EPFO pension scheme

EPFO pension scheme

EPFO pension scheme

#GS-02 Social Security

For Prelims:

About EPFO:

  • Employees’ Provident Fund Organisation (EPFO) was established by an act of Parliament of India, to provide social security to workers working in India.
  • It came into effect under Employee Provident Fund and Miscellaneous Provision Act, 1952 and is applicable throughout the country.
  • EPFO comes under the control of the Ministry of Labour and Employment, Government of India.
  • It is one of the World’s largest Social Security Organisations in terms of clientele and the volume of financial transactions undertaken.

Schemes of EPFO:

EPFO Scheme 1952

Salient features of EPFO schemes
  1. Accumulation plus interest upon retirement and death
  2. Partial withdrawals allowed for education, marriage, illness and house construction
  3. Housing scheme for EPFO members to achieve the Prime Minister’s vision of Housing for all by 2022.

Pension Scheme 1995 (EPS)

Salient features of the Pension Scheme
  1. The monthly benefit for superannuation/benefit, disability, survivor, widow(er) and children
  2. Minimum pension of disablement
  3. Past service benefit to participants of the erstwhile Family Pension Scheme, 1971.

Insurance Scheme 1976 (EDLI)

Salient features of the scheme
  1. The benefit provided in case of the death of an employee who was a member of the scheme at the time of death.
  2. Benefit amount 20 times the wages, maximum benefit of 6 Lakh.

For Mains:

Supreme Court extended the provisions of EPFO schemes. The expanded provisions are: