EPS-95 Pension Boost: Madras HC Clears Path for Higher Pension for Post-2014 Retirees

The Madras High Court has delivered a significant judgment impacting post-September 1, 2014 retirees under the Employees’ Pension Scheme (EPS-95). 

On September 2, 2025, the court ruled in favour of 86 retired employees of Bharat Heavy Electricals Limited (BHEL), Trichy, who had been denied higher pension benefits by the Employees’ Provident Fund Organisation (EPFO).

Why EPFO Rejected Their Application?

BHEL, Trichy operates as an exempted establishment, with its Provident Fund managed by a Trust. According to the Trust’s rules, the employer’s contribution could not exceed the wage ceiling of ₹15,000. 

Based on this, the EPFO rejected the joint applications submitted by retirees for higher pension, claiming such contributions would violate the agreed Trust rules.

What the Court Said?

The court disagreed with the EPFO’s stance, ruling that Provident Fund Trust rules cannot override EPS provisions or deny legitimate pension benefits. It emphasised that employees who retired after September 1, 2014 are still eligible for higher pension if they comply with specific conditions.

Conditions for Higher EPS Pension

• Retirees must submit their joint application with the employer on or before January 31, 2025.
• They must remit the differential contribution, i.e., the shortfall between capped and actual contributions, along with applicable interest.
• Pension will then be calculated based on the last drawn salary (Basic Pay + DA).
• Any arrears payable will be adjusted after deducting pension already received under the capped amount.

Background: EPS-95 Higher Pension Option

Since March 1996, EPS-95 allowed employers and employees to jointly opt for contributing 8.33% of the actual salary (beyond the wage ceiling) towards pension.

This provision gave employees an option to secure a larger monthly pension, but many applications were historically rejected due to trust level restrictions or administrative disputes.

Read More: EPFO Board Gears Up for October 10–11 Meet; Pension, Tech Upgrade in Focus.

Conclusion

This ruling is a relief for retirees who were earlier denied higher pension under EPS-95. It clarifies that Trust rules cannot supersede EPS provisions and ensures that eligible employees can claim higher pension by meeting the required conditions.

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