EPS, short for Employee Pension Scheme, was introduced by the government of India in the year 1995. The idea behind launching this scheme was to provide financial security after retirement for employees working in the organized sector.
Employees that are eligible for a provident fund are also eligible for EPS. This scheme is run by EPFO (Employee Provident Fund Organization). All EPF members can avail this scheme after attaining the age of 58. The EPFO Pension Portal is an online portal where employees can check their EPS balance.
EPS Eligibility Criteria
Not everybody working is eligible for the pension scheme. You need to meet certain criteria to become a member to avail the benefits of the pension scheme. An individual should be able to meet the below-mentioned eligibility conditions.
- An individual should be a member of the EPFO to avail of this scheme.
- He or she should complete 10 years of service as well as contribute equally towards the pension scheme.
- Should be above the age of 58 years.
- To withdraw, the member should be at least 50 years of age and should have a UAN number to withdraw from the EPFO pension portal.
- The member has to withdraw within two years of completing the 58 years, i.e., 60 years, to avail an annual interest rate of 4%.
Different Types of Pension Schemes
Under this scheme, there are various pension plans available for the employees. Some of the most common pension schemes available are –
- Widow Pension: As the name implies, this pension scheme is available for women who have lost their husbands, as well as EPFO members. The widow would receive payments until her death or until she remarries.
- Child Pension: Under this scheme, in the event of the demise of the EPS member, the surviving children become eligible to receive monthly pension contributions. However, the pay-outs are only applicable till the child turns 25 years old. Also, the pension is paid to a maximum of two children if the mother of the children is also deceased and has been receiving a widow’s pension.
- Reduced Pension: If an EPFO member is between the age of 50 and 58 and has contributed to EPF for ten years or more, they are eligible for an early pension withdrawal. The pension value is reduced to 4% per year in an early withdrawal situation.
- Orphan Pension: If the EPFO member is deceased and does not have a surviving widow, then the children become eligible to receive a pension under the orphan pension scheme. 75% of the widow’s pension is paid to the surviving children.
In all the above-mentioned situations, the surviving member can view the balance on the EPFO pension portal. All they need is the UAN number.
Benefits Received Under the EPS Scheme
The EPS scheme offers a variety of benefits that EPS members can take advantage of beginning at the age of 18.
- On completion of 58 years and retirement, the EPS scheme member is eligible to enjoy the benefits of the EPS scheme. However, they must have contributed actively towards the scheme for at least 10 years continuously before retirement. A certificate is generated by the government of India post the completion of 58 years.
- In a situation when the member is unable to continue a 10-year service prior to 58 years of age, the member can still withdraw the entire amount at the age of 58 by providing form 10C.
- If the EPS scheme member is permanently disabled during the service, then the member is qualified to receive a monthly pension regardless of the service tenure. The member is eligible to receive benefits right from the date of disablement. To be eligible for this benefit, the member must be able to provide a medical certificate demonstrating that he or she is unable or unfit to work at their current job prior to the disability.
- In the event of the death of the EPS scheme member, the family is eligible to receive the benefits.
How to Check the Balance on a Pension Portal?
Follow these simple steps to check your balance on the EPFO pension portal:
- Open the official EPFO pension portal.
- On the homepage, click the services tab for the dropdown menu in the top left corner and click “For Employees.”
- On the new page, click on Members’ Passbook under Services.
- The pension portal will ask you to log in with your UAN number and password.
- From the drop-down menu, select the member ID and click on View Passbook. Once you click here, you will be able to see the pension contribution by the employer till date and the total balance. You also have the option of downloading the passbook from the portal.
EPF and EPS are two schemes designed to help people deposit and save money for a better future. Also, the savings are non-taxable and also save taxes on the interest earned.
If you are looking to have an in-depth understanding of EPFO pension portal and how it works, you can check out Investment Simplified that offers reliable information on diverse financial topics.