Under EPS-1995, seven types of pensions are given, the terms and conditions for claiming each are different. Let us know how many types of pensions are given under this pension scheme.
EPFO Pension Scheme: Employees’ Provident Fund Organization (EPFO) provides pension facility to its members, which supports your regular income on retirement. EPFO runs a pension scheme named EPS-1995, which offers various benefits. This scheme provides support to families in financial difficulty. Also, under this scheme, regular income can be claimed for a long time.
Under EPS-1995, seven types of pensions are given, the terms and conditions for claiming each are different. Let us know how many types of pensions are given under this pension scheme and who can avail it?
Superannuation or old age pension
This is given for 10 years of membership and on completion of 58 years of age. If 10 years of membership has been completed and you are 58 years of age, then you will start getting pension from the very next day. Even if service is canceled after 58 years, he will start getting pension from the next day.
Pre pension
If someone leaves the job after completing 10 years of membership and does not work in any institution where the EPF Act is applicable, then he can take pre-pension after completing 50 years of age. Or he can wait till the age of 58 and take full pension. Under pre-pension, pension will be given by reducing the rate by 4 percent for every year the age is reduced after completing the age of 58 years.
Suppose if someone was entitled to a pension of Rs 10,000 at the age of 58, then at the age of 57 he would be given a pension of Rs 9,600 by reducing the pension rate by 4 percent. Similarly, at the age of 56 years, he will get a pension of Rs 9,216.
What is disability pension?
If a member leaves the job due to disability, he can be given this type of pension. There is no minimum membership limit for this. Also, it is mandatory to contribute one month.
Pension to wife and 2 children
In case of unfortunate death of the member, pension is given to his wife and two children. If there are more than two children, then pension is given to the first two children till they complete the age of 25. When the elder son turns 25 years of age, his pension is stopped and the pension of the third child starts. This sequence continues until all the children turn 25 years of age. For this also one month’s contribution of the member is sufficient. If any child is disabled then he will get pension for his whole life.
Orphan pension
Under EPS 1995, if the member dies and his wife is not alive, then his two children are given pension for 25 years.
Named pension
This pension is given to the person nominated by the member. Nomination under this pension scheme is possible only when no one is alive in the member’s family. By family we mean wife and children.
Parental pension
If the pensioner is unmarried and dies. Also, if the member has not nominated anyone then the pension is given to his father. In the absence of the father, pension is issued in the name of the mother.
It is noteworthy that to avail the benefit of pension under EPS, it is necessary to apply online. If you do not apply for pension, you will not get the benefit of pension. To get pension under EPS, Form 10D has to be filled.
