NPS & Pension Account Services - Nominee Update, Forms & Balance Check
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In summary
The Employees' Pension Scheme, 1995 (EPS-95), administered by EPFO, provides monthly pension benefits to eligible members and certain family members. Pension entitlement mainly depends on pensionable salary, eligible service, and the member's age when claiming pension.
- Ten years' service generally enables pension
- Standard monthly pension begins at 58
- Early pension starts from age 50
- Early pension carries applicable yearly reduction
- Pensionable salary uses prescribed calculation rules
- Longer service can provide additional weightage
- Pension deferment can increase monthly benefits
Form 10D supports monthly pension claims
Understanding these EPS rules helps members estimate pension eligibility, choose an appropriate claiming age, and complete the correct pension application process.
What is the Employees' Pension Scheme (EPS-95)?
The Employees' Pension Scheme, 1995 is a social-security pension scheme administered by EPFO. It provides monthly benefits for superannuation, early retirement, disablement and certain survivor or family situations. EPS replaced the earlier Employees' Family Pension Scheme, 1971, with effect from 16 November 1995.
EPS is different from EPF.
EPF primarily builds an accumulated balance consisting of contributions and interest. EPS, in contrast, provides a defined pension benefit calculated according to the scheme's prescribed rules. There is therefore no individual EPS balance that can simply be withdrawn like an EPF corpus.
How is EPS funded?
For employees covered by EPS, the employer's statutory contribution to EPF is allocated partly towards EPS, subject to the applicable wage ceiling. The Central Government also contributes to the pension fund at the prescribed rate.
The standard contribution structure is not the same as an employee making a separate deduction from their salary specifically for EPS. EPS forms part of the wider EPF social-security framework.
Who is eligible for an EPS pension?
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A monthly EPS pension generally requires:
- Membership of the EPS.
- At least 10 years of eligible pensionable service for a member pension.
- Attainment of 58 years for the normal superannuation pension.
Service from different covered employers can generally count when the member's employment and pension records are properly linked. A UAN helps consolidate the member's EPF service records across employers.
What happens if service is less than 10 years?
A member who leaves employment without completing the required 10 years of eligible service does not ordinarily qualify for a monthly EPS pension.
Depending on the circumstances, the member may be eligible for an EPS withdrawal benefit or a Scheme Certificate. Form 10C is used for applicable withdrawal-benefit and Scheme Certificate claims.
A Scheme Certificate can be relevant when a member wants to preserve eligible pensionable service for combining with later EPS-covered employment.
How is EPS pension calculated?
The standard EPS formula is:
Monthly Pension = Pensionable Salary × Pensionable Service ÷ 70
The formula is prescribed under Paragraph 12 of the EPS, 1995. The Government has also confirmed the same formula in parliamentary responses.
What is pensionable salary?
For service under the post-1 September 2014 rules, pensionable salary is generally based on the average monthly pensionable pay during the 60 months preceding the date of exit from EPS membership, subject to the applicable wage ceiling. EPFO's Pension Manual specifies a Rs. 15,000 ceiling for the standard post-1 September 2014 calculation.
The calculation can be more involved where service spans periods before and after 1 September 2014, because different wage ceilings and calculation rules can apply.
What is pensionable service?
Pensionable service is the eligible period of service under EPS. It can include service accumulated across covered employers when the records are properly transferred or linked.
An important provision is the two-year weightage for members completing 20 or more years of pensionable service. EPFO issued instructions regarding this weightage following the applicable EPS provisions.
How much pension can you receive under the standard wage ceiling?
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For a simplified illustration, assume the pensionable salary is Rs. 15,000 and the applicable pensionable service is as shown below.
Eligible service Additional service weightage Pensionable service used Illustrative pension 10 years 0 years 10 years Rs. 2,143 15 years 0 years 15 years Rs. 3,214 20 years 2 years 22 years Rs. 4,714 25 years 2 years 27 years Rs. 5,786 33 years 2 years 35 years Rs. 7,500 These are illustrative calculations, not guaranteed pension amounts. Actual pension depends on the member's applicable pensionable salary, service history, date of joining and exit, past service provisions and other EPS rules.
For example:
Rs. 15,000 × 22 ÷ 70 = Rs. 4,714 per month approximately.
The often-quoted Rs. 7,500 figure represents the result of applying Rs. 15,000 and 35 years of pensionable service to the standard formula. It should not be treated as a universal maximum pension for every EPS member because pension can be calculated differently in cases involving pension on higher wages and other applicable provisions.
What are the early and deferred EPS pension rules?
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EPS provides options around the normal pension age of 58.
Pension option Age General condition Effect Normal pension 58 Eligible service requirement met Pension calculated under applicable EPS formula Early pension 50–57 Eligible for pension and has left employment 4% reduction for each year below 58 Deferred pension 59 Eligible at 58 4% increase for one completed year Deferred pension 60 Eligible at 58 8.16% increase under the applicable notification How does early EPS pension work?
A member can opt for early pension from 50 years, provided the applicable eligibility conditions are satisfied. The pension is reduced by 4% for every year by which the pension commencement age falls short of 58.
For example, if the calculated pension at 58 is Rs. 5,000:
- At 57: 4% reduction
- At 56: 8% reduction
- At 55: 12% reduction
- At 50: 32% reduction
The reduction is based on the age at which the pension begins and affects the pension payable under the applicable rules.
How does deferred EPS pension work?
A member eligible for pension at 58 can defer the commencement of pension beyond 58, but not beyond 60.
The EPS provisions provide an increase of 4% for each completed year after 58. EPFO's 2016 notification specifies an increase of 4% at 59 and 8.16% at 60, where the second year is applied on a compounded basis.
Members continuing in employment after 58 may also have an option to continue EPS contributions up to 60, subject to the applicable conditions.
Is there a minimum EPS pension of Rs. 1,000?
The Government introduced a Rs. 1,000 monthly minimum pension under EPS-95 from 1 September 2014 and subsequently continued the provision beyond 2014-15.
However, the Rs. 1,000 minimum is subject to the specific EPS provisions. For example, the scheme provides for deductions in certain cases involving early pension and certain historical benefits.
Therefore, the Rs. 1,000 figure should not be presented as an unconditional amount payable in every possible EPS claim.
What pension benefits are available to family members?
EPS provides several survivor benefits in addition to the member pension. EPFO identifies widow/widower, children, orphan and other eligible family benefits under the scheme.
Widow or widower pension
The amount depends on the circumstances of the member's death and the applicable EPS provisions.
For a pensioner who dies after commencement of pension, the scheme provides for a widow/widower pension generally equal to 50% of the member's pension, subject to the applicable minimum provisions.
The amount and calculation can differ where death occurs while the member is still in service or after exit but before pension commencement.
Children pension
Eligible children can receive a pension in addition to the widow/widower pension.
Under the EPS provisions, each eligible child can receive 25% of the widow pension, with pension payable to up to two children concurrently and generally continuing until the child reaches 25 years of age.
Orphan pension
Where the conditions for orphan pension are met, the applicable benefit can be 75% of the widow pension for each eligible orphan, subject to the scheme's rules and limits.
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What is the EPS pension for permanent disablement?
EPS also provides a pension in cases of permanent total disablement, subject to the scheme's conditions.
Unlike a normal superannuation pension, disablement benefits do not depend on completing the same 10-year service requirement applicable to a member's retirement pension. EPFO lists disablement as one of the pension benefits available under EPS.
The member should apply through the prescribed EPFO process and provide the required medical and employment documentation.
How can you apply for EPS pension using Form 10D?
Form 10D is the prescribed form for claiming monthly EPS pension. EPFO's current Pension Manual also states that EPS benefits can be authorised through online claim forms submitted through the Unified Member Portal or UMANG, or through the applicable composite claim process.
General online process
- Log in to the EPFO Member Portal using your UAN and credentials.
- Check your service and KYC details before submitting the claim.
- Select the applicable pension claim option.
- Choose Form 10D for a monthly pension claim.
- Provide the required bank and family details.
- Complete the applicable authentication and submit the claim.
- Track the claim through the available EPFO services.
EPFO's current member portal provides online pension-related services and also directs members to UMANG for certain services.
What is a PPO?
Once the pension claim is processed and sanctioned, the pensioner receives a Pension Payment Order (PPO). The PPO is used to identify the pension and facilitates pension-payment and enquiry services.
EPFO's Pensioners' Portal provides facilities for checking pension status, PPO-related information and pension payment details.
What is pension on higher wages under EPS?
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The standard EPS calculation generally works with the applicable statutory wage ceiling. However, pension on higher wages is a separate provision arising from the Supreme Court's 2022 judgment and subsequent EPFO procedures.
It is not automatically available to every EPS member.
EPFO has stated that the higher-pension option applies to specified categories of members who satisfy the relevant historical conditions, including circumstances involving contribution on actual wages above the prevailing wage ceiling and membership before 1 September 2014 with continued membership thereafter.
For eligible cases, pensionable salary can be based on the higher salary rather than simply applying the standard Rs. 15,000 ceiling. EPFO's Pension Manual specifically recognises higher-wage cases approved by the competent authority.
EPFO's member portal currently provides a facility to track applications for pension on higher wages and a calculator for estimating the amount due.
What is the difference between EPF and EPS?
| Feature | EPF | EPS |
|---|---|---|
| Purpose | Retirement savings | Pension and social-security benefit |
| Benefit type | Accumulated balance | Monthly pension |
| Interest | EPF balance earns notified interest | EPS is a defined-benefit scheme |
| Normal retirement benefit | Lump-sum settlement subject to rules | Monthly pension |
| Key eligibility factor | Membership and applicable withdrawal conditions | Eligible service and pension age |
| Main claim forms | Form 19, Form 31 and others | Form 10D for monthly pension; Form 10C for applicable withdrawal benefit/Scheme Certificate |
EPFO separately identifies EPF and EPS as two of the social-security schemes it administers.
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How can you check EPS pension status?
EPFO provides a dedicated Pensioners' Portal with options including:
- Pension status
- PPO enquiry
- Pension payment enquiry
- Pension-paying bank details
- Jeevan Pramaan enquiry
The pension-status facility requires details such as the issuing office and PPO number.
Existing EPFO members can also use the member portal for claim-related services.
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Frequently Asked Questions
Overview
Can I withdraw my EPS amount?
Yes, you can withdraw your EPS amount if you have completed 10 years of service or if you are retiring at the age of 58. Partial withdrawal is also possible under certain conditions, such as unemployment.
Can I receive both EPS pension and returns from a Fixed Deposit simultaneously?
Yes, you can receive your EPS pension while earning returns from a Fixed Deposit. While EPS provides a steady post-retirement income, investing in a high-interest FD can help you supplement your pension and ensure greater financial security. With Bajaj Finance FD, you can earn returns of up to 8.15% p.a., ensuring stable and risk-free growth for your savings. Book your FD today to build a stronger financial future!
Is EPS mandatory for all employees?
Yes, EPS is mandatory for all employees who are part of the Employees' Provident Fund (EPF) scheme and earn a monthly salary of up to ₹15,000. It provides pension benefits after retirement.
Who is eligible for the EPS scheme?
Employees who are members of the Employees’ Provident Fund (EPF) and have completed at least 10 years of service are eligible for the Employees’ Pension Scheme (EPS). The scheme is available to employees earning a basic salary of up to Rs. 15,000 per month and provides a pension after retirement at the age of 58 years.
Who is not eligible for EPS pension?
Employees who haven't completed 10 years of service or are currently employed are ineligible to withdraw EPS funds. You can only withdraw once you've left your current job.
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