The Employees’ Provident Fund Organization (EPFO) in a fresh circular has explained how errors in Employees’ Pension Scheme (EPS) contributions will be corrected that have happened at the employer level.
EPFO said that instances of erroneous remittance of EPS contributions for members ineligible for EPS or non-remittance of EPS contributions for members eligible for EPS membership by the employers have posed a challenge in efficient service delivery to such members.
The move aims to bring uniformity across field offices and ensure that provident fund members are not impacted due to incorrect pension remittances by employers.
EPS Wrongly Deposited For Ineligible Members
In some cases, employers deposited EPS contributions for employees who were not eligible for the pension scheme. EPFO clarified that such erroneous EPS amounts will be recalculated along with applicable interest.
The wrongly credited pension amount will be shifted back to the correct provident fund account. Additionally, the pension service period that was wrongly added to the member’s account will be deleted to ensure accurate records.
EPS Not Deposited For Eligible Members
There are also cases where EPS contributions were not deposited even though the employee was eligible, and the amount was instead credited to the PF or trust account.
In such situations, EPFO has said that the correct EPS contribution will be worked out along with interest and transferred to the pension account. The corresponding pension service period will also be added to the member’s record. If any non-contributory period (NCP) exists, it will be adjusted accordingly.
Will Subscribers To Be Worried If Such Things Happen
EPFO has clarified that these mistakes won’t impact its subscribers financially. All adjustments will include applicable interest, and pension service records will be updated accurately.
Accurate EPS records are critical for pension eligibility and retirement benefits.
