Yes, you can withdraw the contributed EPS amount along with your EPF balance. But the condition is you must not have completed 10 Yrs of service. When you withdraw EPF, then you receive EMPLOYEE+EMPLOYER EPF contribution+Interest earned on this EPF. Along with that, some % of EPS contribution also be paid.
Monthly pension = Number of years multiplied by last drawn salary divided by 70. But EPS pension is very low because EPFO capped the salary used for computation of pension at Rs 15,000 per month. It also capped the contribution to the EPS. Instead of 8.33% of the employer's contribution, it was Rs 15,000 per year.
Only once the individual quits the company and before joining a new company can the EPS amount be withdrawn. He/she can withdraw the EPS amount on the EPFO portal by claiming Form 10C. The employee will need to have an active UAN and the KYC details must be linked to the UAN in order to withdraw the EPS amount online.
When you transfer your old EPF account to a new employer
An employee should transfer his provident fund Using EPFO's online facility from the previous employer to a new employer. You can do it offline and online. Online you can transfer from the EPFO UAN Portal using Online Services->Transfer Request.The EPFO will send you an SMS with your complete credentials such as PF number, UAN, EPF balance etc. SMS - send an SMS EPFOHO UAN ENG to 77382 99899 from your registered mobile number. The EPFO will send the details of your EPFO account through an SMS.
The EPS money can be withdrawn by an employee or it can be carried forward through a scheme certificate while switching jobs. If you have taken a scheme certificate, submit it to the EPFO through the new employer. When you leave the job, you will again have to fill Form 10C.
Universal Account Number (UAN) and Provident Fund (PF) account number are the only numbers that are provided. There is no separate Employee Pension Scheme (EPS) number. The PF account number is the account in which your employer's contribution as well as your contribution for the EPF is deposited.
EPF stands for Employee Provident Fund while EPS stands for Employee Pension Scheme. Both EPF and EPS work in more or less the same way i.e. they help employees have a retirement corpus when they are no longer earning.
You will get a pension of Rs 45,714*, which would be over 900% more than the existing pension of 4,525 per month. India had introduced the Employees Pension Scheme (EPS) in 1995, under which an employer was supposed to contribute 8.33% of the employee's salary in a pension scheme.
You cannot do so. There is no way to close the EPS account. Employees' Pension Scheme (EPS) of 1995 offers pension on disablement, widow pension, and pension for nominees. Those who started job after 1 Sep 2014 and earning more than 15,000 Rs in basic and DA will not be contributing to the EPS or Pension scheme.
Typically, when you leave a job with a defined benefit pension, you have a few options. You can choose to take the money as a lump sum now, or take the promise of regular payments in the future, also known as an annuity. Keep in mind that most annuity payments are fixed and do not keep up with inflation.
Once you are leaving the job, then you have to fill the Form 10C. In the form 10C, there are options either to withdraw EPS or apply for EPS Scheme Certificate. Once you chose the options to issue EPS Scheme Certificate, then your employer sends the same to EPFO and then EPFO will issue you an EPS Scheme Certificate.
To get EPS amount, in the Composite Claim Form (Aadhaar or Non-Aadhaar), along with choosing 'Final PF balance', also choose the 'pension withdrawal' option. If you plan on re-joining the workforce, you may opt to get the 'scheme certificate' by furnishing Form 10C.
If an employee has an EPF account with exempted or unexempted organization then he can transfer this account to Trust on joining a company with EPF Trust. If the employee leaves the company which has EPF trust he needs to withdraw only from the company which maintains the trust.
Therefore, even after leaving one company, the PF account continues to earn interest and is not termed inoperative PF account till such a situation rises till age 55. However, during the period when contributions don't get credited to the PF account, the interest rate earned does not remain tax-free.
Employee Pension Scheme
The amount credited in the EPS account can only be withdrawn before 10 years of continuous service after which it cannot be withdrawn and the pension is compulsory. However, if you withdraw before 10 years, then the entire amount withdrawn by you becomes taxable.Earnings per share (EPS) is a figure describing a public company's profit per outstanding share of stock, calculated on a quarterly or annual basis. EPS is arrived at by taking a company's quarterly or annual net income and dividing by the number of its shares of stock outstanding.
Transfer a defined contribution pension (such as a personal pension) If you are considering transferring from a defined contribution scheme then you will need to get a formal pension transfer value from the pension provider or scheme administrator. Alternatively you can find a transfer value on your annual statement.
How to Withdraw PF Amount Online in 5 Steps:
- Visit the EPFO e-SEWA portal and log in using your UAN and password.
- Then, check whether you have updated and linked your Aadhaar number to your UAN.
- Next, click on the 'Online Services' tab on the UAN dashboard and then click on 'Claim (Form-31, 19 & 10C)'.
Here are some simple steps to follow :
- Update your Aadhaar number in UAN portal.
- Get the Aadhaar authenticated by the employer and link it to UAN.
- Fill the withdrawal form online at the EPF member portal.
- Submit the duly filled form and you will get the withdrawn amount in your bank account in a fortnight.
According to the notification, a member of EPF can now withdraw money for a maximum up to 75 per cent of the credit balance from his/her account if he/she remains unemployed for a period not less than one month.
EPF Withdrawal Online Procedure
- Step 2- From the top menu bar, click on the 'Online Services' tab and select 'Claim (Form-31, 19 & 10C)' from the drop-down menu.
- Step 3- Member Details will be displayed on the screen.
- Step 4- Click on 'Yes' to sign the certificate of undertaking and proceed further.
You can leave your old pension where it is, move it to your new employer's workplace pension scheme or transfer it into a personal pension arrangement. Equally, a pension can follow you throughout your career and you can transfer it as many times as you move jobs although there may be costs for moving your money.
Puneet Gupta, Director, People Advisory Services, EY India says, "According to EPF scheme rules, no pension contribution/balance is transferred when an individual transfers his/her EPF account. As per the EPS rules, an individual is eligible for pension benefit once he/she has completed 10 years in service.
Transferring to a new employer
If you decide to transfer, you need to notify your scheme administrator or pension provider in writing. They will often have a form for you to complete. They will then liaise with the scheme that you want to transfer to.The reason your pension money is not transferred to the ne pf account is that your pension doesn't depend on that amount, it depends on one formula that needs your service history. So, when you apply for PF transfer from Old Pf to new Pf, your service history gets updated and your pension amount stays 0.
At present, the subscribers of the Employees Provident Fund Organisation (EPFO) are required to file transfer of EPF claims on changing jobs despite having universal account number (UAN). "The EPFO is testing the automation of EPF transfer on changing jobs on pilot basis.
The entire 12% of employee's
contribution is added towards
EPF, while 8.33% out of the total 12% of the employer's
contribution is diverted to the EPS or
pension scheme and the balance 3.67% is invested in
EPF.
Little known facts about EPF & EPS.
| Return of contribution on exit from the employment |
|---|
| Year of service | Proportion of wages at exit |
|---|
| 8 | 8.22 |
| 9 | 9.33 |
Workplace pension contributions. Payments made into a pension are called contributions. With a workplace pension, like The People's Pension, contributions normally come from three sources: the employee, the employer and the government. As an employee, you can always increase your pension contributions if you want to.
EPS Scheme certificate is a certificate issued by EPFO. The EPS Scheme Certificate shows the service and family details of an employee member who are eligible to get EPF pension in case of death of the member. EPS Scheme Certificate is also an authentic record of service.
