Confused About PF Withdrawal at 55: Should My Colleague Opt for the Scheme Certificate?

Hi Amit and others,

Good morning.

In my organization, my colleague prefers to withdraw PF. He has served 17 years in our organization and is 55 years old. Now, he wants to invest in some property, hence withdrawing PF by submitting papers related to his role. He has submitted Form 10C, but the PF authorities are asking him to submit Form 10D, stating that he has not opted for the scheme certificate, as he has reached the age of 55 years. He is advised to submit Form 10D with joint photos with his spouse, duly attested by the employer.

The scheme certificate option would provide immediate benefits to him. However, there is also a mention of reduced pension in the long term. Now, my colleague is confused about whether to opt for the scheme certificate or not. Could you please elaborate on the terms scheme certificate, reduced pension, and advise on what the person should opt for as he seeks immediate benefits?

Thank you.

Dear Sumana,

From your details, I came to understand that:

1. You have 17 years of service in PF.
2. You have submitted Form 10-C for withdrawal benefits from the Pension Scheme.

As your colleague has a service of above 9 years and 6 months, he is not eligible for withdrawal benefits. He may either apply for reduced pension in Form 10-D or a Scheme Certificate in Form 10-C.

In the scheme certificate, your full details for the pension will be recorded. With these details, it will be easy to avail of the pension as per your requirement. Also, it can be used to add later service until the completion of an age of 58 years to get an increased pension.

Abbas.P.S