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All employees part of the Employees' Provident Fund (EPF) Scheme and the Employees' Pension Scheme (EPS) need to transfer their EPF account when switching jobs. This can be done using Form 10C and the EPS scheme certificate to transfer or withdraw their pension amounts.
An Employee Pension Scheme (EPS) is a financial security plan offered to employees by the Employees Provident Fund Organisation (EPFO). It offers employees a pension once they reach 58 years and is open to eligible existing and new EPF holders.
However, when switching employers, you must transfer or withdraw your funds from your EPS account. To execute this transfer process, you will need two crucial documents —EPS Form 10C and the EPS Scheme Certificate.
To ensure you don't miss out on transferring your pension amount, we have provided detailed instructions on the EPS transfer process. Read on to find out how to navigate this process when changing jobs and what purpose these documents serve.
What is an Employee Pension Scheme (EPS)?
As stated, EPS is a social security scheme provided by the Employees' Provident Fund Organisation (EPFO). It is one of the many retirement plans in India. You must note that this scheme is only available to employees whose salary plus dearness allowance falls under ₹15,000.
Hence, if you are a salaried employee and contribute to an EPF scheme, you must be aware that every month, 12% of your salary is contributed towards your EPF account.
Your total contribution goes towards the Employees' Provident Fund (EPF), while your employer's 12% goes towards your EPF and EPS. Of this 12%, 8.33% goes towards your EPS (Employees Pension Scheme) and 3.67% is invested in your Employees' Provident Fund (EPF).
The EPS scheme offers employees a pension after they turn 58, and the minimum pension under EPS is ₹1,000, while the monthly contribution is capped at ₹1,250.
What is EPS Form 10C?
When transferring your EPS account when switching to a different employer, you need Form 10C. This form will allow you to claim the benefits under your EPS account after 180 days of continuous employment but before reaching 10 years of service.
You can only withdraw your pension if you have the EPS form 10C, and you must submit this form to your new employer if you want to continue receiving EPS benefits and be a member of the Employee Provident Fund (EPF).
Online EPS Transfer Process:
When you change jobs or employers, transferring your EPS funds is optional unless your service time is over 180 days but less than 10 years. Moreover, you can only withdraw your pension amount while changing jobs. The online EPS transfer procedure is given below:
Visit the EPFO website.
Enter your Universal Account Number (UAN) and password to access your EPF Member Portal.
Choose 'Claim (Form 31, 19 and 10C)’ from the 'Online Services' menu.
Check your employment KYC and member information on the next page.
Provide your bank account number's last 4 digits for validation.
Accept the terms and conditions for the 'Certificate of Undertaking'.
Click 'Just Pension Withdrawal (Form 10C)' in the 'I Want to Apply For' area at the bottom of the next page.
Type in your full address, and click 'Get Aadhaar OTP'.
Click 'Validate OTP and Submit Claim Form' to validate the OTP you will get on your Aadhaar-registered cellphone number.
Upon the EPFO's verification and approval, you will receive the money in your bank account.
Offline EPS Transfer Process:
To do this process in person, you can download Form 10C. Then, fill out the form and deliver it to the closest EPFO office.
Procedure for attestation:
Depending on the circumstances, you or your employer must certify the EPS Form 10C:
If you have submitted your application using a form obtained from an EPFO centre, your former employer must certify it.
If obtained online, you and your employer must certify Form 10C.
If your prior previous organisation is closed and the authorised signatory/employer is not readily available, you can get the attestation of one of the authorised officials listed below:
The Magistrate.
A Gazetted Officer.
The Post/Sub-postmaster.
Head of a reputable academic institution.
Member of the Legislative Assembly or Parliament.
President of the village union.
President of the Village Panchayath, if and when the Union Board is not present.
The Bank Manager of the bank where you hold a savings account.
Chairman/Secretary/Member of Municipal/District Local Board.
A Member of the Employees Provident Fund's Regional Committee and Central Board of Trustees.
Documents Required for EPS Transfer or Withdrawal:
An unused/blank cheque.
If the member is deceased, the original death certificate.
Whenever requesting EPS withdrawal benefits through a bank, the legal heirs of the member must submit a succession certificate with a ₹1 stamp.
While applying for a scheme certificate, children must submit birth certificates with their applications.
What is an EPS Scheme Certificate?
EPS Scheme Certificate includes your job history and is considered a legitimate service record. It also contains information about your family and nominee/beneficiaries in the event of death.
Once you cross a service period of 9.5 years and your age is under 50, you will need an EPS Scheme Certificate to transfer your pension from one account to another. Every time you change jobs, it is mandatory to fill out Form 10C, regardless of your choice to withdraw or transfer your EPS amount.
Moreover, when leaving a company covered under the EPF and joining one that is not, ensure you take the Scheme Certificate from EPFO. You can submit the certificate when you join an EPF-covered company in future.
If you do not join another company and reach 50 or 58, you can submit your EPS Scheme certificates to the EPF field office of the respective jurisdiction that covered your employer.
How to Check if You are a Part of EPS?
Visit the Member E-Sewa portal.
Login by entering your Universal Account Number (UAN), password and captcha.
Once logged in, click "View" and select "Service History".
The 'Service history' option will list the organisations where you have worked. Check the DOJ (Date Of Joining) for an organisation. If the DOJ shown is before September 1, 2014, you are eligible for a higher pension.
This applies even if you have switched to a different organisation as long as you maintain your EPS account with the EPFO.
If you have a prior service history before this date, but it does not show on the website, you must get proof of your service history and contribution from your current or previous employer and submit it to the EPFO to update your service history.
Eligibility Criteria for an EPS Transfer
There are three sets of people who are eligible for an EPS transfer or a Form 10C application:
Eligibility Requirements Set 1:
An individual who left their company before serving for 10 years.
People who reached 58 years before completing their 10 years of service.
Eligibility Requirements Set 2:
At the time of application, they have served for 10 years but are under 50 years.
Individuals older than 50 but below 58 years who do not want to accept a lower pension.
Eligibility Requirements Set 3:
Nominees, Family members, and legal heirs of a deceased member who passed away after turning 58 but has less than 10 years of service.
EPS Benefits
People who fall under sets 1 and 2 can apply for EPS withdrawal benefits:
A member who falls under set 2 qualifies for a scheme certificate.
If a person falls under category 2(b), they can submit an application using Form 10D if they are prepared to accept a lower pension. A member who has left the military due to a persistent disability can request a disablement pension using EPS Form 10D.
Members can withdraw their EPS prematurely after reaching 50 at a lower interest rate.
Members are entitled to receive the pension at an increased rate of 4% p.a. if they put off receiving it by two years from maturity (until they reach the age of 60).
Lastly, members of the EPFO who become disabled totally and permanently are entitled to a monthly pension, irrespective of whether they have or have not served the pensionable service period.
Their employer must deposit funds in their EPS account for at least one month to be eligible for a pension, and the employee must undergo a medical examination to assess their physical condition.
Conclusion
An EPS scheme is a financial security scheme offered by the EPFO and is one of the more popular retirement planning strategies used by salaried individuals today.
Under this scheme, you can submit Form 10C to seek an EPF withdrawal after reaching 58 years. You can also withdraw your pension after 180 months of continuous service but before finishing 10 years.
For an EPS transfer, you need an EPS scheme certificate to be submitted to your new employer in addition to Form 10C. This is required no matter how many times you switch jobs.
