KOCHI: A division bench of Kerala high court has totally cancelled the anti-labour amendment brought in the Employees Provident Act in 2014 by the Centre with the aim of reducing the PF pension amount to minimum.

The order has realized the long-awaited dream of the PF pensioners.

Now the employees can increase their contribution to the PF account to get pension based on their salary. Moreover, the court clarified that they can choose this option without time limits.

The division bench cancelled the order the other day while observing that the amendment made by Centre in the Employees Provident Fund act in 2014 against the above option was autocratic.

The court gave the order after considering 507 petitions submitted including the one given by Keltron employee T Y Vijayakumar, pleading that 2014 amendment was against the goodwill of the employees.

Despite a Supreme Court ruling, the EPFO had denied the option of higher pensions to retired employees of companies and organisations where provident fund (PF) accounts are managed by their own autonomous trusts and not by the EPFO.

The provident fund accounts of employees in ‘exempt category’ organisations are handled by their own autonomous PF trusts, not by the EPFO. Public sector companies like Keltron, NTPC and BHEL and private ones like Tata Consultancy Services, Infosys, Accenture have their own PF trust.

Over 75,000 retired employees, who have been deprived of the option to avail higher pension by the EPFO, had pinned their hopes for justice on the Kerala high court.

In October 2016, the apex court ruled that Employee Pension Scheme (EPS) pensioners can opt for higher pension if they want. If employees apply for higher pension, they will have to pay towards the differential between contribution required to avail higher pension and what they have actually paid on this account.

However, this differential is usually negligible or offset as employees are entitled to arrears for the higher pension they were entitled to from the date of retirement.