After a Long Wait I Was Again Submitted Pf Withdrawal Form on June 2017

What is EPS?

The EPS is a scheme by the Employee's Provident Fund Organization (EPFO), which aims at social security. This scheme is for the pension of the employees working in the organized sector, later on their retirement at 58 years. The advantages or benefits of this scheme are merely to exist availed if the employee has served for a minimum of (continuous or non-continuous) 10 years. EPS pension was made available from 1995 and later retained for existing and newly joined EPF employees since.

Eligibility criteria for EPS

To avail the benefits of alimony under the Employee Alimony Scheme, your employees should meet the following eligibility atmospheric condition. The individual should:

Exist an EPFO member
Complete 10 years of active service along with equal years of active contribution towards the EPF alimony Scheme
Be 58 years or above
Have attained at least 50 years of historic period to withdraw from the EPS pension at a lower rate
Delay withdrawing the pension for past two years, i.e., till he or she is sixty years, to become eligible to become EPS pension at a charge per unit of iv% annually

Unlike EPS and EPF pension types

As per the EPS alimony scheme, an employer tin provide different kinds of pensions to the employees. Here are some pension types:

Widow pension

Also known as Vridha pension, wherein, a widow of the deceased EPFO member is eligible for this alimony. The alimony is paid to the widow until her expiry or remarriage. In case of more than one widow, the pension value is paid to the oldest widow.

The amount for a monthly payout of the widow pension is calculated according to Table C of the Employees Pension Scheme 1995. As on date, the minimum alimony amount has been increased to INR ane,000.

Child pension

Under child pension, If the EPS member is deceased, their surviving children become applicable to receive a monthly alimony from the pension contribution in EPF. This is in addition to the widow pension to the deceased's married woman. The monthly payouts will be applicable until the kid turns 25 years old. The alimony tin be paid to a maximum of two children and the payable amount is 25% of the widow alimony amount.

Orphan pension

If the EPFO fellow member dies and does not have whatever surviving widow, and then his children are entitled to receive a pension nether the orphan EPF pension scheme. Nether this, the orphan or orphans receive 75% of the widow alimony monthly.

Reduced pension

An EPF pension scheme fellow member tin can withdraw early pension if he or she has attained the historic period of 50 merely is less than 58 years old, and, if they take made an active alimony contribution in EPF for x years or more. In such cases, the alimony value is reduced to a rate of 4% per twelvemonth until the employee reaches the age of 58 years.

For example: if an EPF pension member, who is 56 years of age, wishes to withdraw reduced pension monthly, then he or she will get the payouts at the rate of 92% of the original pension amount. It is calculated as 100% – (2*4) = 92%.

EPS Pension forms details

An EPFO member of the survivor has to make full various EPS forms depending on their eligibility criteria to avail the benefits of the Employees' Pension Scheme.

Form 10C

The Employees' Provident Fund (EPF) is a retirement benefit as per the EPFO Human action 1995, wherein, the member invests part of his bacon every month and the employer makes an equal pension contribution in PF towards his/her EPS pension account. When a fellow member switches jobs, he/she can transfer the EPF corporeality to a new account or withdraw the amount past submitting an EPS scheme document and filling the necessary EPS grade. EPS Class 10C, however, tin can be used to withdraw the accumulated pension corporeality after a continuous service of 180 days and before the completion of 10 years of active service.

Grade 10D

Form 10D is the general class that a member needs to make full to withdraw monthly pension after the historic period of 50 years. This EPS form tin as well be filled to withdraw monthly child pension and widow pension too.

Life document

Life certificate has to be submitted in Nov every year past the member or the beneficiary of the pension to certify that he or she is withal alive. This grade should be submitted in person past the casher to the co-operative manager of the depository financial institution with the active pension account details.

Non-remarriage certificate

This form is a announcement that the widow/widower of the pensioner has not remarried. This declaration has to exist submitted every year in November past the widowed individual. The widow will have to furnish this document once at the time of the commencement of the alimony.

Alimony benefits nether EPS

Eligible EPS pension members can avail the benefits of the alimony according to the age from which they offset the withdrawals. For different cases, the value of the pension is also different.

Pension at 58 years

The member is eligible for the benefits of alimony later on his/her retirement, that is, after 58 years of age. However, for this, they should have compulsorily made an active pension contribution in EPF for ten years, at to the lowest degree, before their retirement to avail the alimony benefits. Post-retirement, the EPS alimony scheme certificate gets generated. This document is required to fill up form 10D to withdraw the pension monthly.

Alimony on discontinuing service without fulfilling the criteria

If the member discontinues service or is unable to stay in duty for 10 years prior to 58 years of historic period, he/she could withdraw the entire corporeality once they achieve 58 years of historic period by furnishing course 10C.

Pension on absolute disablement

If the EPFO member becomes completely and permanently disabled, then he/she is qualified to receive monthly pensions, irrespective of them not having served the minimum service period required to become monthly pensions. Their employer must deposit EPF minimum alimony funds into their EPF account for a minimum of 1 month for them to become eligible for this pension.

A member tin can avail the pension benefits monthly from the very date of disablement and get paid for his/her lifetime. Merely, the member has to take a medical test to ascertain that he/she is not fit for the work that they were doing before getting disabled.

Alimony if the member is deceased

The family of the EPFO fellow member becomes eligible to receive the EPS alimony (or, EPF pension) in the below-mentioned cases:

If the EPFO member dies after the outset of monthly pension
If the EPFO member dies before the historic period of 58 merely has completed the 10 minimum years of active service contribution
If the member dies in the service duration and the company or employer has deposited pension funds in the members EPF account for a minimum of 1 month

What happens to the EPS amount in example of a change in jobs?

Previously, while switching employment, you had to submit out two forms:

Grade 11 to certify that y'all are a fellow member of Employees' Provident Fund (EPF) schemes
Form 13 to have your PF rest moved from the previous visitor to the current ane.

If yous have an existing Universal Account Number (UAN) and your Aadhaar is validated for KYC in the EPF database, a composite Form xi can now fulfil both functions. Everyone else must yet complete Forms xi and 13.

How Does Employee Pension Scheme Work?

Employees' Pension Scheme (EPS), often chosen EPF Pension, is a social security scheme administered by the Employees' Provident Fund Organisation (EPFO). The system provides for a pension after retiring at age 58 for employees who work in the organized sector. Nonetheless, the scheme's perks are only available if the worker has worked for the company for at least 10 years (the service doesn't accept to be continuous).

EPS was introduced in 1995, and it enabled both new and existing EPF members to participate. Both of the contracting parties contribute 12% of the employee'due south wage to the EPF. Every calendar month, the employee's consummate part is given to the EPF, 8.33% of the employer's portion is donated to the Employees' Alimony Scheme (EPS), and 3.67% is contributed to the EPF.

The process to check EPS residuum

Here are the steps that'll help you check your EPS balance.

Step ane: Visit the official EPFO portal

Stride 2: Under the " Services " dropdown menu in the top left corner click on " For Employees "

Step 3: And so click on " Member Passbook " nether Services

Step four: On the member passbook portal click on the " Login " button after entering your UAN, password, and solving captcha.

Step 5: " Select Member Id " from the dropdown and click on the " View Passbook " button on the right to display all the pension contributions by the employer till date and the total EPS residue. Alternatively, y'all tin can download a PDF version of the aforementioned past clicking on the " Download Passbook " push.

Calculation of EPS

The monthly EPS or pension amount an employee receives after retirement is based on the pensionable service and pensionable salary. It is calculated as per the post-obit formula:

Member' Monthly Salary = (Pensionable Salary*Pensionable Service)/lxx

Pensionable Salary: The boilerplate monthly salary received past an individual in the last 60 months, before he/she decides to exit the Employees' Alimony Scheme.

Pensionable Service: It is the service menstruation — or the duration of employment — of an private. It is calculated equally the total of service periods under different employers. In the result of a job switch, the individual must obtain an EPS Scheme document and hand it over to the new employer.

As mentioned earlier, this pension fund tin can be withdrawn prematurely, only only afterwards the employee has served a term of ten non-continuous years of service. This fund is taxable, and various tax benefits tin can be availed on the consolidated amount.

The two scenarios of EPS withdrawals

At that place are two cases nether which y'all can withdraw your pension amount.

For service exceeding 10 years

In this example, an individual can withdraw pension fund by filling Class 10C.

For service not exceeding x years

There are a couple of points to recall for such a example:

The alimony fund tin be withdrawn on the EPFO portal via Form 10C
The per centum of pension corporeality that tin can be withdrawn depends on the number of years of service
The individual's UAN must be linked with KYC on the portal

For this case, service cannot be more than 10 years. For this too in that location are dissimilar scenarios. If an individual is still in service and hasn't completed x years, EPS amount cannot exist withdrawn. The pension amount can simply be encashed during the interval between the exit from one service and the beginning of a new service.

Terms & Weather condition of EPS:

The employee must be an EPFO member (Employees Provident Fund Organization)
One must have completed 10 years of service and be over the age of fifty to receive an early pension under EPS. To be eligible for a normal pension, you lot should be at least 58 years of age.
In the result that a alimony is not paid for 2 years before reaching the historic period of lx, the compensation volition be increased by iv% every yr.
An individual is only eligible for the Employee Pension Scheme if he or she has served for at least 10 years.

Difference between EPF and EPS:

The provident fund scheme encourages individuals to save for their retirement. According to the scheme, both the employers and employees of a business contribute to the employee'southward provident fund account. The contribution accumulates until the individual's whole working time, after which the employee tin take a lump-sum payment with involvement.

Employees who are EPFO members and have invested in the EPS account are eligible for a pension under the pension organization. When such an employee dies, the pension is continued to exist paid to the nominee. Employees make no contributions to the EPS account. The employer contributes 8.33% of the employee's salary (basic plus dearness stipend). After the historic period of 58, the employee receives a pension from such a system.

Features of the EPS

EPS is an initiative of the Indian government, therefore, the returns are guaranteed; investing in this scheme does not involve whatsoever risks. The corporeality to exist returned is fixed and at that place will exist no changes.
For employees earning Rs xv,000/- or less each month, information technology is mandatory to enrol in the scheme.
In case of the EPFO member's widower/widow getting remarried, the pension amount is to exist left to the children who volition exist categorised equally "orphans".
Employees enrolled in the EPF pension scheme are automatically enlisted in the EPS scheme.
Rs 1000/- is the minimum pension amount that the individual will receive.

In conclusion

Employees Alimony Scheme and Employees Provident Funds are two great instruments to deposit and save your money for a better future. These tools also help you lot salvage taxes on the interest earned. A few important points to remember are:

The employer makes all the contributions to the Employees Pension Scheme account
The employer contributes eight.33% of the employee'south pay towards the EPS, which includes the basic and the dearness allowances
The employer has to contribute the amount in the offset fifteen days of the month
All applicable costs of the contribution must exist borne by the employer
To avail the pension benefits, the individual should exist in active service for a minimum of 10 years, which besides includes the same number of years of active contribution towards the EPS
If an individual has not finished 10 years but has completed a minimum of 6 months of service, he or she could withdraw the EPS pension amount if they are unemployed for two or more than months
As per the EPS pension scheme, the retirement age is fixed at 58 years
The employee is no longer a member of the pension fund when the employee starts availing reduced EPS pension benefits or later reaching the individual's lifetime of 58 years

For more information on anything related to EPF alimony and EPF pension, subscribe to our blogs as we will share the latest EPFO pension news regularly.

Employee Alimony Scheme (EPS): FAQs

i) What is the maximum EPS contribution?

EPS is calculated as viii.33% of basic. At that place is an INR 15,000 the basic bacon so the maximum EPS contribution by the employer volition not exceed INR i,249.five.

2) For a instance where both parents have passed away is the dependent child entitled to the alimony?

Alimony is paid to the dependent child as an orphan pension which is 75% of the pension that would've been paid to parents.

3) How is EPS transferred online?

With the help of the Composite Claim Grade. An individual must utilise for EPF transfer during a chore modify via the EPFO portal.

iv) Is the employee property the EPS account the simply beneficiary?

No. In the absence of the employee, the amount can be claimed by dependants.

five) Who falls nether the the 'dependants' category for pension benefits?

In the absence of the individual holding the EPS account, the spouse or children tin merits the corporeality. For a example with no spouse/children, the amount can be claimed by the nominee alleged by the individual. For no nominee, pension amount will go to the private'south parents.

six) How is the pension amount derived under the Widow Pension Scheme? Volition the Ministry increment the amount?

The alimony amount is derived on the basis of the pension wage at the fourth dimension of the demise of an employee and the tenure of employment. Furthermore, the alter can hinge on the proposals made by the ministry.

7) Volition a subscriber's service tenure be counted as 10 years if he has completed, for example, nine years and 7 months of service?

Yes, since the subscriber has exceeded 9.5 years of service, it will exist considered as 10 years. In other words, he/she will be eligible for pension upon attaining 58 years of historic period.

eight) What is the process for elderly and the sick pensioners who are physically unable to procedure/submit documents?

EPS pensioners can as well submit Digital Life Certificate(DLC) via the UMANG app. To facilitate the process, India Post Payments Bank has recently launched the doorstep Digital Life Certificate service for pensioners. They tin submit an online request to avail doorstep DLC service on payment of a nominal fee.

nine) Is it mandatory to transfer PF amount under different PF accounts to the current (active) PF account to get alimony?

Yes. In order to avail pension benefits, the subscriber must apply for an online transfer of the funds from previous employers' PF accounts to the current employer's PF account.

10) What are the various benefits a spouse is entitled to receive in the event of the subscriber'southward (PF account holder) demise?

If the subscriber passed away during service, the nominee will get the settlement of PF ante with involvement, EDLI benefits, and widow pension. To avail the said benefit, the spouse (nominee) needs to contact the institution where their spouse worked.

Latest news on EPS (Employee Alimony Scheme)

You Can Now Get EPF Scheme Certificate on UMANG App

October 01: Introduction of the UMANG App (The Unified Mobile Application for New-age Governance) is a huge relief to EPF subscribers every bit it enables them to access diverse EPF services effortlessly. The Labour Ministry building stated that, out of the 47.3 crore hits gained by the app since August 2019, 41.6 crore (88%) were for the EPFO services.

Forth with the existing xvi services, EPFO recently introduced a new app feature enabling the members to apply for the Scheme Certificate under Employees' Pension Scheme, 1995. The Scheme Certificate is provided to existing and active EPFO members who wish to withdraw their contribution but desires to retain their membership with EPFO. The certificate primarily focuses on the members who want to avail pension benefits. The Scheme Certificate assures that the member'southward prior alimony benefits are added to the pension service rendered with the new employer. Nominees can apply the certificate to claim the family pension in case of the untimely demise of the contributor.

Update Jeevan Pramaan Patra And Other EPF Services via UMANG App

August 13: EPFO allows pensioners to access xvi dissimilar services via the UMANG app. The services include EPS passbook, life certificate (Jeevan Praman Patra) etc. The UMANG app has made the EPF related services much more hassle-free as it allows users to access all services from their mobile phones itself.

Newly added features such every bit updating Jeevan Pramaan Patra and EPS passbook has got peachy feedback from the existing members. "To ensure the safe and secure delivery of its services at the doorsteps on its 66 lakh pensioners, EPFO brought the facility of 'View Pensioner Passbook' as well every bit the updation of Jeevan Pramaan Patra on UMANG app," stated EPFO.

As per the EPFO records, the 'View Pensioner Passbook' service alone has received virtually 29,773 API hits, while 29,773 hits recorded for the updating Jeevan Pramaan Patra service, from April to July 2020.

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Source: https://www.betterplace.co.in/blog/employee-pension-scheme/