EPFO: What happens to your pension amount is not transferred from previous MID to current MID? How it impacts your EPS’95 benefits

EPS’95: What happens if Provident Fund (PF) amount is transferred from your previous Member ID (MID) to the present MID and your pension amount has not been transferred? The EPFO members must know that the pensionary benefits are dependent on the length of service and the average of last wages drawn. It does not depend on the actual amount lying in the pension fund account. Hence this amount is not transferred during change in employment and a mere transfer of past service history makes the member eligible for pension related benefits.    

Here are some useful facts about your Employees’ Pension Scheme 1995 (EPS 1995):

1) If an employee is already drawing pension under the EPS 1995 scheme, he is required to join the PF (Provident Fund) and not the pension fund. By virtue of being a member of the PF, one is entitled to be a member of the pension scheme.

2) On the death of a pension member, if there is no eligible family member, pension is payable to the nominee. In the absence of valid nomination, the pension amount is payable to dependant parents (dependant father followed by dependant mother).

3) The EPS scheme allows an unmarried person to nominate a person outside of his family. But on acquiring a family, that nomination is considered invalid and the benefits under EPS’95 will be paid to the spouse or children, if any.

4) EPS Calculation Formula: A member who joins Employees’ Pension Scheme (EPS 1995) at the age of 23 and superannuates at the age of 58 years and contributing to the (present) wage ceiling of Rs 15000/month may get about Rs 7500 as pension if service is 35 years. (Pensionable Salary X Pensionable Service)/70 = (15000X35)/70 = Rs 7500.

5) For ex-serviceman, family pension is payable in addition to his service pension under Rule 54 of the CCS (Pension) Rules, 1972 (Effective from 27/07/2001).     

6) Individual member cannot seek exemption from the pension scheme. However, an establishment can seek exemption.

7) It is not mandatory to withdraw the pension amount along with the PF amount if the member avails a scheme certificate.

8) Unemployment period will be excluded from the actual service. Pension is based on contributory service only.

EPFO is one of the World’s largest Social Security Organisations in terms of clientele and the volume of financial transactions undertaken. At present it maintains 24.77 crore accounts (Annual Report 2019-20) pertaining to its members. The Board operates three schemes – EPF Scheme 1952, Pension Scheme 1995 (EPS) and Insurance Scheme 1976 (EDLI).