Family Pension Explained
The Employees' Pension Scheme (EPS) is more than just a retirement fund; it's designed to support families during unforeseen circumstances. A portion of
the 12% employer contribution to EPF, specifically 8.33%, is allocated to the EPS. With a cap on the basic salary for EPS calculation at Rs 15,000 per month, this results in a monthly contribution of Rs 1,250 towards the pension fund. This scheme aims to provide financial security to dependents, ensuring their well-being even if the primary earning member is no longer alive. It's crucial for members to maintain updated nomination details, Aadhaar linkage, and bank account information to prevent delays in benefit disbursement to their families during critical times. Proactive maintenance of these records ensures continuous financial support for the family.
Eligibility After 10 Years
If an employee has completed a decade of service and passes away before the age of 58, their surviving spouse is eligible for a lifelong widow or widower pension. This pension amounts to 50% of what the employee would have received at age 58 and continues until remarriage, with a guaranteed minimum of Rs 1,000 monthly. Furthermore, up to two children can receive a child pension, each equivalent to 25% of the widow's pension, until they reach 25 years of age. For children with disabilities, this pension benefit extends throughout their lifetime. In the unfortunate event that both parents are deceased, orphaned children are entitled to an orphan pension, which is 75% of the widow's pension per child.
Benefits Under 10 Years
When an employee dies before completing 10 years of service, their family is not eligible for a regular monthly pension. In such scenarios, the dependents are entitled to a withdrawal benefit. This benefit is calculated based on the member's wages and the duration of their service. If there are no eligible family members to receive this benefit, the pension amount is then disbursed to the designated nominee or to the deceased member's dependent parents, providing a form of financial recourse.
Additional Family Benefits
Beyond the regular pension, the nominee is legally entitled to receive the complete EPF (Employees' Provident Fund) accumulation, including all accrued interest. Additionally, if the employee dies while in service, the family is eligible for a lump sum payment under the Employees' Deposit Linked Insurance (EDLI) scheme. This benefit ranges from a minimum of Rs 2.5 lakh to a maximum of Rs 7 lakh, as per recent amendments. To initiate claims for these benefits, the family or nominee must submit Form 10-D for the EPS pension and Form 10-C (if service was less than 10 years) or Form 20 for EPF withdrawal to the deceased employee's last employer. These forms are subsequently processed through the EPFO's Unified Member Portal.
Claim Process & Documents
To claim EPS benefits after an employee's demise before turning 58, the registered beneficiary or nominee must submit a Composite Claim Form along with Form 10-D (or 10-C for less than 10 years of service) to the EPFO. Key documents required include the original death certificate, Aadhaar cards, PAN card, bank account details, a family member or legal heir certificate, age proof for children, guardianship certificate if applicable, passport-sized photographs, a descriptive roll form, service certificates or EPF passbook, and the EPFO scheme certificate. The claim approval process by the EPFO typically takes between 7 to 30 days from the submission of all necessary hard copies to the designated Regional EPFO office. Nominees can monitor the status of their application via the 'Know Your Claim Status' feature on the EPFO portal or by sending an SMS to 7738299899.
Online Claim Submission
The EPFO offers an online process for beneficiaries to submit their claims. This involves visiting the EPFO Unified Member Portal and navigating to the 'Death Claim by Beneficiary' section. Here, the claimant needs to enter the deceased member's Universal Account Number (UAN), along with their own Aadhaar card number, name, and date of birth. A verification step follows, requiring the beneficiary's mobile number linked to their Aadhaar. Once verified, the claimant must complete the online application form and upload scanned copies of supporting documents. These include the death certificate and a canceled cheque, with each document not exceeding 2 MB in size. This streamlined online method simplifies the claim submission process for eligible beneficiaries.
