7 must-know things about EPS-95 pension: Eligibility, pension formula, family benefits and more

Employees' Pension Scheme (EPS), 1995, is one of the key retirement benefits available to organised sector employees covered under Employees' Provident Fund (EPF). EPS is managed by Employees' Provident Fund Organisation (EPFO).
Here are 7 important things every EPF member should know about the EPS-95 pension scheme.

1. Who is covered under the EPS-95 scheme?

Employees' Pension Scheme (EPS), 1995, covers employees working in factories and establishments that are covered under the EPF scheme. It also includes members of the erstwhile Family Pension Scheme, 1971, as well as employees who became members between April 1, 1993, and November 15, 1995. EPS membership generally continues until the member attains the age of 58 years.

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2. What are the benefits under the EPS-95 scheme?

Monthly superannuation pension: Members who meet the eligibility conditions can receive a monthly pension after attaining the prescribed retirement age.

• Family pension: In the event of a member's death, eligible family members, including the spouse and children, can receive pension benefits.
• Disablement pension: A member who suffers permanent and total disability during service can receive a monthly pension, even if the minimum service requirement has not been completed.
• Withdrawal benefit: Members who leave service before completing eligible service may be entitled to a lump sum withdrawal benefit, subject to EPS-95 scheme rules.
• Minimum pension guarantee: The EPS-95 scheme provides a minimum assured pension to eligible members, offering a basic level of financial security after retirement.

3. Who is eligible for EPS-95 pension benefits?

Employees earning up to Rs 15,000/month and contributing under EPF for a minimum period are eligible. (10 years of service, disability pension available without 10 years of service)

4. How is the EPS-95 pension amount calculated?

The EPS-95 pension is calculated through a formula-
Pension= (Pensionable Salary (average of last 60 months) X Pensionable Service)/70.

5. Can EPS-95 pension be drawn before retirement?

Yes, a reduced pension can be drawn from age 50 subject to conditions.

6. How are nominations for the EPS-95 scheme updated?

Form No-2 is prescribed under Employees’ Provident Fund, Employees’ Pension Scheme and Employees’ Deposit Link Insurance Scheme for submitting family and nomination details.

7. Which certificates must EPS-95 pensioners submit regularly?

All pensioners drawing pension under Employees’ Pension Scheme, 1995, are required to give a life/non-remarriage certificate, duly attested by the bank manager/gazetted officer after 12 months from the month in which pension was sanctioned or the date of the submission of last life certificate.

A physical life certificate is to be submitted to the bank through which the pension is being paid. Failure to submit a life certificate after one year will result in the stoppage of pension after 12 months from the date of submission of last life certificate or the sanction of pension in case of new pensioners.

In place of a physical life certificate, a ‘Digital Life Certificate’ (DLC) has been introduced from the financial years 2015-16. Now EPS-95 pensioners can use their Aadhaar number to submit their DLC. The facility to submit DLC is available in ‘Common Service Centers’ (CSCs), branches of Pension Disbursing Banks, ‘post offices’ through ‘India Post Payment Banks’ (IPPB) as well as PF offices.