Different Pensions EPFO Employees Can Receive: Terms and Conditions Explained

The Employees’ Provident Fund Organization (EPFO) introduced the Employees’ Pension Scheme (EPS) in 1995 to provide pension benefits to employees in the organized sector. This scheme offers multiple types of pensions depending on different conditions. Let’s explore the various types of pensions available under EPS-95 and the rules associated with them. (Different Pensions EPFO Employees)

Overview of the Employees’ Pension Scheme (EPS-95)

The EPS-95 scheme was launched by EPFO in 1995 and is applicable to employees working in the organized sector in India. Under this scheme, both the employee and the employer contribute to the EPF account, with a portion of the employer’s contribution going towards the pension fund. Specifically, 12% of the employee’s salary is contributed to the EPF, and the employer contributes an equivalent amount. Out of the employer’s contribution, 8.33% goes into the EPS (pension fund), while 3.67% is added to the employee’s EPF account.

Eligibility Criteria for Pension under EPS-95

To be eligible for a pension under EPS-95, an employee must either reach the age of 58 or complete at least 10 years of service in an organization. Once these conditions are met, the employee becomes entitled to receive a pension. There are six types of pensions available under EPS-95, each designed to cater to different circumstances.

Types of Pensions under EPS-95

1. Superannuation Pension

Superannuation Pension is applicable to employees who have worked for at least 10 years in the organized sector and retire after reaching the age of 58. This type of pension ensures that the employee receives a regular pension after retirement.

2. Early Pension

If an employee has completed 10 years of service but decides to retire before reaching the age of 58, they are eligible for Early Pension. This option allows employees to receive pension benefits even if they retire early or stop working before the standard retirement age.

3. Disability Pension

Under EPS-95, if an employee becomes permanently or fully disabled while working, they are entitled to receive Disability Pension. This pension provides financial assistance to employees who can no longer work due to their disability.

4. Widow and Children Pension

In the unfortunate event of an EPFO member’s death, the Widow and Children Pension provides financial support to the deceased member’s spouse and children. The spouse receives a monthly pension, and up to two children are eligible to receive a pension until they reach the age of 25. This ensures that the family’s financial needs are taken care of, and the children can continue their education and upbringing.

5. Orphan Pension

If both parents of a child pass away, the Orphan Pension comes into effect. Under this provision, the children of the deceased EPFO member receive a monthly pension. This helps to secure the financial future of the children in the absence of their parents.

6. Nominee Pension

In cases where an EPFO member has no spouse or children, the Nominee Pension is provided to the person nominated by the member. This could be the member’s parents or any other person nominated by them. If both parents are nominated, they receive half of the pension amount each. If only one parent is nominated, they receive the entire pension.

Conclusion

The Employees’ Pension Scheme (EPS-95) offers a variety of pension options to support employees and their families in different life situations. By understanding the rules and eligibility criteria for each type of pension, employees can better plan their financial future and ensure that they or their loved ones are adequately protected.

So, in today’s article, we explored the EPFO Employees Pensions . If you found this article helpful in any way, please let us know in the comments. And for more information on Utility News, be sure to follow CNA Times.

Praveen Kumar

I am Praveen Kumar, a 21-year-old passionate about writing and staying informed. On CNA Times, I bring the latest news and updates, offering readers accurate and insightful information with my expertise and dedication.