Purpose of the Scheme

• The Employee Pension Scheme is designed to provide a monthly pension after retirement.
  
• It ensures financial stability for employees once they complete their service.
  
• The scheme is a long-term benefit for workers in the organized sector.
  
• It supports post-retirement life with regular income.
  
• It forms an integral part of the EPF framework.
  

Funding and Contribution

• The scheme is funded through the employer’s share of the EPF contribution.
  
• Out of the 12 percent contributed by the employer, 8.33 percent is allocated to the pension fund.
  
• The contribution is calculated on the eligible salary as per statutory limits.
  
• Employees do not contribute directly to the pension scheme.
  
• The fund accumulates over time to support pension disbursements.
  

Eligibility Criteria

• Employees must complete a minimum of ten years of contributory service.
  
• The pension becomes payable after the employee attains the age of fifty-eight years.
  
• Early pension may be availed from the age of fifty with reduced benefits.
  
• The scheme is applicable only if the employee has not withdrawn the pension portion.
  
• Continuity of service and contributions is essential to qualify.
  

Pension Benefits

• A monthly pension is paid to eligible employees after retirement.
  
• Pension amount depends on salary, length of service, and contribution history.
  
• In the event of death, the pension is paid to the nominee or family members.
  
• Various pension types include retirement, widow, child, and orphan pensions.
  
• The scheme ensures extended social security for dependents.
  

Administration and Claims

• The scheme is administered by the Employees’ Provident Fund Organisation.
  
• Pension claims can be filed online or through the employer.
  
• The pension is credited monthly to the beneficiary’s bank account.
  
• Regular tracking and updates are provided through the EPFO portal.
  
• The scheme is governed by the provisions of the Employees’ Pension Scheme, 1995.