Plan for a Secure Future with EPS 95 Pension Scheme: Eligibility, Benefits, and More

Last Updated : July 12, 2023, 1:42 p.m.

In India, numerous schemes are available to secure employees’ future in old age. The EPFO provides the Employees Pension Scheme and looks after the system to ensure employees get a pension when they turn 58. Nonetheless, employees and employers should contribute to setting up the corpus to get a pension in the future. The EPS 95 pension news today 2022 will provide details about the scheme and its features. You can avail of the Employee Pension Scheme if you have provided for approximately ten years. Want to know more about EPS 95 Pension? Let’s explore the eligibility criteria, benefits, calculation process, and formula.

How to Calculate EPS 95 Pension Scheme?

The monthly pension you get is based on your pensionable service and salary. The formula for computing the monthly pension scheme is as follows:

Member’s Monthly Pension = (Pensionable salary x Pensionable Service)/70

Pensionable Salary

It is the average monthly salary you will get in the last sixty months before you decide to exit from the EPS. It is according to the Supreme Court judgement dated 4th November 2022. Read the EPS 95 pension news today 2022 for more information about the judgement and press release. Initially, it was the average monthly salary of an employee’s presence in the scheme for the last 12 months.

Pensionable Service

Pensionable service means the overall number of years for contributions to the Employee Pension Scheme. As per the law, pensionable service should be rounded off to the adjacent year. It will be regarded as one year if you serve for six months or above. The year will only be considered if you serve for at least six months. Suppose you superannuate at 58 years and serve for above 20 years; your service term will be hiked by two years.

Eligibility Criteria of EPS 95 Pension Scheme

The eligibility requirements of the EPS 95 Pension Scheme are as follows:

• You should be an EPFO member.
• You should serve at least ten years in your service.
• Even though 58 years is the retirement age for a regular pension, if you retire earlier, you will receive the pension amount at a decreased rate,
• If you want to get your pension from sixty years of age, you can get an additional 4% yearly.
• Suppose you must still complete ten years of service but over six months. In that case, you can withdraw your Employment Pension Scheme amount if you have been unemployed for over two months.
• Suppose an employee becomes disabled. In that case, the employee is eligible for a pension amount every month. The employee would get the pension monthly even if they did not complete the ten years eligible service period. Nonetheless, the employee has to undergo a medical examination to confirm that they are unfit to do the job because of their disability.
• An employee’s family members would be eligible for pension if the employee faces some unfortunate incident.

Benefits of the Employee Pension Scheme

Let’s look at the perks of the EPS 95 pension scheme:

Pension from 58 Years of Age

As an EPS member, you will be eligible for a pension at 58 years when you retire. However, you should fulfil the service criteria before turning 58 to be eligible. Fulfilling the service criteria is mandatory. Post-retirement, you will get the EPS certificate. The certificate is a binding document to fill out form number 10D for withdrawing the pension.

Pension Due to Disability

If an EPS member becomes disabled, they will get a monthly pension, irrespective of whether they served the service period. The member will get a pension from the disability date and throughout their life. The employer should deposit funds in the employee’s EPS account for approximately one month to qualify for a pension. However, the employee should prove through medical reports that they are unfit for the job they did before becoming disabled.

Pension If Employee Passes Away

The family of an EPS member will get family pension privileges if an employee passes away under three conditions:

• If an employee completes the service criteria but passes away before 58
• If an employee faces unfortunate incidents after getting a monthly pension
• If an employee passes away during the service years and the employer has deposited funds into their EPS account at least once.

Pension on Resigning from Service Before Being Eligible for the Monthly Pension

Suppose you could not remain in service for ten years because of some reason and reach 58. In that case, you can fill out form number 10C and withdraw your invested sum. Nonetheless, you will not get any monthly pension.

Conclusion

In 1995 the Employment Pension Scheme was introduced, intending to benefit employees working in the organised sector. It enabled current and previous Employee Provident Fund members to join the scheme. Whoever is eligible for Provident is also eligible for the Employment Pension Scheme. Under EPS 95 pension scheme, there are several pension types, such as child pension, widow pension, decreased pension, and orphan pension. Hence the EPS is an excellent financial tool for depositing your money and using it for multiple purposes later.  Additionally, the Employment Pension Scheme is a good tax-saving tool. You can also check the EPS 95 pension news today 2022 for more details.

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