To,

 Shri Bandaru Dattatreya,                     Date: 27-06-2017                                        

Hon’ble Minister of State

(Independent Charge)

Labour & Employment

Government of India

Shram Shakti Bhawan

New Delhi-110119

   

 

         

 

 

                                                                     

   Sub: As Welfare measure for pensioners, request to issue implementation orders in accordance with SC judgment.

 Respected Sir,

I would like draw your kind attention to letter: EPFO H O Delhi letter No: pension-I//12/33/EPS Amendment/96 Vol.II/4432 dated 31-05-2017 Issued by Mukesh Kumar Regional PF Commissioner-I (Pension)

 Contents of letter are totally contradictory and contrary to SC order, CBT decision, Implementation order issued by EPFO Delhi vide letter no. Pension-I/12/33/EPS-Amendment/96/vol.II/34007 dated 23rd March 2017 issued by Dr.S K Thakur Addl.Cental PF Commissioner HQ (Pension).

He has written to all Incharge of field offices directing to take necessary action accordingly in accordance with order of SC in SLP Nos.33032-33033 of 2015 as approved by the Government.  

The MOL&E has in letter dated 16th March 2017 has conveyed its approval allowing members of EPS-1995 to get benefit pension on higher salary

Your Letter no D.O.Z-13011/30/2016-SS-II dated 25th April 2017 addressed to Dr.Dharam Vira Gandhi, Lok Sabha MP in which you have conveyed to EPFO the approval of the competent authority

It is not understood the reason for sudden twist & U turn by EPFO.  There is no reference whatsoever regarding issue of Exempted or Unexempted status in SC judgment. Hence EPFO letter is misinterpretation of SC judgment. EPFO is not honoring SC order and making deliberate attempt for denying enhanced monthly pension to pensioners.

Further it is pointed out that Exemption status in all most all CPSE for is EPS Unexempted Therefore contributions under EPS scheme are remitted to EPFO. That is very reason why members EPS 1995 are getting monthly from EPFO hence are eligible for revision & enhancement of monthly pension.

Why & How SC order can be implemented?

In this regard SC order dated 31-03-2016 and 12-07-2016 are to be kept in view because Apex court did not find any legal and valid ground for interference. Brief reference of SLP shown below

SLP(C) 7074 of 2014 RPFC & Anr. Vs. A. Majeed Kunju & Ors. along with several other SLP’s 7075/2014, 7076/2014, 7107/2014, 7108/2014, 7224/2014 and 697/2016 decided on 31-03-2016 ( Arising out of judgment & order dated 5-3-2013 WA no 1135 of 2012 passed by High court of Kerala at Ernakulum) and

SLP(C) 19954 0f 2015 RPFC & Anr. Vs. Austin Joseph C & others decided on 12-7-2016 (Arising out of judgment & order dated 17-10-2014 in WA no 1362 of 2014 passed by the High court of Kerala at Ernakulum)Wherein the Apex court has held that” We do not find any legal and valid ground for interference. The special Leave Petitions are dismissed”

 Civil Appeal No(S).10013-10014 of 2016(Arising out of SLP(C) Nos.33032-33033 of 2015) in R.C.Gupta & others case was decided in favour of EPS 1995 members by SC on 4th October 2016

Refer point no 10, 11 12 of SC judgment is very clear & I quote from SC judgment from page no 8” At the best what PF commissioner could do in case of an adjustment of accounts which would have benefited some employees which we permit him………………..once such return is made in whichever case such case due, consequential benefit in terms of this order will be granted to said employees”

SC judgment is clearly states that employees are permitted for consequential benefits. Further there is no mention or reference regarding establishment having exempted trust and other issues.

215th CBT Meeting held at Bengaluru on 19th December 2016

The 215th meeting of the Central Board (EPF) was held under the Chairmanship of Shri Bandaru

Dattatray, Chairman Central Board (EPF) and Union Minister of Labour & Employment for considering

 Implementation of Supreme Court Orders

It was noted that the proposal was examined by the Pension Implementation Committee and recommended. The proposal as contained in the agenda was approved and recommended by the Board to the Government.

The department had filed more than 10 SLPs before the Hon’ble Supreme Court against the orders passed by Hon’ble High Courts. The same have been dismissed by Hon’ble Supreme Court stating that “We do not find any legal and valid ground for interference; the special leave petitions are dismissed.”

EPFO has informed government in its proposal dated 5-1-2017 that the financial liability in implementation of Hon’ble Supreme court order will be met from the pension fund (Ref no UO.No.pension-I/12/33EPS Amendment/96vol.II/1839 dated 5-1-2017)

In important judgment of the Apex court civil no 1123 of 2015 arising out of SLP(C) 321 of 2015 decided on 1-7-2015 (D S Nakra Vs Union of India) stated in Para 19 that “pension is not bounty” and Para 20 states “It is duty of government to avoid unwarranted litigation and not to encourage litigation for the sake of litigation”

EPFO has implemented court order dated 28-10-2015 in WA no 2299/2015 WP(C) no 10401/2015  of Hon’ble High court of Kerala in CPSE Instrumentation Ltd at Kozhikode vide letter no KK/KKD/14754/AB/5(5) 2016-17/171 dated  26-08-2016

Subsequent to SC order, High court of Kerala, Madhya Pradesh and Rajasthan have given judgment in favour of pensioners and for implementation. Details mentioned in table below.

No dearth of funds in EPFO for implementation

 Ø   EPFO is cash rich organization. Corpus as on 31-03-2015 is Rs 2,38,532 crores

Ø  contributions received during 2014-15 Rs 1,13,911 crores

Ø  Investment during 2014-15 is Rs 6,33,713 crores

Ø  Benefits paid during 2014-15 are Rs 48,016 crores.

Ø  Income for 2014-15 Rs 4904 crores

Ø  Average contribution per working day received Rs 456crores

Ø  Unclaimed pension amount with EPFO is around Rs 43000 crores.

Ø  Utilization of unclaimed for making enhanced pension is policy matter

Ø  Annual Report 2015-16 & 2017-17 not readily available.

Ø  Financial position as on 31-03-2017 will be much better & stronger than 2014-15. Hence there will not be any no paucity of funds

                                                                      Source: EPFO Annual report 2014-15

EPS- Funded Scheme

 Ø  No financial burden to EPFO

Ø  Accumulated ERC contributions and interest amount (corpus) is like a lifelong

Fixed deposit & interest earned will remain with EPFO

Ø  Monthly pension is paid out of those earnings from the age of 58 years

For life time of pensioner

Ø  There is no provision to return of capital amount /corpus to member

Ø  On death of a member 50% of monthly pension is paid to widow during her life time.

Ø  After demise of spouse, Corpus is never returned to surviving member

Of family-son/Daughter

Ø  Part of Members contribution is used to meet administrative & establishment

Cost of EPFO

 EPFO letter dated 31-05-2017 has shocked all pensioners’ community across India leading uncertainties in their mind. Further it has created unnecessary & avoidable anxiety, confusion, doubts & apprehensions among retired pensioners -senior citizens of India. 56 lakhs of pensioners across India are eagerly waiting for enhanced monthly pension with hope.

By now it is very much clear that except EPFO letter dated 31-05-2017, entire system –Judiciary, Bureaucracy, Labour Ministry are in favour of implementation. Further there is no dearth of funds

In view of the above facts, as a welfare measure, please get the implementation order issued at the earliest and earn the blessings & goodwill of 56 lakhs pensioners.

Thanking You,

With regards

Yours faithfully

 Sudhindra (Sudhir) Nanjangud

Ex-Chief Manager (F&A) ONGC Ltd Mumbai

9969221177

 nanjangud54@gmail.com

 

Parveen Kohli

GM (Retd)

Haryana Tourism Corp.

9810306699

pkkohli@gmail.com

      Chronological development in EPS Matter

(From 4-10-2016 to 31-05-2017)

                                                                                        

Date 
Event
Particulars

     4-10-2016
     SC order
 Civil Appeal No(S).10013-10014 of 2016(Arising out of SLP(C) Nos.33032-33033 of 2015) was decided in favour of EPS 1995 members by SC on 4th October 2016

 Refer point no 10, 11 12 of SC judgment is very clear & I quote from SC judgment from page no 8” At the best what PF commissioner could do in case of an adjustment of accounts which would have benefited some employees which we permit him………………..once such return is made in whichever case such case due, consequential benefit in terms of this order will be granted to said employees”

 SC judgment is clearly states that employees are permitted for consequential benefits. Further there is no mention or reference regarding establishment having exempted trust and other issues.

       8-12-2016
         Agenda points for PEIC
 The following agenda item was placed in the 38th Pension and EDLI Implementation Committee (PEIC) Meeting held on 08.12.2016.

 Agenda Item 3: Implementation of Supreme Court Orders related to Employees Pension Scheme 1995.

 The matter of determination of Pensionable salary exceeding the statutory wage ceiling and exercise of option under deleted proviso to Para 11(3) of Employees’ Pension Scheme 1995 was agitated before many High Courts. Hon’ble High Court of Kerala, in particular, had disposed the various petitions on similar line directing the EPFO that “the 8.33% of the employer’s contribution proportionate to the salary of employees in excess of Rs.6500/- shall now be credited to the pension scheme and orders passed in accordance with law. Needless to say the interest accrued in the provident fund account to that extent also will stand transferred to the pension account. The employees shall also submit joint application along with their employer wherever the same has not been done. "

 The department had filed more than 10 SLPs before the Hon’ble Supreme Court against the orders passed by Hon’ble High Courts. The same have been dismissed by Hon’ble Supreme Court stating that “We do not find any legal and valid ground for interference; the special leave petitions are dismissed.”

 C) In case of the members of exempted Establishment, they have to submit joint application with details of PF contribution and interest credited year wise to the PF Account along with calculation of year wise contribution to the EPS 1995 and interest to be paid by the employer/employees concerned and deposit the amount together with up to date interest.

 Decision Taken by PEIC

In respect of those members of Exempted Provident Fund Trusts whose contribution on higher wages has not been received by EPFO, it was decided that their cases may be examined on verification of books of record of the exempted establishment and the trust regarding compliance to Provident Fund and Pension Fund as per the provisions of the EPF Scheme 1952 and Employees’ Pension Scheme 1995 and the information may be submitted to the committee.

 Proposal:          The decision taken by the PEIC in its 38th Meeting held on 08.12.2016 as per the subject agenda item is placed before the CBT for consideration and approval.

 EMPLOYEES' PROVIDENT FUND ORGANISATION

MINUTES OF THE 215th CBT MEETING (BENGALURU: 19th December 2016: 1000 A M)

 The 215th meeting of the Central Board (EPF) was held under the Chairmanship of Shri Bandaru Dattatray, Chairman Central Board (EPF) and Union Minister of Labour & Employment.

 Item No. 8: Implementation of Supreme Court Orders related to Employees’ Pension Scheme, 1995

It was noted that the proposal was examined by the Pension Implementation Committee and recommended. The proposal as contained in the agenda was approved and recommended by the Board to the Government.

 16-03-2017
   Approval by MOL&E
    Ø  The MOL&E has in letter dated 16th March 2017 has conveyed its approval allowing members of EPS-1995 to get benefit pension on higher salary

 Ø  EPFO is also directed to ensure that the instructions(to be issued) are in accordance with the Hon’ble Supreme court order in SLP(C) Nos.33032-33033 of 2015 and as per the provision of as per the provisions of EPF& MP Act 1952 and scheme framed under

    23-03-2017
   Implementation order issued
Dr.S K Thakur Addl.Cental PF Commissioner HQ (Pension) vide letter no. Pension-I/12/33/EPS-Amendment/96/vol.II/34007 dated 23rd March 2017 has written to all Incharge of field offices directing to take necessary action accordingly in accordance with order of SC in SLP Nos.33032-33033 of 2015 as approved by the Government and as per the provisions of EPF& MP Act 1952 and scheme framed under

  25-04-2017
Labour Minister letter to MP
 Letter no D.O.Z-13011/30/2016-SS-II dated 25th April 2017 by Shri Bandaru Dattatray Minister of Labour & Employment addressed to Dr.Dharam Vira  Gandhi , Lok Sabha MP in which Minister has conveyed to EPFO the approval of the competent authority

 Favorable High court judgments

    IN THE HIGH COURT OF KERALA AT ERNAKULAM

                 IN THE HIGH COURT OF KERALA AT ERNAKULAM

THE HONORABLE MR.JUSTICE K.SURENDRA MOHAN & THE HONORABLE MRS. JUSTICE MARY JOSEPH

WEDNESDAY, THE 12TH DAY OF APRIL 2017/22ND CHAITHRA, 1939

WA.No. 451 of 2017IN WP(C).11975/2015

 [AGAINST THE JUDGMENT IN WP(C) 11975/2015 of HIGH COURT OF KERALA DATED 10-04-2015]

 JUDGMENT

K.SURENDRA MOHAN & MARY JOSEPH, JJ.

WA.No. 451 of 2017

 Dated this the 12th day of April, 2017

K.SURENDRA MOHAN, J.

1.       The issue in this case is no longer res Integra for the reason that the Employees Provident Fund Organization itself has issued a Notification, No. Pension-I/12/33/EPS Amendment/96/ Vol.II dated 23.03.2017 accepting the position that the employees are entitled to remit contribution on the basis of the actual salary drawn by them even in excess of the limit prescribed by the scheme.

2.       The provision for making a joint application by the employer and the employee for the said purpose also has been made in the said Notification.

3.       In view of the above, we find no ground to admit this writ appeal or to grant any of the reliefs sought for.

4.       Accordingly, this writ appeal is dismissed.

 K.SURENDRA MOHAN, Judge.

Mary Joseph, Judge.

MBS/

      HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT

JAIPUR

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT

JAIPUR  S.B. Civil Writ Petition No. 17639 / 2016

 HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA

 Order  dated 19/05/2017

 The petitioners are granted liberty to submit option before the Provident Fund Commissioner under Clause 11(3) of the Pension Scheme and the Provident Fund Commissioner shall thereafter release all consequential benefits accordingly in terms of and as directed by the Apex Court herein above. The exercise may be undertaken within period of two months from the date of submission of certified copy.

(SANJEEV PRAKASH SHARMA)J.

             MADHYA PRADESH HIGH COURT

Mahendra Kumar Sethi vs. Employees Provident Fund ... on 3 April, 2017

Madhya Pradesh High Court Mahendra Kumar Sethi vs. Employees Provident Fund ... on 3 April, 2017

 Writ Appeal No.188/2016& Writ Appeal No.280/2016

 03.04.2017

 On due consideration of the aforesaid, we set aside the impugned order dated 10.02.2016 passed by the learned Writ Court in Writ Petition No.7670/2014 and Writ Petition No.7814/2014 and direct respondent No.1

 - Employees Provident Fund Organization to decide the case of the appellant / writ petitioner by passing a detailed order in the light of order passed by the Apex Court on 04.10.2016 in the case of R.C. Gupta & others v. Regional Provident Fund Commissioner Employees Provident Fund Organization and others (supra) and circular issued by the Employees Provident Fund Organization on 23.03.2017 within a period of thirty days from the date of filing of the certified copy of the order and extent the benefit of arrears, if any.

     31-05-2017
   EPFO HQ clarification
 Ø  EPFO H O Delhi vide its letter No: pension-I//12/33/EPS Amendment/96 Vol.II/4432 dated 31-05-2017 issued by Mukesh Kumar Regional PF Commissioner-I (Pension)

§  Para V. of above letter reads as “In case of exempted establishment of provident fund and pension are managed by separate legal entities. The provident Fund of employee of exempted establishment are managed by Exempted Trust and pension Fund is managed by EPFO. As such adjustment of contribution from provident fund to pension account as contemplated in the judgment is not possible”

        01-06-2017
       Shock & Effect
 

Ø  It has shocked all pensioners’ community across India leading uncertainties in their mind.

 

Ø  Further it has created unnecessary & avoidable anxiety, confusion, doubts & apprehensions among retired pensioners -senior citizens of India.

 

Ø  Doubts are arising in mind whether will I get enhanced monthly pension or not? And will I get will during my life time or not etc

 

Ø  Contents of  letter dated 31-05-2017 is totally contradictory and contrary to SC order, CBT decision, Labour Ministry approval  & your own letter dated 25th April 2017 written to Dr Dharam Vira Gandhi MP Lok Sabha.

 

Ø  It is not understood the reason for sudden twist & U turn by EPFO

 27-06-2017
  Action requested
  Ø  Review letter dated 31-05-2017 issued by EPFO and instruct Central PF Commissioner to withdraw and Issue necessary clarification.

Ø  AS a welfare measure for pensioners, Implementation orders be issued in accordance with SC order without further delay and earn the blessings & goodwill of all 56 lakh pensioners

    
   Sudhindra (Sudhir) Nanjangud  

Ex-Chief Manager (F&A) ONGC Mumbai         

 9969221177                                                                                               

 nanjangud54@gmail.com                                                    

  Parveen Kohli

GM (Retd)

Haryana Tourism Corp.

9810306699

pkkohli@gmail.com