The Employees’ Provident Fund Organisation (EPFO) has recently extended the last date for the Higher Pension Opting Scheme until June 26, 2023. This move comes as a relief to many employees who were struggling to meet the previous deadline.
The Higher Pension Opting Scheme is a voluntary scheme that allows EPFO members to increase their pensionable service and, in turn, the amount of pension they receive after retirement. The scheme was initially launched in May 2021, and the last date for opting was December 31, 2021. However, the EPFO extended the deadline until March 31, 2022, and then further extended it until June 26, 2023.
The scheme is available for members who are already receiving pension benefits from the EPFO, as well as for those who are yet to start receiving pension benefits. Members can opt for the scheme by submitting Form 11 (New), along with the required documents, to their respective EPFO offices.
Under the scheme, the EPFO will calculate the additional pensionable service for each member and provide an estimate of the amount of pension increase that can be expected. The member can then choose to contribute an additional amount of their basic salary, which will be matched by the employer, towards the scheme.
The EPFO has stated that the extension of the deadline is aimed at allowing more members to benefit from the scheme. The scheme has received a positive response from EPFO members, with many opting for it to increase their pensionable service and secure a better financial future for themselves.
How to Opt for EPFO’s Higher Pension Opting Scheme: Step-by-Step Guide
EPFO’s Higher Pension Opting Scheme is a great opportunity for employees to secure better retirement with enhanced benefits. If you are interested in opting for this scheme, here’s a step-by-step guide to help you through the process:
- Check Your Eligibility: To opt for the Higher Pension Opting Scheme, you must be a member of the Employees’ Provident Fund (EPF) for at least 10 years. You should also be within the age limit of 50 years to 60 years.
- Obtain the Form: To apply for the scheme, you need to obtain Form 10-D from the EPFO website or the nearest EPFO office.
- Fill the Form: The form requires you to provide details such as your name, date of birth, and EPF account number. You also need to mention the date of retirement, which should be after the age of 58 years.
- Submit the Form: Once you have filled the form, submit it to your employer for attestation. Your employer will verify the details provided in the form and forward them to the EPFO office.
- Wait for Approval: The EPFO office will process your application and approve it if you are eligible for the scheme. Once approved, you will receive a monthly pension based on the amount accumulated in your EPF account.
Analysis of EPFO’s Higher Pension Opting Scheme: Is it a Good Option for Retirement Planning?
EPFO’s Higher Pension Opting Scheme is a voluntary pension scheme that was introduced in 2014. It allows EPF members to contribute an additional amount to their retirement savings, which in turn increases their pension amount. The scheme has recently been in the news as the last date for opting for the scheme has been extended till June 26, 2023. In this blog post, we will analyze the scheme and whether it is a good option for retirement planning.
Firstly, let us understand how the scheme works. Under the scheme, an EPF member can opt to contribute an additional amount of up to 8.33% of their basic pay and dearness allowance (DA) towards the Employee Pension Scheme (EPS). This contribution is in addition to the mandatory 12% contribution towards the EPF. The contribution towards EPS is capped at a maximum of Rs. 1,250 per month.
The scheme has certain eligibility criteria. To be eligible for the scheme, the EPF member should have completed at least 10 years of service and should be within 5 years of retirement age (58 years). The additional contribution towards EPS will be made for a period of 5 years or until the member reaches retirement age, whichever is earlier.
Now, let us analyze whether the scheme is a good option for retirement planning. The main advantage of the scheme is that it increases the pension amount that the member will receive after retirement. This is especially beneficial for those who may not have enough savings for their post-retirement years. The additional contribution towards EPS also earns a higher rate of interest compared to the EPF.
However, there are certain limitations to the scheme as well. The scheme is only available to those who are within 5 years of retirement age, which means that those who are younger may not be able to avail of the scheme. Additionally, the maximum additional contribution towards EPS is capped at Rs. 1,250 per month, which may not be sufficient for those who wish to make higher contributions towards their retirement savings.
In conclusion, EPFO’s Higher Pension Opting Scheme can be a good option for retirement planning for those who are eligible and are within 5 years of retirement age. However, it is important to consider the limitations of the scheme and also explore other retirement savings options to ensure a comfortable post-retirement life.
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