EPFO: Employed people are often worried about the PF account. Especially most of the people working in private companies do not know about the pension available with EPF. Experts say that the amount deducted from the salary of the salaried person goes to two accounts. The first is Provident Fund ie EPF and the second is Pension Fund ie EPS. 12 percent of the money deducted from the employee’s salary gets deposited in the EPF. Apart from this, 3.67 percent is deposited in the EPF by the company and the remaining 8.33 percent gets deposited in the Employees’ Pension Scheme (EPS).
Let’s know the rules related to this…
When can I withdraw pension money?
Any employee can withdraw the amount of his PF account after a certain time. But, the rules for withdrawing the pension amount are strict, as they are fixed in different situations.
Now the question arises that when can the money be withdrawn?
If the job is more than 6 months and 9 years is less than 6 months, then the pension amount can also be withdrawn along with the PF amount by submitting Form 19 and 10C.
So can I withdraw pension money if the job is more than 9 years and 6 months?
If your job has been more than 9 years and 6 months, then you will not be able to withdraw the pension amount along with your PF. Because 9 years 6 months of service is considered equal to 10 years.
>> The rules of EPFO state that if your job becomes 10 years then you become entitled to the pension. After this, you will start getting the benefit of a monthly pension at the age of 58. This means that you will get a lifelong pension, but you will not be able to withdraw part of the pension before retirement.
So will you get a pension even on retirement?
If you withdraw part of the pension in case of fewer than 9 years 6 months then remember you will not be entitled to pension after that.
>> Withdrawing pension money with PF means Full & Final PF settlement and in such cases, your PF account number is completely closed.
>> Because of this you cannot take advantage of a pension facility for your retirement.
What happens to the pension amount if I transfer my PF?
If you transfer your Provident Fund (PF) from one account to another, then irrespective of your service history, you will never be able to withdraw the pension amount.
>> Means it is clear that if your service history becomes 10 years even while working in different places, then you will become entitled to pension and at the age of 58, you will start getting some salary in the form of monthly pension.