Many times employed people withdraw money from PF (Provident Fund) before retirement. In such a situation, a question definitely comes to mind whether now the Employee Pension Scheme (EPS) will also get money or not. Many people think that if the PF is taken out, then the EPS is also over. But this is not necessary.
Let us know what is about EPS (Employees’ Pension Scheme) after extracting PF. Does it benefit after retirement?
What is the difference between PF and EPS?
Whenever PF is cut off from your salary, one part of it goes into your Saving (EPF) and the other part in the pension scheme (EPS). EPF also gets interest, but not in EPS. EPF is your savings, which you can remove anytime under certain rules.
At the same time, the money deposited in the EPS is for giving pension after retirement, not to withdraw in the middle. However, in some cases it can also be extracted.
What about EPS?
The answer depends on how many years you have worked. If the job is less than 10 years, then you can withdraw EPS money outright. For this, Form 10C of EPFO is used. This is exactly the same as you remove PF.
If the job is 10 years or more?
In this situation you cannot withdraw EPS money. But this does not mean that the money went away. This money is deposited as a pension on your behalf, and when you reach at the age of 58, you can claim a fixed pension every month.
Even after removing PF, the right of EPS remains?
If you have done 10 years or more jobs and then have taken PF, then you still have the right to the pension from EPS. Whenever you want, after retirement, you can start taking pension by filling the form 10D in EPFO.
Therefore, EPS does not end by extracting PF. He is safe for you as a pension.
When will I not get EPS money?
There are some situations when EPS money can neither be withdrawn nor pension, such as:
- You have done only 6 months or less work.
- You have never filled Form 10C.
- You claimed EPS, then want to claim again.
- If you have given any wrong or fake information.
- In such a situation, your EPS can get stuck money or the claim may be rejected.
What about EPS change the job?
If you have worked in many companies and PF has been cutting everywhere, then the account of EPS is also connected to your UAN (Universal Account Number). That is, wherever you went, EPS continued to gather. By all this, your EPS service history is formed, which is useful in fixing the pension amount.
Also read: When and how can PF money withdraw before retirement? Know 10 reasons
How much does Pension get in EPS?
EPS does not have much pension amount, but a basic security is available. This amount depends on your last salary and job duration. Currently, in most cases the maximum limit of EPS pension is ₹ 7,500 months.
At the same time, you will get the minimum pension of ₹ 1,000 month, whether their contribution or service period makes qualification for less than this. The government notified this rule in 2014. However, now the government is considering increasing the minimum pension limit to ₹ 3,000.
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