EPFO Pension Schemes: Early pension, retirement pension, nominee pension and 4 other pension schemes that every private sector employee should know
Retirement pension is the pension that is given to you by EPFO after you turn 58 years old. How much pension will be made depends on your total contribution to the pension fund. If you want, you can claim a pension from 58 years to 60 years. In such a situation, EPFO increases the pension of its members by 4 per cent every year.
Employees' Provident Fund Organisation (EPFO) is a statutory body that manages retirement plans for employees. In EPF (employee provident fund), both employee and employer invest money every month. According to the EPFO rules, if a member contributes to the EPFO for 10 years continuously, they become eligible for a pension.
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When can you avail of an early EPFO pension?
Generally, EPF pension starts from 58 years of age. However, there are other conditions also where EPFO gives pensions to its members and their families.
EPFO pension schemes
There are seven types of EPFO pensions for a private sector employee. Let's take a look at all of them.
Early Pension
Generally, EPFO gives a pension from the age of 58 years, but if a member is entitled to a pension and wants to take a pension before the age of 58, then he can claim it after the age of 50 years. However, in early pension, the pension given to EPFO members is reduced by 4 per cent every year.
Superannuation Pension
Retirement pension is the pension that is given to you by EPFO after you turn 58 years old. How much pension will be made depends on your total contribution to the pension fund. If you want, you can claim a pension from 58 years to 60 years. In such a situation, EPFO increases the pension of its members by 4 per cent every year.
Disablement Pension
If an EPFO member becomes permanently and completely disabled during their service, EPFO provides financial support to them.
Widow Pension
The surviving spouse of a dead EPFO member receives a monthly annuity until he/she dies or remarries.
Child Pension
EPFO also provides a pension to surviving children until they turn 25.
Orphan Pension
Children of dead members receive a monthly pension if their spouse is also deceased.
Nominee Pension
EPFO provides a pension to the specified nominee in the case of the death of an EPFO member with no spouse or children.