EPS 2026: EPS 1995 and EFPS 1971 beneficiaries will keep receiving pension under new scheme
All pensioners receiving benefits under the Employees’ Pension Scheme (EPS) 1995 and the Employees’ Family Pension Scheme (EFPS) 1971 will continue to receive their pension and associated benefits under the newly notified Employees’ Pension Scheme (EPS) 2026, the Government of India has clarified.
This clarification resolves speculation about how the newly notified EPS 2026 will be implemented and what changes it will bring.
When government issued clarification
In a written reply in the Lok Sabha on 27 May, Minister of State for Labour and Employment Shobha Karandlaje explained that the new EPS 2026 protects all accrued pension rights of existing beneficiaries while replacing the earlier EFPS 1971 and EPS 1995 schemes.
This clarification is important for pensioners and associated stakeholders, and it brings much-needed relief regarding whether their benefits will continue under the newly introduced framework. It will also go a long way toward helping individuals with proper retirement and pension planning.
Existing pension benefits remain protected
Replying to a question raised by MP Sudheer Gupta, Minister Karandlaje said the EPS 2026 continues the existing pension fund and also focuses on safeguarding the benefits earned under the previous schemes.
According to the minister, the new scheme also introduces electronic and digital modes of pension disbursement through approved agencies while aligning the pension framework with the Code on Social Security, 2020. It is also important to keep in mind that the scheme came into force on 29 June 2026.
What remains unchanged under EPS 2026
The new scheme focuses on modernizing and improving pension administration. Several core provisions remain unchanged, including the pension calculation formula, the minimum pension and the contribution rates.
Monthly pension, even under the new scheme, will be calculated using the following formula:
Monthly Pension = (Pensionable Salary × Pensionable Service) ÷ 70
Pensionable salary will continue to be the average monthly salary drawn during the last 60 months before exiting the pension fund.
Note: This table highlights key provisions of EPS 2026. For complete details, refer to the official EPS 2026 notification.
Apart from ensuring continuity of pension benefits, EPS 2026 also introduces several other administrative improvements, including faster digital processing of pension claims and a more seamless framework for pension disbursement, without impacting the pension entitlements of existing beneficiaries.
