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Pension from eps and nps

B (Engin) (205 Points)

17 May 2016

Suppose an employee of a corporate has opened an account in national pension scheme (NPS). For that employee his/her employer deducts a portion of amount from his salary and deposit that portion of his/her salary in Employee pension scheme (EPS) every month. Now this employee can get pension from his/her EPS after age of 60 years. This emplyee can get pension from his/her NPS account after 60 years. Can he/she withdraw pension from both the funds EPS and NPS? Is there any law that states that an Indian employe in India can get pension from only one account and not more than one account?

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4 Replies

Amith S (Manager - Delivery & Support) (28 Points)
Replied 17 May 2016

NPS & EPS are two different sources. There is no restriction on Pension.

You will be able to get the pension from both NPS and EPS

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B (Engin) (205 Points)
Replied 17 May 2016

Is there any law from Government of India that states that an Indian employe in India can get pension from only one account and not more than one account fater his/her retirement? Both EPS and NPS are from Government of India.

Regards

Amith S (Manager - Delivery & Support) (28 Points)
Replied 17 May 2016

No there is no such law, which restricts employee from getting only one pension. Apart from EPS & NPS there are lot of Pension schemes which are through various private vendors also.

However for the members who are newly joined to EPF and whose PF wages are above 15000/- will not be member of EPS and No diversation of 8.33% will go to EPS, all the contribution will go to EPF only. If the employee want to go for Pension fund then they can opt for NPS.

If you are old member of EPF, you can continue EPS contribution.
It is not mandatory to join NPS. It is optional. Even being member of EPS you can pay NPS, there is no restriction.