EPFO Pension Scheme:Employees Provident Fund Organization (EPFO) provides social security to millions of employees working in the organized sector. Through this, they get benefits like provident fund, insurance and pension. After joining any company as an employee, people become members of EPFO. With this, the members become claimants to get benefits like provident fund, insurance and pension of EPFO. However, for this they have to fulfill the eligibility. Today we will learn about the pension benefits of EPFO.
EPFO provides a pension scheme for employees working in the organized sector called Employees Pension Scheme. Pension benefits are available on fulfilling the eligibility criteria of this scheme. In special circumstances, there is a provision to provide financial assistance to family members or nominees.
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It is very important to have EPFO in India because it provides financial assistance to lakhs of people after retirement or to the family members in special circumstances before that. EPFO creates Provident Fund to provide social and financial security to the employees. Talking about PF fund, it is contributed by both the company and the employee. After joining a company as an employee, he starts contributing 12 percent of his basic salary and dearness allowance and the same contribution is made by the company to the PF fund. However, the company’s contribution is divided into two accounts. Out of which 8.33 percent is deposited in the Employees Pension Scheme (EPS) i.e. pension fund and 3.67 percent goes to the Employees Provident Fund i.e. EPF.
What is Employees Pension Scheme?
Employees Pension Scheme is a pension scheme, which is managed by EPFO. EPS was launched in the year 1995. It is for employees working in the organized sector. You will get the benefit of this scheme only if your job tenure is at least 10 years. However, you will start getting this pension after completing the age of 58 years. We all know that during the job, the employee and the company make a monthly contribution to the Provident Fund i.e. PF Fund.
Employees who contribute to this PF fund are entitled to how many types of pensions after how many years of service and under what circumstances do they or their family members get the benefit of these pensions
When do private job holders get pension
To get pension under the Employees Pension Scheme, the employee has to fulfill certain criteria which are as follows
It is mandatory for any employee working in any company to be a member of EPFO.
You will get the benefit of this scheme only if your job tenure is at least 10 years.
To avail the benefit of Employees Pension Scheme, the organized sector employee must have attained the age of 58 years.
Employees can also withdraw their EPS i.e. pension amount at a lower rate after the age of 50 years.
The retirement age of the company’s employees is 58 years. After reaching the retirement age, the employees can postpone the pension for two years or till the age of 60. After doing so, they will get pension at an additional rate of 4% per annum.
Members contributing to the Employees Pension Scheme will continue to receive income through these allowances.
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There are so many types of pension for EPFO members
According to the EPFO newsletter, the Employees Pension Scheme provides various pension benefits from April 2024 to June 2024.
Superannuation Pension
Superannuation Pension: If an employee has worked for 10 years or more in the organized sector and retires after attaining the age of 58 years, he will get the benefit of superannuation pension.
Early Pension
If an employee has worked for 10 years or more and retires before attaining the age of 58 years or does not continue in the job, he is entitled to early pension.
According to EPFO rules, employees can claim early pension between 50 and 58 years before retirement. However, if an employee takes pension before 58 years, he gets less pension amount. For every year before 58 years, the pension amount will be reduced by 4%. For example, if an employee claims early pension at 56 years, he will get only 92% of the basic pension amount.
Disability Pension
Disability pension under EPS 95 provides financial assistance to members who become permanently and totally disabled during their service.
Widow and Children Pension
Widow and Children Pension i.e. widow/widower pension ensures financial assistance to the spouse of the EPFO member in case of untimely death. This benefit is given to the surviving spouse in the form of monthly pension, which can help them meet their financial needs after losing their partner.
Children pension under EPS 95 provides financial assistance to two children of a deceased EPFO member. Every child is entitled to a monthly pension till the age of 25 years. This children pension can help in the education and upbringing of children.
Orphan Pension
In case the spouse of the deceased EPFO member is also not alive, the children will get financial assistance in the form of orphan pension. This monthly pension helps in the upbringing and education of orphaned children.
Nominee Pension
Nominee Pension This pension is given to the nominee made by the EPFO member. In case the member does not have a spouse or child, on the death of the EPFO member, this pension is given to the nominee made by him. If the EPFO member has made his mother and father as nominees, then in such a situation both will get the pension amount according to the fixed share. If he has made only one of the father or mother as nominee, then he will get the pension amount.
Dependent Parent Pension
If at the time of the member’s death there is no family member (husband/wife, children) and he has not nominated anyone for pension, then in such a situation the dependent parent will be entitled to pension. In such a situation, they will get this pension.
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Various types of pension provide financial security to EPFO members and their families in different circumstances. To get these pensions, EPFO members and their family members eligible in special circumstances have to make a claim. Details about which are given below.
You will have to fill this form to claim pension
Form 10D has to be filled to get pension from EPF account. Form 10D is an important document issued by the Employees’ Provident Fund Organization (EPFO), through which monthly pension can be claimed under the Employees’ Pension Scheme (EPS 95). This form is filled by the main claimant of the pension. In case of death of the EPF member, family members, such as the deceased’s spouse, their children, dependent parents or nominee can apply to claim the above pension.
