EPF Subscribers, Get Your Scheme Certificate Without Fail

Not many Employees' Provident Fund Organisation (EPFO) subscribers know that they could be eligible for pension at the time of retirement. EPFO offers a pension scheme for subscribers which guarantees that employees receive a pension once they are 58 years old. Existing and new EPF members can avail of this scheme benefit.

The employee and employer each contribute 12% of the employee's basic salary and Dearness Allowance (DA) towards EPF. While the entire share of the employee is contributed towards EPF, 8.33% of the employer's share goes into this pension scheme. Once the employee retires, the scheme acts as a regular source of income. But you need to get a Scheme Certificate at the right time to avail the benefits of this scheme.

As part of EPFO contribution, your employer contributes 8.33% of your basic salary and dearness allowance (DA) to employees' pension scheme (EPS). There is a maximum limit of Rs 1,250. The amount of pension you receive is calculated by multiplying pensionable salary (average of last 60 months) with pensionable service and then dividing this amount by 70. Under this scheme, the minimum pension that you receive is Rs 1,000.

As per the official website, you are eligible for pension on superannuation at the age of 58 years. You can avail an early but reduced pension if you quit your job between 50 and 57 years. However, if you continue to work and contribute to EPF even after 58 years, you can avail pension from the age of 58.

Note: PF contributors who have contributed to EPF for less than ten years get an option at the age of 58 to either withdraw the amount or get a pension. The pension is automatically paid to the spouse on the death of the EPF subscriber. As per EPFO rules, you would not be able to withdraw the pension amount, if you have worked for less than 6 months.

The scheme certificate is like a policy for pension as it enables the transfer of pension accounts when you change your jobs. You need to have this certificate to claim your pension. PF subscribers who have contributed for at least 10 years and are below the age of 58 will be mandatorily issued scheme certificate for getting the pension.

While switching jobs, PF subscribers should transfer their service to the new establishment on the EPFO portal. In case the new organisation is not under EPF, then they can take a scheme certificate for availing pension later on. People who have already contributed to EPF for 10 years and do not intend to work further, they can get a scheme certificate to avail pension at the age of 50 to 58 years. It would help if you filled Form 10C for claiming withdrawal benefit and scheme certificate.