EPFO pension scheme
#GS-02 Social Security
- 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
- Accumulation plus interest upon retirement and death
- Partial withdrawals allowed for education, marriage, illness and house construction
- 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
- The monthly benefit for superannuation/benefit, disability, survivor, widow(er) and children
- Minimum pension of disablement
- Past service benefit to participants of the erstwhile Family Pension Scheme, 1971.
Insurance Scheme 1976 (EDLI)
Salient features of the scheme
- The benefit provided in case of the death of an employee who was a member of the scheme at the time of death.
- Benefit amount 20 times the wages, maximum benefit of 6 Lakh.
Supreme Court extended the provisions of EPFO schemes. The expanded provisions are: