Are all EPF subscribers eligible for pension? Explained

In a bid to make employees’ sunset years smooth financially, the government has long back carved out the Employee Provident Fund (EPF). In the same, 12% of an employee's basic pay (plus DA if applicable) and a similar contribution from his/her employer is made month-on-month to create a retirement kitty. Though, EPF is a government scheme to help you accumulate some retirement corpus, the sufficient amount required for your retirement may depend on your lifestyle and expenses.

However, if you as an EPF subscriber is not aware, you also are eligible for pension in case you are enrolled in the EPS, 1995 scheme. Here is all you need to know about the scheme.

The Employees' Pension Scheme, 1995, notified under Section 6A of the EPF & MP Act, 1952, provides pensionary benefits to eligible employees of establishments covered under the Act. It ensures a monthly pension on superannuation, early retirement, permanent disability, and offers family pension in case of a member's demise.

Any member of the EPS,1995 becomes eligible for pension on attaining the age of 58 years with 10 years of eligible service. A member, if not in employment, can also opt for reduced pension, if he/she attains the age of 50 years with 10 years of eligible service.

Importantly, while enrollment in the EPS scheme is automatic for most eligible employees, some of the EPF members do not fall within the ambit of the Employee Pension Scheme on account of their salary at the time of joining or their joint option choice.

It is a period of service for which the contribution under EPS'95 has been received or is receivable.

According to the EPFO, you are eligible for pension after 10 years of membership if you work in any of the below specified seasonal factories and establishments even for part of the year.

Tea Sugar Turpentine Rubber Rosia Indigo Vegetable preservation Fruit preservation Lac Rice milling Dal milling Cashewnut Tobacco leaf Tile Hoisery Oil milling and fireworks among others.

For an eligible EPS member, 8.33% of the employer's 12% provident fund contribution is diverted to the EPS account, while the remaining 3.67% goes to the EPF.

Withdrawal rules for pension under EPF

Depending on the service term, you need to fill the requisite document for withdrawing the employee pension, which is a part of your EPF.

If your service term is between 6 months to 10 years, you can withdraw the pension as a lump sum using Form 10C.

In a case when you have completed over 10 years in service, the amount can be received as a monthly pension amount once you turn 58 years. For receiving the same, you need to submit Form 10D with the EPFO.

In a case, when you have completed 10 years and want to receive a reduced pension, you still need to submit Form 10D.