EPFO Pension: Not just one, but seven types of pensions! If your PF is deducted, be sure to learn about it; your family will also receive support in difficult times.

The EPFO ​​pension scheme provides lifetime security to every member and their family. Contributing for 10 years entitles you to a retirement pension, but this requirement is not required for other pensions, such as disability or widow pensions. Learn about the seven types of EPFO ​​pensions that can be a support for you and your family in difficult times.

Most of us in private jobs have PF (Provident Fund) deductions every month. We know that this money is being deposited for our future and that we will receive a pension after retirement. A common rule is that if you have contributed to the EPFO ​​for 10 years, you start receiving a pension at the age of 58. But did you know that the EPFO ​​doesn't just offer one type of pension; it runs seven different pension schemes?

This pension can provide significant support not only to you but also to your family in difficult times. Very few people are fully aware of it. If you are contributing to your PF, it is important for you to understand the various protections the EPFO ​​provides to you and your family.

1. Retirement Pension

This is the most common pension that most people are aware of. This pension is provided by the EPFO ​​when you turn 58. The amount depends on your total contribution to the pension fund. An important advantage is that if you wish, you can claim a pension after 58, up to 60 years of age. By doing so, the EPFO ​​increases your pension by 4% every year. This is beneficial for those who want to work for a few years after retirement and receive a higher pension later.

2. Early Pension

Generally, the EPFO ​​starts paying pension at the age of 58, but there are some situations where you can receive pension earlier. If you are eligible for pension and wish to receive it before the age of 58, i.e. after the age of 50, you can claim it. The EPFO ​​also provides for early pension. However, one thing to keep in mind is that if you claim early, your pension is reduced by 4% every year.

Example:

If you are due a pension of Rs 7,000 at the age of 58, and you claim at the age of 57, you will receive Rs 6,720, a 4% reduction. If you claim at the age of 56, you will receive Rs 6,440, a 8% reduction.

3. Widow or Child Pension

This pension scheme is a major support for the family of an EPFO ​​subscriber. If an EPFO ​​subscriber dies, his wife and two children under the age of 25 are entitled to receive the pension. If there is a third child, he or she will receive the pension when the first child's pension ceases upon reaching the age of 25. The special feature of this pension is that the 10-year contribution requirement does not apply in the event of the subscriber's death. This means that if a subscriber has contributed for just one year and then dies, his or her widow and children will be entitled to receive the pension.

4. Disability Pension

This pension is for EPFO ​​members who become temporarily or permanently disabled due to an accident or illness during service. The age and 10-year pension fund contribution requirements are not applicable for this pension. If a subscriber has contributed to the EPS (Employees' Pension Scheme) for even two years and becomes disabled, they are entitled to this pension. This pension helps them become financially independent.

5. Orphan Pension

This is for the tragic situation where an EPFO ​​subscriber dies along with their spouse. In such cases, their two children under the age of 25 are eligible for orphan pension. This pension is available to the children until they reach the age of 25. This pension provides financial support to children who have lost both their parents during difficult times.

6. Nominee Pension

If an EPFO ​​member does not have a spouse or children and dies, the pension is received by the nominee they have created. This nomination gives you the freedom to choose a person of your choice to receive financial assistance in your absence.

7. Dependent Parents Pension

This pension is for single EPFO ​​subscribers who die and have no children or spouse. In such a situation, their dependent father is considered eligible for the pension. If the father dies, the subscriber's mother receives the pension. She continues to receive this pension for life. Form 10D is required to be filled for this pension. This pension provides a significant support to parents who are financially dependent on their children.

FAQs

1. How many years of minimum contribution is required for EPFO ​​pension?

Generally, 10 years of contribution is required for retirement pension. However, this rule is not applicable in some schemes like widow/child pension and disability pension, where pension can be received even with shorter contributions.

2. If I want to receive pension before the age of 58, is this possible?

Yes, you can claim early pension after the age of 50. However, your pension is reduced by 4% every year.

3. How long do children receive pension after the death of an EPFO ​​subscriber?

Children receive pension until the age of 25. If both the subscriber and his wife die, orphaned children still receive pension until the age of 25.

4. Is there any age or contribution requirement for disability pension?

No, the age and 10-year contribution requirements do not apply to disability pensions. If you have contributed to EPS for even two years, you may be eligible.