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HR, Workspace Expert - Answered on Feb 20, 2024

R P Yadav is the founder, chairman and managing director of Genius Consultants Limited, a 30-year-old human resources solutions company.
Over the years, he has been the recipient of numerous awards including the Lifetime Achievement Award from World HR Congress and HR Person Of The Year from Public Relations Council of India.
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Question by Sharad on Feb 19, 2024Hindi

Hello Sir, the retirement age in my company is 60 years .At the moment I am 59 years old and retiring after 2 months I have epfo account and the company is depositing every month contribution to pf account and pension account. I want to know that the pension contribution deposited is ok or it should have been stopped after i attained the age of 58 years. What steps should i take if it should have been stopped after i attained the age of 58 years as i am about to retire soon. will it be possible to withdraw pf amount or my claim will be rejected as contribution to pension account has been continued even after i attained 58 years of age

Ans: Hello! Let’s address your concerns regarding your EPF (Employees’ Provident Fund) pension contribution. Here are some important points to consider:

Employee Pension Scheme (EPS):
EPS is a component of the EPF system that provides pension benefits to employees.
Both you and your employer contribute to the EPF account, with a portion specifically allocated to the EPS.
Retirement Age and Pension Contribution:
The retirement age in your company is 60 years.
As per the EPF Act, any individual who retires after completing their service can receive the pension amount by following the proper procedure.
The pension contribution continues until retirement, even if you have crossed the age of 58.
Withdrawal Options:
After retirement, you have the following options:
Full Withdrawal: You can withdraw the entire sum from your EPF account, including both the EPF and EPS contributions.
Monthly Pension: If you have worked for at least ten years and reached 50 years of age, you are eligible for a reduced monthly pension. The pension rate decreases by 4% every year until you reach 50.
Partial Withdrawal: If you have served for less than ten years but more than six months, you can withdraw your pension contribution. Additionally, if you have been unemployed for approximately two months, you can withdraw it.
No Monthly Pension: In some cases, individuals reach the retirement age of 58 but have not served for ten years or more (e.g., joining the organized sector after age 48). While you won’t receive monthly payments, you can still withdraw the entire amount from your EPS account in a single payment.
Documents Required for Withdrawal:
To withdraw the pension contribution, you’ll need the following documents:
Address proof
Bank account statement
Two revenue stamps
Identity proof
EPF Withdrawal Limitations:
There are certain limitations if you want to take money out of your EPF account before retirement. For specific situations (such as a wedding ceremony or medical emergency), you can withdraw a portion of your EPF corpus1.
Next Steps:
As you approach retirement, ensure that you have the necessary documents ready.
Contact your company’s HR or the EPFO office for guidance on the withdrawal process.
Remember that the pension contribution continuing beyond age 58 is standard practice, and it won’t affect your eligibility for withdrawal.
Wishing you a smooth transition into retirement!

Asked on - Feb 20, 2024 | Answered on Feb 29, 2024

Sir thank you for your prompt reply. I have the following queries: 1. As I have completed 10 years of service, can I still withdraw complete EPS amount. 2. For getting pension immediately after retirement as I understand I need to fill form 10D. Can this form be filed online also. 3. After I retire when should I submit the form 10D to EPFO Office to start getting pension. 4. I would be retiring on 30th April 2024 so for how many years can I earn interest on my EPF Account without withdrawing it and what would be my last date by which I should apply for the claim. 5. While applying for the EPF Account after the maximum extended period possible can I apply for the claim online. Thanking you in advance.

Ans: Certainly! Let’s address your queries regarding the Employees’ Pension Scheme (EPS) and the process for pension withdrawal:

EPS Withdrawal After 10 Years of Service:
If you have completed less than 10 years of service or have attained the age of 58 years (whichever is earlier), you are eligible for lump-sum withdrawal from your EPS account.
However, if you have completed 10 or more years of service, you cannot withdraw the EPS amount. Instead, you can opt for a Scheme Certificate by filling Form 10C along with the Composite Claim Form (Aadhaar or Non-Aadhaar).
The Scheme Certificate allows you to transfer your pension benefits if you join another employment later.
Pension will be paid to you after attaining the age of 58 years123.
Filing Form 10D for Immediate Pension:
To receive pension immediately after retirement, you need to fill Form 10D.
Unfortunately, Form 10D cannot be filed online. You’ll need to submit it physically to the EPFO Office.
Submission of Form 10D:
After your retirement, submit Form 10D to the EPFO Office to initiate the process of receiving pension.
Ensure that you complete all necessary documentation accurately.
Interest on EPF Account:
Until you decide to withdraw your EPF amount, it continues to earn interest.
As of now, the interest rate is determined by the EPFO and is subject to change periodically.
Since you are retiring on 30th April 2024, you can continue earning interest until you decide to claim your EPF.
Claiming EPF Account After Maximum Extended Period:
After the maximum extended period (usually 3 years of inactivity), you can still apply for EPF withdrawal.
While the process may not be available online, you can submit the necessary forms physically to the EPFO Office.
Remember to consult with your employer or the EPFO directly for any specific details related to your individual case. Best wishes for your retirement!

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