Explanation:

Employees’ Pension Scheme 1995 or EPS-95 is a social security scheme which was introduced in November 19, 1995 by the EPFO. The scheme entitles the employees working in the organised sector for a pension after their retirement at the age of 58 years.

Pension on retirement at the age of 58 years

• An EPS member becomes eligible for pension once they retire at the age of 58 years. However, it is mandatory for them to be in service for at least 10 years before turning 58 and availing pension benefits. An EPS Scheme Certificate is generated which can be used to fill Form 10D for withdrawing the monthly pension.

Complete withdrawal on leaving service before becoming eligible for monthly pension

• If a member is not able to remain in service for 10 years before turning 58 years old, he/she can withdraw the complete sum invested so far after turning 58 years by filling Form 10C. However, he/she will not get monthly pension benefits post retirement.

A member shall be entitled to : - 

• (a) superannuation pension if he has rendered eligible service of 10 years or more and retires on attaining the age of 58 years ;

• (b) early pension, if he has rendered eligible service of 10 years or more and retires or otherwise ceases to be in the employment before attaining the age of 58 years.

Hence option 2nd is correct.