EPS-Employees Pension Scheme: Employees who know jobs know their EPF account. But few employees had the information of EPS (Employee Pension Scheme) account. In such a situation, people often forget to withdraw their EPS account.
The amount deducted from the salary of a jobber goes to two accounts. The first is provident fund ie EPF and second is pension fund ie EPS. In this, 12 percent of the total amount is deposited on behalf of the EPF employee. At the same time, 3.67 percent is deposited in EPF on behalf of the company. The remaining 8.33 per cent is deposited in the Employees Pension Scheme (EPS). However, there is a maximum limit of Rs 1,250 per month.
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In simple words, if the monthly salary of a person is Rs 25,000, then the contribution of the company will be limited to 8.33 per cent of Rs 15,000. Similarly, if someone gets a salary of Rs 10,000, then the contribution of the company in EPS will be 8.33% of Rs 10,000.
Let us now know the answers to the questions related to this…
When can the pension money be withdrawn.
Any employee can withdraw his PF account amount after a fixed time. However, the rules for withdrawing pension amount vary.
According to EPS rules, a member who has served less than 10 years or has turned 58 years (whichever is sooner) after leaving the job is entitled to withdraw lump sum from the EPS account.
If the age of such a person is less than 58 years, then instead of withdrawing lump sum, he can opt for scheme certificate under EPS. Such a scheme certificate can be taken when the person has planned a job in another institution. If the years of service have crossed 10 years then the scheme certificate is issued to the person.
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If the age of such a person is less than 58 years, then instead of withdrawing lump sum, he can opt for scheme certificate under EPS.
Such a scheme certificate can be taken when the person has planned a job in another institution. If the years of service have crossed 10 years then the scheme certificate is issued to the person.
When can the money be withdrawn?
If the job is more than 6 months and 9 years is less than 6 months, then by submitting Form 19 and 10c, the amount of pension along with PF amount can also be withdrawn.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.
The facility to withdraw pension funds has not been introduced in the online process yet. After filling the form, they have to be submitted in the office of the Employer i.e. EPFO.
EPFO counts the year from the day you join the EPF scheme. However, the years of service are not necessarily consecutive.
Suppose you joined the EPF scheme in 2010 while working in ‘A’ company. After working here for three years, you switched to ‘B’ company which does not offer EPF benefit as it does not come under the ambit of EPF. You work for 4 years in this ‘B’ company.
In 2017, you switch to a ‘C’ company where you get the benefit of the EPF scheme. For the current year i.e. 2020, for the purpose of EPS withdrawal, the years of service will be calculated based on the years worked in A&C which make up six years. In this case, you can make a one-time withdrawal.
Will there be pension on retirement?
If you withdraw part of the pension in case of less than 9 years 6 months, then remember that you will not be entitled to pension after this. Withdrawal of pension money with PF means Full & Final PF settlement and such cases. In that your PF account number is completely closed. Due to this you cannot avail pension facility for your retirement.
What will happen to the pension amount on transfer of PF?
Provident Fund (PF) transfers from one account to another, so whatever your service history, you will never be able to withdraw the pension amount in any case. It is clear that if you are in different places Even after doing the job, your service history becomes 10 years, then you will be entitled to pension and on attaining the age of 58, you will get some salary in the form of monthly pension.
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