EPS pension details scheme schedule.pptx

Pension

1. E P S P e n s i o n s c h eme

2. Brief of the EPS-95 Pension Scheme Issues & Judgement of the Hon’ble Supreme Court of India dt. 04-11- 2022 Issue of Circulars by EPFO in Compliance of the SC judgement Clarification from the GOI in Parliament How Pensionable Service and Pensionable Salary is calculated Provisions of modification and valuation of the Scheme Declaration to be given by pre-2014 retirees to EPFO Option available members of the Scheme as on 01-09-2014 and time line Common Questions Conclusion & Decisions

3. EPS-95 is a Defined Benefit Scheme under the EPF & MP Act, 1952. EPS-95 is administered by EPFO. Pension is based on contributory service and pensionable Salary Members contributions is @8.33% of Salary and is remitted to the concerned office of the EPFO out of employers contribution to Provident Fund(PF) GOI also contributes @1.16% of Salary(limited to Rs.15000.00 p.m.) in EPS-95 EPS -95 Pension Fund is separately maintained by EPFO, EPFO also maintains PF and EDLI fund separately EPS-95 Pension Scheme to be self sustainable based on money in the Fund Contribution received in the Pension Fund is invested by the EPFO as per applicable pattern of investment Pension is paid on reaching the age of 58 yrs and is paid to Member as well as to spouse(@50% of members pension, after the death of member and to the children upto 25 yrs of age) for life time. Now there is no provisions of Return of Capital or Commutation of Pension

4. EPFO manages: This is managed by EPFO of pension a/c of all those who are contributing to EPF including private trust. vi. Capped EPS contribution : [8.33%*5,000=Rs. 417 from 16.11.1995 to 07.10.2001] [8.33%*6,500=Rs. 541 from 08.10.2001 to 31.08.2014] [8.33%*15,000= Rs. 1250 from 01.09.2014 to till date] vii. Lifelong pension: Pension is available to the member & upon his death to the members of the family. viii. After 10 years of Service: Eligible for pension only after a minimum service of 10 years.

5. ix. Maximum & Minimum Pension: One can get maximum of Rs. 7,500 pm and minimum of Rs.1,000 pm. x. Maximum service for the calculation of service: 35 years xi. The fraction of service: For 6 months or more is treated as one year. xii. Taxability: Pension is taxable under the Income Tax Act, 1961 under the head Income from Salary or other sources as the case may be. xiii. EPS contribution is from Employer Contribution: Out of the employer’s monthly contribution of PF of 12%, an amount @ 8.33% goes into EPS and rest of the amount to EPF.