Retired and Confused: Do I Need to Pay to Get My EPFO Lump Sum Benefits?

I retired in 2003 but did not apply for withdrawal benefits. After a long gap, I sent a filled-up Form 10C for employer attestation. When I did not receive any communication from EPFO, I made a complaint. Now, EPFO says that they have not received Form 10C from the employer. The employer is saying I have to pay an amount, after which I will get back a more significant amount. If I am agreeable, they may calculate the amount.

Eligibility for Lump Sum Amount from EPFO

Is it a fact that I have to pay a certain amount to be eligible for a lump sum higher amount from EPFO? Can I ask for corroboration from EPFO? Or can I get my identity and signature verified by the Bank Manager, etc., as per provision?

As you have mentioned that you retired in 2003, the first question that arises here is, what was your service tenure there? If your service was less than 9 years and 6 months in that organization, then you may claim through Form-10C & Form-19. However, if it is more than 10 years (no doubt, it should be), and your age is also now 58+ (I assumed as you were retired in 2003), then in this case, you will have to claim in Form 10D (for pension) & Form 19 (withdrawal of fund).

There is no provision in EPF in which the member has to pay some amount and then receive back more amount. So, I would suggest you first confirm from your erstwhile employer why you have to pay this amount.

If they relate it to EPF, then it is incorrect. Alternatively, there may be an outstanding balance of yours about which they were asking you to submit it for further clearance, and mistakenly, you are relating it to EPF Withdrawal. Kindly confirm.

For the attestation of the EPF withdrawal form, you can also use the second way. You can simply get the forms attested by your banker and submit them directly to the concerned EPFO with supporting documents, as per norms.

Hope this will help you. Cheers.

Clarification on EPF Withdrawal Process

As you have mentioned that you retired in 2003, the first question that arises here is, what was your service tenure there? If your service was less than 9 years and 6 months in that organization, then you may claim through Form-10C & Form-19. But, if it is more than 10 years (no doubt, it should be) and your age is also now 58+ (I assume as you were retired in 2003), then in this case, you will have to claim in Form 10D (for pension) & Form 19 (withdrawal of fund).

There is no provision in EPF in which the member has to pay some amount and then get back more amount. So, I suggest you first confirm from your erstwhile employer why you have to pay this amount. If they relate it to EPF, then it is incorrect. There may be some outstanding issue of yours about which they were asking you to submit for further clearance, and by mistake, you are now relating it to EPF withdrawal. Kindly confirm.

For attestation of the EPF withdrawal form, you can also use the second method. You can simply get the forms attested by your banker and submit them directly to the concerned EPFO with supporting documents, as per norms.

I hope this helps you. Cheers.

I am writing for further clarification about the matter. I joined the organization on 02/04/1984 and retired on superannuation on 31/01/2003. I attained the age of 58 on 29/01/2001, which is my birthday. Based on the above information, you may calculate my age and superannuation benefits, i.e., what benefits I will be entitled to.

Thank you for the prompt reply and your suggestions. I may have more information to disclose, which I hope to do next time.

Regards, Sudhir de

As per the service particulars provided by you, your net service tenure is 18 years, 9 months, and 30 days, and you have already completed 58 years. This means that you are eligible to claim a pension if you are a member of EPF from the first day. To proceed with this, you will need to submit EPF Form-10D for pension and EPF Form-19 for fund withdrawal.

To Claim the Pension

To claim the Pension, you need to fill out EPF Form-10D.

1. Along with this form, you will need to attach the bank account proof (copy of passbook/canceled cheque). Ensure you have an account in the bank designated by EPFO for pension facilities. For information about the designated bank, please visit your nearby EPFO office.

2. Provide 4 photographs of your family, including yourself, your spouse, and children below the age of 25 years.

3. Submit age proof of the member and family as shown in the photographs.

4. Include any scheme certificate issued earlier by any EPFO.

All the aforementioned documents and forms should be attested by your employer or any gazetted officer. The form should be submitted in duplicate for your home state and triplicate for an out-of-state application.

To Claim the Fund Withdrawal

To claim the fund withdrawal, you need to fill out EPF Form-19.

1. Along with this form, you will be required to attach the bank account proof (copy of passbook/canceled cheque).

I hope this information will be helpful to you.

Regards.

Yes, I agree with Bhuvan's comments. There is no such option in EPFO to pay an additional amount and receive a higher pension. If you retired with more than 10 years of service, you will receive the pension amount on a monthly basis. Otherwise, you can claim the full pension and PF amount at once.

I agree with the point mentioned above by Mr. Arya. There should not be any kind of amount payable to the employer in this regard. Yes, after completing ten years of service or reaching the age of 58, the employee becomes eligible for a pension. This can be availed by filling out the 10D form, which must be duly attested by government bank managers and then submitted to the EPF department.

Mr. B Carya has given you prompt advice. Some employee-friendly companies contribute more towards the pension fund in the last 12 months of employment because the amount of pension is a function of the average contribution in the last 12 months of employment. Since you have retired long back, I don't know whether the employer will be able to do that. Since it appears that the employer is trying to help you out, please find out from the employer how he wants to assist you.

As regards the eligibility of children for pension, the age of 25 years is applicable as of the date of your retirement and not the current age. Probably you may also have to submit a letter explaining the delay in applying.

Regarding the bank account, you need to have an account in your name (no joint account) in any designated bank, which will vary by state, but SBI is a designated bank in all states. When you select a bank, please remember that every November, you need to go and sign a 'living certificate' at the bank (the selected bank should be convenient for you to do that). You also need to have accounts in the name of your children if they are now major, and copies of passbooks of all accounts and cancelled cheque leaves need to be attached.

As regards your eligibility for a pension, there is an XL sheet provided in this forum by one Mr. iitsridhar.

Regards,
Raghavan

In addition to Bcarya's advice, I also suggest opting for Form 10C to fill out and Form 10D to attest. After completing the forms, have them authorized by your employer and then submit them to EPFO.

Regards,
Sumit

Further to my note on 24/01/2014, I am thankful to Mr. Arya and all who have agreed with him and suggested the next course of action. I am really delighted to have this information.

EPF Benefits Inquiry

Now, I would like to mention that I worked in other companies before 1984 and was a member of EPF. However, at the time of joining this organization, I withdrew the full amount from my EPF account. Can I still claim any benefits in this regard?

I have not heard anything from my employer regarding the amount I need to deposit or any related matters. Can I fill out Form 10D and submit it to the EPF authority?

With profound regards,

Sudhir De

29/01/1943

I am thankful to everybody for valid and useful suggestions. I may have to fill up Form 10D.

Joint Account Holder Query

Now one thing I would like to know: I have a joint A/c (S/B) with my son where I am the First A/c holder at the Designated Bank Branch. Additionally, I have another Joint A/c with my wife where she is the 1st A/c holder.

Will both accounts be accepted for pension payments or none? Do I need to open a new single A/c for pension payments, or will being the First holder suffice?

For withdrawal/pension purposes, a joint account can be accepted, but the joint account should only be with your spouse. Therefore, you can use the joint account that you have with your spouse. Hope this information helps you.

Thank you.

Regards,