Understanding PF Withdrawal vs. Pension (EPS) Claim

Understanding PF Withdrawal vs. Pension (EPS) Claim

How employees often withdraw their Employees Provident Fund but ignore the Employees’ Pension Scheme component, risking their eligibility for pension benefits.  PF Contribution Breakdown :

• Employee Contribution (12% of Basic Pay) → Entirely goes to EPF.
• Employer Contribution (12% of Basic Pay) → Split into:
  • 3.67% to EPF
  • 8.33% to Employees’ Pension Scheme
• When you withdraw your Provident Fund, only Employees Provident Fund amount is released. Employees’ Pension Scheme contribution stays unless specifically withdrawn or transferred.

Employees’ Pension Scheme :

we needed to know that only service history is transferred, not the Employees’ Pension Scheme balance. Employees’ Pension Scheme entries are listed separately in passbook for each employer. Employees’ Pension Scheme can be withdrawn if service is less than 10 years. Otherwise, one must wait till retirement to receive monthly pension benefits (after 58 years of age, 10 years of service). Types of Employers :

• Exempt Employers: Manage Employees Provident Fund via private trust; EPS via EPFO.
• Non-exempt Employers: Employees Provident Fund office manages both Employees Provident Fund and Employees’ Pension Scheme

PF Withdrawal vs. Pension (EPS) Claim

EPF Withdrawal : When you withdraw your Provident Fund, Employee get Employee contribution, Employer’s contribution to EPF, Interest earned and it does not include pension (EPS) amount

How to Withdraw Employees’ Pension Scheme if Service < 10 Years

• Exempt Employers:
  • Withdraw via EPFO member portal.
  • May need to approach employer as well.
• Non-exempt Employers:
  • Apply online via Employees Provident Fund office Portal.
  • Both Employees Provident Fund and Employees’ Pension Scheme withdrawn together.

What is NOT Included in PF Withdrawal?

The 8.33% employer contribution to EPS (Employees’ Pension Scheme) is not withdrawn automatically. It stays with the EPFO and is meant for pension after retirement.

EPS Pension: How to Claim It Separately?

• Employees’ Pension Scheme Eligibility Criteria have been Minimum 10 years of eligible service. And Employees Retirement age: 58 years (or early pension at 50 years with a reduction).
• To Claim Monthly Employees’ Pension : Form 10D must be submitted to the EPFO.
• Employees’ Pension Scheme Documents requirment :
  • Identity Proof (Aadhaar, PAN, etc.)
  • Bank Account Details (for pension credit)
  • Service Certificate (if required)
  • Pension Scheme Certificate (especially when claiming post-retirement)
• Employees’ Pension Scheme Timeline: After retirement and submission of Form 10D, EPFO typically takes a few weeks to process and issue pension disbursement notifications.
• After Leaving a Job (Non-Retirement):

Action	Waiting Period	Form to Use	Notes
PF Withdrawal	2 months	Form 19	Only EPF portion is released
EPS Withdrawal	< 10 years	Form 10C	One-time withdrawal of EPS
EPS Pension Claim	≥ 10 years	Form 10D	Monthly pension after retirement

If PF is Already Withdrawn, Can You Access EPS?

• In case Exempt Employers: Can still withdraw Employees’ Pension Scheme by:

• • • Filling Form 13 and getting employer’s authentication.
    • Submitting pension scheme certificate (Form 10C).
• In case Non-exempt Employers:
  • EPS transfer is not possible after EPF withdrawal.
  • No option to claim unless pension certificate is issued.

• Employees’ Pension Scheme Certificate : Certifies Employees’ Pension Scheme membership and service period. And Used to claim pension after retirement.

Check if Employees’ Pension Scheme is Transferred or Stuck :

• No way to directly view past Employees’ Pension Scheme status.
• Fetch Annexure-K a few days after initiating transfer.
• Especially important when transferring from exempt employers.

Employee can changing jobs via Annexure-K  :

• Shows PF amount, Service history & Employment details
• Only shows last 2 employers, not entire history.
• Downloadable from member portal.
• Employees Provident Fund office issues it without much hassle.

Conclusion

• If Employee have switched jobs, withdrawn Provident Fund, or are nearing 10 years of service, review your Employees’ Pension Scheme status today. Ignoring employees’ pension schemes now could mean loss of lifelong pension benefits later.
• Track and transfer employees’ pension schemes when changing jobs via Annexure-K. Don’t withdraw Employees’ Pension Scheme prematurely if you’re likely to complete 10 years of service—you could lose lifetime pension eligibility.