EPFO’s EPS-1995 scheme is not limited to just retirement pension. In case of disability or death of the employee during employment, the family gets pension and financial security. Know complete information about early pension, family pension and important rules.
Most working people see PF account only as a means of saving after retirement. The amount deducted from salary every month is considered as financial security for the future. But very few people know that the Employees’ Pension Scheme (EPS-1995) operated under the Employees’ Provident Fund Organization (EPFO) is not only a support in old age, but can also become a financial shield for the entire family in difficult times.
The objective of the EPS scheme is to provide social security to employees and their families. This is why not only retirement pension but also many important benefits are given in case of disability and death.
You can get pension even before 58 years
As a general rule, if an employee has contributed to EPS for at least 10 years, he becomes entitled to receive a monthly pension on completion of 58 years of age. However, if needed, the option of early pension after the age of 50 years is also available.
But if pension is taken prematurely, some deduction is made in the pension amount as per rules. Therefore this option is considered useful for those who need regular income in special circumstances.
The family gets support in case of disability and death.
The most important feature of EPS-1995 is its social security system. If an employee gets permanent total disability during employment, he can get the benefit of disability pension. In this situation the requirement of 10 years of service period does not apply.
At the same time, on the death of the employee, monthly pension is given to his eligible family. This includes provision of widow or widower pension for the spouse, child pension for children and additional financial assistance for orphans in certain circumstances.
Even small mistake can stop pension claim
It is very important for the information entered in EPF and EPS accounts to be correct. Even a small error in name, date of birth, Aadhaar number, bank account or service record can affect future pension claims.
Apart from this, on changing jobs, it is also necessary to transfer the old PF account properly and provide correct information in the required documents. Experts recommend that employees keep checking their EPF account information from time to time, so that when needed, they or their family does not have to face any kind of problem.