EPS 95, or Employee Pension Scheme, is a social security programme launched on November 16, 1995, under Section 6A of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It provides all private-sector employees a fixed pension upon reaching the retirement age of 58. The
Employees’ Provident Fund Organisation (EPFO) manages and implements this scheme. Anyone enrolled in EPF is automatically eligible for EPS 95. Know All The Types of EPF.
Also Read: What Is Gruha Lakshmi Scheme And Where Is It Implemented? All You Need To Know EPS benefits apply to all members. Under the scheme, 12 per cent of the employee’s monthly basic salary and the dearness allowance are contributed to this scheme. The pensionable salary and the pensionable service are the two major factors upon which the pension amount is decided. The pensionable wage means the average monthly salary an individual receives in the last 5 years before retiring, whereas pensionable service is the actual service period of an employee.
Eligibility-
- The person must be a member of the EPFO
- The person must reach the retirement age of at least 58.
- They must be at least 50 years old for early pension at a reduced rate.
- The person must complete 10 years of service.
- An employee can withdraw the EPS amount on the grounds of unemployment for over two months if they have completed more than six months of service.
- Upon the death of the EPS member while in service, his/her family can avail of the pension benefits.
- If the employee becomes permanently disabled.
Here are 6 types of pensions EPS 95 offers for financial security of the members:
Early Pension
If a person renders service for 10 years or more and is over 50 years old but retires before reaching the age of 58, they become entitled to receive an early pension under EPS. The only downside is that the individual gets the pension at a reduced rate; every year the amount is lowered by 4 per cent.
Superannuation Pension
This pension can be availed by an individual who has served for at least 10 years and retires at 58 or above.
Widow and Children’s Pension
Under the Vridha pension, the widow/widower is eligible for a monthly pension until death or remarriage upon the member’s death. If there is more than one widow, the eldest would receive the pension. The children are also eligible for a pension, in addition to the widow pension, in case of the member’s death, until they reach 25. A maximum of two children can avail of the benefits, 25 per cent of the widow’s pension.
Orphan Pension
If the surviving children of the deceased member have only one living parent, they can also receive a monthly orphan pension equivalent to 75 per cent of the monthly widow pension. Only two children are supported with this pension.
Nominee Pension
As all employees who have enrolled for EPF are already entitled to receive a pension under EPS 95, the nominee for the PF account will be eligible to receive the EPS pension amount upon the death of the EPFO member.
Also Read: Self-Doubt Could Be A Sign Of Imposter Syndrome That Can Affect Financial Decisions; Here’s How To Avoid It?Disablement Pension
If an employee becomes permanently and totally disabled while in service, they become entitled to receive a monthly pension starting from the date of disability until their death. It does not matter whether they have served for a full pensionable period.
