EPS 95 scheme: This scheme came into effect from 16 November 1995. This scheme is applicable to all employees of companies and other establishments to which the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 applies.
If you do a job somewhere, then you are an EPF account holder. In such a situation, you should also know about the EPS 95 scheme or EPS 1995 scheme of EPFO. The Central Government introduced the Employees’ Pension Scheme, 1995 under section 6A of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952).
According to EPFO, this scheme came into effect from 16 November 1995. This scheme is applicable to all employees of companies and other establishments to which the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 applies. Under the EPS 1995 scheme of EPFO, from 1st September 2014, the facility of minimum pension of 1000 rupees was started.
Who is eligible for this scheme
If you want to take the benefit of this scheme, then you must be an EPFO subscriber. Every month a fixed amount is deposited in the EPF account from the salary of any EPFO subscriber ie member. Out of this, 8.33 percent amount goes to the pension head.
Also, to get pension under the EPS 95 pension scheme, the employee will have to complete at least 10 years of service. The retirement age under this scheme is 58 years. EPF member can also withdraw his EPS at the rate below the age of 50 years.
Get these benefits
Even in the event of the death of the employee, a member of the member’s family becomes eligible for pension. If the employee was a member till the time of death, then the family members get a maximum benefit of Rs 6 lakh. According to the EPS ’95 scheme, if the member does not have a family, then on the death of the member, whoever is the nominee, will continue to get pension for life.
If an EPF member i.e. an employee is unable to remain in service for 10 years before the age of 58 years, then he can withdraw the entire amount at the age of 58 years. It is worth mentioning here that after retirement they will not get the benefit of monthly pension.
Know this latest update
The EPFO on November 1 allowed its subscribers who retire in less than six months to withdraw deposits under the Employees’ Pension Scheme 1995 (EPS-95). According to the news of the language, at present, Employees’ Provident Fund (EPFO) customers have been allowed to withdraw the amount deposited in their Employees’ Provident Fund account only if there is less than six months of service left.
According to the statement of the Ministry of Labor, the CBT has recommended to the government that members with a service period of less than six months should be given the facility of withdrawal from their EPS account (EPS 95 scheme).
