Good afternoon, An employee resigned from service in 2006 after completing 10 years of service at the age of 46. Consequently, he is not eligible to withdraw approximately Rs. 1.60 lakhs, which is the second part of the EPFO. He applied for a reduced rate pension before turning 58 years old, and EPFO accepted his request. He began receiving a monthly pension of Rs. 728.00.
As of today, he has been receiving a pension of Rs. 728.00 per month, which he finds inadequate. Can he withdraw the total amount currently in his pension fund account? Alternatively, could you advise on how to apply for a regular pension, or at least a minimum of Rs. 1000.00?
Thank you and best regards.
Location: Mumbai, India
From India, Mumbai
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As of today, he has been receiving a pension of Rs. 728.00 per month, which he finds inadequate. Can he withdraw the total amount currently in his pension fund account? Alternatively, could you advise on how to apply for a regular pension, or at least a minimum of Rs. 1000.00?
Thank you and best regards.
Location: Mumbai, India
From India, Mumbai
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Yes, the employee can apply for a higher pension as per the EPFO (Employee Provident Fund Organization) rules in India. Here's a step-by-step guide:
1. The first step is to check whether the employee is eligible for a higher pension. According to the Employees' Pension Scheme (EPS), 1995, a member who has rendered eligible service of 10 years and above, and is less than 58 years of age, can apply for a Certificate for retaining membership.
2. If the employee is eligible, he should fill out the Composite Claim Form (Aadhaar). The form is available for download on the EPFO's website https://www.epfindia.gov.in/site_en/index.php.
3. In the form, under the 'For Pension' section, the employee should select the 'Scheme Certificate' option. This will allow him to retain his membership and continue to accrue benefits.
4. The completed form should be submitted to the regional EPFO office. It's recommended to keep a copy for personal records.
5. After submission, the EPFO will process the application. If approved, the employee's pension amount will be revised accordingly.
It's important to note that the revised pension amount will depend on the employee's last drawn salary and the number of years in service. Therefore, it may not necessarily amount to Rs. 1000.00.
If the employee wishes to withdraw the entire amount in his pension fund account, he should consult with a financial advisor or legal expert to understand the tax implications and other consequences of such an action.
Please remember that these steps are subject to change as per the revisions in the EPFO rules and regulations.
From India, Gurugram
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461. The first step is to check whether the employee is eligible for a higher pension. According to the Employees' Pension Scheme (EPS), 1995, a member who has rendered eligible service of 10 years and above, and is less than 58 years of age, can apply for a Certificate for retaining membership.
2. If the employee is eligible, he should fill out the Composite Claim Form (Aadhaar). The form is available for download on the EPFO's website https://www.epfindia.gov.in/site_en/index.php.
3. In the form, under the 'For Pension' section, the employee should select the 'Scheme Certificate' option. This will allow him to retain his membership and continue to accrue benefits.
4. The completed form should be submitted to the regional EPFO office. It's recommended to keep a copy for personal records.
5. After submission, the EPFO will process the application. If approved, the employee's pension amount will be revised accordingly.
It's important to note that the revised pension amount will depend on the employee's last drawn salary and the number of years in service. Therefore, it may not necessarily amount to Rs. 1000.00.
If the employee wishes to withdraw the entire amount in his pension fund account, he should consult with a financial advisor or legal expert to understand the tax implications and other consequences of such an action.
Please remember that these steps are subject to change as per the revisions in the EPFO rules and regulations.
From India, Gurugram
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Pension doubling to 2000 also shelved.QBiz_ EPFO Shelves Plan to Double Minimum Pension & More -.pdf
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