Understanding EPS Withdrawal: Do I Need 10 Years of Service or Just Age 58?

My query is regarding EPS.

As per the EPF law, 12% of the company's contribution is divided into 8.33% towards EPS and the rest into EPF (3.67%).

Conditions for Withdrawal of EPS

Now, there are two conditions for the withdrawal of EPS:

1. One is eligible for a pension only if one has completed the age of 58.
2. One is eligible for a pension only if he has completed 10 years of service.

How are these two conditions related?

Case 1: Starting Work Early

For example, if I start working at the age of, say, 25 years, after 10 years of service, I am 35 years old. Since I have completed 10 years, am I eligible to receive the EPS in case I withdraw my PF? Or do I need to wait until attaining 58 years?

Case 2: Starting Work Late

In a second scenario, I was a businessperson and started working (in a job) late. If at the age of 58 years, I have not completed 10 years of EPF contribution, do I get the EPS at the time of withdrawing my PF?

Case 3: Not Meeting Any Conditions

In a third situation, where I fulfill none of the conditions, there is something called 'Table D' according to which I receive the pension amount based on the number of years of service. If this is true, the first two conditions are for the withdrawal of the full amount only. A fraction of the amount can be withdrawn anytime depending on my years of service, right?

I hope I have been able to explain my query clearly. Waiting for senior's help.

Thanks,

Peonka

My Solutions:

Case I: You have to wait until attaining 58 years of age to get your pension.

Case II: No, you will not get a pension as you have not contributed for 10 years in EPS.

Case III: Yes, the Table "D" Factor is true.

The minimum service required to be eligible for a pension is 10 years; otherwise, individuals will receive a withdrawal benefit as per Table D. The minimum age to qualify for a pension is 50, not 58. However, to receive a pension between the ages of 50 and 58, certain conditions must be met:

1. The individual should not be in service.
2. For each year below 58 years, there will be a reduction of 4% on the pensionable amount.

If someone is unable to complete 10 years of service, they are not eligible for a pension as outlined above.

Regards,
Abbas.P.S

In my opinion, one is eligible for a pension under EPS only after completing 10 years of contributory service but can avail it only after attaining 58 years of age. However, he can get a reduced pension if he has completed 50 years of age, as stated above by Sh. Abbasiti.

In case one has not completed 10 years of service, he will get his EPS contribution if he is not employed.

In case one has completed 10 years of service but is below 50 years of age, he will get a Scheme Certificate containing details of his service. This certificate can be given to a new employer when one joins a new establishment to claim benefits of his earlier service along with the new period of service or to claim a pension after 50 years of age.

Regards,
A.K. Chandok
RPFC (Retd.)
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