A notification by the Labour ministry on 4 Jan 2017 says, “Members and pensioners of the Employees Pension Scheme desirous of continuing to avail pension and membership to Employees Pension Scheme, are hereby required to furnish proof of possession of Aadhaar number of undergo Aadhaar authentication as per the procedure laid down by EPFO. Shall be required to make an application for Aadhaar enrollment by January 31, 2017.” For EPS Aadhaar is mandatory. Why has Government made Aadhaar mandatory? For what other things Aadhar is mandatory? What about Supreme court order on Aadhaar?
EPFO has allowed full and final withdrawal of funds by the subscribers from their pension account without providing Aadhaar number. The members with less than 10 years of service can submit a full and final settlement claim through Form 10C to withdraw the amount accumulated in their pension account. However, the members submitting claims for fixing their pensions using Form 10D would be required to submit Aadhaar number or enrolment slips.
Recent news for Aadhaar being accepted or made mandatory are
- Aadhaar Card Mandatory For JEE Main 2017 Candidates
- On 3rd Jan 2017 Any individual registered under the Mahatma Gandhi NREGA who is not yet enrolled for Aadhaar shall have to apply for Aadhaar enrolment by 31st March, 2017
- The MEA (Ministry of External Affairs) announced, on Dec, 23, 2016 that for all the applications of passport by residents of India, Aadhar card will be accepted as a valid proof of Date of Birth (DoB). However, with this announcement, eAadhar too will be acceptable for Passport application.
- Patients who show Aadhar at AIIMS (All India Institute of Medical Sciences) will have their registration charges relinquished. However, those who don’t have the Aadhar will have to pay Rs. 100, which is 10 times more than the current fee.
For EPS Aadhaar is Mandatory now
Retirement fund body EPFO has made it mandatory for its about 50 lakh pensioners and around four crore subscribers to provide either Aadhaar or a proof that they have applied for it till month-end to remain the beneficiary of its social security schemes. The ministry, while issuing the notification, said that Aadhaar as an identity document brings in transparency and efficiency for the delivery of services and benefits by the Central Government. Also, it obviates the need for producing multiple documents to prove one’s identity.
A member or a pensioner who has not enroled for the Aadhaar number yet is required to enrol for the same by Mar 31, 2017 at their nearest enrolment centres. In case of the non availabliltiy of enrolment centres, the EPFO is required to create enrolment facilities at convenient locations. Our article What is Aadhaar, How to enrol,Check Aadhaar status,Download e Aadhaar covers it in detail.
Any member or an individual who has not received the Aadhaar number or is yet to enrol for it can provide the following documents to continue to receive the benefits under the scheme:
- 1. Identity certificate issued by the employer or the Employees’ Provident Fund Organisation (EPFO) with the Universal Account Number (UAN).
- 2. Aadhaar enrolment ID of the member/pensioner or a copy of the request made for the Aadhaar enrolment.
- 3. A copy of any of the following:
(i) Voter ID card
(ii) PAN card
(iii) Passport
(iv) Driving License
(v) Certificate of the identity proof having photo of the member issued by a gazetted officer or a tehsildar on an official letterhead
(vi) Any other document specified by the Employees’ Provident Fund Organization. - The above documents will be checked by an officer specifically designated by the EPFO through its field offices and their networks.
The Centre gives Rs 850 crore every year on a tapering basis as annual budgetary support towards the pension scheme. Since the government provides a subsidy to an EPFO member, it has invoked Section 7 of the Aadhaar (Targetted Delivery of Financial and other Subsidies, Benefits and Services) Act 2016, for the purpose. Section 7 of the Act provides that where the government provides subsidy, benefit or service from Consolidated Fund of India, an individual can be asked to undergo authentication or furnish proof of possession of Aadhaar number. It also provides that where an individual to whom no Aadhaar number has been assigned, such individual can apply for enrolment.
The EPFO finds that it is highly important to seed the portable Universal PF Account Numbers issued by it, with the Aadhaar number of subscribers owing to the advantages associated with it. Some of the facilities like the settlement of PF withdrawal claims by online means, can be provided to all those members whose PF accounts are seeded with Aadhaar number. Since the biometric details of the subscribers are also linked in the process, it allows for smooth financial transactions which were once considered tedious.
The linking of Provident Fund account of an employee with their Aadhaar number can make many processes simpler and easier for them. So we would recommend our readers to link Aadhaar with PF account.
Is getting Aadhaar mandatory?
Is Aadhaar Card Mandator? This is because, the unique identification number, Aadhaar, has gained widespread use in many social welfare and beneficiary schemes in many sectors. It is the largest identity project appreciated on a worldwide basis. The potential benefits of linking Aadhaar number of residents to the various schemes comes with a huge cost but saves time for the Government.
- Aadhaar Card Mandatory For JEE Main 2017 Candidates
- On 3rd Jan 2017 Any individual registered under the Mahatma Gandhi NREGA who is not yet enrolled for Aadhaar shall have to apply for Aadhaar enrolment by 31st March, 2017
- The MEA (Ministry of External Affairs) announced, on Dec, 23, 2016 that for all the applications of passport by residents of India, Aadhar card will be accepted as a valid proof of Date of Birth (DoB). However, with this announcement, eAadhar too will be acceptable for Passport application.
- Patients who show Aadhar at AIIMS (All India Institute of Medical Sciences) will have their registration charges relinquished. However, those who don’t have the Aadhar will have to pay Rs. 100, which is 10 times more than the current fee.
On 3rd Jan 2017 Any individual registered under the Mahatma Gandhi NREGA who is not yet enrolled for Aadhaar shall have to apply for Aadhaar enrolment by 31 March, 2017, and in case she or he is entitled to obtain Aadhaar as per the provisions of section 3 of the said Act, such individuals may visit any Aadhaar enrolment centre (list available at (www.uidai.gov.in) to get enrolled for Aadhaar. The notification further provides that any person registered under MNREGA who is not yet enrolled for Aadhaar will have to apply for Aadhaar by March 31.“Not all workers have an Aadhaar number. We are not against the government’s move to link disbursement of subsidy amount with Aadhaar number but the government has given a very short notice to get enrolled under Aadhaar and it should be reviewed,” All India Trade Union Congress (AITUC) secretary D.L. Sachdev said.
As Aadhaar is being used for authenticating pensioners, they enjoy the convenience of not required to be physically present before the pension disbursing agency. The Government has launched a digital life certificate scheme for retired employees and also a fund portability scheme. The facility gives the pensioner an option to produce his/her life certificate remotely, through the Jeevan Praman Portal. Our article Pensioner’s Life Certificate and Jeevan Pramaan Certificate talks about in detail.
Now Aadhar Card can help in opening a pension account under New Pension System (NPS). With the New Pension System, if you have a bank account in one of the 22 banks empanelled with National Securities Depository Ltd. (NSDL) you can very easily register online for pension account in not more than 30 minutes.
Supreme Court and Aadhaar
What is noteworthy in this context are two interim orders passed by the Supreme Court on August 11, 2015, and October 10, 2015.
The order of August 11, 2015, states that obtaining Aadhaar shall not be mandatory. It states the following:
1. The Union of India shall give wide publicity in the electronic and print media including radio and television networks that it is not mandatory for a citizen to obtain an Aadhaar card
2. The production of an Aadhaar card will not be condition for obtaining any benefits otherwise due to a citizen;
However, the order also clarifies that Aadhaar can be “used” by the Centre for PDS scheme and LPG distribution scheme. “The Unique Identification Number or the Aadhaar card will not be used by the respondents for any purpose other than the PDS Scheme and in particular for the purpose of distribution of foodgrains, etc. and cooking fuel, such as kerosene. The Aadhaar card may also be used for the purpose of the LPG Distribution Scheme.”
The Court had allowed Centre’s plea and extended the permission to use Aadhar for MNREGA, Employees Provident Fund (under which EPS schemes are framed), National Social Assistance Programme (Old Age Pensions, Widow Pensions, Disability Pensions) and Prime Minister’s Jan Dhan Yojana.
However, both the orders, though giving permission to the Centre to use Aadhaar details for the exempted schemes, do not talk about permission to make it mandatory. In fact, both the orders spell out that Aadhaar is a voluntary scheme and it cannot be made mandatory till the matter is finally decided by the Supreme Court
Related articles:
- What is Aadhaar, How to enrol,Check Aadhaar status,Download e Aadhaar
- How to Update or Correct Details in Aadhaar
- Understanding Employee Pension Scheme or EPS
- Pensioner’s Life Certificate and Jeevan Pramaan Certificate
- JAM Trinity: Jan Dhan Yojana, Aadhaar and Mobile number
- eNPS : Open NPS account online, contribute to NPS online
Jargon JAM Trinity or Jan Dhan Yojana, Aadhar, Mobile numbers, has become the Indian’s finance buzzword. Have you linked your Aadhar with EPF? Do you think linking Aadhar with almost everything is a right idea?
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I stopped getting my pension under EPS (a peanut, not even peanuts) in Jun 2017. After reading your article, I realize it is due to their not having my Aadhar proof. Of course, EPFO can’t inform pensioners, neither personally, nor thru a press release.
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