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EPF and EPS Queries

I have certain queries related to EPF and EPS. It would be a great help if you could revert as soon as possible.

1. An employee works for more than 10 years in an organization and then joins another organization. The employee's age is less than 58 years. He withdraws his entire PF amount but cannot withdraw his pension. In the new organization, the employer opens a new EPF account for him. So, what about his Pension Scheme, as upon completion of 10 years, an employee becomes eligible for a pension at the age of 58 years? There is also a question in Form 11 (Revised): "Were you a member of the Employee Pension Scheme, 1995?" Should the answer be Yes or No?

Please revert as soon as possible.

Thanks in advance.

Best Regards,
Insiya.

Settlement of Employees Pension Scheme, 1995

The settlement of the Employees Pension Scheme, 1995 will be done in the following manner:

1. If the service is less than 5 years, the claim will be settled by the entire amount at the credit of the employee by filling Form 10 C.

2. If the service is more than 5 years, the settlement will be done by issuing a scheme certificate to the employee. For this, the employee should submit Form 10D. This certificate should be submitted to the PF wherever he takes a new job and where the PF scheme is applicable. In such a case, the scheme certificate will get canceled, and your service will be accumulated for the payment of pension after attaining the age of 58 years. This has to be continued until attaining the age of 58 years. To be eligible for the benefit of the pension, a member should complete a minimum requirement of 10 years of service. After attaining the age of 58 years, the member needs to submit a claim form again so that the benefit of the pension can continue until the death of the member, subject to the length of service and wages at the time of joining and at the time of superannuation. These two factors are considered to arrive at the pension amount. The minimum pension is now Rs. 10,000 per month, which was amended last year by the EPFO in consultation with the finance department. There are payment options for the pension that need to be considered while submitting the claim form. After the death of the member, his/her nominee will receive the pension benefits as fixed at the time of claim settlement. There is also an option to claim the Return of Capital.

That is why I always insist on the members not to withdraw the PF amount and try to continue to get more benefits after retirement.

Regarding Form No.11, if you have a Scheme Certificate issued by the EPFO, then mention "Yes"; if you have taken full settlement, then mention "No."

I hope the matter is clear to you.

Regards, Adoni Suguresh

Labour Laws Consultant.

Thank you so much, Mr. Adoni, for your response. Could you kindly address the following queries as well:

1) Is it true that members with less than 5 years of service cannot apply for a scheme certificate?

2) Additionally, if an employee with over 10 years of service leaves an organization without applying for a scheme certificate and later joins another organization, can they apply for the certificate afterward? What is the time frame for such an application?

3) What are the consequences if an employee chooses not to take a scheme certificate?

4) To my understanding, Form 10-C is required for the Scheme Certificate, while Form 10-D is for Monthly Pension (Reduced Pension).

I look forward to your response.

Regards, Insiya

Thank you so much, Mr. Adoni, for your reply. Could you please address the following queries as well:

1) Is it true that members who have completed 5 years or less than 5 years of service are not eligible to apply for a scheme certificate?

2) Additionally, if an employee who has completed more than 10 years of service does not request a scheme certificate upon leaving the organization and later joins another company, can they apply for the scheme certificate at a later date? If so, within what timeframe should they apply?

3) What are the consequences if an employee chooses not to obtain a scheme certificate?

4) Based on my understanding, Form 10-C is required for the Scheme Certificate, while Form 10-D is for Monthly Pension (Reduced Pension). However, you mentioned using Form 10-D to apply for the Scheme Certificate if the service period exceeds 5 years. Could you please clarify this discrepancy?

I look forward to your response.

Regards, Insiya

I have gone through your query. Following are my opinions.

1. Members who have not completed 5 years of service are not eligible for any scheme certificate under the scheme. However, their claim will be settled by paying whatever amount is at credit.

2. Members who have completed more than 5 years will be provided a scheme certificate in lieu of settling the claim. There is no option but to accept the scheme certificate.

3. I mentioned the requirement of 10 years of service to benefit from the Employees' Pension Scheme, 1995, introduced in 1995, superseding the Employees' Family Scheme, 1971. This applies to members before 1995. Those who become members are covered under EPS 1995.

4. If you have not applied for a claim using Form 10D, there is no question of a Scheme Certificate. Your services will be automatically transferred wherever you join, and your continuity of membership will be ensured.

5. A scheme certificate will be issued by EPFO against your claim; otherwise, not. If you are transferring your account to a new organization where this scheme applies, you need not apply or wait for a scheme certificate.

6. What I mentioned in my earlier post is correct. Form 10C is for those with less than 5 years of service, where the claimant receives the amount. Form 10D is for those with more than 5 years of service who wish to claim; in such cases, a scheme certificate will be issued instead of settlement.

I hope your doubts are cleared.

Regards, Adoni Suguresh

Labour Laws Consultant

Thank you so much, Mr. Adoni.

Could you please clarify whether if they have withdrawn their PF accumulations and not the pension, as the pension amount has to be transferred? In that case, do they need to fill both Part-A (EPF) and Part-B (EPS) (Para 18) of the Nomination Form-2 (Revised) for the new PF account?

Regards,
Insiya

Also, can you please tell me where it is mentioned about 5 years of service and Form 10-D for the Scheme Certificate, as I've gone through the possible sources but couldn't find it anywhere? Regarding my query, in Form 10-C, it is mentioned that a member having less than 10 years of experience is eligible for withdrawal benefits, and those with more than 10 years can apply for a Scheme Certificate. There is also a question in Form 10-C: "Would you like to avail of the scheme certificate in lieu of withdrawal benefits?"

I've attached Form 10-C. Please find the attached files.

Waiting for your response.

Regards,
Insiya

Also, can you please tell me where it is mentioned about 5 years of service and Form 10-D for the Scheme Certificate? I've gone through the possible sources but couldn't find it anywhere. Regarding my query, in Form 10-C, it is mentioned that a member having less than 10 years of experience is eligible for withdrawal benefits, and more than 10 years can apply for a Scheme Certificate.

Also, there is a question in Form 10-C: "Would you like to avail the scheme certificate in lieu of withdrawal benefits?"

I've also attached Forms 10-C & 10-D. Please find the attached files.

Waiting for your response.

Regards, Insiya

Dear Insiya,

Form 10C is used for Scheme Certificate, and form 10D is exclusively for a pension claim. If you have not reached the age of 58 years, you are eligible to receive a Scheme Certificate regardless of the length of service. Whether the service duration is below 5 years or above 10 years, it doesn't matter.

Abbas.P.S

Thank you so much, Sir, for your response. Please address the following query as well, as it is very important.

Pension Transfer and Nomination Queries

Some employees had been working at their previous organization for around 20-22 years. They have already withdrawn their PF, but their pension is still pending due to non-withdrawal. They have now joined our company, and we have set up a new PF account for them. They wish to transfer their pension service to the new PF account, but they do not possess any scheme certificate. What steps should we take in this situation? Additionally, how should they complete Nomination Form-2 (Revised)? While EPF nomination is required, what about EPS?

I am looking forward to your response, Sir.

Best Regards,
Insiya Kachwala