Employees who have completed a service period of 10 years or more are given pension from the EPFO after retirement i.e. from the age of 58. But if a person wants pension before 58 years then what is the option? Know about it here.
According to the rules of EPFO, any employee who makes his contribution in EPFO and has completed 10 years of his job, then he becomes eligible for pension. If the total period of service is less than 10 years, then the amount deposited for pension can be withdrawn anytime in between.
But the employees who have completed the service period of 10 years or more, they are given pension from the EPFO after retirement i.e. from the age of 58. The amount of pension is decided on the basis of their contribution.
But if a person wants pension before 58 years, then EPFO also has the option of Early Pension. But in such a situation, you are given a reduced pension. Let us tell you what are the rules of Early Pension claim.
Early pension rules
If you have completed 10 years of service and your age is between 50 years to 58 years, then only you can claim for Early Pension. But in this you get less pension. The earlier you withdraw money before the age of 58, you will get reduced pension at the rate of 4% for every year. Suppose an EPFO member decides to withdraw the reduced monthly pension at the age of 56 years, he will get 92% (100% – 2×4) of the basic pension amount. To get early pension, you have to fill the Composite Claim Form and select the option of Form and 10D for early pension.
Being under the age of 50
If you have completed 10 years of service and your age is less than 50 years, then you cannot claim for pension. In such a situation, after leaving the job, you will get only the funds deposited in EPF. Pension will be available from the age of 58 years.
Having a job of less than 10 years
If your service period is less than 10 years, then you are not entitled to pension. In such a situation you have two options. First- If you do not want to do a job, then you can withdraw the pension amount along with the PF amount. The second option is that if you think that you will join the job again in the future, then you can take the pension scheme certificate.
In such a situation, whenever you join a new job, then through this certificate, you can get the previous pension account added to the new job. With this, the shortfall in the 10-year period of the job can be completed in the next job and can be entitled to get pension at the age of 58.
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