Key facts
- The Employees' Pension Scheme (EPS), 1995, is managed by the Employees' Provident Fund Organisation (EPFO).
- Eligibility for EPS-95 requires earning up to Rs 15,000 monthly and meeting minimum service criteria.
- Benefits include superannuation, family, and disablement pensions.
- The pension is calculated based on average pensionable salary over 60 months and pensionable service.
- Reduced pension can be drawn from age 50.
- Pensioners must submit annual life certificates or Digital Life Certificates (DLC) to continue receiving payments.
The Employees' Pension Scheme (EPS), 1995, is a key retirement benefit for organized sector employees in India who are covered under the Employees' Provident Fund (EPF). Managed by the Employees' Provident Fund Organisation (EPFO), the scheme offers several benefits, including monthly superannuation pensions for members who meet eligibility criteria, family pensions for dependents in case of the member's death, and disablement pensions for those suffering permanent disability during service.
Eligibility for the EPS-95 pension generally applies to employees earning up to Rs 15,000 per month who have contributed to the EPF for a minimum period. However, disability pensions can be claimed without completing the minimum service requirement. Members can also draw a reduced pension from the age of 50, subject to specific conditions.
The pension amount is calculated using a formula: Pension = (Pensionable Salary (average of last 60 months) X Pensionable Service)/70. The scheme also provides a minimum assured pension to eligible members, ensuring a basic level of financial security post-retirement.
To continue receiving pension payments, all pensioners are required to submit a life or non-remarriage certificate annually, attested by a bank manager or gazetted officer. Alternatively, a 'Digital Life Certificate' (DLC) can be submitted using an Aadhaar number through various service centers. Failure to submit these certificates after one year may result in the stoppage of pension payments.