EPFO to fix EPS contribution errors: Here's what it means for pensions

New guidelines aim to correct contribution errors and safeguard the money of subscribers

The Employees’ Provident Fund Organisation (EPFO) has issued new guidelines to fix errors in the Employees’ Pension Scheme (EPS), seeking to ensure accurate records and better service for members.

 

The EPFO had found that some employers had either wrongly deposited EPS contributions for ineligible employees or failed to remit contributions for eligible employees. The errors have delayed processing of pension claims. The new guidelines provide a uniform corrective framework to address such discrepancies.

For employees incorrectly enrolled in EPS:

Unexempted establishments: The incorrectly deposited amount, along with interest, will be transferred from the pension account (Account No. 10) to the provident fund account (Account No. 1). The corresponding pension service entries will be deleted from the member’s record.

 

 

Exempted establishments: EPFO will transfer the amount with interest from Account No. 10 to the respective PF Trust, and the erroneous pension service will be removed from the member’s account.

Rectifying omissions for eligible members

For employees who were wrongly excluded from EPS:

 

Unexempted establishments: The due contributions, along with interest, will be moved from Account No. 1 to Account No. 10. The employee’s pension service, including any applicable non-contributory period, will be credited.

 

Exempted establishments: The PF Trust will calculate the pending EPS amount with interest and transfer it to EPFO’s pension account. The organisation will then update the member’s pension service records accordingly.

 

EPFO has specified that physical transfers of funds will be carried out wherever necessary to maintain correct accounting. The guidelines are intended to standardise procedures across exempted and unexempted establishments, preventing future discrepancies and protecting employees’ pension entitlements.