EPFO-95 Withdrawal Limit:The Employees’ Pension Scheme 1995 (EPS-95) administered by the Employees’ Provident Fund Organization (EPFO) is an important social security cover for India’s workers. This scheme provides financial assistance to employees after retirement. Recently, rumors of non-receipt of pension due to excess withdrawal under EPS-95 have been spreading, which has increased anxiety among EPFO members.
In this article, we will give detailed information about the EPS-95 scheme and also understand whether making excess withdrawals actually affects the pension. Also, EPFO will also present important updates and suggestions for the members.
Introduction to EPS-95 Scheme
Employees’ Pension Scheme 1995 (EPS-95) is a government pension scheme that was launched by the Government of India for workers. The main objective of this scheme is to provide financial security to the employees after retirement. Under EPS-95, both the employee and the employer contribute, creating a pension fund.
Key Features of EPS-95 Scheme
| Speciality | Description |
| Eligibility | All employees appointed on or after 1 September 1995 |
| Contribution | 8.33% of the employee’s basic salary and dearness allowance |
| minimum service period | 10 years for pension |
| pension calculation | Based on average salary of last 60 months |
| types of pension | Monthly Pension, Widow Pension, Child Pension, Disability Pension |
| minimum pension | ₹1,000 per month |
| maximum pension | ₹7,500 per month (as per 2014 revision) |
Does excessive withdrawal affect pension?
Recently this rumor has spread that if you make excess withdrawal under EPS-95, you will not get pension. It is important to know that this is not completely true. In fact, as per the rules of EPS-95, withdrawal is allowed in certain circumstances, but it may have an impact on the pension.
Withdrawal rules and effects
- Partial Withdrawal: Under EPS-95, employees can make partial withdrawal from their account. However, this withdrawal may affect the pension amount.
- Complete Withdrawal: If an employee withdraws the entire amount from his EPS account, he may be ineligible for pension.
- Effect of service period: If an employee makes a withdrawal before completing the minimum service period of 10 years, he may be ineligible for pension.
- Reasons for withdrawal: Different rules may apply to withdrawals made for certain circumstances such as serious illness or marriage.
Important tips for EPFO members
- Stay Informed: Stay aware of EPS-95 regulations and updates.
- Withdraw carefully: Choose the withdrawal option only in urgent situations.
- Keep in mind the service period: Try to complete a minimum service period of 10 years.
- Alternative Savings: Consider other savings options besides EPS-95.
- Using EPFO Portal: Check your account information regularly.
Recent changes and updates to EPS-95
higher pension option
In 2022, the Supreme Court gave a judgment under which some employees were given the option of higher pension. According to this decision:
- Employees who retired before September 1, 2014 can apply for higher pension.
- For this, employees will have to make additional contribution.
- This option is available for a limited time only.
Digitization and online services
EPFO has laid emphasis on digitalising its services:
- Online Claim: Members can now claim pension online.
- Digital Life Certificate: Digital Life Certificate facility for pensioners.
- UAN Portal: Easy access to all services through Universal Account Number (UAN).
Myths and realities related to EPS-95
Myth 1: There is no benefit from EPS-95
Reality: EPS-95 ensures a fixed income after retirement, which provides vital security for many people.
Myth 2: Pension amount is too low
Reality: Although the pension amount may be low, it ensures a minimum financial support. Also, it is likely to improve with higher pension options.
Myth 3: Not useful for private sector employees
Reality: EPS-95 is also beneficial for private sector employees, especially companies that do not have other pension plans.
EPS-95 and other social security schemes
EPS-95 is one of the many social security schemes of the Government of India. Other important schemes are:
- Atal Pension Yojana (APY): For unorganized sector workers.
- Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM): Pension scheme for unorganized sector workers.
- National Pension Scheme (NPS): For government and private sector employees.
The objective of these schemes is to provide retirement security to different sections of people.
Future and possible improvements of EPS-95
EPS-95 requires continuous improvement. Some possible areas where changes may occur:
- Increase in pension amount: Regular increase in pension amount as per inflation.
- Diversity in Investment Options: Diversity in investment options for better management of pension funds.
- Improving digital interfaces: More user-friendly digital platforms.
- Flexible Evacuation Policy: More flexible evacuation policy for emergency situations.
conclusion
EPS-95 is an important social security scheme for workers in India. Although it has some challenges, it ensures a fixed income after retirement. EPFO members should be aware of the rules of the scheme and take wise decisions to secure their future. Be careful with withdrawals and try to meet the minimum service period where possible.
Disclaimer
This article is for informational purposes only. The terms and provisions of EPS-95 may change from time to time. Make sure to consult EPFO’s official website or a certified financial advisor before taking any financial decisions. This scheme is genuine and operated by the Government of India, but there may be various opinions on its benefits and effectiveness. Always follow the latest government guidelines and regulations.
