The Employees’ Pension Scheme, 1995 was implemented from 16.11.1995 by Government of India. As per this Scheme, an 8.33% from employer contribution (12%) will be added to Pension Fund of the Employee. Any member of EPS, 1995 is eligible for different types of pensions based on certain criteria fulfilled by the member. The following are various types of pensions under EPS, 1995 Scheme.
- Superannuation Pension:
Eligible if the employee completed minimum service of 10 years in all establishment with age 58 years.
- Reduced Pension:
Eligible if the employee completed minimum service of 10 years in all establishments from the age of 50 years. So, member is allowed to draw pension from the age of 50 years to 58 years. Early pension application will lead to reduced pension to the member.
- Family Pension:
Family members of a EPF member is eligible for Family Pension if the member dies in while in service. The widow is eligible for lifelong pension while the children are eligible for pension up to the age of 25 years. There is no restriction in number of the children in the family. In the family, elder children will be allowed first followed by younger children, until the last child of the deceased member.
- Widow Pension:
If a Pensioner dies while drawing pension, the spouse of the deceased pensioner is eligible for pension called widow or widower pension.
- Disablement Pension:
If a person becomes disable while in service, then he/she eligible for disablement pension without meeting any conditions as mentioned above.
- Orphan Pension:
If both mother and father of the children die, then the children are eligible for orphan pension. Further if the child becomes permanently disabled, then they are eligible for lifelong pension.
Generally, the quantum of pension depends on the number of years of service rendered by the member and pensionable salary at the time of retirement.