Rajasthan Teachers Hail Amendments in EPS-1995: Know How the Changes Would Benefit Millions of Workers in Private Sector

Jaipur-The central government has introduced significant reforms to the Employee Pension Scheme (EPS-1995). Now, employees with less than six months of service can withdraw from the Pension Fund (EPS), a change set to benefit nearly 23 lakh employees in the private sector.

Rajasthan Shikshak Sangh (Siyaram), has praised this decision and urged the Rajasthan government to promptly implement it.

Arun Vyas, Secretary of the Teachers' Union , noted that many members of the Pension Scheme-95 used to exit the scheme before completing the mandatory 10 years of contributory service.

EPFO has now extended withdrawal benefits to such members in accordance with the scheme's provisions.

Previously, only members who completed at least six months of contributory service were eligible for withdrawal benefits. Those leaving before completing six months were ineligible, resulting in the rejection of numerous claims.

Significantly, during the fiscal year 2023-24, approximately seven lakh claims were rejected due to insufficient contributory service (less than six months).

Calculation Method

The government has revised the calculation method to ensure that monthly service is comprehensively factored into the equation, aligning withdrawal benefits accordingly.

This amendment extends to members who haven't fulfilled the requisite service tenure for eligibility or those who have reached the age of 58.

The withdrawn amount now hinges on the duration of service and the salary against which EPS contributions were received.

Employee Pension Scheme (EPS):

Launched in 1995 for organized sector employees, EPS operates alongside the Employees' Provident Fund (EPF).

Contributions are made jointly by employers and employees and overseen by the Employees' Provident Fund Organization (EPFO) under the Ministry of Labor and Employment.

To qualify for pension benefits under EPS, a minimum contributory service of 10 years is mandatory.

Discontinuation of Group Insurance Scheme for Government Employees:

EPFO has opted to cease the Group Insurance Scheme (GIS) for government employees who joined service post-1st September 2013, effective immediately.

According to a recent EPFO circular, only those employees who joined after the specified date will be impacted, with any deductions from their salaries to be refunded.

This decision is expected to result in salary increases for affected employees. The scheme was initially introduced on 1st January 1982.