IN THE HIGH COURT OF RAJASTHAN
Dinesh Mehta, J.
Gurnam Singh Gill – Petitioner
Versus
The Regional Provident Fund Commissioner and Others – Respondents
S.B. Civil Writ Petition No. 15117 of 2018
Decided On : 01-05-2023
| Table of Content |
|---|
| 1. entitlement to pension benefits under 1995 scheme. (Para 1 , 2) |
| 2. supreme court's ruling on pension scheme amendments. (Para 3 , 4) |
| 3. writ petition outcomes and compliance with supreme court's directions. (Para 5 , 6) |
ORDER :
1. This writ petition has been filed by the petitioner seeking direction to the respondents to accord them benefits of pension/family pension, pursuant to the Employee's Pension Scheme, 1995.
2. Learned counsel for the petitioner submitted that the respondents be directed to accord benefits to the petitioner in light of order in R.C. Gupta & Ors. v. Regional Provident Fund Commissioner, Employees Provident Fund Organisation & Ors. 2018 (14) SCC 809 and other judgments, which have followed the said judgment including a judgment of this Court.
3. The issues, which have been raised by the petitioner all stand concluded by Larger Bench Judgment of Hon'ble the Supreme Court in Employee Provident Fund Organization & Ors. v. Sunil Kumar B. & Ors. 2022 SCC Online SC 1521.
4. In the said judgment, the Hon'ble Supreme Court has directed as under:
(i) The provisions contained in the notification no. G.S.R. 609(E) dated 22nd August 2014 are legal and valid. So far as present members of the fund are concerned, we have read down certain provisions of the scheme as applicable in their cases and we shall give our findings and directions on these provisions in the subsequent subparagraphs.
(ii) Amendment to the pension scheme brought about by the notification no. G.S.R. 609(E) dated 22nd August 2014 shall apply to the employees of the exempted establishments in the same manner as the employees of the regular establishments. Transfer of funds from the exempted establishments shall be in the manner as we have already directed.
(iii) The employees who had exercised option under the proviso to paragraph 11(3) of the 1995 scheme and continued to be in service as on 1st September 2014, will be guided by the amended provisions of paragraph 11(4) of the pension scheme.
(iv) The members of the scheme, who did not exercise option, as contemplated in the proviso to paragraph 11(3)of the pension scheme (as it was before the 2014 Amendment) would be entitled to exercise option under paragraph 11(4) of the post amendment scheme. Their right to exercise option before 1st September 2014 stands crystalised in the judgment of this Court in the case of R.C. Gupta (supra). The scheme as it stood before 1st September 2014 did not provide for any cutoff date and thus those members shall be entitled to exercise option in terms of paragraph 11(4) of the scheme, as it stands at present. Their exercise of option shall be in the nature of joint options covering pre-amended paragraph 11(3) as also the amended paragraph 11(4) of the pension scheme.
There was uncertainty as regards validity of the post amendment scheme, which was quashed by the aforesaid judgments of the three High Courts. Thus, all the employees who did not exercise option but were entitled to do so but could not due to the interpretation on cut-off date by the authorities, ought to be given a further chance to exercise their option. Time to exercise option under paragraph 11(4) of the scheme, under these circumstances, shall stand extended by a further period of four months. We are giving this direction in exercise of our jurisdiction under Article 142 of the Constitution of India.
Rest of the requirements as per the amended provision shall be complied with.
(v) The employees who had retired prior to 1st September 2014 without exercising any option under paragraph 11(3) of the pre-amendment scheme have already exited from the membership thereof. They would not be entitled to the benefit of this judgment.
(vi) The employees who have retired before 1st September 2014 upon exercising option under paragraph 11(3) of the 1995 scheme shall be covered by the provisions of the paragraph 11(3) of the pension scheme as it stood prior to the amendment
Amendments to the Employees' Pension Scheme cannot impose retrospective cut-off dates for exercising pension options, affirming beneficiaries' rights established prior to amendments.
The Supreme Court affirmed the validity of the amended pension scheme, allowing employees to exercise options under the new provisions, and directed timely processing of Joint Option Forms.
Employees of exempted establishments are entitled to pension benefits under the EPS 1995 based on actual salary, as clarified by the Supreme Court.
The amended pension scheme applies to all eligible employees, allowing those who did not exercise options before 1st September 2014 to do so, with a time extension granted for compliance.
The court affirmed the validity of the amended pension scheme, allowing employees to exercise options under new provisions and extended the time frame for compliance.
Retired employees must exercise necessary options under the EPF Scheme to claim pensions based on actual salary; failure to do so limits pension to statutory ceiling.
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