Understanding EPFO Pension Scheme
EPFO Pension Scheme: Pension after retirement provides great relief to senior citizens. Pension makes them financially strong.
With this, they can enjoy post-retirement life without the tension of expenses. So, if you are an employee of a private company and think that only a government employee gets pension then you are wrong.
Employees’ Provident Fund Organization (EPFO) has made provision for pension under EPS (Employees’ Pension Scheme) for employees of private organizations. Here we will tell you that you can take advantage of this pension.
What is EPS
EPS is a scheme of EPFO itself, whose objective is to provide social security to all the employees. This scheme is beneficial for the employees working in the organized sector for their pension after retirement at the age of 58 years.
When Do You Get the Benefit of the Scheme
The benefit of this scheme can be availed only when the employee has served for a minimum period of 10 years (continuously or with a gap).
EPS pension was made available from 1995 and subsequently retained for existing and new EPF employees.
What is Eligibility
You must be an EPFO member for this pension scheme. At the same time, complete 10 years of active service with equal years of active contribution in EPF pension scheme.
You must be 58 years of age or older. Must have attained the age of at least 50 years for withdrawal from EPS pension at a reduced rate.
To become eligible to receive EPS pension at 4% per annum, delay the pension by 2 years, ie, till you are 60 years old.
What Was the Rule Before
Earlier, while changing employment, you had to submit two forms to certify the same.
‘Form 11’ was to be submitted that you are a member of EPF schemes and Form 13 is for transfer of your PF balance from previous firm to present firm.
If one has an existing Universal Account Number (UAN) and Aadhaar number with KYC in the EPF database, a composite Form 11 is sufficient for both.
When Will EPF Interest Be Credited
Speculations are rife that the subscribers of the Employees’ Provident Fund Organization may get the full interest amount of the Employees’ Provident Fund (EPF) by the end of this month.
However, official confirmation is still awaited on this. As the EPF contribution is credited to the account on a monthly basis, and the interest is calculated every month.
However, the total interest for the year is credited at the end of the financial year. EPF interest for FY 2021-22 is still awaited and many customers have raised questions on social media.
The Central Board of Trustees announces the interest rate for the financial year, and the proposal is then forwarded to the Ministry of Finance.
Once approved, the Ministry of Labor notifies the interest rate and the process of crediting interest to the accounts begins.
