look news india
EPS withdrawal rules changed: The government has amended the withdrawal rules of the Employees' Pension Scheme (EPS), 1995. After this amendment, members of the Employees' Pension Scheme with less than 6 months of contributory service will also be able to withdraw money from the EPS account. This amendment will benefit more than 7 lakh members of the Employees' Pension Scheme every year who leave the scheme after less than 6 months of contributory service.
According to the press release issued by the Press Information Bureau (PIB), the central government has also amended the D. From now on, the withdrawal benefit will depend on the number of months of service rendered by the member and the amount of EPS contributed on salary.
This will help in rationalizing the exit benefits of the members. This amendment will benefit more than 23 lakh EPS members. The Labor Ministry said that there are lakhs of EPS 95 scheme members in the country who exit the scheme midway despite the rule of contributing to the scheme for 10 years to get pension.
To withdraw the money, one had to make six months' contribution
As per the existing rules, retirement benefits are calculated on the basis of years completed in service and salary contributed to EPS. Only members who have contributed for 6 months or more can avail this withdrawal benefit. In such a case, members who leave the scheme after contributing for less than six months will not get any withdrawal benefit. Due to this, the claim applications of many people were rejected.
According to the Ministry of Labor, 7 lakh withdrawal claim applications were rejected in 2023-24 due to the contribution rule of more than six months. These were the applications in which contributions were made to the EPS 95 scheme for less than 6 months. But after the government's decision, all EPS members who have not attained the age of 58 years by June 14, 2024, will also be eligible for withdrawal benefits.
Amendment in Table-D also
The central government has also amended Table D. From now on, the withdrawal benefit will depend on the number of months of service provided by the member and the amount of EPS contributed on the salary. For example, if a member contributes to EPS on a monthly salary of Rs 15,000 after 2 years and 5 months of service, then as per the earlier rules, he will get a withdrawal benefit of Rs 29,850, but after the amendment in the rules, the withdrawal benefit will be Rs 36,000.