Getting a lifelong regular income after retirement is one of the most critical life goals for most salaried people. The Employees’ Pension Scheme, 1995, or EPS-95 is among the few options that offer lifelong regular income during retirement years, especially for private sector employees. This scheme typically pays pension after the individual reaches retirement or the age of 58 years. “Under the pension scheme (EPS-95), a member can avail monthly pension if he has rendered eligible service of 10 years or more and retires on attaining the age of 58 years,” says Pooja Ramchandani, Partner, Shardul Amarchand Mangaldas & Co.
However, many people leave their salaried employment quite early either voluntarily or due to some unavoidable circumstances such as chronic illness or disability. Can these people get an early pension under EPS-95? The answer is yes. “According to the pension scheme, a member may be allowed to draw an early pension before attaining the age of 58 years,” says Ramchandani.
Members of the EPS-95 are entitled to early pension if they satisfy certain conditions. The first condition is that such members must have completed the minimum eligible service of 10 years. “Eligible service means the period of actual service rendered by a member for which the contributions to the fund have been received or are receivable. For those who were members of the Employees’ Family Pension Fund, their period of service when they were members of such a fund till November 15, 1995, is also taken into account for eligible service,” says Ramchandani.
The other condition is that such member either retires or ceases to be in employment before attaining the age of 58. “Early pension can be availed by EPS members if they retire or cease to be in employment before 58 years of age. This can be availed by members once they turn 50 years of age,” says Sowmya Kumar, Partner, INDUSLAW….Read More
Source By: economictimes
