How can I be considered for a pension at 59 after being unemployed for 8 years?

Ans: As you approach retirement age, it's important to assess your pension eligibility. The Employees' Pension Scheme (EPS) is designed to provide financial security to employees after retirement. Given that you have not collected your scheme certificate and have been unemployed since the age of 51, let's examine your situation in detail.

Assessing Eligibility for Pension
Minimum Service Requirement: To be eligible for a pension under EPS, you need to have completed a minimum of 10 years of service.

Age Criteria: You have now reached the age of 59. Under EPS, the standard pensionable age is 58 years. Since you are above this age, you are eligible to apply for your pension benefits.

Scheme Certificate: If you have not collected your scheme certificate, you can still claim your pension. The scheme certificate is typically issued when an employee exits employment before completing 10 years of service. It preserves your pensionable service and salary for future pension calculation. However, not having the certificate does not disqualify you from receiving your pension.

Steps to Claim Your Pension
Verify Your Service History: Ensure that you have the necessary 10 years of service under the EPS. If your total service is less than 10 years, you may be eligible for a withdrawal benefit instead of a pension.

Submit Form 10D: To claim your pension, you need to fill out and submit Form 10D. This form is the application for pension and is available on the EPFO website. You will need to submit it to your regional EPFO office.

Pension Calculation: Your pension amount under EPS will be calculated based on your pensionable service and pensionable salary. The formula used considers your average salary for the last 60 months of service and multiplies it by the pensionable service. The exact calculation will depend on the specific details of your employment history.

Pensionable Service and Salary
Pensionable Service: This refers to the number of years you have contributed to the EPS. If you have worked for more than 10 years, you will be eligible for a monthly pension.

Pensionable Salary: The pensionable salary is the average of the last 60 months’ basic salary and dearness allowance. This will be used to calculate your pension amount.

Impact of Not Collecting the Scheme Certificate
No Immediate Impact on Pension: Since you have reached the age of 59, not having a scheme certificate should not prevent you from receiving your pension. The main purpose of the scheme certificate is to ensure that your service and salary details are preserved if you change jobs or leave service before completing 10 years.

Possible Delays: There could be a slight delay in processing your pension claim if your service records are incomplete or not updated. You may need to provide additional documentation or coordinate with your previous employers to verify your service history.

Steps to Ensure Smooth Pension Processing
Contact EPFO: Reach out to the Employee Provident Fund Organisation (EPFO) to verify your service details. You may need to provide your UAN (Universal Account Number) and other employment-related information.

Gather Necessary Documents: Collect any documents related to your employment history, such as salary slips, appointment letters, and any previous PF statements. These documents will support your pension claim.

Check Your Bank Account: Ensure that your bank account details are linked with your UAN. The pension will be credited directly to this account.

Final Insights
Eligibility is Key: With over 10 years of service and having reached the age of 59, you are eligible for an EPS pension. Not having a scheme certificate should not stop you from claiming your rightful pension.

Prompt Action Required: It’s important to initiate the pension claim process as soon as possible. Delays can lead to longer waiting periods for receiving your pension.

Verify and Claim: Ensure all your service details are accurate and submit the necessary forms to the EPFO. Your pension will be calculated based on your last drawn salary and total service.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in