Section 6A of EPFMA : Section 6A: Employees' Pension Scheme

Explanation using Example

Imagine a scenario where Priya, an employee of XYZ Pvt. Ltd., has been contributing to the Employees' Provident Fund (EPF) for several years. Under Section 6A of the Employees Provident Funds and Miscellaneous Provisions Act, 1952, the Central Government has introduced the Employees' Pension Scheme (EPS).

Priya is nearing retirement age, and because of her contributions to the EPF, she is now eligible to receive a retirement pension under the EPS. The pension amount is based on a formula that considers her years of service and the contributions made. The scheme also provides security to Priya's family in case of her untimely death, ensuring that her spouse and children would receive a pension to support them financially.

Additionally, Priya's employer has been contributing a part of her EPF contribution to the Pension Fund, which is a specific portion dedicated to providing pension benefits. This Pension Fund is managed by the Central Board, which ensures that the money is properly invested and managed to provide pensions to eligible employees like Priya.

If Priya had been a member of the older Family Pension Scheme, her benefits would automatically transfer to the new EPS, ensuring she would not receive less than what she was entitled to previously. This seamless transition protects her interests and guarantees her pension benefits.