Know how to withdraw pension amount: On the retirement of job occupation, the provision of pension for them is PF deducted from their own salary. The amount of PF deducted from the salary of any employee goes to two items. The first goes to Employee Provident Fund (EPF) and the second to pension funds (EPS). In this, 12% of basic salary is deposited from the salary of the employee. Whereas, 3.67 percent amount is deposited by the company in EPF. The remaining 8.33 percent is deposited in the Employees Pension Scheme EPS. But, no more than Rs 1,250 can be deposited in EPS every month.
Rules for withdrawal of pension amount
It can be understood in simple words like this. Monthly basic payment of an employee is Rs 25,000, then the company’s contribution will be limited to 8.33 percent on this amount. Any employee can withdraw the amount of his PF account after a certain time. But, there are different rules for withdrawing pension amount.
These are the rules to withdraw money from EPS account
According to EPF rules, someone who has served less than 10 years after leaving the job or has turned 58 years is entitled to withdraw lump sum money from the EPS account whichever is sooner.
Pension can be opted
The employee has completed 58 years of age. The option of completing the age of 50 years and taking pension even before the age of 58 years can be opted. But in such a situation you will get a reduced pension. For this, Form 10D has to be filled. In case of untimely death of the employee, his family is entitled to pension. The employee himself can also get pension in case of complete disability.
You can also withdraw money in this way
If the job is more than 6 months and 9 years is less than 6 months, then by depositing Form 19 and 10c, the amount of pension along with PF amount can also be withdrawn. But, for this, you have to apply in the PF office by manual way. According to the rules of EPFO, if someone has contributed to EPF for less than six months, then he does not have the right to withdraw the pension amount. Employees cannot have more than one EPS account.
What is the scheme certificate for EPF pension?
Shareholders who have contributed to EPF for less than 10 years and are not working can either withdraw pension or get a scheme certificate to continue pension service, but this is not mandatory. If the scheme certificate holder dies, then his family will get pension. To get a pension withdrawal or to get a scheme certificate, you need to fill Form 10C. It is available on the EPFO website. If the employee starts the job again after the service interval after taking pension scheme certificate, the duration of the previous job will be added to his new job. He will not need to complete 10 years of service again. If he completes at least 10 years, including the earlier job period and the subsequent job period, then he will be entitled to take advantage of the regular pension scheme. This will be such that the employee will have to submit the certificate to the EPFO through the new employer. On quitting the job for the second time, again you will have to fill Form 10C and get a scheme certificate, in which the duration of the second job will also be added. This will continue till the employee is 58 years old. After this, the pension can be started by surrendering the certificate to EPFO.
