New Delhi. If you are working in the private sector and EPF is deducted from your salary, then after retirement you also get the right to take monthly pension. This pension is given under the Employee Pension Scheme (EPS), but for this some necessary procedures have to be completed. Apart from this, it is also important to know how many years of working the pension will be, from when the pension will start and what rules will apply if the job is changed in between.
Minimum service period to get EPS pension
To get pension benefits under EPS, it is mandatory to contribute to EPF for at least 10 years. If this period is not completed, you can withdraw the deposited amount, but will not become entitled to pension. Pension starts from the age of 58 years. If an employee dies during or after the tenure, this pension goes to his family or a nominated member.
Pension process after retirement
To get pension on completion of 58 years of age, one has to fill Form 10D and submit it to EPFO. Form 10C or composite claim form may also be required in some circumstances. The types of pensions are as follows: Normal Retirement Pension, Early Reduced Rate Pension, Disability Pension, Family or Nominee Pension
Taking pension at the age of 50
Under EPS, you can start pension after the age of 50, but the following deductions are applicable:
12% deduction starting at age 55
24% deduction starting at age 52
Pension is not available under the age of 50
This means that the earlier the pension is taken, the greater the deduction.
Situation on leaving job midway
If you have completed 10 years of service and change your job midway, it is necessary to submit the pension scheme certificate in the new job. With this your old pension service will be added to the new job. If you leave the job before 50 years, pension will start only after the age of 58 years.
Comments are closed.