EPFO Early Pension: Although pension benefit is available after the age of 58, but do you know that in EPS scheme, you can avail the benefit of pension before retirement. EPFO has different rules for pension before retirement. If you also want to avail pension before retirement, then this article is important for you.
EPFO Rule: To get pension benefits after retirement, many people like to invest in EPS Scheme. In the EPFO scheme, a fixed amount is deposited every month in the PF account of the investor along with the company. The government gets annual interest on the investment amount.
In this scheme of EPFO, the investor easily gets the benefit of pension along with a lump sum amount after retirement. Pension benefits are available only to those members who invest in the Provident Fund for more than 10 years. Let us tell you that pension benefits are available when the investor is 58 years of age.
If an investor wants to take early pension before 58 years of age, then the method is different.
How can I claim?
For early pension, the age of the investor should be between 50 years to 58 years. If the age of the investor is less than 50 years then he does not get the benefit of pension. Let us tell you that if the investor is unemployed for 2 consecutive months then he can withdraw the entire amount from the PF fund.
For early pension, the investor will have to fill and submit the Composite Claim Form. Apart from this, he will also have to select the option of Form 10D.
How much pension does the investor get?
Let us tell you that if you avail the benefit of early pension then you get less pension. According to EPFO rules, the investor gets pension after deducting it at the rate of 4 percent.
If the investor avails pension at the age of 56, he will get only 92 percent pension. The investor has applied 2 years ago, hence 8 percent has been deducted from his pension amount.
These investors will not get pension
If an investor has contributed less than 10 years to EPFO, he will not get the benefit of pension. In such a situation, he has two options to get pension. First option- If the investor does not want to do a job, then he can withdraw the entire amount from the PF fund.
Second option- Investor can take Pension Certificate. In this, when the investor takes up a new job, with the help of this pension certificate, he can add on the old pension account to the new job.
