The Employees Provident Fund Organization (EPFO) provides a pension scheme for organized sector workers to ensure financial security after retirement.
Workers become eligible for pension benefits after age 58, provided they have worked for at least ten years under the same Universal Account Number (UAN).
It is a unique identification number assigned to each employee contributing to the EPF. Under this scheme, seven types of pensions are available. Here are the details:
Pension to retiring employees: EPFO provides financial security through a pension scheme after retirement.
EPF Account: Employees with EPF accounts can receive a pension after reaching 58 years of age.
Ten years of Service: To reiterate, PF account holders who have completed at least ten years of service are eligible for pension benefits after turning 58.
Flexibility: The pension scheme is designed with flexibility in mind. For instance, if an EPF member completes ten years of service after turning 50 and then joins a non-EPF company, they will still be eligible for a reduced pension, decreasing by 4 percent each year compared to the retirement age of 58.
Elibile for Pension: PF account holders are entitled to a pension in cases of accidental disability (permanent or temporary), regardless of their years of service or age.
Monthly pension payments: In case of a PF subscriber’s death, EPFO ensures financial support for the member’s spouse and provides monthly pension payments to the spouse.
Financial assistance for two children: The children of a deceased EPFO member are also eligible for monthly pension payments up to 25, which provides simultaneous financial assistance for two children.
If the deceased member’s wife is also deceased, the member’s children will receive financial assistance through monthly pension payments.
Social security coverage: EPFO is deeply committed to providing comprehensive coverage to EPF members and their families. In the absence of any eligible beneficiaries, the nominee will receive the pension.