What is the employee pension scheme (EPS)?

Employee Provident Fund (EPF) or Provident Fund (PF) is a retirement planning scheme introduced by the Employee Provident Fund Organisation (EPFO) of India. Under this scheme, both employer and employee make mandatory contributions towards the EPF account of the eligible employee.
 

It is important to note that EPF comprises three components with different objectives as follows:
 

• The first component of EPF is the accumulation of funds for your retirement. In simple terms, the contributions made by you and your employer are accumulated in your PF account and are subjected to an interest rate as specified by the government of India.

• The second part of EPF is the Employee Pension Scheme (EPS). The main objective of EPS is to generate regular pensions for eligible employees post their retirement.

• The third and last component of EPF is the Employer Deposit Linked Insurance (EDLI), which is a life insurance cover provided by the EPFO. Under this scheme, the nominee of the member receives a lump sum amount in the event of unforeseen death of the member during his employment.

All the three components will be automatically activated once you register for your EPF.

When can you withdraw your EPS pension contribution?

According to the EPF Act, retirees can receive their pension amount after they retire by following the proper procedure. Here are the following criteria or conditions one must meet to withdraw the amount they need:
 

• If you have worked for ten years and reached the age of fifty, you can take your pension early. However, you will receive a reduced pension in that case. Until you reach the age of 50, your pension rate decreases by 4% each year.

• You can withdraw your pension contribution if you've served for less than ten years but more than six months. Generally, you can withdraw it after two months of being unemployed.

• Some people reach the retirement age at 58 with less than ten years of employment. Usually, this happens to individuals who join the organised sector after 48 years. Such employees aren't eligible for pensions. Even though EPS payments will no longer be issued monthly, you will still have the option of withdrawing the entire balance from your EPS account at once.

Documents Required for EPF Pension Withdrawal Online Process

Below are the documents required for EPF pension contribution withdrawal:
 

• Aadhaar Card or any other ID proof
• Address proof
• Revenue stamp
• Bank account statement

Eligibility criteria for EPS pension contribution withdrawal

The pension portion of your Employees’ Provident Fund (EPF) can be withdrawn depending on your years of service and age. The rules vary for full or partial pensions, ensuring that employees are rewarded for long-term contributions while providing flexibility during needs.
 

EPF withdrawal limits

There are certain limitations that apply if you wish to withdraw funds from your EPF account before retirement. In certain circumstances, you may be able to withdraw contributions from your EPF account:
 

How much EPF pension contribution can be withdrawn?

The EPF pension amount you can withdraw varies depending upon the reason for withdrawal. Below are the conditions for PF withdrawal under various scenarios:
 

How to withdraw pension contribution in EPF: step-by-step process

As discussed above, you can withdraw your EPF contributions both online and offline. Let’s discuss both processes in detail:
 

EPF Pension Withdrawal Online Process

If you want to proceed through the online EPF withdrawal process, then your UAN (Universal Account Number) must be linked to your Aadhaar Card. Here is how the process works:
 

Step 1: Visit the Unified Member Sewa Portal and log in using UAN and password.

Step 2: Locate the “Online Services” option in the menu bar and select “Claim (Form-31,19,10C & 10D)”.

Step 3: Next, the automatically filled details, such as your name, father’s name, address, etc.,. will be displayed.

Step 4: Verify the member and KYC details by entering the last four digits of your registered bank account and clicking “Verify”.

Step 5: Now, select the “Withdraw Pension Only” option.

Step 6: In the “I want to apply for” tab, select “Only Pension Withdrawal (Form 10C)”.

Step 7: Enter your full address in the designated field of Form 10C and check the disclaimer.

Step 8: Select “Get Aadhaar OTP” to receive an OTP on your registered mobile number.

Step 9: Enter the OTP in the provided text box and click on the “Validate OTP”.

Step 10: Finally, click “Submit Claim Form”.
 

Once done, you will receive a notification on your mobile number. This claim will be submitted via Form 10C, and your pension will be transferred to your bank account.
 

EPF Pension Offline Process

Step 1: Visit the EPFO website and download the composite claims form (with or without Aadhar).

Step 2: In case you provide your Aadhaar details, provide your bank details. Your primary bank account should be linked with your Aadhaar.

Step 3: In case of a non-Aadhaar claim, you will need to link the form with an account number.

Step 4: Submit the complete form to the EPF office in your jurisdiction.

EPF pension withdrawal rules you should know

Here are the key withdrawal rules for your pension (EPS):
 

• In the case of less than 6 months' service, the pension can't be withdrawn.

• EPS can be withdrawn as a lump sum, using Form 10C, if your service is between six months and ten years.

• Upon completing 10 years of service, you cannot withdraw your pension fund. Instead, you will receive a monthly pension starting at age 58.

• In order to receive a monthly pension, you must submit Form 10D.

• Even if you've completed 10 years and want a reduced pension at 50, you still need to submit Form 10D.

Conclusion

EPF pension financially secures your old age. You can withdraw the accumulated fund for your needs. You may be eligible for early, partial, or full pension withdrawal depending on your service duration and age. The process can be completed online via the Unified Member Sewa Portal or offline through EPFO offices, using Form 10C or 10D. The required documents include Aadhaar, bank details, and address proof. Understanding the eligibility criteria, withdrawal limits, and tax* implications can ensure a smooth and timely pension.