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EPFO Pension Scheme: The Employees Provident Fund Organization (EPFO) provides pension facility to its members to ensure regular income on retirement. EPFO operates a pension scheme called EPS-1995, which provides various benefits. This scheme provides assistance to families trapped in financial crisis. Also, regular income can be claimed for a long time under this scheme.
Under EPS-1995, seven types of pension benefits are provided, each with different terms and conditions to claim. Let's know how many types of pension are given under this pension scheme and who can get its benefit?
Retirement or old age pension
This benefit is provided on completion of 10 years of membership and attaining the age of 58 years. If you have completed 10 years of membership and your age is 58 years, then you will start getting pension from the next day. Even if the service is terminated after 58 years, he will start getting pension from the next day.
Former pension
If a person leaves the job after completing 10 years of membership and is not working in an organization where the EPF Act is applicable, he can take pre-pension after completing the age of 50 years. Or he can wait till the age of 58 and take full pension. Under pre-pension, 4 per cent of the pension will be deducted every year after completing the age of 58 years.
Suppose, if a person was entitled to a pension of Rs 10,000 at the age of 58, then at the age of 57 he will be given a pension of Rs 9,600 by reducing the pension rate by 4 percent. Similarly, at the age of 56, he will get a pension of Rs 9,216.
disability allowance
If a member leaves the job due to disability, he can be given such pension. There is no minimum subscription limit for this. Also, one month's contribution is mandatory.
Pension to wife and 2 children
In case of unfortunate death of a 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 the age of 25 years. When the eldest son turns 25 years old, his pension stops and the pension of the third child starts. This sequence continues till all the children turn 25 years old. For this, one month's contribution of a member is sufficient. If a child is disabled, he will get pension for life.
Orphan Pension
Under EPS 1995, if a member dies and his wife is not alive, then his two children are given pension for 25 years.
Nominee Pension
This pension is given to the person nominated by the member. Nomination under this pension scheme is possible only if there is no one 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, the pension is given in the name of the mother.
It is worth noting that to get pension under EPS, one has to apply online. If you do not apply for pension, then you will not get the benefit of pension. To get pension under EPS, Form 10D has to be filled.
