1. For those contributed EPS for 6 months, are eligible for withdrawal after cessation of service.
1a) 1.02 x 6500 = 6630 is the amount to be withdrawn
2) For those contributed to EPS for 9.5 years are eligible for pension.
3) Non contributory period is not a reason for pension denial.
4) Service less than 6 months in EPS is also transferable to future service.
5) For PF withdrawal, there is no minimum period.
26th May 2017 From India, Bangalore
to become eligible for pension, an employee has to complete 10 years of service as EPS member. Otherwise, eligible only pension withdrawal benefit.
An employee is allowed to draw a monthly reduced pension from a date earlier than 58 years of age but not earlier than 50 years of age, in which case, the amount of pension shall get reduced at the rate of 3% for every year, the age falls short of 58 years.
26th May 2017 From India, Madras
Thank you for the detailed response.
However plz clarify pt1a).
I am unable to understand what is 1.02. In simple words is it a factor or a calculated value and if so how is it calculated.
Also what will be EPS withdrawal formula for any person wanting to withdraw the eps amt between 6 months to 9.5 years of service.
Also what is the concept of pt 2 in your second post.
I would also request you to suggest what happens to the eps amt accumulated by such an employee who leaves an organisation for less than 6 months of service.
29th May 2017 From India, Mumbai
Though Mr Abbas has cleared most points (As he usually clarifies in all posts related to PF and Pension). However, for your further query and to make it more clear, pls note my points:-
1) The employee can withdraw his/her EPS contribution only after completing 06 months. Prior to that EPS contribution is being forfeited by the EPFO.
1a) After completion of 06 months the amount deposited towards EPS can be withdrawn fully. But EPFO donít pay any interest on that contribution. Interest is being paid only on EPF Contributions. The calculation of the factor 1.02 is not clear to me as well. Why this is done on 6500/- is also need clarification. Lets wait for Mr Abbas valued suggestion/s.
2) 9.5 year service is eligible for pension and will be counted at 10 years while doing the Pension Calculation.
3) Same as suggested by Mr Abbas.
4) If employee worked for less than 6 months and opt for withdrawal of PF-EPS than the EPS amount will be forfeited by the EPFO (As I already cleared in my 1 Point). However, if the employee transfer his/her EPF-EPS in new organization and the total service cross 6 months. Than the employee can withdraw full EPS as well (subject to service less than 9.5 years).
5) There is no min service period limit for EPF withdrawal, subject to 06 months service. (less than 6 months service will lead to forfeiture of EPS by the EPFO).
Hope I am cleared to your points/queries.
29th May 2017 From India, Delhi