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Employees Pension Scheme : Eligibility required to get pension under EPF 95 scheme operated by EPFO. How many types of pensions are available? Let's know what rules should be followed for private employees to get pension under this scheme.  

 

Employees' Pension Scheme: Employee Provident Fund Organization (EPFO) provides pension to employees of private and public sector organizations after completing 58 years of age EPS 95 pension scheme. The Employee Pension Scheme 1995 (EPS 95) introduced on November 19, 1995 is a social security scheme intended to meet the retirement needs of employees in the organized sector. The scheme run by EPFO ​​provides pension guarantee to eligible employees who reach the age of 58 years. EPS 95 is a component of Provident Fund. Under this scheme, every month the employee pays basic pay, dearness allowance plus 12 percent of the employee's salary, employer's contribution and employee's contribution to the EPF. Out of which 3.67 percent goes directly to EPF every month under employee contribution. 8.33% of the employer's contribution is earmarked for Employees' Pension Scheme (EPS). Pension is available from this fund. 

Various schemes are available under EPS 95 pension:

Retirement Pension: 

If a member completes 10 years of qualifying service and retires at the age of 58 years or above, the employee is entitled to superannuation pension.

Widow Pension: 

EPS 95 grants pension amount to eligible widows under the scheme. In case of death of the pensioner the wife as a nominee is entitled to get pension. 

Orphan Pension: 

If the mother or father of the deceased employee's child is also deceased, both the children will be entitled to monthly orphan pension of 75% of the pension value. 

Early Pension:

An Employee Provident Fund Organization (EPFO) member who has completed at least 10 years of service and is between 50 - 58 years of age is eligible to withdraw early pension. 

These are the qualifications..

-In order to avail pension, individuals must be members of EPFO. 

- To be eligible for service pension, a person should have served at least 10 years. Standard retirement age for normal pension is 58 years; However, early retirement can entitle you to a reduced rate of pension.

- Those who wish to start their pension from the age of 60 will benefit from an additional 4 percent increment annually. In cases where a person has not completed the full 10-year service requirement but has served at least 6 months, they can withdraw their Employees' Pension Scheme (EPS) amount if they are unemployed for more than 2 months.

- If an employee is totally and permanently disabled, they are entitled to monthly pension even if they have not completed the period of pensionable service.

- Further, in the unfortunate event of death of an employee during service, their family members are entitled to pension benefits.

EPF Pension Rules:

1. Employees of private and public sector organizations working in an organized organization can enroll in this scheme. 

2. Employers must make the contribution on behalf of the employee within 15 days of every month. 

3. If an employee dies and the widowed spouse remarries, the pension benefits are transferred to the children. 

4. Employee contribution includes basic salary, dearness allowance, cash value of food concessions, retaining allowance. 

5. Online transfer of EPS is possible. Family members can claim EPS benefits by submitting various forms. 

6. To check amount in EPS account, information can be obtained through EPF Passbook portal.  

7. While changing between job positions, submission of Form 11, Form 13 is mandatory