Navigating Pension Claims: How Can I Access My Monthly Pension at 55?

Dear Sirs/Madam, I worked in a factory for about 23 years. Since the company was almost sinking due to financial losses, I had to resign from my job. Upon my resignation, I immediately closed the PF account and applied for the settlement of PF, receiving the amount due. In the meantime, I have come to understand that ex-employees of the company can claim a monthly pension through PF upon reaching 50 years of age, especially if the company no longer exists. Could you please guide me on how to claim my monthly pension amount? I am now 55 years old.

During this time, I have applied for another job where the management deducts the PF amount through a new PF account. Could you please advise if I can receive the pension amount from both the previous and current PF accounts?

Regards,
S. Hariharan

Dear Hariharan, you will not receive two pensions from EPS. Please apply for the transfer of previous service in Form 19 through your previous employer. After serving in EPF or upon reaching the age of 58, whichever comes earlier, you will be eligible for a pension. If you start drawing the pension before turning 58, you will incur a 4% reduction in pension for each year below 58.

Regards,
Abbas. P. S

Dear Mr. Abbas,

Thank you for your email. Please note I have already closed my earlier PF account and withdrawn the money from the PF through the previous company, which is now completely closed. In the meantime, I have learned from my former colleagues that I am eligible to receive a monthly pension upon reaching the age of 50, given that the company is no longer operational.

I have been informed that many of my previous colleagues who turned 50 are currently receiving a monthly pension from the PF. Recently, after a substantial gap, I secured another job. When the new management inquired about PF transfer, I informed them that my previous PF account was closed. Consequently, my current employer has set up a new PF account for me. At present, I am 55 years old.

Understanding the Process of Obtaining a Monthly Pension

I would like to understand the process of obtaining a monthly pension from my previous PF account. As my former employer has shut down completely, how can I obtain Form 19?

Upon turning 58 and reaching superannuation, will I be eligible for a monthly pension from both my current employer and my previous PF account?

I apologize for taking up your time.

Regards,
S. Hariharan

Dear Hariharan,

Pension Eligibility Based on Age

Based on age, pension eligibility can be categorized into two groups:
1) Attaining the age of 58 years.
2) Ages between 50 years and below 58 years.

Regarding the first category, one can apply for a pension unconditionally. However, for the second category, there are certain conditions:
- He should not be in EPF applicable service.
- For every year below 58 years, 4% will be deducted from the pension amount.

As you mentioned that you have not yet reached 58 years and you are still in service with EPF, how can you apply for a pension? The only way out would be to conceal the present PF details. As a result, the 8.33% of the present employer's contribution to EPS will not be utilized because there is no provision for receiving two pensions from EPS. Those who opt for a pension at or after the age of 50 years and later join EPF will not have any contribution to EPS. The entire amount will be directed to the individual PF account as the employer's contribution. If, by mistake, EPS contributions are made, they will be reverted to PF. However, you cannot apply for a second pension or request the EPS contributions to be reverted to PF since you did not receive a pension before joining the new PF. Therefore, the only legal and cost-effective solution is to transfer the previous EPS service to the present service. Once you are relieved from the present EPS (either due to the end of service or reaching the age of 58 years), you can apply for a pension based on the total service.

Regards,
Abbas.P.S