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

Ramalingam

Ramalingam Kalirajan  |9250 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 26, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Asked by Anonymous - Jul 20, 2024Hindi
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I am unemployed since 51 year, now (2024) attained 59 year, how can I be considered for pension (EPS) and how will it be calculated? I have not collected scheme certificate.

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
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |9250 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 02, 2025

Money
I am 54. I was in employment with pvt company for 22 years before losing job last year 2024. Can I try to get the EPS pension? (I was employed for 6 years in other companies before that as well, but not sure how to check EPS contribution for those).
Ans: You have asked a very relevant and timely question.

You have worked for 28 years in total.

That includes 22 years in one private firm and 6 years before that.

At age 54, it is wise to evaluate your pension eligibility now.

Let’s go step by step and look at this from all angles.

First, Understand What You May Be Eligible For
You worked in private sector jobs for long years

Your PF was likely deducted from salary every month

Part of employer contribution goes into a pension account

This is not part of your main EPF balance you can withdraw

This is your pension component meant for retirement benefit

It is meant to give monthly income from age 58

That is if you meet the required minimum number of years

Check Whether You Crossed the Minimum Years Rule
To get lifelong pension, minimum 10 years of contribution is needed

You have already worked 28 years, so you clearly qualify

But what matters is if all those 28 years had PF contributions

Some old jobs may not have deposited EPS properly

You need to confirm how many years have valid pension deposits

You should ideally have 10 or more years of verified EPS service

How to Check the Contribution Details
You need to activate your Universal Account Number (UAN)

UAN helps you access all PF details in one place

Visit official portal and log in using UAN and OTP

Under service history, you can see all employers linked

You can see PF and EPS contribution month by month

If some older records are missing, don’t worry yet

You can add older employers manually with documentary proof

Submit previous appointment letters, salary slips, PF numbers

You can request field office to update records accordingly

That will help extend your service history for pension calculation

What to Do If You Don’t Have Some Older Records
Try to contact those old companies, if still operational

Request them for salary slips, PF number or any joining details

If company is closed, try to use Form 13 request

This helps in transferring old accounts under one UAN

If you have salary slips showing PF deduction, that’s helpful

You may need help from a PF office in your region

Visit nearest PF office with all available details

Request for EPS service update using manual submission if needed

When Can You Actually Apply for Pension
Full pension starts at 58

But you can also apply for reduced pension from age 50 onwards

This is called early pension option

But reduced pension gives smaller monthly amount

Since you are already 54, waiting till 58 is better

It gives higher payout compared to early claim

But in case of health or job issues, early pension is still allowed

You must not be contributing to EPS at time of application

How to Apply When Time Comes
When you reach 58, fill the pension claim form

You must submit bank details and KYC

You must ensure that all employment history is linked to UAN

PF office will verify service record and calculate pension

You’ll get monthly pension credited to your bank

The pension is for lifetime and gets transferred to spouse after you

How Much Will You Get as Pension
The amount depends on number of years in EPS

Also based on average pensionable salary over last 5 years

If salary was above threshold, the pension will be capped accordingly

The formula for pension has upper limits and fixed components

Your longer service will help increase the final monthly amount

Usually, people with 25+ years get reasonable pension amounts

But note that EPS pension is not inflation linked

So the amount remains fixed for life

It is meant only as a support, not full retirement income

Other Options If You Don’t Wish to Wait Till 58
If financial need is urgent, you may apply from age 50

But you will get around 30-35% lower pension

Once started early, the lower pension amount is locked for life

So think carefully before going for early option

At age 54, only 4 years remain for full pension

Unless financial pressure is too high, try to wait till 58

You can use PF withdrawal now for cash needs if not withdrawn yet

Pension must be claimed separately

So PF withdrawal won’t affect your pension eligibility

You must have exited employment and stopped contribution to claim EPS

Can You Combine EPS from All Jobs
Yes, you can merge multiple jobs under one EPS record

As long as UAN is same, and transfer done properly, it counts

Even if UANs are different, merging is possible with paperwork

Contact PF office with all job details and documents

They can help consolidate into one service record

This will increase your eligible service years

Which directly helps you get higher monthly pension

Mistakes to Avoid Now
Don’t withdraw EPS amount before applying for pension

EPS is not a withdrawal scheme after 10 years of service

If withdrawn, you will not get monthly pension

Many people confuse PF withdrawal with full exit

But EPS requires separate treatment

So never fill final settlement including EPS part

Ensure you apply only for pension when eligible

Suggestions to Prepare Financially Alongside Pension
Use PF balance for short term needs if required

Don’t rely only on EPS pension for retirement

It’s not enough to meet monthly living cost fully

Start a monthly SIP in mutual funds if you have surplus

Choose actively managed funds through a certified planner

Avoid direct funds, as no support or planning comes with it

Regular plans via certified professionals give better suitability

Use lump sum savings to start conservative mutual fund portfolio

Build your own monthly income stream besides pension

Also explore NPS for additional tax-efficient retirement corpus

Finally
You have already done 28 years of contribution-filled service.

This puts you in strong position to claim pension benefits.

Your age is perfect to start preparing the documentation for future claim.

Your presence of mind and awareness is very helpful at this stage.

Please keep all PF records, UAN details, and job letters safe.

Get all jobs added under one umbrella through the PF office.

Avoid withdrawing your EPS amount.

Instead, apply for monthly pension when you reach age 58.

If needed urgently, you may apply at 55 with lower amount.

Use PF corpus, not pension corpus, for short-term cash needs.

Also build alternate retirement income sources beyond this pension.

A well-planned mix of pension and investment gives peaceful retired life.

You are on the right track. Stay focused and organised.

Keep everything documented properly from now onwards.

Wishing you peace, health and financial confidence for your future years.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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Ans: With 72% in PCM and 79% overall board marks, you satisfy the minimum 55% PCM eligibility for IPU B.Tech CSE/IT admissions via JEE Main scores. The 20 Delhi NCR institutes you can apply to through IPU B.Tech counselling are:

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The recommendation is to prioritise IPU-affiliated colleges such as Dr. Akhilesh Das Gupta Institute of Technology & Management and Greater Noida Institute of Technology for their established placement support, consider Maharaja Agrasen Institute of Technology and Trinity Institute of Innovations in Professional Studies for balanced academics and industry linkages, keep Amity University Noida and Galgotias University as strong private-university alternatives, and work on enhancing your JEE Main score to access higher-ranked CSE/IT branches in subsequent counselling rounds. All the BEST for the Admission & a Prosperous Future!

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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