EPFO Credits August Pensions Early for 4.4 Lakh in Kerala

Early Pension Credit Before Onam

The Employees' Provident Fund Organisation (EPFO) credited August pensions to 4,40,901 pensioners in Kerala ahead of the harvest festival of Onam, news agency PTI reported.

Payments under the Employees' Pension Scheme (EPS), 1995 are normally released at the end of the month. A statement from the Labour Ministry said special arrangements were made this time so that "pensioners and their families to meet their financial requirements and celebrate the festival without inconvenience".

The early credits went out on Wednesday, 26 August, through the EPFO's Centralised Pension Payment System (CPPS). That system sends pension money directly into beneficiary bank accounts anywhere in the country.

The Labour Ministry statement added that the EPFO "remains committed to ensuring timely delivery of social security benefits" and is working to improve pension services through technology and citizen-centric reforms.

How the Pension Is Built Up

The EPFO pays a pension to subscribers who have held an account with it for more than 10 years, according to the report in Mint. Of the 12% employer contribution to an employee's provident fund account, 8.33% goes into the pension fund the body administers.

On retiring, members can take out their provident fund balance in full and still keep their standing in the pension scheme by obtaining a Scheme Certificate, which is done by submitting Form 10C.

Under the scheme rules, all EPF members become eligible for a pension at the age of 58. Members may also defer the start of payments until they turn 60.

Money is paid monthly to eligible members or their beneficiaries through banks or post offices, and covers superannuation, early, family, orphan, widow and disablement pensions. The EPFO guarantees the benefit once membership conditions are met, so payment continues even if an employer defaults.

Life Certificate Requirement

Pensioners must submit a physical Life Certificate to the bank paying their pension. If it is not submitted, the pension stops 12 months after the date of the last certificate, or after the sanction of pension in the case of new pensioners.

A Digital Life Certificate (DLC) has been available since the 2015-16 financial year as an alternative, and pensioners can use their Aadhaar number to file it. It can be submitted at Common Service Centres, branches of pension disbursing banks, post offices and PF offices across India.

A Separate Kerala State Pension

The state government in Kerala also moved on pension arrears before the festival. The Hindu reported that it authorised the release of ₹32 crore for welfare pensions to non-resident Keralites, known as 'Pravasi' pensions, with the money to reach beneficiary bank accounts before Onam.

That scheme is separate from the EPFO's. It pays ₹3,500 a month to Keralites abroad and ₹3,000 to those working in other Indian states or who have returned, and payments begin at age 60.