Employees’ Pension Scheme (EPS) is a scheme offered by the Employees’ Provident Fund Organisation (EPFO) to provide social security to the employees after their retirement at the age of 58 years
But this scheme can only be availed by persons who have completed at least 10 years of service.
Benefits of Employee Pension Scheme
There are a lot of benefits for the same. But it may differ from person to person. As it depends on the age when they start to withdraw the pension. But we have listed down some of the points below.
1) at the Age of 58 years
A person can start availing the pension benefits after he retires at 58 years of age. After taking the retirement he can fill Form 10D to start withdrawing the monthly pension. But it is also important that a person must provide a service for at least 10 years when he turns 58. If he wants to be eligible for a monthly pension.
2) Pension on leaving service before becoming eligible for Monthly Pension
There can be instances when a person might not be able to complete his 10 year of service before he turns 58 years. In that case he has the option to withdraw the whole amount (or the sum amount) by filling Form 10C. As he will not get the monthly pension benefits.
3) Pension on Total Disablement during the Service
If a person becomes disabled during his service period. He is still liable for the monthly pension irrespective of the fact that he has completed his tenure or not. The person is eligible for a monthly pension from the date of his disability and will be paid monthly pension for lifetime.
Also note the person will have to undergo the medical examination to make sure whether he is fit for the job or not.
ALSO READ:- 7 Benefits Of Getting Business Loan
4) Pension for the Family on the Death of the Member
If the serving person dies then the family members are eligible for the pension benefits. But are limited to the points below:
- The person has completed 10 years of service and has died after 58 years of age.
- If the person died after the monthly pension was started.
- If it was earlier than any of the above cases. Then the employer will have to deposit the funds in the EPS account for one month.
Some Key Points To Remember
- The amount (or contribution) are done by the employer
- The employer makes a contribution of 8.33% of of the total pension
- The employer has to pay the pension within 15 days of every month
- All the cost to be eligible for pension fund is borne by the employer.
- As we had mentioned above the minimum time required to become eligible to enjoy pension funds is 10 years of service.
- If you have not completed 10 years of service. Then you can take out the amount of years worked or as stated in the working contract in one go.
- The retirement age of the person should be 58 years.