PF Act 1952.

The petitioners said that SAIL-CMO PF Trust had sent the revised rules to EPFO ​​for approval on October 4, 2024, but EPFO ​​refused. In the letter dated January 21, 2025, EPFO ​​said that no change in the trust rules will be approved after the Supreme Court’s decision of November 4, 2022.

Why did the court pull up EPFO?

Counsel for one of the petitioners said that the joint application was rejected by the EPFO ​​in its order dated February 5, 2025 citing the Provident Fund Trust rules of SAIL-CMO. The Court held that EPFO’s circular dated January 18, 2025, in which the Supreme Court decision for exempted institutions was cited, is completely wrong.

Justice Shampa Dutt (Paul) clearly said – EPFO ​​has given its arbitrary interpretation, which is a direct violation of the Supreme Court decision. The court even termed it as “abuse of the process of law”. Now these retired employees will be able to get more pension on their actual salary under the Employees Pension Scheme 1995.

This decision is a big relief for the employees of thousands of exempted institutions. If you are also stuck in a similar situation, then check the application quickly!