Learn about the EPS 95, or How to apply EPFO Member Pension Scheme, its eligibility criteria, calculation methods, and the benefits it offers. Discover How to calculate Pension benefits and ensure financial security in retirement. All employees eligible for the EPF Scheme automatically qualify for EPS.
Introduction and What is Employee Pension Scheme (EPS)?
EPFO - Employee Provident Fund Organization, started its Employee Pension Scheme on 16 November 1995. It replaced the Family Pension Scheme 1971.
In the Family Pension Scheme, where the family used to get pension only on the death of the member, in the new scheme, provision has been made to give pension to the member as well. Apart from the member, there is a provision to give pension to the family and nominee as well.
Eligibility for Employee Pension Scheme 95?
According to the provisions of the scheme, a member of the pension scheme becomes entitled to pension on completion of 10 years of contributory membership and he/she can take pension on completion of 58 years of age whether he is retired from his institution or not i.e. on completion of 58 years of age and 10 years of membership, any member becomes entitled to pension. One can get pension even while working.
Early Pension to EPF member at Reduced Rates
Apart from this, if a member leaves the job after completing the age of 50 years, then he also becomes eligible to get pension at a reduced rate provided the period of membership is at least 10 years. Pension is calculated on a pro-rata basis on the pensionable service of the member i.e. the number of years he has contributed to the pension fund and the average salary of 60 months before retirement.
How to Calculate Your EPS 95 Pension?
If you want to know how much pension you will get, then you can go to EPFO Official website www.epfindia.gov.in and click on the end pension calculator available in the online services box on the left side.
A new screen will open where you can know how to use this calculator and by clicking on the tab given on the left, you can reach the home page of pension calculator. Here you access the Employee Pension Scheme Calculator by clicking on the pension calculator tab given above. In this process, you can calculate your pension by entering your details.
Rs. 15000 x 8.33/100 = Rs. 1250
Bonus for Extended Service
If the pensionable service of a member is 20 years or more, then he is also given a bonus of two years. Generally, pension is given to the members on completion of 58 years, but if a member retires after completing 50 years of age and before completing 58 years, then he can take pension at reduced rates. The pension will be reduced by 4% per annum according to the number of years less than 58 years of age.
Postponing Pension
If a member wants, he can postpone the pension after 58 years till the age of 60 years. In such a case, he will get pension at 4% at the age of 59 years and 8% at the age of 60 years. If 10 years of pensionable service has been completed and the member is still in service after 58 years, then he can continue contributing to the pension fund till the age of 60 years. In such a situation, service and salary after 58 years are also taken into account for calculating his pension.
Eligibility criteria applicable to EPS
- All the members of EPF are eligible to this EPS plan and avail benefits from EPFO.
- To receive the early pension you must be at least 50 years old and to receive the ordinary pension you must be 58 years old.
- You must complete at least 10 years of service to enjoy EPS benefits.
Types of pensions in the Employee pension scheme
The EPS 95 pension plan offers (Employee Benefits from EPFO) various pensions, including widow, child and orphan pensions, which provide support to the deceased member's family.
Pension for children
- Surviving children receive, in addition to the monthly widow's pension, a child's pension until they reach the age of 25. The amount amounts to 25% of the widow's pension and a maximum of two children can benefit from this benefit.
Widow's pension
- Widows are entitled to receive a pension under Widow's Pension or Vridha, which continues until their death or remarriage. If there are several widows, the pension is paid to the oldest widow.
Reduced pension
- If an EPFO member completes 10 years of service and is between the ages of 50 and 58, she can opt for early retirement. However, if the member is under 58 years old, the pension amount is reduced by 4% for each year.
Pension for orphans
- If the insured dies without a surviving widow, his children can receive a monthly orphan's pension, equal to 75% of the monthly value of the widow's pension. Up to 2 children can benefit from the orphan's pension.
Types of EPS Pension Schemes in India
- Form 10C: Used to withdraw funds before completing 10 years of service.
- Form 10D: It is used for withdrawal of monthly pension after 50 years of age and for other pensions like widow's monthly pension, child pension, etc.
- Certificate of Not Re-marriage: Used to declare that the widow/widower has not remarried.
Conclusion: So this was the information about member pension, hope you found the information useful. The Employee Pension Scheme (EPS) guarantees pensions to workers in the organized sector based on years of service and contributions, giving them financial stability after retirement. Employees can safeguard their future by making educated decisions if they are aware of the types of pensions offered under EPS and the eligibility requirements for each.
