In a significant development, the Kerala High Court has issued an interim order directing the Employees Provident Fund Organisation (EPFO) not to reduce the higher pension drawn by specific retirees from Travancore Titanium. The decision was delivered by Justice Murali Purushothaman in response to a writ petition filed by 41 pensioners.

Background of the Case

The dispute arose when EPFO sent notices to these pensioners, stating that their pensions were revised under the pro-rata method introduced in the 2014 amendment. This amendment was upheld by the Supreme Court in the case of Employees Provident Fund Organisation and Another v. Sunil Kumar B. & Others (2022). The employees were further instructed to refund the excess amount they had received.

However, the petitioners argued that they had opted for a higher pension based on their actual salary. They cited paragraph 11(4) of the Employees' Pension Scheme, 1995, which allowed members as of September 1, 2014, to continue contributing based on a salary exceeding ₹15,000 per month. They contended that this provision did not mandate a pro-rata pension calculation.

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1. The High Court issued an interim order restraining EPFO from reducing the higher pension of the petitioners.
2. Justice Murali Purushothaman stated that the pensioners should continue receiving their original pension amount.
3. The court found no directive in the Supreme Court’s ruling mandating a pro-rata pension for employees contributing on actual salaries.
4. The matter is set for the next hearing on March 27, 2025.

Legal Precedents and References

The petitioners relied on multiple legal references, including:

• Sasikumar v. Union of India (2019)
• Employees Provident Fund Organisation v. Sunil Kumar B. & Others (2022)
• Various notifications, orders, and circulars from EPFO concerning pension calculations.

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This interim relief is a crucial win for retirees who have been receiving a higher pension based on their contributions. If EPFO had implemented the revised calculation, many pensioners would have faced substantial financial losses.

• The Kerala High Court will review the matter on March 27, 2025.
• The decision may set a precedent for similar cases across India.
• If upheld in the final judgment, it could impact pension calculations for thousands of retirees.

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The Kerala High Court's order provides temporary relief to pensioners while raising critical questions about the interpretation of pension rules. The final outcome of this case will have far-reaching effects on EPFO policies and the retirement benefits of numerous employees.