What is EPS-95? Who is eligibile for it and what advantages does it have?
The Employees’ Provident Fund Organisation (EPFO) on Monday allowed the withdrawal of accumulations in Employees’ Pension Scheme (EPS-95) for subscribers who’ve lower than six months of service left. Earlier, the EPFO members with lower than six months left in service had been allowed to withdraw the accumulations of their Employees’ Provident Fund (EPF) account solely.
What is EPS?
Employees’ Pension Scheme 1995 or EPS-95 is a social safety scheme which was launched in November 19, 1995 by the EPFO. The scheme entitles the staff working within the organised sector for a pension after their retirement on the age of 58 years.
Who is eligible for EPS?
All workers who’re eligible for the EPF scheme are be eligible for EPS nonetheless, the advantages of the EPS might be availed provided that the worker has been in service for at the very least 10 years (this doesn’t should be steady service). The scheme’s advantages can be found to each current in addition to new EPF members.
Who contributes to EPS?
Both the worker and the employer contribute 12 per cent of the worker’s primary wage and Dearness Allowance (DA) to the EPF. While the whole portion of worker’s contribution goes to EPF, the employer’s contribution goes to EPS at a charge of 8.33 per cent.
What are the advantages underneath EPS?
Pension on retirement on the age of 58 years
An EPS member turns into eligible for pension as soon as they retire on the age of 58 years. However, it’s obligatory for them to be in service for at the very least 10 years earlier than turning 58 and availing pension advantages. An EPS Scheme Certificate is generated which can be utilized to fill Form 10D for withdrawing the month-to-month pension.
Complete withdrawal on leaving service earlier than changing into eligible for month-to-month pension
If a member is just not in a position to stay in service for 10 years earlier than turning 58 years previous, he/she will withdraw the whole sum invested to this point after turning 58 years by filling Form 10C. However, he/she is not going to get month-to-month pension advantages submit retirement.
Pension on whole disablement in the course of the service
An EPFO member who turns into disabled completely is entitled to a month-to-month pension regardless of the truth that he/she has not served the pensionable service interval. In this case, the employer has to deposit funds within the involved worker’s EPS account for at the very least one month to be eligible for the pension.
The member turns into eligible for month-to-month pension from the date of everlasting disablement and is paid for lifetime. However, the member could should endure a medical examination to find out whether or not he/she is unfit for his or her job earlier than changing into disabled.
Family pension on the loss of life of the member
A member’s household turns into eligible for the pension advantages within the following instances: 1) In case of loss of life of the member whereas in service and the employer has deposited funds in his EPS account for at the very least one month 2) In case the member has accomplished 10 years of service and dies earlier than attaining 58 years of age 3) In case of loss of life of the member after the graduation of the month-to-month pension.
