Sir,I have worked in private company from March 2011 to Sep 2021 where my pf amount was deducted.l have completed 10 years 5 months service and resigned but not withdrawn pf amount.I want to get pension after 60 years what should I do ?

Ans: You can only get pension under the Employees' Pension Scheme (EPS) if you have completed at least 10 years of service. However, you can still withdraw your EPF amount even if you have not completed 10 years of service. To redeem your EPF amount, you can follow these steps:

1. Merge all your previous PF accounts. This can be done online through the EPFO website or at any EPFO office.
2. Fill the Composite Claim Form (Aadhaar based) and submit it to your previous employer.
3. Attach the following documents:

•Copy of your Aadhaar card.
•Copy of your PAN card.
•Bank account statement showing your IFSC code and account number.
•Cancelled cheque from your bank account.

4. Your previous employer will verify the details and submit the form to the EPFO.
5. The EPFO will process your claim and transfer the EPF amount to your bank account.

If you have not worked for more than two months after resigning from your job, you can withdraw the entire balance in your EPF account. If you have worked for more than two months after resigning from your job, you can withdraw only 75% of the balance in your EPF account. The remaining 25% can be withdrawn after two months of unemployment.

Note – If you will continue your services in another company for next 6 month you will be eligible for the pension.

Ans: According to the EPS rules, you are eligible to receive a monthly pension after you reach the age of 58 years, or after early retirement at 50 years. However, if you defer the pension for 2 years (until you reach the age of 60 years), you will be eligible to receive the pension at an additional rate of 4% per year.

Since you have completed more than 10 years of service and transferred your EPS amount to the new company, you do not need to withdraw the EPS amount. You can continue to contribute to the EPS scheme until you retire or reach the age of 58 years, whichever is earlier. The accumulated corpus in EPF can be with withdrawn in one go at the time of retirement

Ans: The pension status after retirement depends on various factors, and it can vary based on the policies of the specific companies you worked for and the pension scheme they offer. Here are some general points to consider:

Previous Employment Pension: If your first company had a pension scheme, you might be entitled to a pension from that organization. The amount could depend on factors like the number of years you worked, your salary, and the terms of the pension plan.

New Employment Pension: Your current company may also have a pension scheme in place. The terms and conditions would be outlined in the pension plan of the current employer, including factors like years of service, salary, and the pension formula.

Government Pension Schemes: Depending on your country, there may be government pension schemes that you are eligible for, such as the Employees' Pension Scheme (EPS) in India. Check the specific rules and eligibility criteria for such schemes in your region.

Private Pension Plans or Provident Fund (PF): If you withdrew your PF from the first company, it might impact your pension status. In some cases, withdrawing PF may affect your eligibility for certain benefits. Check the policies of both companies and any relevant regulations in your country.

Retirement Savings and Investments: If you have personal savings, investments, or other retirement accounts, these will contribute to your overall financial well-being after retirement.

It's crucial to review the terms and conditions of your pension plans with both the previous and current employers. You may want to consult with the human resources department or the pension administrator of each company to get a clear understanding of your entitlements and how they will be calculated. Additionally, consulting with a financial advisor can help you plan for a comfortable retirement based on your specific financial situation.

Ans: Understanding Your PF and Pension Contributions Post-Retirement
First of all, congratulations on your retirement after a dedicated 16 years of service. Claiming your provident fund (PF) and activating your pension are significant steps towards ensuring your financial stability. Understanding the process and potential issues is crucial for a smooth transition. Let’s dive into the specifics to address your concerns.

Provident Fund (PF) Claim Process
The process of claiming your PF is relatively straightforward. Your employer should have completed necessary formalities. If you face any issues, here are the key steps and considerations:

Steps to Claim PF
Submit Claim Form: Submit the PF claim form through the online EPFO portal or offline via your employer. This form is crucial for initiating the withdrawal process.

Employer Verification: Your employer verifies your details and forwards the claim to the EPFO. Ensure your employer has submitted all necessary documents.

EPFO Processing: The Employees’ Provident Fund Organisation (EPFO) processes the claim. This might take a few weeks. Regularly check the status on the EPFO portal.

Common Issues and Solutions
Incorrect Details: Ensure all your personal details are correct in the EPFO records. Any discrepancies can delay the process.

Incomplete Documents: Make sure all required documents are complete and correctly filled. Missing documents can lead to claim rejection.

Employer Delay: Sometimes employers delay the verification process. Regular follow-ups can expedite the process.

Activating Your Pension
Activating your pension is a crucial step towards securing your post-retirement income. Understanding the eligibility criteria and process is essential.

Pension Eligibility Criteria
Age Requirement: You are eligible for pension once you reach 58 years. Since you are now 60, you meet this requirement.

Service Duration: You must have completed a minimum of 10 years of service. With 16 years of service, you meet this criterion comfortably.

Steps to Activate Pension
Submit Pension Claim Form: Similar to the PF claim, submit the pension claim form. This can be done online or offline through your employer.

Verification and Processing: Your employer verifies the form and forwards it to the EPFO. The EPFO processes the claim and activates your pension.

Pension Payment: Once activated, the pension amount is credited to your designated bank account regularly.

Potential Issues with Post-58 Contributions
Your concern about employer contributions to your pension post-58 years is valid. Let's explore this in detail.

Regulatory Guidelines
EPFO Guidelines: The EPFO allows contributions to the pension scheme up to 58 years. Contributions beyond this age require specific conditions.

Employer Compliance: Employers should ideally stop contributing to the pension fund post-58. Contributions beyond this can complicate the withdrawal process.

Possible Complications
Claim Rejection: If the EPFO identifies contributions post-58 without proper conditions, it might complicate your claim. Proper documentation can mitigate this risk.

Documentation Issues: Ensure that your employer provides necessary documentation to justify post-58 contributions. This can include special permissions or extensions.

Solutions and Recommendations
Addressing potential issues proactively can smoothen your claim process. Here are some steps to consider:

Verify Contribution Details
Check Records: Verify your PF and pension contribution records. Ensure there are no discrepancies in the contribution timeline.

Employer Clarification: Seek clarification from your employer regarding post-58 contributions. Obtain any special permissions or extensions in writing.

Documentation and Communication
Document Everything: Keep a record of all communications and documents related to your PF and pension contributions. This helps in case of any disputes.

Regular Follow-ups: Regularly follow up with your employer and EPFO. This ensures that your claim process is on track and any issues are addressed promptly.

Seek Professional Guidance
Certified Financial Planner (CFP): Consult a CFP for personalized guidance. They can provide expert advice on navigating the PF and pension claim process.
Ensuring Financial Security Post-Retirement
Beyond claiming your PF and activating your pension, ensuring long-term financial security is crucial. Let’s explore some strategies.

Diversify Your Investments
Diversification spreads risk across different assets, enhancing your financial stability. Consider the following:

Mutual Funds: Invest in mutual funds for potential higher returns. Diversified funds can balance risk and returns effectively.

Fixed Deposits: Fixed deposits offer stability and guaranteed returns. They can be a safe investment for post-retirement income.

Regular Income Streams
Ensuring regular income streams post-retirement is essential. Here are some options:

Systematic Withdrawal Plans (SWP): SWPs from mutual funds provide regular income. You can withdraw a fixed amount periodically.

Senior Citizens Savings Scheme (SCSS): SCSS is a government-backed scheme offering regular interest payouts. It is a safe and reliable option.

Health and Emergency Funds
Having an emergency fund is crucial for unexpected expenses. Consider the following:

Health Insurance: Ensure you have adequate health insurance coverage. Medical expenses can be a significant burden post-retirement.

Emergency Savings: Maintain an emergency fund equivalent to 6-12 months of expenses. This provides a financial cushion in emergencies.

Estate Planning
Planning your estate ensures your assets are managed and distributed as per your wishes. Consider these steps:

Create a Will
Legal Document: A will is a legal document specifying asset distribution. Ensure it is legally compliant and clearly written.

Executor: Appoint a reliable executor to manage your estate. This ensures your wishes are carried out effectively.

Nomination and Legal Heirs
Nomination: Ensure all your financial accounts have nominations. This simplifies the transfer process for your heirs.

Legal Heirs: Clearly define legal heirs in your will. This avoids disputes and ensures smooth asset distribution.

Emotional and Social Well-being
Retirement is not just about financial security. Emotional and social well-being are equally important.

Stay Active
Physical Activity: Regular physical activity keeps you healthy and active. Engage in exercises suitable for your age and health condition.

Social Engagement: Stay socially active by participating in community activities. This helps in maintaining a positive mindset.

Pursue Hobbies
Hobbies and Interests: Pursue hobbies and interests that you enjoy. This keeps you engaged and provides a sense of fulfillment.

Volunteering: Consider volunteering for causes you care about. It gives a sense of purpose and helps in giving back to the community.

Continuous Learning
Lifelong learning keeps your mind sharp and engaged. Consider the following:

Courses and Workshops: Enroll in courses and workshops on topics of interest. Many institutions offer online and offline options.

Reading and Research: Regular reading and research keep you informed. It can be a rewarding and fulfilling activity.

Conclusion
Navigating the PF and pension claim process post-retirement can be challenging but manageable. Ensuring proper documentation, regular follow-ups, and seeking professional guidance are key. Diversifying investments, planning for regular income, and ensuring emotional well-being contribute to a secure and fulfilling retirement. Remember, this phase of life is a new beginning. Embrace it with a positive mindset and proactive planning.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in