How EPS Pensioners Will Benefit From New EPS Rules In 2025?

In a major relief to pensioners falling under the bracket of Employees’ Pension Scheme (EPS), 1995, they can now access pension from any bank branch all over India from January 1, 2025. The latest EPS rules have come into effect after the consent of the Centralised Pension Payment System (CPPS) by Union Minister Mansukh Mandaviya. The system will permit EPS pensioners to receive their pensions from any bank or branch all across India from January 1, 2025.

With the latest move, the requirement to transfer Pension Payment Orders (PPOs) will be eliminated. With the new EPS rule, pensions will be instantly transferred to the respective accounts, and there will be no need to visit the branch or do verifications any longer.

The Centralized Pension Payment System will reportedly extend benefit to more than 78 lakh EPFO EPS pensioners. The new EPS rules will offer huge relief to pensioners who plan to shift to their native place post retirement.

The new update remains a part of EPFO’s current modernization program coming under Centralized IT Enabled System (CITES 2.01) that has already begun from January 1, 2025.

Earlier, pensioners were restricted to some select banks coming under the decentralised system. However, with CPPS, pensioners will be able to make optimum use of the latest IT and financial technology for a smooth and hassle-free experience.

As per the latest reports, soon there will be a shift to an Aadhaar-based payment system (ABPS) that will further modernize and streamline the disbursement of pension.

What Is EPS Contribution?

EPS is a social security scheme offered by the Employees’ Provident Fund Organisation (EPFO). Employers and employees contribute 12% each of the latter’s pay towards EPF. The total share of employees is contributed to EPF, while 8.33% of the employer’s share goes to EPS, and the remaining 3.67% goes to EPF contribution every month. Any EPF member will be eligible to become part of the EPS scheme if his/her basic salary does not go beyond Rs 15,000 per month from September 1, 2014. The advantages of the scheme can be availed only if the employee has worked for a minimum of 10 years (it should not have to be a continuous service). He should have also reached the age of 58 in order to become eligible for availing of the benefits under the EPS.

What Happens in the Event of Death?

In the situation of the death of the member, the widow and children will receive the monthly pension.

What Happens If Member Leaves Services Before Getting Eligible For Monthly Pension?

If the member failed to stay in the service for 10 years before completing the age of 58, he will still be able to withdraw the entire amount at the age of 58 by just filling out the Form 10C. However, he will not be able to receive monthly pension benefits post retirement.

What Happens in the Event of Disability During Service?

If the EPFO members become disabled entirely forever, he will be eligible for a monthly pension even if he has not completed the pensionable tenure. Meanwhile, his employer will have to submit funds in his EPS account for at least a period of one month to become eligible for pension.

EPS offers significant assistance to workers in the form of crucial financial aid to employees working in public and private sectors post-retirement.