SC recalls 2019 order on higher pension for employees

Satya Prakash

Tribune News Service

New Delhi, February 2

The Supreme Court has recalled its order that could have led to higher pension for employees as it had removed the salary ceiling of Rs 15,000.

The Kerala High Court had in October 2018 set aside the amendments in the Employees’ Pension Scheme (EPS), 1995 that fixed the maximum pensionable salary at Rs 15,000 per month.

The Supreme Court had on April 1, 2019 dismissed the appeal filed by the Employees Provident Fund Organisation (EPFO) against the Kerala High Court’s verdict. Both the Centre and the EPFO had filed petitions requesting the top court to review its decision.

On Friday, a Bench headed by Justice Uday U Lalit allowed the review petitions and decided to reconsider the previous order that permitted grant of Provident Fund pension proportionate to salary.

The Bench posted the matter for preliminary hearing on February 25 when it will hear all the parties and examine afresh the 2018 Kerala High Court judgement requiring the organisation to pay full pension to retiring employees on the basis of their total salary instead of capping the amount on which a pensioner’s contribution is calculated at Rs 15,000 a month.

The High Court had then noted that some workers made more contributions voluntarily towards the EPFO but their pension calculation was on Rs 15,000 salary ceiling, which was not fair on workers post their retirement.

Attorney General KK Venugopal and senior advocate CA Sundaram, representing the Centre and the EPFO respectively, questioned the legality and viability of the High Court verdict.

The Kerala High Court’s verdict wasn’t implemented as the matter was pending before the top court.