Understanding EPF and EPS: What Happens to Your Benefits if You Stop Working After 10 Years?

Scenario:

If I first work for 10 years, contributions are made in both EPF and EPS. Then, in the next 10 years, I don't work, so no contributions are made to either.

Q1. Can I withdraw my EPF after, let's say, 20 years? (Form no?)

Q2. Will I be eligible for a pension (after withdrawal or if I don't withdraw)?

Q3. At what age will I receive the pension?

Q4. Is there a minimum amount that I would receive, or is there an upper limit up to which I would receive the pension?

Q5. The amount that I would receive, will it be monthly or yearly? A sample calculation would be helpful.

Q6. How will the pension amount be calculated? Is there a calculator available?

Q7. Can we withdraw the EPS amount? Is there any provision for that?

Answer 1: You can withdraw both EPF and FPS by applying through Form No. 19 and 10C immediately. Unclaimed EPF amounts are likely to be frozen by the government. Act fast.

Answer 2: The minimum eligibility for a pension is 10 years, and you are eligible.

Answer 3: From the age of completion of 58 years.

Answer 4: It is calculated based on the subscription.

Answer 5: Yearly. Further details can be requested from PF authorities at your local PF office.

Answer 6: Refer to the answer above.

Answer 7: Refer to Answer 1.

OK, let's rerun the answers:

1. Yes, a withdrawal could be made at any time, say after 50 or 100 years, but for that, you have to be alive. Now, Form No. 19 is for EPF withdrawal and Form 10-D (not 10-C) is for the pension.

2. Yes, you will be eligible for a pension (on completion of 10 years of service) irrespective of the fact that you withdraw your EPF dues (via Form 19).

3. Eligibility for a pension starts at 50 years of age.

4. There is no upper limit, but the Department is considering a minimum limit of Rs. 1000 (not yet decided by the Department).

5. The pension would be monthly, and every year, you have to submit a certificate to the bank where the pension is being sent by the Department. There is no provision for a yearly pension.

6. Yes, there is a formula (Sorry, I forgot the formula for Pension Calculation).

7. Yes, if the service is less than 10 years.

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