The Employees’ Provident Fund Organization (EPFO) has issued a new circular explaining how mistakes in Employees’ Pension Scheme (EPS) contributions at the employer level will be fixed.
These errors, whether contributions were wrongly deposited or not deposited at all, have caused challenges in providing smooth service to members.
EPS Deposited for Ineligible Employees
Sometimes, employers deposit EPS contributions for employees who are not eligible for the scheme.
EPFO has clarified that such erroneous amounts will be recalculated with applicable interest.
The wrongly credited pension contributions will be moved back to the correct provident fund account.
Any pension service period that was incorrectly added to a member’s record will also be removed to ensure accuracy.
EPS Not Deposited for Eligible Employees
In other cases, employers fail to deposit EPS contributions for employees who are eligible.
Instead, the amount may be credited to the PF or trust account.
EPFO will calculate the correct EPS contribution with interest and transfer it to the employee’s pension account.
The corresponding pension service period will also be updated, and any non-contributory period (NCP) will be adjusted accordingly.
Should Subscribers Worry?
EPFO assures that subscribers will not face any financial loss due to these errors.
All adjustments will include applicable interest, and pension service records will be updated accurately.
Maintaining correct EPS records is crucial for pension eligibility and ensures that members receive the benefits they are entitled to at retirement.
