EPFO Issues New Rules to Fix EPS Contribution Errors and Protect Pensions

The Employees’ Provident Fund Organisation (EPFO) has issued fresh guidelines to fix errors in the Employees’ Pension Scheme (EPS). The move aims to improve record accuracy, avoid delays in pension claims, and safeguard the retirement money of subscribers.

Why Were New Guidelines Needed?

EPFO found that in several cases:

• Employers deposited EPS contributions for ineligible employees, or
• Failed to deposit contributions for eligible employees

These mistakes led to incorrect records and delays in pension processing. The new rules provide a standard method to correct such issues.

If an Employee Was Incorrectly Enrolled in EPS

For unexempted establishments:

The wrongly deposited EPS amount, along with interest, will be shifted from the pension account (Account No. 10) to the PF account (Account No. 1). Any incorrect pension service record will be deleted.

For exempted establishments:

EPFO will transfer the amount with interest from Account No. 10 to the concerned PF Trust, and the incorrect pension service details will be removed.

If an Eligible Employee Was Left Out of EPS

For unexempted establishments:

The pending contribution, along with interest, will be moved from Account No. 1 to Account No. 10. EPFO will also add the employee’s pension service period, including any eligible non-contributory time.

For exempted establishments:

The PF Trust will calculate the due EPS amount with interest and transfer it to EPFO’s pension account, after which EPFO will update the pension service records.

Read More, EPFO New Rules: Are Weekly Offs Between Jobs Considered Service Break for Insurance Eligibility? 

Physical Fund Transfers Where Required

EPFO clarified that physical transfer of funds will be done wherever needed to ensure proper accounting and accurate member records.

Conclusion

With these new guidelines, EPFO aims to bring uniformity in correcting EPS errors, reduce pension-related delays, and ensure that employees receive the right pension benefits. The move strengthens protection for subscribers and improves overall pension administration.

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