Snail pace of application processing in EPFO; employing retired officials a smart move

Institutions formed to ensure the welfare of workers taking an anti-worker stance over time is not new in India. The Employees' Provident Fund Organisation (EPFO) agreed to pay a higher pension in proportion to the salary, after years of litigation. Till the last moment, the EPFO took the stand that this cannot be paid by citing various reasons in the high courts and the Supreme Court. Though the Supreme Court ruled in favour of the workers, a review petition was filed against it and it was later extended. The final verdict came two years ago after all this. EPFO has no other option but to pay this amount now.

The EPFO should have taken steps to pay the higher pension as soon as possible. The pension was postponed citing lack of clarity on many things and was finally started to be disbursed when there was no other option. Even after two years of the Supreme Court's verdict in the pension case, not even one per cent of the applicants have started receiving the increased pension. As of November 22, pension payment orders were sent to 16,282 people out of a total of 17,48,775 options received. A demand letter has been sent to 1,19,187 people regarding the additional amount to be paid to the pension fund. Of the total applications, only 14,37,097 were approved by employers and returned to the EPFO, the EPFO said.

8,47,093 of these applications were verified. 2,60,352 were rejected for various reasons. 4,67,554 applications were returned to employers seeking further explanation. No scrutiny has been initiated so far on 5,90,004 applications. Going by this number, it does not seem that this increase in pension will be implemented even if many of the pension applicants breathe their last. Complaints could have been avoided if the EPFO had tried to resolve the applications of those who had applied for the higher pension scheme on priority by treating them as two categories, those in service and those who had retired. It is those sections that need the pension hike most urgently. A large number of those who applied for the higher pension scheme are still in service.

Among those in service as of September 1, 2014, 13,38,729 people had given the higher option. Of these, 6,17,933 retired by March 31, 2024. 47,480 people are retiring between April and March 2025. The remaining 6,73,316 are due to retire after April 2025. That is, the number of applicants will continue to increase. The number of officers who should examine and dispose the applications of will not increase. Anticipating that this would lead to a further escalation of the crisis, EPFO said on the agenda of its Central Board of Trustees meeting last Saturday that it was considering employing retired officials as well. Steps should be taken to implement it as soon as possible. If more employees are recruited, the increased pension can be paid to all eligible applicants within a year.