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Pension Updates: There is welcome news for the lakhs of employees and pensioners awaiting the 'Higher Pension' under the Employees' Provident Fund Organisation (EPFO). Many applications had been pending due to a sudden surge in higher pension claims and the time required for the verification process.

To address this administrative delay and the resulting backlog, the Central Government took a firm stance and issued strict directives to EPFO ​​officials. Subsequently, the EPFO ​​took four major steps to clear the backlog. Details of these measures were shared in the Lok Sabha, along with the assurance that the settlement of pension claims would now be expedited and completed within a set timeframe.

Here is the EPFO's 4-step formula to accelerate the process:
1. Online Joint Option Submission Portal
The EPFO ​​has launched a dedicated digital portal enabling eligible pensioners and existing members to submit online 'Joint Option' applications for a higher pension. This digital system has eliminated reliance on paper-based procedures, simplifying the initial application process and establishing a centralized system for tracking claims.

2. Systematic and Accurate Verification Process
To ensure financial accuracy without compromising processing speed, the EPFO ​​has implemented standard guidelines for verifying past contribution records. Under this process, details submitted by employers are cross-verified with the EPFO's own database records to accurately confirm past salary patterns.

3. Strict Directives to Regional Offices
Clear instructions have been issued to EPFO's zonal and regional offices regarding the timely settlement of higher pension applications. Additionally, regional managers have been empowered to resolve employer-related discrepancies at the local level and approve claims within the stipulated timeframe.

4. Regular Monitoring via Video Conferencing
To ensure accountability, the EPFO's senior leadership conducts regular video conferences with zonal and regional heads. These meetings are used to review settlement figures, identify procedural bottlenecks, and provide immediate guidance to offices lagging behind their targets.

Is this why lakhs of higher pension claims were stalled?
Following the Supreme Court's landmark verdict in November 2022, eligible employees were given the option to opt for a higher pension based on their actual salary, rather than the statutory limit of ₹15,000. Subsequently, the EPFO ​​received applications numbering in the lakhs. However, the processing of these applications stalled at regional offices due to the sheer volume of requests, errors in historical contribution records, delays in verification by employers (companies), and complex verification procedures.

The implementation of these four new rules will not only facilitate the rapid rectification of clerical errors and technical shortcomings but also mandate that regional offices settle files within a stipulated timeframe. This will ensure that claims pending for months are verified promptly, paving the way for the payment of enhanced pension arrears and monthly pensions to the pensioners.

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