Can I Avoid Blocking My Pension Contribution and Access It Before Age 60?

What if I don't want to block the pension contribution... Is there any way to prevent it since I don't want to wait until 60 years of age to claim the same?

Hi,

There is no such rule. Pension contributions only stop after attaining the age of 58 years. Until then, you have to contribute to the pension amount. After reaching 58 years, you can claim the pension amount by filling out Form 10D.

I understand the query like this. After 9 years and 6 months of contribution towards the Pension Fund, you will not be eligible to withdraw it but will get a pension after attaining 58 years of age. At the same time, Archanasunkari wants to get it back immediately. Hope this is your query.

Pension Fund Contributions

The Pension Fund is constituted by a contribution from your employer and until last year, a nominal amount, i.e., a maximum of Rs 541 (8.33% of 6500), was contributed to it. If you withdraw it, the amount will be very nominal. On the other hand, if you receive pensions, it will be for the duration of your life. Although the monthly pension at the current rate is also nominal, we can hope that it will increase based on changes in the consumer price index in the future. The pension for a newcomer whose contribution towards the scheme reaches a maximum of Rs 1250 (at the rate of 8.33% of 15000) would invariably be a fair amount. Therefore, opting out is not advisable. Another key point is that when a law is implemented, it should be followed, and you cannot opt out of compliance.

Regards, Madhu.T.K

Pension Withdrawal Options

I would like to address Archanasunkari's query in a different way, based on my understanding. If you have a pensionable service of 10 years or more, you won't be able to withdraw the pension amount credited to you. Once you complete 10 years of pensionable service, you must wait until the age of 50-58 to receive pension benefits. If you do not wish to wait until 50-58 years or are not interested in pension benefits but want to withdraw the amount contributed so far, my suggestion is as follows:

Archanasunkari must leave employment before completing 10 years of pensionable service and then remain unemployed or work for an establishment not covered under the EPF scheme for a minimum of 2 months. Afterward, you can apply for the withdrawal of the pension amount. This is the only way.

Thank you.