Retired AAI staff seek refund of excess pension contributions withheld by EPFO

A total of 1,513 retired employees of the Airports Authority of India (AAI), from across the country are running from pillar to post seeking the refund of excess contributions they made to the pension fund, said Vishnu Swarup Singh V and B. R. Raman, retired employees of the AAI in a statement.

The employees of AAI, a Central Public Sector Undertaking (CPSU), are covered under the EPS-95 Pension Scheme of the Government of India (GOI), which is managed by the Employees Provident Fund Organisation (EPFO). Since the adoption of the scheme by the organisation in 1995, employees had the option to either opt for pension on higher wages or ceiling wages, said Vishnu Swarup Singh.

Based on the Gazette Notification no. 609 (E) dated 22.08.2014, the 1,513 employees of AAI exercised the option for shift over from pension on full pay to ceiling pay, with the assurance as notified in the gazette that “the contributions to the pension fund made over and above the ceiling pay in respect of the member shall be diverted to the PF account of the member along with interest as declared under the Employees Provident Fund Scheme from time to time.”

As a result of this change in option, based on the gazette notification, there has been excess remittance of contribution to pension fund maintained by the EPFO, for the period from 1995 to 2014 and the amount is legitimately due for repayment to members with interest till the date of settlement.

Twelve years have passed and the EPFO has not refunded the excess contributions with interest as notified in the Ministry of Labour and Employment (MoLE) gazette notification. Many employees have superannuated and are drawing an average monthly pension of ₹4,000 fixed on the basis of ceiling pay and few of the 1,513 have expired. The EPFO had replied to RTI queries that the refund is under process subject to reconciliation of accounts. EPFO issued PPO’s and is paying monthly pension to these people, they say.