EFPO link activated for Higher Pension, now Eligible members have the option to opt and apply together with their employers for higher pension till 3rd May’2023 via the unified numbers portal of the EPFO retirement fund body.
Here check these 5 reasons to apply for the Higher Pension option –
1. One- time opportunity to get a higher pension
If a member has been contributing to the Employee Pension Scheme before 1st September’2014, now has a chance (till 3rd May) to receive higher pension to fund his post retirement life. Computations show that a number drawing an average basic of Rs 40,000 in the past 5 years can secure a monthly allowance of approx Rs 20,000. For a member with an average basic salary of Rs 1 lakh, can get up to Rs 50,000.
2. Assured monthly pension scheme
For post- retirement life, nobody really likes to go through the difficulties of managing money therefore, the EPFO’s higher pension option is a good chance that one should consider.
3. EPF corpus may decrease, what does it matter?
One disagreement against the higher pension option is that your EPF corpus will decrease. If a member has been contributing to EPFO more than the Pensionable Salary cap of Rs 15,000 since before 1st September’2014, going for the higher pension will lead to the rearrangement of EPS and EPF Funds to annotate for lost years. But after this a lesser EPF corpus will consider as a higher EPS pension. The higher pension option is favorable to those members who want a higher monthly pension and want to avoid rounded figure amount on retirement. The employees who have invested in other schemes and will get a round sum amount on its maturity can go for a higher pension.
4. Risk- Free
There is no risk to your funds under Employee Pension Scheme. Its members get the monthly pension as per their eligibility and the average taken out 5 year salary.
5. Faithful Welfare option Uninterrupted Pension after demise
The monthly salary will be uninterrupted and will continue to the family even after the demise of the EPFO member. The pension will also be given to handicapped child or dependent child till they reach the age of 25.
Also, the higher pension may be good for a few members and may not be for others. Hence you should access your current situation before opting for higher pension.
