In the face of various legal disputes on the issue of calculating “pensionable service”, retirement fund body EPFO has issued a circular to all its offices on granting the benefit of two years service weightage to members who have completed 20 or more years under EPS 1995 and FPS 1971, even for cases that have been settled.
In a circular dated July 22, 2016, the Employees Provident Fund Organisation (EPFO) said the Labour Ministry had accepted its proposal to grant two years’ weightage to pensioners. As per the consent given by the Labour Ministry in its communication dated July 6, 2016, “benefit of two years weightage to the members under Employee Pension Scheme, 1995, with membership of 20 years or more… combined with membership period under erstwhile Family Pension Scheme, 1971 should be taken into account.”
EPFO has, therefore, asked all its regional offices to file reply/report of compliance on all forums of dispute on the issue.
“It is decided that for granting the benefit of two years’ weightage, henceforth as well as for cases settled, pensionable service will include services rendered under EPS 1995 as well as erstwhile Family Pension Scheme 1971 to fulfil the condition of 20 years or more of pensionable service,” says the circular.
Court cases As per the norms, EPFO members who have completed 20 years of pensionable service get two years in addition to the number of years in service on superannuation.
However, several disputes have cropped up in courts, contesting retirement calculations made by various organisations, including in some cases related to those who had opted for voluntary retirement.