Kerala High Court Seeks Response from PF Authorities for Not Exercising ‘Fresh Joint Option’

Kerala High Court Seeks Response from PF Authorities for Not Exercising ‘Fresh Joint Option’

The Kerala High Court has sought response from the Central Government and the Provident Fund authorities in the plea challenging the initiation of steps by the PF Commissioner to curtail/limit/stop the higher pension that is being received by the retired employees of KELTRON on the ground that they had not exercised a fresh joint option.

The single judge Justice Raja Vijayaraghavan V listed the matter for further consideration on 27 March, 2023.

The plea was moved by the aggrieved 121 former employees of KELTRON, who had retired after September 1, 2014, and who had hitherto been receiving higher pension in proportion to their actual salary.

According to the petitioners that they had already submitted a joint option under the pre-amended paragraph 11(3) as well as the amended paragraph 11(4) of the EPF Pension Scheme 1995, subsequent to September 1, 2014, on the basis of which they had been receiving the higher pension.

It was in this backdrop that the petitioners were aggrieved by the circular issued by the PF authorities requiring such employees to give fresh joint option, and the initiation of steps to curtail/limit/stop the higher pension that was being received by them on this ground.

A notice was issued by the Regional PF Commissioner based on the EPFO Circular dated 2 February, 2023, that those availing higher pension also ought to give fresh option as per paragraphs 26(6) and 11(3) of the Scheme, 1995.

The Court had earlier, barred the EPFO from curtailing or stopping the higher pension that was being received, without specific orders in that regard from the Court, in another plea filed by certain employees covered under EPF Act, who had been aggrieved by the abrupt discontinuance or reduction of pension that was being received by them without hearing them.

In that case, the Regional Provident Fund Commissioner, Sub Regional Office EPFO, and the Regional Provident Fund Commissioner-1 (Pension) EPFO Head Office had averred in their counter affidavit that the pension of the petitioners had been stopped inadvertently due to some technical glitches and that when the same had been brought to the notice of of the respondents, the pension in respect of the petitioners had been immediately released.

The matter is currently pending before the Single Judge Bench of Justice Raja Vijayaraghavan.

Nevertheless, another plea had been filed before the High Court which challenged the condition of submission of proof of having opted for paying higher Provident Fund contribution under paragraph 26(6) of the Employees Provident Fund Scheme, towards the higher PF pension. The said petition had been admitted by the single judge Justice Ziyad Rahman A.A., and time has been granted to the EPFO to submit counter affidavit in the matter.