Is a 63-Year-Old Eligible for Pension After 10 Years of Mistaken EPS Deposits?

At the age of 63, Person X joined an establishment named Y in July 2010. By mistake, the employer deposited 8.33% of his salary into the pension account for 10 years.

Now, in December 2020, X exited from the establishment Y after a total of 10 years of service. X also submitted Form 19 and withdrew his final settlement.

Eligibility for Pension

Now, is he eligible for a pension?

Withdrawal from EPS

If not, how can the amount in the EPS be withdrawn?

Dear Mr. Natarajan, I would suggest discussing the matter with the clerk who handles the company's accounts at the PF office. Please bring along the employee's passbook showing the contribution to the pension.

By making a correction entry, this can be resolved. The employer should be prepared to hear from the PF authorities about this mistake, but it can be rectified.

These days, there is an initiative to expedite pension disbursement once an individual becomes eligible to receive a pension upon reaching the age of 58. You may address your issue with the pension department; they will listen to you and offer a solution.

Regards, Puran Dangwal

EPS Membership and Deposit After 58

EPS membership and deposit can be continued after 58, and it will fetch some extra pension, but it gets auto-closed at 60+ of age.

https://epfindia.gov.in/site_docs/PD...)_10062016.pdf

EPS is applicable on ₹15,000 per month. Therefore, if the salary (Basic+DA) is up to ₹15,000 per month, there is no issue. If the salary (Basic+DA) exceeds ₹15,000 per month and the employer has deducted EPS based on the actual salary (Basic+DA), in that case, the employer needs to submit a request letter along with Form-3A to EPFO so that EPF and EPS can be rectified accordingly.

If you require any further assistance, please feel free to contact us.

Contributions can be made under EPS up to 58 years of age only. A 4% extra pension will be paid for each year if the pension is postponed until the attainment of 60 years. No contribution can be made to EPS after the completion of 58 years of age.

Regards, N. LOKANADHA BABU
Manager-HR