The pension provides us with financial security in old age when we are physically unable to work. A pension system for government employees already existed, while EPFO’s Employee Pension Plan (EPS) is a good support for people working in private companies. If you also contribute to EPFO, then you have the possibility of increasing your pension. Through the EPFO Employee Pension Plan, you can now obtain the benefit of more pension. But for this you have to send your application to the EPS before March 3.
This is a beneficial scheme, but not many people are aware of it. If you also have the same question in your mind, what is this scheme and how will the employed people get their benefits? Who can benefit from this scheme? How much benefit will there be in this? So India TV Paisa team has brought you the complete details related to this scheme. You can also make the most of this scheme by understanding it.
What is the employee pension plan?
All persons employed in the organized sector must contribute to the Employees’ Provident Fund Organization (EPFO). The Employee Pension Plan (EPS) is part of this. The Employee Pension Scheme was first introduced in 1995. Previously, the maximum pensionable salary was set at Rs 6,500, which was increased to Rs 15,000 in the year 2014. Employees contribute 12% of their base salary and allowance from dearth to EPFO. The amount in this measure is contributed by the company or the employer. 8.33% of the amount that the employer contributes to this fund goes to the EPS and 3.67% to the EPF every month. This amount along with interest is returned to the employee after retirement.
How to get more pension
In November 2022, the Supreme Court upheld the Employees’ Pension Scheme (Amendment), 2014. Earlier, the EPS revision of 22 August 2014 raised the pensionable salary limit from Rs 6,500 per month to Rs 15,000 per month . In addition, affiliates and their employers were allowed to contribute 8.33 percent of their real salary to the EPS.
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In view of the Supreme Court decision, two categories of employees eligible for this scheme were created. The first category is for those employees who were members of the EPS before September 1, 2014 and opted for a higher pension. These people were already contributing more to the EPS, but the EPFO rejected their request. In the second category, those employees who were affiliated to the EPS as of September 2014, but who could not opt for a higher pension by submitting the form, were included. Now, following the order of the Supreme Court, said members have been given time until March 3.
how to apply
- For a higher pension, the EPS member must fill out the form issued by the nearest EPFO office and present the necessary documents.
- Both the employee and the employer have to give the statement.
- If there is a need for adjustment of the amount of PM to the Pension Fund, then the employee in the joint form will have to give his consent.
- In cases of transfer of funds from the exempt PF trust to the mansion fund, the trustee must submit a commitment.
- The method of deposit of funds and calculation of the pension will be notified by means of a separate circular.
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