Is there a separate fund for pension under the EPF?

The correct answer is that there is a distinct fund for the Employees' Pension Scheme. This fund operates independently within the framework of the Employees' Provident Fund (EPF) and addresses the retirement needs of employees specifically in terms of providing pensions. The Employees' Pension Scheme is designed to ensure that employees receive a steady income after their retirement, separate from the contributions made to the EPF.

The distinction is crucial because it highlights how both savings for provident benefits and pension benefits are managed. This separate allocation ensures that employees can benefit from both a lump sum amount at retirement (through the EPF) and a monthly pension to sustain them financially after they have stopped working. This structure provides a more comprehensive safety net for workers transitioning into retirement.

Understanding this structure is vital for anyone involved in human resources, financial planning, or employee benefits, as it directly impacts how employees can plan their financial future post-retirement. The separate pension fund underlines the government's commitment to providing financial security for employees beyond their working years.