EPS-95 Higher Pension 2026: New Breakthrough for PSU Retirees & Supreme Court Finality

New Delhi: The long-standing battle for a dignified retirement has reached a critical milestone in 2026. Following the landmark 2022 judgment, the Employees' Provident Fund Organisation (EPFO) has finally stabilized the digital infrastructure required for thousands of PSU retirees to transition to the "Higher Pension" bracket.

1. The 2026 Supreme Court Stance: Finality on Arrears

The Supreme Court of India, in recent hearings, has dismissed several curative petitions seeking to overturn the higher pension eligibility.

The Ruling: The Court reaffirmed that employees who were in service prior to September 1, 2014, and continued thereafter, are entitled to pension based on actual salary rather than the statutory ceiling (₹15,000).
Fresh Mandate: The Court has directed the EPFO to expedite the "Demand Notices" for retirees, ensuring that those who have opted for the switch receive their revised PPOs (Pension Payment Orders) without further bureaucratic delay.

2. The "New Contribution Link" for PSU Retirees

In a move to simplify the process, the EPFO has launched a Dedicated Contribution Portal (2026 Version) specifically for PSU employees.

What’s New? The link now includes an Auto-Calculator that pulls salary data directly from the employer’s historical records (Form 3A/7A).
The Goal: It allows retirees to see the exact amount they need to transfer from their Provident Fund (PF) to the Pension Fund (EPS) to bridge the gap in contributions.

3. The Math: 1.16% Additional Contribution

A major point of clarity in 2026 is the 1.16% additional contribution.

As per the Court's directive, this additional burden is not to be borne by the employee directly. Instead, it is being adjusted from the employer's 12% contribution to the PF.
This ensures that the transition to a higher pension does not require a fresh "out-of-pocket" cash payment for most retirees.

EPS-95 Higher Pension Summary Table

Feature	Current 2026 Status
Eligibility	Employees in service post-Sept 1, 2014, with valid options.
Salary Base	Actual Basic + DA (No longer capped at ₹15,000).
Contribution Link	Active for "Demand Notice" payments and adjustments.
Processing Time	60–90 days from the date of online application.
Supreme Court Status	Petitions for further review dismissed; implementation mandatory.

Key Steps for PSU Retirees Now

Check Portal Status: Access the EPFO Unified Portal and use your UAN to see if your "Joint Option" has been verified by the Regional Office (RO).
Verify Demand Notice: Once the RO verifies the data, a "Demand Notice" will be uploaded. This specifies how much money will be shifted from your PF to the EPS pool.
The Revised PPO: After the transfer, the EPFO issues a revised PPO. Retirees are seeing an average increase of 150% to 300% in their monthly pension amounts depending on their last-drawn salary.

Important Note: For many PSU retirees, the "arrears" (the back-dated pension from the date of retirement) are being adjusted against the contribution shortfall, often resulting in a Zero-Cash-Outflow transition.