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SC extends deadline to join EPF pension scheme, quashes Rs 15,000 threshold for additional contribution

SC extends deadline to join EPF pension scheme, quashes Rs 15,000 threshold for additional contribution

SC extends deadline to join EPF pension scheme, quashes Rs 15,000 threshold for additional contribution
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By CNBCTV18.com Nov 4, 2022 2:28:45 PM IST (Published)

The SC also held that employees who were eligible to join the pension plan but were unable to do so because they did not exercise their option by the deadline should be given another chance because the deadline was not clearly defined in light of the High Court rulings that declared the provisions of the Employee's Pension (Amendment) Scheme, 2014 invalid.

The Supreme Court on Friday upheld the Employees Pension (Amendment) Scheme 2014's provisions as legitimate and valid. However, the apex court quashed the condition in the 2014 scheme that employees are required to make a further contribution at the rate of 1.16 percent on the salary exceeding Rs.15,000.

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The Court held this condition to make additional contribution on the salary exceeding the threshold limit to be ultra vires (beyond the powers). However, this part of the judgment has been kept in suspension for six months to enable the authorities to generate funds.
The Supreme Court read down some of the provisions of the Employee's Pension (Amendment) Scheme, 2014 while granting the appeals brought by the Employees Provident Fund Organisation (EPFO) and the Union Government in opposition to the rulings of the Kerala, Rajasthan, and Delhi High Courts that had invalidated the scheme.
The SC also held that employees who were eligible to join the pension plan but were unable to do so because they did not exercise their option by the deadline should be given another chance because the deadline was not clearly defined in light of the High Court rulings that declared the provisions of the Employee's Pension (Amendment) Scheme, 2014 invalid.
In order to extend the deadline, the Court used its authority granted by Article 142 of the Constitution.
A bench comprising Chief Justice of India Uday Umesh Lalit, Justices Aniruddha Bose and Sudhanshu Dhulia had reserved the judgment.
In 2018, while setting aside the Employee's Pension (Amendment) Scheme, 2014 ], the Kerala High Court allowed paying pension in proportion to the salary above the threshold limit of Rs 15,000 per month. The High Court also held that there can be no cut-off date for joining the pension scheme.
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