Confused About EPF and EPS Eligibility? Seeking Advice on Pension and Withdrawal Options

EPF and EPS Information Needed

I need some information on EPF and EPS. We all know that once we have EPF for 10 years, we will be eligible for EPS (Pension on our retirement after 58 years).

This is my situation. I was working in a company in India from May 2004 and had contributions for PF until January 2007. Later, I was sent on an onsite assignment to the US, and according to our company policy, once we are on an onsite assignment, all our PF contributions are stopped as we are not receiving an Indian salary. However, every year from 2007 to 2012, I was receiving interest on the accumulated PF amount.

My question is, my PF contribution was only for 3 years, and later there were no transactions except the interest gained. But now, I realize that according to the new law, I am not even receiving interest on this.

Questions Regarding PF and Pension Eligibility

1) If I don't withdraw my PF amount, am I eligible for the pension after 10 years even though the contribution was made for only 3 years?

2) As I am not receiving any interest now on PF, please advise me whether to withdraw it or if there are any benefits if I don't withdraw.

Regards,
Srini

Understanding PF Contribution Period

PF contribution period means from the starting date of contribution to the ending date of contribution. In your case, your starting date of contribution was May 2004, the joining date of the Indian company, and the ending date of contribution was January 2007.

PF service will be calculated from the starting date to the end date of contribution, which means 3 years in your case. So, your PF contribution service will be calculated as 3 years only till now (with this PF A/c number). To avail of a pension, you have to contribute 10 years of service, and then only you are eligible for a pension. If you joined any other company or in the same company when you returned from another country (if your employer closed the old A/c), they will open a new PF A/c for you, and then your new PF contributions start from that day. New EPS contributory service also starts from that day.

You can add your past 3 years of EPS contribution to the new PF (EPS) account through transfer or Scheme certificate (Form 10-C).

Pension Calculation and Withdrawal

At the final stage, after you attain 58 (or 50) years of age, Pension (EPS) authorities calculate the total contribution period. At that time, you should have 10 years of EPS contribution. If you transfer all different companies' PF accounts to your final account, then automatically EPS authorities will calculate your total service, and they will process your pension.

Alternatively, you can withdraw all the EPF amount, and you should attain EPS scheme certificates (10-C) at last (58 or 50 age). With Form 10-D, you have to attach all Scheme certificates of different EPS Accounts (companies), and then EPS authorities will calculate and process your Pension.

In between, at any time, you should not withdraw the EPS. If you withdraw that amount, then that A/c services will not be calculated as your EPS contribution service.

EPF & EPS Interest Issue

While you are contributing, PF authorities will pay you yearly interest on your contributed money; this is a natural process. If you stop contributing and you don't withdraw or transfer that amount, then for 3 years, that contributed amount will gain interest. After 3 years, they won't pay interest.

In your case, you can't calculate your interest-paid years as EPS contributed years.

Here I have some questions:

- Did you join this Indian company/process again?
- Have they allotted any new PF number to you when you returned back?

If you provide these details, I can suggest you more accurately.

Regards,

Thank you very much for the elaborate and excellent explanation. I am about to come back to India by May 2013 and will mostly be joining a new company in India. I have one more question:

1) How will they calculate the year, for example, if I worked only 1 month (January) in 2007 and in February came Onsite. Even though I worked for 1 month, will that be considered as 1 year for EPS Calculation (10 years)?

2) If I don't know the EPF number for a company I worked for from 2003 to 2004, how can I get it? Can I obtain it with my first name and last name from the EPF Office, or do I have to contact the previous company to get my PF number?

Regards,
Srini

EPS Calculation and Application Process

Your EPS will be calculated for 2 years and 8 months (as per your requested timeframe). The month serves as the cutoff point for calculating the PF, which will be contributed and calculated on a monthly basis.

EPF and EPS Application Requirements

Your EPF (Form-19) and EPS (Form-10-C) applications need to be processed through your company. On Form-19 and 10-C, you are required to provide your signatures, bank details (for transferring your contributed money), and nominee details only. All other necessary information will be filled out by the company's HR team, who will handle the processing of your application.

Rights and Options for PF and EPS

If you encounter any issues with the company, they cannot withhold your PF. It is your money, and you have the right to claim it back.

Note: To receive EPS (pension) in Form 10-C, you must select the Scheme Certificate option and avoid selecting the withdrawal option.

Thank you.

Thanks for the replies. I just have some questions and would highly appreciate it if you could provide some information on these. I am curious to know how the EPS process works. Assuming I have contributed to EPS for 10 years, will I get a pension after 58 years? My questions are:

1. After 58 years, for how many years will I receive the pension?
2. After my death, will my spouse also receive this pension? If yes, for how many years?

Regards,
Srini

Understanding PF and EPS Contributions

PF contribution services are computed for three years solely until now (with this PF A/c number). In order to apply for a pension check, one must contribute 10 years of service. Only then are you qualified to receive a pension check. This implies that if you joined a different company or returned to the same company from a different country (if the workplace closed the old A/c), they will open a new PF A/c. From that day onward, the new PF contributions will begin. New EPS contributory services will also commence from that day.

Thank you for providing guidance to the members on EPS and EPF. I have a question:

Filing for EPS Pension

1) Where should I file for EPS pension if my last company held the PF account in Maharashtra, was taken over by a multinational company, and had its name changed, while the office was in Delhi and I reside in Delhi?

Previous PF Numbers

2) I have PF numbers from other companies before joining the last company.

Regards

After 58 years, you will be eligible for a lifetime pension. After your death, your spouse will be eligible for the same for a lifetime (your spouse will receive 50% of your pension).

Regards,
Amit

I want to add one more piece of information on this subject. If you do not withdraw your EPS, you remain a live member in the fund. Therefore, your spouse will be eligible for a widow's pension upon your death, and you will also be eligible for a disability pension regardless of your years of service.

Thanks and regards,
V K Rao