E-Paper
EPS withdrawal rules changed: Check if you are eligible for new pension, how you can benefit from them
Several EPS participants withdraw from the scheme before the necessary 10 years of service to qualify for a pension. How has this changed?
The Employees’ Pension Scheme has been changed to enable members with fewer than six months of employment to receive withdrawal benefit. As per the new rule, over seven lakh EPS members are set to benefit annually and Table D has also been amended to ensure that withdrawal benefits are paid fairly which is likely to benefit over 23 lakh members.
What is the EPS withdrawal benefit
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Several EPS participants withdraw from the scheme before the necessary 10 years of service to qualify for a pension. Owing to this, members get a withdrawal bonus under the existing rules. This is calculated based on the period of contributory service in completed years and wages on which EPS contribution has been paid. Therefore, till now only members who completed 6 months or more of contributed service were eligible for this withdrawal reward which led to several claim denials and disputes.
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Now, all EPS members who have not yet reached the age of 58 on June 14, 2024 will be eligible for withdrawal benefits.
What has changed in Table D?
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Table D has been modified to calculate the lumpsum payment an employee is eligible to receive if he/she quits the pension scheme before completion of 10 years. It has till now been calculated on the basis of number of years of service completed but now it will be calculated on the basis of the months of service completed by an individual.
