The EPFO's EPS-1995 scheme is not limited to retirement pensions. In the event of an employee's disability or death while employed, the family receives pension and financial security. Learn about early pension, family pension, and the full details of the important rules.

Most working people view their PF account solely as a means of saving for retirement. The monthly salary deduction is considered financial security for the future. However, few people realize that the Employees' Pension Scheme (EPS-1995), administered by the Employees' Provident Fund Organization (EPFO), not only provides a cushion for old age but can also provide a financial cushion for the entire family during difficult times.

The EPS scheme aims to provide social security to employees and their families. Therefore, it offers not only retirement pensions but also several important benefits in the event of disability and death.

Pension can be availed even before the age of 58 years

As a general rule, if an employee has contributed to the EPS for at least 10 years, they are entitled to receive a monthly pension upon reaching the age of 58. However, an early pension option is also available after the age of 50, if needed.

However, premature retirement involves a reduction in the pension amount as per the rules. Therefore, this option is considered useful for those who require regular income in certain circumstances.

Family gets support in case of disability and death

The most important feature of the EPS-1995 is its social security system. If an employee becomes permanently disabled while in service, they can receive disability pension benefits. In this case, the 10-year service requirement does not apply.

Upon the employee's death, a monthly pension is provided to their eligible family. This includes a widow or widower pension for the spouse, a child pension for the children, and, under certain circumstances, additional financial assistance for orphaned children.

Even a small mistake can stop your pension claim.

It's crucial that the information entered in your EPF and EPS accounts is accurate. Even minor errors in name, date of birth, Aadhaar number, bank account, or service record can impact future pension claims.

Additionally, when changing jobs, it's essential to properly transfer your old PF account and provide accurate information on required documents. Experts recommend that employees periodically check their EPF account information to avoid any problems for themselves or their families.

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