EPFO 3.0: Will pension be lost if money is withdrawn from PF account like ATM? Understand the truth about the new withdrawal rules from experts

New Delhi: EPFO, an organization that protects the future of employees, is soon preparing for a revolutionary change under EPFO ​​3.0. Now employees can get the facility to withdraw money from their EPF account through ATM card. As convenient as this news is, it is also full of worries, especially for those who are worried about their pension. The biggest fear is that if money is withdrawn from the account, service continuity will be broken and the pension will stop?

In this special report of Amar Ujala, let us know the complete mathematics of this proposed facility.

EPF vs EPS: The thin wall between the two

To understand the impact on pension, first of all it is important to know that your PF contribution has two different parts:

EPF (Employee Provident Fund): You and your company contribute a large part to this. ATM withdrawal facility only this corpus Will apply to.

EPS (Employees Pension Scheme): This is the fund from which you get monthly pension after retirement. The money deposited in it is completely out of the scope of ATM withdrawal. Outside Will remain.

3 big reasons to keep your pension safe

1. Service record will not be affected

According to Munab Ali Baik, expert at Core Integra, partial withdrawal from PF fund has no impact on your service period or pension eligibility. Even if you are 50 years old and withdraw 75% of your EPF, your service record will not be reset.

2. The key to pension is ‘service period’, not ‘balance’

The most important condition for getting pension is 10 years eligible service To complete. Pension has nothing to do with how much balance is left in your EPF account. As long as your service history is 10 years or more, your pension rights are secure.

3. Secure Pension Fund

According to the rules, the withdrawal limit under ATM facility has been fixed only up to 75% of EPF. Since the Pension Fund (EPS) money remains in a separate account, it will remain completely safe and untouched.

What are the rules on leaving the job?

Often people fear that if they change or leave the job, withdrawing the entire amount will affect their pension. But even here the rules are clear:

After leaving job to claim pension fund 36 months (3 years) Have to wait.

The final settlement of the pension fund is made only on permanent disability or at the age of 58 years.

EPF and EPS are two separate tracks, withdrawal of one does not affect the other.

What is the ‘bottom line’ for PF account holders?

EPFO 3.0 is making it easier to access liquidity for your immediate needs. This means that if you need money in an emergency, you will be able to use an ATM. But this will not have any negative impact on your ‘future pension’.