EPF Pension Scheme: If an employee joins any organization at the age of 58 years, then he will not be eligible to become a member of the pension fund. On the death of the beneficiary of the EPF pension scheme, children are also eligible to receive pension till the age of 25 years.
New Delhi. If you are employed then this is the news of work for you. Actually, a part of the employer’s share is deposited in the pension scheme of retirement fund body EPFO. There is no contribution on the part of the employee. We are telling some facts about the pension scheme offered by the retirement fund body, about which few people know.
1. No employee can take advantage of the pension scheme without becoming an EPF member. If the salary of an employee is at least Rs 15,000 per month, then he can become a member of EPF as per the provisions of Para 26(6) of the PF Scheme.
2. Contribution is made by the employer to the pension fund. In such a situation, no EPF member can refuse to contribute to the employee pension component.
3. If an employee joins any organization at the age of 58 years, then he will not be eligible to become a member of the Pension Fund.
4. Individual members cannot take exemption from pension scheme, but a company can claim exemption.
5. A member is eligible for pension on retirement at the age of 58 years. If the employee leaves the job between 50 to 57 years, then he can avail the benefit of early (reduced) pension.
6. The formula for calculation of pension amount is –
Pension = (Pensionable Salary) (Average of last 60 months) X Pensionable Service / 70
7. On the death of the member, the family pension and children pension is also payable on deposit of 1 month’s contribution.
8. On the death of the EPFO member, the pension will go to his wife or husband.
9. Children are also eligible to receive pension till the age of 25 years.
10. Pensioner can get pension anywhere in the country.