Before knowing your pension status, it is important to know the exact meaning of EPS. EPS, or the Employee’s Pension Scheme, is a scheme that the EPFO had formed back in 1995. The EPS scheme promises to provide the employees with pensions after their retirement. But, it is not as easy as it sounds. There are specific eligibility criteria that a person needs to fulfill. There are tons of benefits that a person can get from the EPD scheme.
It would help an employee to live a secure life after retirement. The pension scheme will provide the employees with a monthly allowance. But, there are some eligibility criteria for the employees to avail of the benefits of the EPS Act.
How To Know Pension Status?
You Can Know The Status Of Your Pension Application By Following The Steps Below:
1. Visit the official website of EPFO https://www.epfindia.gov.in/
2. Under the tab “Online services,” you would get the option of the “Pensions portal.” Click on this option, and you would get to a new page.
3. On this new page, you will see a drop-down menu with various options. Select the “Know Your Pension Status” option
4. A new page will appear on your screen. Here, you have to provide with your PPO number and then select the “Get Status” option.
5. The details of your pension application will appear on your screen. You would be able to see whether the pension application got approved or not.
How To Check The EPS Balance?
If You Want To Check The Balance In Your EPS Account, You Can Do So By Following The Steps Below:
1. First, you need to visit the official website of the EPFO portal.
2. On the website, you would find the “Services” option. Click on that option, and you would get a drop-down menu. From this drop-down menu, you need to select the “For employees” option.
3. Now you would get a new page with the “For employees” headline. Here, under the “Services” tab, you would be able to find the “Member Passbook” option. Click on the “Member passbook” option.
4. After clicking on the “Members passbook” option, you would find yourself in a new window. Here, you have to give your UAN and password and then log in to your account.
5. From the drop-down menu, you have to click on the “Select member ID” option. After that, select the “View Passbook” option. Now, you would be able to view all the transactions made on the account. You can also see all the contributions from the employer towards the account. You would even get to see the total amount present in the EPS account. If you wish to download the details, you can click on the “download passbook” option.
By following these steps, you would be able to view the balance in your EPS account. Moreover, it would help you to know how to calculate the pension money too.
How To Withdraw From EPS Account?
A person can only withdraw from the EPS account after reaching the age of 58. But, for withdrawing, the employee must have worked for at least 10 years in the company. Based on this, there are 2 cases on how a person can withdraw money from the EPS account.
The cases are discussed below:
1. If The Employee Has Worked For Less Than 10 Years:
It is mandatory for an employee to work for 10 years to become eligible for pension benefits. But, there are cases where a person cannot complete 10 years of service while reaching the age of 58. In these cases, the person can avail the pension benefits by filling out the form 10C.
A person cannot avail of pension benefits while working in the company. An employee can withdraw the whole EPS amount after he/she quits the company. But, by doing so, the person cannot get the monthly pension benefits from the company.
An employee can apply for an EPS scheme certificate after working for 6 months in the company. In such cases, the employee will not be able to withdraw the total pension amount from the company. Here, the employee will only get a certain percentage of the pension amount. The amount of money the employee can withdraw will depend upon the days he/she has worked in the company. Make sure that your UAN is KYC compliant to make the withdrawal smooth.
2. If The Employee Has Worked For More Than 10 Years:
If an employee has worked for more than 10 years, then he/she will not face any problem with withdrawing money. You have to fill out the form 10D, and you would be eligible to receive monthly pension benefits.
Eligibility Criteria For The Pension Scheme
Below Are The Points Which You Should Remember So That You Can Claim For The Pension Scheme:
1. You should be an EPFO member. It means that you should have an EPF account.
2. The individual should complete 10 years of service in the organization. Besides that, the employee should have contributed to the EPS scheme in the 10 years of his/her service.
3. The employee should be at least 58 years of age.
4. The person should be at least 50 years of age to withdraw from the EPS pension. He/she can withdraw the money at a lower rate.
5. To receive a monthly pension, the employee should not withdraw money until the age of 60. After reaching the age of 60, you can receive the monthly pension at a rate of 4% per year.
After fulfilling the above criteria, you would become eligible for the EPS scheme. The EPS scheme has tons of benefits. But you can only avail of these benefits if you have worked for 10 years or more in the organization.
Features Of EPS Scheme
There are some important features of the EPS scheme that every employee should know. You can find some of the essential features of this scheme below. These features would help you in understanding the EPS scheme in a better way:
- The EPS is a government scheme and guarantees the employees of the returns. It is completely safe to invest in this scheme, and you will get the amount at the time of your retirement.
- Employees with less than INR 15,000 have to sign up for the EPS scheme. It is mandatory for the employees, who earn below INR 15,000, to sign up for this Act.
- The lowest monthly pension for an employee is INR 1000
- If you have an EPF account, then you are automatically registered in the EPS scheme too.
- An employee can only withdraw from the EPS account after attaining the age of 50. After doing so, the person will get the pension at a lower rate of interest.
- The widow/widower of the employee is eligible to get the pension amount till he/she marries again or dies. After the widow/widower remarries, the child will receive the pension amount until the age of 25. The same is applicable in the case of the death of the widow/widower.
These were some of the essential features of the pension scheme. This scheme is for the betterment of the employees. It would help them in leading a secure life after retirement. Even if the employee dies, his/her family can lead a secure life for some years due to this scheme.
Forms For Pension Scheme
Talking about the pension scheme, there are certain types of forms too. These forms are for different pension withdrawal cases. There are 4 types of forms in the EPS, and below is the detailed information about each of them:
a. Form Number 10C:
The form 10C is for people who want to withdraw pension amount after working for 6 months. An employee who has reached the age of 58 and has worked for less than 10 years, can use this form for a pension.
b. Form Number 10D:
Form 10D is the form that a person can use to avail for monthly pension benefits after the age of 50. This form is for employees who have reached the age of 58 and have worked for more than 10 years. It would help the employee to avail of the pension benefits. A person can even use this form for monthly widow pension and child pension.
c. Life Certificate:
This is a certificate which the employee has to submit every year. It would state that the employee who has an EPS account is still alive. You should submit it yourself to the branch manager of the bank.
d. Non-Remarriage Certificate:
The certificate that the widow/widower has to provide every year for availing of the pension benefits. It serves as proof that the widow/widower has not married again. As per the rules, the widow/widower can only get the pension benefits until he/she marries again. In case the widow/widower gets married, the child will get the benefits of the pension.
These are some of the necessary forms which one needs to keep in mind while dealing with the EPS scheme. Only after submitting these forms, a person would be able to avail the pension scheme’s benefits.
Benefits Of The Pension Scheme
There are various benefits that the pension scheme has in-stored for the employees. But, these benefits depend upon the age at which the employee is withdrawing the money. There are various causes, and for your better understanding, we have explained it below.
1. Pension/Retirement At 58:
It is well known that the retirement age of an employee is 58. At the age of 58, an employee becomes eligible to avail the pension. But, for becoming eligible, the employee has to prove that he/she has worked in the company for 10 years. The employee can claim for pension by filling the form no. 10D. It would help the person in receiving a monthly pension from the EPS account.
2. Pension Benefits By Leaving Service Before 10 Years:
A person must work for 10 years in an organization to avail of the pension benefits. But, there are cases where an employee has reached the age of 58 but has worked less than 10 years in the company. The employee can still get the whole pension amount from the EPS account by filling the Form number 10C. The only difference is that, in this case, the employee will not get a monthly pension after he/she retires.
3. Pension For Family After Death Of The Employee:
The family can get pension benefits if the employee dies. The family can only get pension benefits if the employee has contributed for a month towards the EPS. The family can also get the pension if the employee had served for 10 years and died before the age of 58. In these cases, the family becomes eligible to get pension benefits.
4. Pension For Employee With Disablement During The Service:
If an employee becomes disabled during his/her term of service, the employee is eligible to get pension benefits. In this case, it is not necessary that the person should have worked for 10 years in the company. In this case, the employee should have contributed to the EPS account for at least one month. The employee is eligible for the monthly pension benefits from the day of his/her disablement. He/she would get the pension benefits for the entire lifetime. Before passing the order, the employee has to go through a medical check-up. The medical check-up would state whether the employee is genuinely fit for the job or not.
Frequently Asked Questions
1. How can I check my pension status without PPO number?
You can check the status of your pension application by visiting the EPFO website. Select the “pensioners portal.” You would get various options on the drop-down menu. Click on the “known your PPO number” option and then give your registered bank account number. Your PPO number will appear on the screen. Use it to check the status of your pension application
2. I am changing my jobs. Can I transfer the EPS amount from the previous organisation to the new company?
Yes, you can transfer your EPS account from the old company to the new one. You need to contact your employer and fill out certain forms for the transfer process.
3. Is it necessary that an employee should have worked for 10 years to become eligible for the pension benefits?
Yes, it is mandatory that the employee must have at least 10 years of service to become eligible for pension.
4. I work in an exempt company. Am I eligible for the EPS benefits?
Only companies who are registered with the EPF Act are eligible for the EPS scheme. But, most exempt companies have their pension schemes for the employees.
5. How can I transfer the EPS through online?
You can transfer EPS through online process with the help of the Composite Claim form. Firstly, log in to your EPF member portal and then apply for the EPS transfer for changing jobs. Fill out the form and both EPF and EPS accounts will transfer to your new account.
EPS or Employee’s Pension Scheme is one of the most successful schemes that the EPFO has provided. If your company has registered with the EPF Act, then you are automatically registered for the EPS scheme too. The pension scheme provides benefits like a monthly pension. The rate of interest on the pension is 4% and is proven to be beneficial for the retired employees. Though there are some conditions, the pension scheme provides tons of benefits. Even if the employee dies, his/her spouse gets the pension benefits which would help the family to live a secure life.