Navigating PF Contributions at 59: Will I Earn Interest and a Higher Pension at 60?

I am 59 years old and still employed on the company roll. I am contributing to VPF and EPF, and my employer is contributing 12%. As of today, I have completed 11 years of PF contribution. I have not taken a pension either. Please advise whether I will get interest on the Employer + Employee contribution. Will I get an 8.16% higher pension if I retire at 60 years of age?

Thanks

Pension and PF Contributions After 58 Years

Your pension is due upon the completion of 58 years. It doesn't matter when you actually retire. Now, since you have completed 58 years, your entire contribution, including VPF, is going into the PF corpus, and you will receive interest on the total amount.

Dear Mohan-Jayaraman,

Our most appreciated member & super moderator KK!HR rightly said that your pension is due from the completion of 58 years. Upon reaching 58 years, your contribution towards the pension is stopped, and that amount is credited to your PF account by your employer. The VPF portion remains in the PF only and is never part of the pension, so the question of VPF does not arise.

Since you have completed 11 years in the pension scheme, you are entitled to a monthly pension for your lifetime. You need to apply for the same. There is no interest on the amount contributed towards the pension.

Option to Defer Pension

We had an option to defer your pension up to 60 years of age by continuing the pension contribution. In such a deferral, you were entitled to a 4% incentive extra for one year and an 8.16% incentive extra for two years.

You also have the option to apply for deferring the pension without contribution.