The Employees’ Provident Fund Organisation (EPFO) has issued fresh guidelines to address long-standing errors and inconsistencies in Employees’ Pension Scheme (EPS) contributions. The move is aimed at correcting incorrect or incomplete pension records and ensuring that employees do not face difficulties while claiming pension benefits at the time of retirement.
According to EPFO, these new guidelines establish a clear, uniform, and transparent process to deal with cases where EPS contributions were either wrongly deposited or not deposited at all. The organisation has also clarified that wherever required, physical transfer of funds will be carried out to ensure accurate accounting.
EPFO noted that several discrepancies have been observed in EPS contributions over the years. In many cases, employers deposited EPS contributions for employees who were not eligible for pension benefits. At the same time, there were instances where eligible employees were wrongly excluded from EPS, resulting in no pension contribution being made on their behalf.
These errors created serious problems during pension claim processing, including issues related to determination of pensionable service, calculation of benefits, and final settlement. Adding to the confusion, EPFO field offices across the country were handling such cases differently, leading to delays, inconsistencies, and disputes.
To eliminate this confusion and protect employees’ pension rights, EPFO has now laid down a standardised procedure that will be followed uniformly across all field offices.
Under the new guidelines, if EPS contributions were deposited for employees who were not eligible for pension benefits, EPFO will recalculate the wrongly deposited amount. This recalculation will include interest as declared by EPFO from time to time.
For unexempted establishments, the incorrectly deposited EPS amount will be transferred from the pension account (Account No. 10) to the provident fund account (Account No. 1). Along with this, the wrongly credited pensionable service will be removed from the employee’s service record.
In the case of exempted establishments, EPFO will transfer the wrongly deposited EPS amount, along with applicable interest, from Account No. 10 to the concerned PF Trust. The incorrect pension service entry will also be deleted from the employee’s records.
The guidelines also provide relief to employees who were eligible for EPS but were mistakenly kept out of the pension scheme. In such cases, EPFO will now calculate the full pending EPS contribution along with interest.
For unexempted establishments, the calculated amount will be transferred from the provident fund account (Account No. 1) to the pension account (Account No. 10). EPFO will also update the employee’s pensionable service period and, where applicable, include non-contributory periods in the service record.
For exempted establishments, the respective PF Trust will calculate the pending EPS contribution along with interest and transfer it to EPFO’s pension account. Once the transfer is complete, EPFO will update the employee’s pension service details accordingly.
EPFO has clearly stated that physical transfer of funds will be undertaken wherever necessary to ensure accurate and complete accounting. The organisation emphasised that financial correctness and transparency are central to these new guidelines.
By standardising fund movement and accounting practices, EPFO aims to prevent future disputes and reduce the administrative burden caused by repeated corrections and clarifications.
According to EPFO, these changes will significantly reduce pension-related issues arising from contribution errors. Employees will face fewer hurdles while getting their pension fixed at the time of retirement, and their service records will be cleaner, more accurate, and more reliable.
The guidelines are expected to bring long-term relief to employees who were affected by employer-level mistakes or administrative lapses. With a uniform national process now in place, pension claims are likely to be processed faster and with fewer disputes.
EPFO believes that these guidelines are a crucial step towards safeguarding employees’ pension entitlements. By correcting past mistakes and ensuring consistency across field offices, the organisation aims to strengthen trust in the pension system and ensure that employees receive the retirement benefits they rightfully deserve.
Employees are advised to review their EPS records and approach their employers or EPFO offices if they believe there have been errors in their pension contributions, as the new framework provides a clear path for correction and resolution.
