Kerala High Court Shocker

This is from the Pen of Narayana Gupta, EPS 95 Pension Analyst from Telangana

*EPFO IS MIS GUIDING THE HIGH COURTS AND SUPREME COURT IN RESPECT OF PRE 01 09 14 RETIREES.*
*AN ANALYSIS BY*
*G NARAYANA*
*A CLARIFICATION FOR PARA 44 V OF SUPREME COURT JUDGEMENT DATED 04 11 22.*
*PART II*
*Some important Contents of Kerala High court judgement dated 12/10/2018 in WPC no 13120 of 2015 which was the basis of Review Petition in Supreme court*

*PAGE 15 PARA I*

*They (petitioners) are also aggrieved by the changes brought about by the employees pension amendment scheme 2014. According to them the provisions of the said amended scheme drastically reduced the pension payable to them. In many of the writ petitions the validity of the amendments have been challenged.*

In the very first para of the judgement it is very clear that, in this petition the amendments have been challenged.

PARA NO 2 OF PAGE 15.

*The main question that arises for consideration here is whether the provisions of the employees pension scheme 1995 and employees pension amendment scheme 2014 are valid and sustainable or not.*

In this para the question before judges is the amendments are in accordance with the original EPS pension scheme 1995 or not. Which further means whether the amendments are valid or not.?

*PARA 38 PAGE 75*

*As rightly contended by the counsel appearing for the petitioners the effect of amendments to the pension scheme is to create different classes of pensioners on the basis of date 01 09 14, the date on which amended scheme came in to force. Consequently there would be -*

*1) The employees who exercised option under para 11 3 and continued in service on 01 09 14.*

*2) The employees who have not exercised option under para 11 3 and continued in service on 01 09 14.*

*3) The employees who have retired prior to 01 09 14 without exercising option under para 11 3.*

*4) The employees who have retired prior to 01 09 14 after exercising the option under para 11 3.*

*As per this para it is clear that these four clases of employees will be effected by the employees pension amendment scheme 2014.*

*Even though it is mentioned as retired prior to 01 09 14 in para 3 and 4 , the normal retirees prior to 01 09 14 retirees will not be effected by the employees pension amendment scheme 2014, but those who have to be retired on or after 01 09 14 but retired prior to 01 09 14 will only be effected by the amendment.*

*FINAL VERDICT.*

*For the foregoing reasons, the petitioners are entitled to succeed. The writ petitions are allowed as follows:*

*1) The employees pension amendment scheme 2014 brought into force by notification no. GSR NO 609 E Dated 22 08 14 evidenced by ext. P8 in WPC no 13120 of 2015 is set aside*

*ii) All consequential orders and proceedings issued by the Provident Fund authorities/respondents on the basis of the impugned amendments shall also set aside.*

*iii) The various proceedings issued by the EPFO declining to grant opportunities to the petitioners to exercise a joint option along with other employees to remit contributions to the employees pension scheme on the basis of actual salaries drawn by them are set aside.*

*iv) The employees shall be entitled to excercise the option stipulated by paragraph 26 of the EPF scheme without being restricted in doing so by the insistence on a date.*

The above verdict in brief is –

The employees pension amendment scheme 2014 is set aside.

All the proceedings issued on the basis of the Amendment are set aside.

All the proceedings issued by EPFO declining to grant opportunities are set aside.

The employees shall be entitled to excercise the option as per para 26 without reference to a date.

All the judgement is regarding amendment only.

*The importance of the judgement.*

*The prayer is against the Employees pension amendment scheme 2014.*

*The question before the judges is whether the employees pension amendment scheme 2014 is vaid or not.*

*The judgement set aside Pension Amendment scheme 2014 and all corresponding proceedings.*

*The employees allowed to opt for pension scheme as per EPS 95 scheme without restrictions and as per para 26 of the scheme.*

*Hence Kerala High court judgement is regarding validity of the Amendment only which is applicable to post 01 09 14 retirees but not for pre 01 09 14 retirees.*

WATCH FOR ANALYSIS PART III.
WILL BE PUBLISHED SHORTLY

Thank you.

G Narayana

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