Odisha HC to PFA: Pay higher pension to CUCB employees.

Source – newindianexpress.com

CUTTACK:  The Orissa High Court has directed Provident Fund Authority (PFA) to sanction higher pension for employees of Cuttack Urban Cooperative Bank (CUCB) under Employee Pension Scheme in accordance with the Supreme Court’s judgment on October 4, 2016.

Employees of CUCB like all employees in the organised sector contribute 12 per cent of their salary to the EPF and the employer makes a matching contribution, of which 8.33 per cent goes to EPS.

In the judgment, the apex court had removed Rs 15,000 ceiling on the salary on which EPF is payable and contribution to EPS is calculated, and directed the Employees’ Provident Fund Organisation (EPFO) to revise the pension on higher wages under EPS.

The Single Judge Bench of Justice Biswanath Rath issued the direction on Wednesday, while disposing of the petition filed by CUCB Union alleging non-application of SC direction in the case of the stated bank’s employees.

Advocate Aswini Mishra had filed the petition on behalf CUCB Union represented by its secretary Sagar Kesari Nayak. The petition had alleged inaction of Provident Fund Authority in revising the pension on higher wages under EPS in the case of CUCB Union members despite four letters from the Chief Executive of the bank with regard to it.

The court could not proceed with the petition for over a year as the Provident Fund Authority did not file any counter affidavit. Taking note of the pendency of the applications of the Union members with the Provident Fund Authority, Justice Rath disposed of the petition on Wednesday with the direction.

Justice Rath directed the Central Provident Fund Commissioner and Regional Provident Fund Commissioner Employees Provident Fund Organisation to take decision on the pending applications of CUCB Union members “within a period of six weeks”.

In his order, Justice Rath further specified that “while taking decision, the Provident Fund Authority shall also take into account the decision of the Supreme Court in the case of RC Gupta & Others etc versus Regional Provident Fund Commissioner Employees Provident Fund Organisation and others etc on October 4, 2016”.