EPS Withdrawal: You may have some trouble to withdraw the pension amount. Because, there are many rules for this, which you should understand. Let us know what can be done with the pension amount in different situations.
EPS Withdrawal: EPFO has also given permission to the Provident Fund members to withdraw their money in the lockdown due to Corona virus. Funds can be withdrawn for 3 months basic or 75% of the total deposit. Whichever is less of the two, that portion can be taken out. But, can the funds accumulated in the pension be withdrawn? Actually, your money is deposited in Employee Provident Fund (EPF) in two types of schemes. The first is the Provident Fund (EPF) and the second is the Pension Fund (EPS).
12 percent of the basic salary of the employee is deducted from his salary and the same contribution is given by the company. The entire 12% of the employee gets deposited in EPF. At the same time, the company’s share is put in two pieces. The first 3.67% gets deposited in EPF and the remaining 8.33 percent gets deposited in Employees Pension Scheme EPS.
What are the rules for Provident Fund withdrawal?
As per EPFO rules, partial withdrawals can be made for the child’s marriage, higher education and purchase of a house. Members can withdraw 75 percent of the money only after one month of leaving the job and after two months the remaining 25 percent can also be withdrawn. Earlier, PF could be withdrawn only after two months in case of leaving the job or becoming unemployed.
There are different rules for pension
If you want to withdraw EPF amount, then you can withdraw the amount deposited in your account anytime. Whether your job is 6 months or 10 years. But, you may face some difficulty to withdraw the pension amount. Because, there are many rules for this, which you should understand. Let us know what can be done with the pension amount in different situations?
What will happen to pension in case of PF transfer?
If you transfer your Provident Fund (PF) from one account to another, then irrespective of your service history, you will never be able to withdraw the pension amount. Because, only PF amount is transferred from the transferred account and you can withdraw only PF money. The pension amount is added to your service history. This means that even if your service history becomes 10 years while working in different places, then you will become entitled for pension and at the age of 58, you will start getting some salary in the form of monthly pension.
Can I withdraw pension money if the job is less than 6 months?
If your job is less than 6 months, that means less than 180 days of duty, then you will be able to withdraw only PF amount. But, you will not get the amount deposited in the pension. Because according to the rules of EPFO, you cannot withdraw pension money in less duty service of 180 days.
Can I withdraw pension money if the job is more than 9 years 6 months?
If your job has been more than 9 years and 6 months, then you will not be able to withdraw the pension amount along with your PF. Because, 9 years 6 months service is considered equal to 10 years. According to the rules of EPFO, if your job reaches 10 years, then you become entitled for pension. After this you will start getting the benefit of monthly pension at the age of 58. This means that you will get lifelong pension, but you will not be able to withdraw part of the pension before retirement.
When and how can I withdraw pension money?
If your job is more than 6 months and 9 years is less than 6 months, then you can withdraw pension amount along with your PF amount by submitting Form 19 and 10c. But, for this you will have to apply in the PF office manually. The facility of withdrawing pension funds in the online process has not been started yet. After filling the form, they will have to be submitted in the office of the employer ie EPFO itself.
Will pension be available on retirement after withdrawal?
If you withdraw part of pension in case of less than 9 years 6 months then remember you will not be entitled for pension after that. Because withdrawing pension money with PF means Full & Final PF settlement and in such cases your PF account number is completely closed. Because of this, you cannot take advantage of pension facility for your retirement.
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