Technology
Understanding the Withdraw and Pension Rules for EPS
Understanding the Withdraw and Pension Rules for EPS
EPS (Employees' Pension Scheme) is a widely recognized savings and benefits program in India, offering employees a secure financial future. As an SEO expert at Google, I will provide a comprehensive guide to help employees understand the conditions for withdrawing their EPFO (Employees' Provident Fund Organization) contributions and the pension eligibility criteria. We will cover key aspects, including when you can withdraw your EPS, conditions for pension, and the forms required.
Eligibility for Withdrawing EPS
A common question by many employees is when they can withdraw their EPS contributions. Here are the conditions under which you can withdraw your EPS:
Completion of 16 years of age: Before you can withdraw your EPS balance, you must have completed 16 years of age or more. This is a fundamental prerequisite. Pension after 10 years of service: If you have completed 10 years of service with your employer, you will be eligible for pension benefits. Pension is payable upon attaining the age of 58 years, even if you are still in service or have retired. Option to withdraw if you leave service: If you leave your service before completing 10 years and are between 50 to 58 years old, you can obtain an EPS Scheme Certificate to continue your membership during unemployment or apply for reduced pension using Form 10D. Withdraw EPS before joining a new company: If your total service is below 10 years, you can withdraw your EPS amount only before you join a new company. Beyond 10 years, you can only obtain the Scheme Certificate from EPFO. Age and service criteria: An employee must be 50 or above and not completed 10 years of service to choose between withdrawing the fund or applying for Scheme Certificate by using Form 10C. Similarly, employees under 50 years of age and lack 10 years of service have the same options.Steps to Withdraw EPS
To withdraw your EPS, adhere to the following steps:
Completion of service: Ensure that you have served at the company for at least 10 years before considering pension eligibility. Form 10C: For employees under 50 years of age or who have not completed 10 years of service, use Form 10C to either withdraw the fund or apply for Scheme Certificate. Form 10D: If you have not served 10 years and are between 50 to 58 years old, use Form 10D to apply for reduced pension. EPFO procedure: Submit your application to the nearest EPFO office or through online channels, ensuring all the requisite documents are attached. Completion process: The EPFO will process your application, and once approved, you can withdraw your EPS amount or receive pension benefits as per your choice.Conclusion
Knowing the EPS withdrawal and pension rules is crucial for every employee. By adhering to the conditions and following the appropriate steps, you can ensure a secure financial future. Keep in mind that EPFO policies are subject to change, so it's always advisable to check the current regulations.