Employees’ Pension Scheme 2026: Key Questions EPFO Must Answer Before Implementation

“Employees’ Pension Scheme, 2026”

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In alignment with the revised Labour Codes, EPFO/Government of India (Ministry of Labour & Employment) is to implement “Employees’ Pension Scheme, 2026 w.e.f. 01-04-2026. In this connection several issues crop-up. They are:

1 When EPS,’95 was implemented w.e.f. 15-11-1995 replacing Employees’ Family Pension Scheme, 1971, the contributory period under EFPS,’71 was treated as “Past Service” and accordingly provided benefit in the form of Pension. Will it repeat now duly treating the contributory period under EPS,’95 as “Second Past Service”?

2 The issue of Pro-rata calculation for Higher Pension is under adjudication. Is it proper to introduce replacement to EPS,’95 now?

3 The closing corpus of EFPS,’95 was treated as initial corpus under EPS,’95. Then the closing Corpus of EPS,’95 as on 31-03-2026 will be treated as initial corpus of EPS,’26?

4 It is already more than 30 years since EPS,’95 was introduced. Hence the employees drawing benefit under Past Service of EFPS,’71 drastically coming down. And in a few years, there will be none who were drawing Past Service Benefit, but the closing corpus of EFPS,’71 as on 15-11-1995 not only remains as it is but gets rised. Will the EPFO able to disclose what is the figure of present Corpus under EFPS,’71 as on 31-03-2026 and how may are there still to benefit in the form of Past Service Benefit under EFPS,’71 as on 31-03-2026?

4 Trade Unions are bitterly opposing Labour Codes. Many states may not implement the Labour Codes. Will then the Court approve introduction of EPS,’26 when it in alignment with the revised Labour Codes?

5 Even though EPS,’95 is replacement for EFPS,’71 it was challenged in Court. Will it repeat with the introduction of EPS,’26 w.e.f. 01-04-2026

6 Introduction of EPS,’95 with “Presential Assent” was announced in Parliament then. Then why the announcement of introduction of EPS,’26 was made “silently” in CBT meeting may be with the usual argument of EPFO that it is empowered under Para No. 32 of EPS,’95, Para No: 7 of EPF & MP Act, 1952, Rule 10 of Schedule III of EPF&MP Act, 1952. These provisions allow only amendements to the existing scheme i.e., EPS,’95 but not for replacement with another Scheme like EPS,’26. Will the introduction of EPS,’26 withstand judicial scrutiny in this regard?

( to be continued…………)

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