The Employees’ Pension Scheme, or EPS 95, is a pension scheme provided to private and public sector employees after age 58.
Introduced on November 19, 1995, it is intended to meet the retirement needs of employees in the organized sector.
The scheme, managed by the Employee Provident Fund Organization (EPFO), provides a secure future by guaranteeing pensions to eligible employees aged 58.
Under EPS 95, the employee contributes a portion of their salary, including basic pay, dearness allowance, and 12% of their salary, towards the Employee Provident Fund (EPF).
The employer also contributes, with 3.67% going to EPF and 8.33% to the Employees’ Pension Scheme. EPS 95 offers various pension schemes, including retirement, widow, orphan, and early pensions.
To be eligible for the various pension schemes under EPS 95, individuals must be active members of the Employee Provident Fund Organization (EPFO) and meet specific service requirements.
For example, to qualify for the retirement pension, a member must complete ten years of qualifying service and retire at 58 or above.
Some fundamental rules and points to remember for EPF Pension:
- Organizational private and public sector employees can enroll in the scheme.
- Employers must contribute on behalf of the employee within 15 days of every month.
- Pension benefits are transferred to the children in the event of an employee’s death and the spouse’s remarriage.
- The employee’s contribution includes basic salary, dearness allowance, cash value of food concessions, and retaining allowance.
- Transferring EPS is a straightforward process, and family members can easily claim benefits by submitting various forms.
- Information about the amount in the EPS account is readily accessible through the EPF Passbook portal, empowering you with the knowledge of your pension.
- When changing jobs, submitting Form 11 and Form 13 is mandatory.