EPS 1995: Can a member of the Employees’ Provident Fund Organisation (EPFO) who has availed reduced pension at the age of 50 get his full pension after attaining 58 years of age. As per the rules of EPFO, once the pension is sanctioned, it cannot be altered
EPS 1995: Can a member of the Employees’ Provident Fund Organisation (EPFO) who has availed reduced pension at the age of 50 get his full pension after attaining 58 years of age. As per the rules of EPFO, once the pension is sanctioned, it cannot be altered.
The member is required to indicate his option regarding the date from which he requires early pension in the application form. If no date is given in the claim form, then the date of application will be taken as the opted date.
5 things you must know about the Employee Pension Scheme:
1) The member who continues to be in service even after the age of 58 years can avail the pension from the age of 58.
2) If a person who is availing an early pension takes employment thereafter, he will not be eligible to join the pension scheme and 8.33 per cent contribution from the employer would go towards the EPS.
3) An EPS scheme beneficiary cannot surrender or sell full pension to let a lump sum payment. Computation of pension which means that payment of lump sum amount in lieu of a portion of pension surrendered voluntarily by the pensioner. The option was deleted with effect from 26 September 2008.
4) Those members who availed the benefits of computation of pension under the erstwhile paragraph 12 A of this scheme on or before the 25th day of September 2008 shall be restored after the completion of 15 years of the date of such commutation.
Read More: EPFO: What is Annexure K and what it is used for?
5) An EPF account holder is not mandated to withdraw the EPS amount along with the EPF account. A member can withdraw his PF amount (member share only) and maintain a lien in the pension scheme by availing a scheme certificate.
EPFO is one of the World’s largest Social Security Organisations in terms of clientele and the volume of financial transactions undertaken. At present it maintains 24.77 crore accounts (Annual Report 2019-20) pertaining to its members.
The central board of trustees which administers the EPFO runs three schemes – EPF Scheme 1952, Pension Scheme 1995 (EPS) and Insurance Scheme 1976 (EDLI).
