Pension is important as it provides financial security after retirement. A person can enjoy his post-retirement years without worrying about money if he has availed a pension scheme.
If you work for a private company and believe that only government employees receive pensions then you are wrong. Under the EPS (Employees' Pension Scheme), the Employees' Provident Fund Organization (EPFO) provides pension benefits for employees of private organizations.
What is EPS?
The EPFO's EPS scheme strives to ensure the social security of all employees. After employees retire at 58 years old, the employees in the organized sector will receive a pension under this plan.
What are the criteria for availing pension post-retirement?
The employee must have worked for the company for at least 10 years, whether they were consecutive or not, in order to be eligible for this scheme's benefits. Since 1995, both current EPF employees and those who have recently joined the organization have been allowed to receive the EPS pension.
The individual should:
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An EPFO member
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Complete 10 years of active service and 10 years of active EPF pension scheme contributions
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Be 58 years or above
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in order to retire from the EPS pension at a lower rate, you must be at least 50 years old
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Delay the pension withdrawal by two years, or until the pensioner reaches the age of 60, in order to be eligible for the EPS pension, which carries an annual interest rate of 4%
What if one changes his job?
Previously, when changing jobs, you had to fill out two forms: Form 11 to confirm that you are a member of EPF plans and Form 13 to transfer your PF balance from the previous company to the new firm.
A composite Form 11 is acceptable for both purposes if the applicant already has a current Universal Account Number (UAN) and an Aadhaar number associated with KYC in the EPF database.
