EPS is a pension scheme of EPF for employees working in the organized sector in the private sector. In this pension scheme, 8.33 percent of your basic salary is credited during the job. (but not more than Rs 1250 monthly). In place of this, after retirement, a fixed monthly pension provides to the employee. Thus, the government provides social security to the employee and his family through the Employee Pension Scheme.
Eligibility to receive EPS benefits
The eligibility criteria for availing EPS benefits are mentioned below:
You should be a member of the EPF Scheme of the Government of India.
Tenure of service should be for a minimum of 10 years.
The employee should have attained the age of 58 years.
Selecting the pension option at age 50 yields a lower pension than an ordinary pension.
If you postpone the pension for 2 years (till 60 years of age), n this case, you get an increased amount of pension for every deferred year at the rate of 4% per year
An employee is entitled to a pension on the untimely death
The employee himself may also receive a pension if he is completely incapacitated.
Get full pension after retirement’s 15 years
With the new notification issued on 20 February 2020, EPFO employees will get a full pension system re-implemented 15 years after retirement. Therefore, if an employee retires on April 1, 2005, he is entitled to a pension after 15 years i.e. from April 1, 2020.
The facility under Para 12b
Mr. Puneet Gupta, director of People's Advisory Services EY India, says, "Under the Employee Pension Scheme, Para 12A, any employee can claim a commuted pension (lump sum) in lieu of a monthly pension. The amount of communication cannot exceed one-third of the monthly pension. The remaining two-thirds of the amount was received as a monthly pension to the employee. Now as per Para 12B on February 20, 2020, employees receiving a commuted pension under Para 12A will get full pension benefits after 15 years. The Central Board of Trustees of EPFO approved the proposal for a full monthly pension during its meeting on 21 August 2019.