Pension Under EPS-95: A part of the salary of people working in the private sector is deducted as PF, which is deposited in their PF account every month. However, there are some conditions which are met by those who are entitled to pension.
Almost every professional working in the private sector saves some of his earnings and invests it in a place where he gets great returns, which does not let him face financial problems after retirement. In this regard, PF accounts are a great option, in which not only you get great returns, but your pension tension also ends. Yes, PF account holders are given the benefit of pension under EPS-95. However, there are some conditions for this. Let us know its complete process…
10 years of job, pension is sure
First of all it is important to know what is EPS? Often people get confused about EPS. So let us tell you that this is a pension scheme, which is managed by EPFO. Existing and new EPF members are included under this scheme. There is only one condition to avail the benefits of this scheme, which the employee has to fulfill. According to the rules of EPFO, any employee is entitled to get pension after working for 10 years.
It is managed by EPFO
The Employee Pension Scheme 1995 (EPS-95) was started by EPFO on November 19, 1995, which is a social security initiative aimed at meeting the retirement needs of employees in the organized sector. It is managed by EPFO and this scheme guarantees pension benefits to eligible employees who reach the age of 58 years. If we look at the rules, 9 years 6 months of service is also counted as 10 years. But if the time of work is less than 9 and a half years, then it will be counted as 9 years only. In such a situation, employees can withdraw the amount deposited in the Pension Account even before the age of retirement. Because they are not entitled to pension.
This is the calculation of PF deduction
Actually, a large part of the salary of people working in the private sector is deducted as PF, which is deposited in the employee’s PF account every month. If you work in a private job for 10 years, then you become eligible to get pension. According to the rules, 12 percent of the employee’s basic salary + DA is deposited in the PF account every month. Out of which the employee’s entire share goes to EPF, while the employer’s 8.33% goes to the Employee Pension Scheme (EPS) and 3.67% goes to EPF contribution every month.
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What will happen if there is a gap in the job?
As told that pension is confirmed only after working for 10 years, so now the question arises that if the employee has worked in two different institutions for 5-5 years, then what will happen? Or if there was a gap of two years between the two jobs, will that employee be entitled to pension or not? If we look at the rules, then despite the gap in the job, one gets the benefit of pension even after completing the tenure of 10 years by combining all the jobs. But, here it is important that the employee does not change his UAN number in every job, the old UAN number will have to be continued. That is, the total tenure of 10 years should be completed on a single UAN. Because even after changing the job, if the UAN remains the same and the entire money deposited in the PF account will be visible in the same UAN.
So many types of pension under EPS
EPS-95 pension scheme provides many types of pension to provide assistance to the family members of the pensioner, including widow pension, child pension and pension for orphans. On the death of an employee, if the widowed spouse remarries, then the pension benefit starts being given to the children. If the EPF member wants to start his pension from the age of 60 instead of 58 years, he gets the benefit of an additional increase of 4 percent annually. Apart from this, if an employee becomes totally and permanently disabled, he is eligible for monthly pension even if he has not completed the pensionable service period.
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