EPS stands for an Employee Pension Scheme. The EPS scheme provides a monthly pension that can serve for the purpose of basic needs at the retirement age. But it often remains a question When can an employee avail the benefit of the Employee Pension Fund scheme(EPS) which he has contributed during his ten years of continuous service?
Avail Benefits Of EPS
For an employee to be eligible for a pension scheme has to provide in work for at least 10 years. And this contribution should be made before the retirement age. The retirement age stands to be 58 years, as described by the government. Then only you can avail of the benefits of the scheme; if the person fails to contribute for the 10 years, a person can then apply for the lump sum withdrawal as and when the employment status is unemployed for at least 2 months. You can also apply for the lump sum withdrawal at your retirement age. This is applicable when you have contributed for less than 10 years. Here, in this case, the company has to fill in form 10C.
But if your contribution exceeds the 10 years mark. Then, you would receive an EPS contribution certificate. This certificate will certify that you are eligible for a pension under the EPS scheme. And this certificate, along with form 10D is used to avail the EPS benefits. But the person is only liable to avail the scheme as and when he/she crosses the age of 58 years. This is the earliest time when an EPS scheme benefits can be availed. Also, in case your service has been extended. Let us say that is has been extended by 2 years. Then, you can apply for EPS at 60 years.
In Case Of Any Mishap
If the employee expired due to a mishap when he/she was serving, then, the EPS provides an early pension for the spouse and the children to help them to earn their living. This amount is multiplied in accordance with the government and provided to the family. This would help them fulfill their daily needs. Moreover, it can be substantial to clear the educational dues and provide money for future education too.
EPS has proved to a great source of money for retired individuals. This makes them independent even in the later stages of life. Moreover, the widow and child pension norm under the EPS is designed in such a way that in case of any mishap, EPS scheme helps the family immensely. Since, EPS is a pension scheme for retired individuals, the benefits of the same can’t be availed before the age of 58 years. This is liable in case you have provided the requirement of continuous 10 years of service.