EPS Pension Disbursal Rule Change: The Employees Provident Fund Organisation, or EPFO, has taken note of the adversities faced by pensioners who have claimed that their pension does not reach them on time. This is particularly difficult for pensioners registered under the Employees’ Pension Scheme, or EPS. As per guidelines, every salaried person who receives the Employees Provident Fund comes under the ambit of the EPS policy. However, recently, the EPFO has change guidelines on when this money is credited to the pensioner’s account, taking note of the difficulties faced by them for not receiving their pension within the due date.
The EPFO, in a circular dated January 13 this year, has said that the pension amount must be credited to the EPS 95 pensioners’ accounts within the last working day of each month. According to the current agreement with pension disbursing authorities, “Pension will be credited on the 1st working day of the month to which the pension relates or in any case not later than 5th day of the month."
However, in the January 13 circular, the EPFO stated that the concerned matter has been reviewed. “The matter has been reviewed by Pension Division and keeping in line with RBI instructions, it has been decided that all field offices may send the monthly BRS to banks in such a way that pension gets credited to pensioners account on or before last working day of the month (except for the month of March that shall continue to be credited on or after 1st April),” it said in the circular.
“Further, it may simultaneously be ensured that actual pension is sent to pension disbursing banks not earlier than two days before it is to be credited in pensioners’ accounts.," the retirement body backed by the central government further stated in the circular.
“Accordingly, while taking note of the above instructions for strict compliance, all offices are advised to issue necessary guidelines/directions to pension disbursing banks under their respective jurisdiction to ensure proper implementation of the above,” it added further. This decision is supposed to prove beneficial for pensioners who heavily depend on the pension that is credited to them every month.
As mentioned earlier, every employee who is a member of the EPF is also eligible of EPS. All employees who earn a basic salary plus Dearness Allowance of Rs 15,000 or less are required mandatorily to join the Employees Pension Scheme. This scheme ensures that all private sector employees receive a pension when they reach the age of 58. Every month, the employee and the employer contributes 12 per cent of the salary to the Employees Provident Fund, or EPF. However, while the entire amount contributed by the employee goes towards EPF, 8.33 per cent of the employer’s share goes towards EPS.