EPFO Pension Update: Here comes a piece of good news for the pensioners. The retired employees covered under the Employee’s Pension Scheme (EPS) governed by the Employees’ Provident Fund Organisation (EPFO) are likely to receive their pension for the month of October on October 31 due to Diwali celebrations, according to a circular by the EPFO.
The EPFO in a circular said, “Keeping in view the upcoming Diwali festivities and the associated public holidays, it has been decided to release the pension for the month of October 2024 on 29th October 2024. This aims to ensure that pensioners receive their pensions in advance without any delay and can withdraw their pension on 30th October as 31st October is a holiday.”
The EPFO further said in the circular that all field offices shall send the monthly BRS (bank reconciliation statements) to banks in such a way that pension gets credited to pensioners account on or before last working day of the month.
As per the circular, the zonal and regional offices are advised to issue necessary instructions to pension disbursing banks under their respective jurisdiction to ensure the implementation of the bank reconciliation statements.
The EPFO also added, “It shall be ensured that the BRS is generated by 25th October and sent to the corresponding pension disbursing banks before 29th October 2024. It must be ensured that in any case, pension shall be credited in the pensioners account by 29th October 2024 without fail.”
How does pension scheme work?
The retired employees must take note that the EPS-95 is a social security scheme, launched in November 1995, for employees working in the private organised sector across the country.
As part of the scheme, the employees and their employers both make contribution and as per the EPFO rules, both employee and employer contribute 12% of the basic salary towards PF contribution.
While the employee’s entire contribution is paid towards provident fund, the employer’s share gets divided into two parts – 8.33% towards EPS and 3.67% towards PF. And the EPS contribution made during the entire service period of an employee ensures a fixed pension after he or she retires at the age of 58.