The Employee Pension Scheme (EPS) came into force on 16th November 1995. This scheme includes all the employees of factories and other establishments to which the Employees Provident Funds and Miscellaneous Provisions Act, 1952 applies.
The Provident Fund under the Employees’ Provident Fund Scheme, contributions payable by the employer each month, a part of contribution representing 8.33 per cent of the employee’s pay shall be remitted by the employer to the Employees’ Pension Fund within 15 days of the close of every month. The Central Government also contributes at the rate of 1.16 per cent of the pay of the members of the Employees’ Pension Scheme and credits the contribution to the Employees’ Pension Fund.
Although, if the pay of the member exceeds Rs 15,000 per month the contribution payable by the employer and the Central Government be limited to the amount payable on his pay of Rs 15,000 only.
1. For availing the pension benefits under the EPS 95 Pension scheme the employee must serve a minimum of 10 years in service
2. The age of retirement is 58 years
3. Member can also withdraw his/her EPS at a reduced rate from the age of 50 years
4. If an employee has completed less than 10 years of service. but more than 6 months’ service, then he/she can withdraw the EPS amount on being unemployed for more than two months
5. If any employee becomes disabled totally and permanently, then he/she is entitled to a monthly pension irrespective of the fact that he has not served the pensionable service period and is payable for his lifetime. However, the member may have to undergo a medical examination to check if the member is unfit for the job that he was doing before becoming disabled.
6. A member’s family also becomes eligible for Pension benefits in case of death of the member while in service.
Benefits under EPS’95
* Pension to nominee for entire life paid on death of a member, in case there is no family as defined under EPS’95.
* Lifelong pension equal to monthly widow pension paid to dependent father/mother on death of a member, provided there is no family or nominee of member.
Source – zeebiz.com