Employees’
Pension Scheme (EPS) of 1995 offers pension on disablement, widow
pension, and pension for nominees. EPS
program replaced the Family Pension Scheme (FPS) of 1971. When an
employee
joins
an establishment covered under the Employees Provident Funds &
Miscellaneous Provision Act, 1952 (s)he becomes a member of Employees
Provident Fund Scheme (EPF), Employees’ Pension Scheme (EPS) 1995,
Employees Deposit Linked Insurance Scheme (EDLIS ) , 1976 . It’s
main features are:
It
is financed by diverting 8.33% of employer’s monthly contribution
from the EPF. Monthly contribution to EPS is restricted to 8.33% of
6500 or Rs 541 p.m and after Oct 2014 Rs 1250 8.33% of 15,000.
Government’s contribution of 1.16% of the worker’s monthly wages
if salary less than Rs 6,500.
Unlike
the EPF contribution EPS
part (8.33% out of 12% contribution from your employer or Rs 541 and
after Oct 2014 Rs 1250 what ever is minimum) does NOT get any
interest.
The
fraction of service for six months or more shall be treated as one
year and the service less than six months shall be ignored. So 9
years and 6 months will be rounded upto 10 years.
Lifelong
pension is available to the member and upon his death members of the
family are entitled for the pension.
A
employee can start receiving the pension under EPS only after
rendering a minimum service of 10 years and attaining the age of
58/50 years.
No
pension is payable before the age of 50 years.
Early
pension can be claimed after 50 years but before the age of 58 years.
But it is subject to discounting factor @ 4% (w.e.f. 26.09.2008) for
every year falling short of 58 years. In case of death / disablement,
the above restrictions doesn’t apply.
The
maximum Pension per month is subject to maximum of Rs 3,250 per
month.
Maximum
service for the calculation of service is 35 years.
No
pensioner can receive more than one EPF Pension.
