Employees’ Pension (Amendment) Scheme, 2024

The Employees’ Pension Scheme was introduced in November 1995. Prior to this, there was the Employees’ Family Pension Scheme, 1971. The rates of contributions and benefits vary in both Schemes.

Employees’ Family Pension Scheme, 1971, was replaced by Employees’ Pension Scheme, 1995.

For members who were part of the erstwhile Employees’ Family Pension Scheme, 1971, and continued to be members of the Employees’ Pension Scheme, 1995, the benefit of both Schemes is calculated separately before being combined to make a single monthly pension payment.  

Now, EPFO has amended ‘Table B’ under the Family Pension Scheme. This table is based on factors for computing benefits under the said Scheme, called past service benefits.

The earlier Table B had factors until the service period of less than 34 years. Now, the factors have been provided from less than 35 years to less than 42 years.

While the number of beneficiaries in this coverage would be less, this new amendment may help estimate EPFO’s pension liability for the employees covered under the Family Pension Scheme to enable better forecasting and fund management.