Dear Members,
Our ex-employee submitted Form 19 and 10C for PF/pension withdrawal. He received an SMS stating that his Form 19 is approved, but 10C is rejected due to Non-Contributory Period (NCP) days exceeding 80, i.e., a total of 81 days during his service period from April '17 to December '17. The PF department mentioned that he cannot withdraw the pension amount due to this but did not provide any justification. Can anyone help me understand this situation better? If the NCP days exceed 80 within a 9-month service period, is the individual eligible to withdraw the pension amount?
Thank you.
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Our ex-employee submitted Form 19 and 10C for PF/pension withdrawal. He received an SMS stating that his Form 19 is approved, but 10C is rejected due to Non-Contributory Period (NCP) days exceeding 80, i.e., a total of 81 days during his service period from April '17 to December '17. The PF department mentioned that he cannot withdraw the pension amount due to this but did not provide any justification. Can anyone help me understand this situation better? If the NCP days exceed 80 within a 9-month service period, is the individual eligible to withdraw the pension amount?
Thank you.
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The rejection of Form 10C due to Non-Contributory Period (NCP) days exceeding 80 is in line with the regulations set forth by the Employees' Provident Fund Organization (EPFO) in India. Here is a breakdown of the situation and the implications:
Understanding NCP Days and Eligibility for Pension Withdrawal:
- NCP days refer to the period during which an employee did not contribute to the Employees' Pension Scheme (EPS).
- As per EPFO rules, if an employee has more than 80 NCP days within a service period, the individual is considered ineligible to withdraw the pension amount.
Impact on the Employee's Pension Withdrawal:
- In the case described, where the ex-employee has accumulated 81 NCP days during the 9-month service period, the rejection of Form 10C is a standard procedure based on EPFO guidelines.
- The EPFO's decision to reject the pension withdrawal is in adherence to the pension scheme rules, which aim to ensure that employees contribute continuously to the pension fund.
Next Steps for the Employee:
- The ex-employee, having received the rejection notification, should be informed about the specific reasons for the rejection.
- It is advisable for the individual to consult with the PF department or EPFO officials to seek clarification on the NCP days and explore any possible remedies or options available.
Final Consideration:
- Given the scenario outlined, the EPFO's decision aligns with the pension withdrawal regulations, emphasizing the importance of consistent contributions to the pension scheme for eligibility to avail pension benefits.
Understanding the EPFO guidelines regarding NCP days is crucial for both employers and employees to ensure compliance with pension withdrawal rules. For further assistance, direct communication with EPFO officials or seeking guidance from a legal advisor specializing in labor laws may provide additional insights or solutions.
From India, Gurugram
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54Understanding NCP Days and Eligibility for Pension Withdrawal:
- NCP days refer to the period during which an employee did not contribute to the Employees' Pension Scheme (EPS).
- As per EPFO rules, if an employee has more than 80 NCP days within a service period, the individual is considered ineligible to withdraw the pension amount.
Impact on the Employee's Pension Withdrawal:
- In the case described, where the ex-employee has accumulated 81 NCP days during the 9-month service period, the rejection of Form 10C is a standard procedure based on EPFO guidelines.
- The EPFO's decision to reject the pension withdrawal is in adherence to the pension scheme rules, which aim to ensure that employees contribute continuously to the pension fund.
Next Steps for the Employee:
- The ex-employee, having received the rejection notification, should be informed about the specific reasons for the rejection.
- It is advisable for the individual to consult with the PF department or EPFO officials to seek clarification on the NCP days and explore any possible remedies or options available.
Final Consideration:
- Given the scenario outlined, the EPFO's decision aligns with the pension withdrawal regulations, emphasizing the importance of consistent contributions to the pension scheme for eligibility to avail pension benefits.
Understanding the EPFO guidelines regarding NCP days is crucial for both employers and employees to ensure compliance with pension withdrawal rules. For further assistance, direct communication with EPFO officials or seeking guidance from a legal advisor specializing in labor laws may provide additional insights or solutions.
From India, Gurugram
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