EPS 2026: Will removal of higher pension options hit retirees?

Key Highlights

• The Central Board of Trustees of the Employees’ Provident Fund Organisation (EPFO) recently approved EPS 2026, which removes the provision allowing members to opt for higher pension.
• When read alongside the clarification that pension will be calculated as per the scheme in force at the time of retirement, this has intensified concerns. Also ReadHigher PF pension: Centre takes U-turn, justifies EPFO’s controversial pro-rata methodNew EPFO amnesty scheme approved—how it could affect employees and trusts Will higher pension be denied?
• The key concern is whether the EPFO may invoke provisions in the new scheme to deny higher pension to EPF members who were in service as on September 1, 2014, and who retire after April 1, 2026, despite the Supreme Court having upheld their right to opt for higher pension.
• The new scheme omits Paragraph 11(4) of EPS 1995, which allowed members to contribute on higher wages for enhanced pension.
• Although the option window has now been closed, uncertainty remains over whether those who had already applied could be denied higher pension.