Madhya Pradesh High Court directs EPFO to consider higher pension claims in line with Supreme Court ruling

On 11 August 2023, the Madhya Pradesh High Court at Gwalior, Anil Mehra v. Employees Provident Fund Organization & Ors., addressed the issue of entitlement to higher pension under the Employees’ Pension Scheme, 1995 (“EPS”). The petitioner, a retired employee, had approached the court seeking higher pension benefits based on actual salary contributions rather than the statutory wage ceiling.

The court observed that the question raised was already settled by the Supreme Court in EPFO & Anr. v. Sunil Kumar B. & Ors, the apex court upheld the 2014 amendment to the EPS but also issued detailed directions clarifying eligibility for higher pension, the exercise of joint options, the rights of employees who had retired before and after 1 September 2014, and the invalidity of the additional 1.16% employee contribution requirement.

Relying on those directions, the High Court disposed of the writ petition with instructions to the competent authority to decide the petitioner’s claim for higher pension strictly in accordance with the Supreme Court’s ruling. The court directed that the exercise be completed within two months of receiving a certified copy of the order.

This order reinforces that higher pension claims under EPS must now be examined in line with the Supreme Court’s framework, ensuring consistency across cases. For pensioners and establishments alike, the judgment highlights the importance of compliance with the clarified option timelines and contribution requirements under the 2014 EPS amendment.