EPF Pension Contribution Withdrawal: How To Do It

 

The government of India established the Employees Provident Fund Organisation (EPFO) to provide financial security to both public and private sector employees post their retirement. One of the schemes introduced by the EPFO for providing social security to employees is the Employees’ Pension Scheme (EPS). Let’s take a closer look at EPS and how to withdraw your pension contribution.

What is the Employees’ Pension Scheme (EPS)?

The Employees’ Pension Scheme is a social security scheme that aims to provide eligible employees with a fixed sum of money each month as a pension after their retirement. Under the scheme, the employer is required to contribute about 8.33% of an employee’s salary each month. The employee, on the other hand, does not contribute any part of their salary towards the scheme.

When Can You Withdraw Your Pension Contributions?

According to the rules of the Employees’ Pension Scheme, pension corpus can only be withdrawn under certain specific scenarios.

• Scenario 1: You’ve reached 58 years of age and completed 10 years of service
  

  In this scenario, you can withdraw 100% of your pension corpus either as a lump sum amount or as a monthly pension.

• Scenario 2: You’ve reached 58 years of age but haven’t completed 10 years of service
  

  You may face such a scenario if you become an employee of the organised sector late in your life. Even in such a scenario, you will still be eligible to withdraw 100% of your pension corpus but only as a lump sum amount.

• Scenario 3: You’ve reached 50 years of age and completed 10 years of service
  

  In this case, you can withdraw your pension early. However, you will receive a reduced pension amount. Your pension will reduce by 4% multiplied by the number of years left till you attain 58 years of age. For instance, if you’re 52 years old and want to withdraw your pension corpus, your pension will be reduced by about 24% [4% x (58 years - 52 years)].

• Scenario 4: You have neither attained 50 years of age nor completed 10 years of service
  

  In this scenario, you can withdraw your pension corpus only if you’ve completed at least 6 months of service and been unemployed for 2 months.

Documents Required to Withdraw Your Pension Contribution

The following list of documents has to be submitted to your EPFO regional office to withdraw your pension corpus.

• A duly filled Form 10C if you haven’t completed 10 years of service
• A duly filled Form 10D if you’ve reached 50 or 58 years of age
• A copy of your proof of identity
• A copy of your proof of address
• A copy of your latest bank account statement
• Two revenue stamps

How To Withdraw Pension Contribution Online?

Here’s a detailed guide outlining the steps that you need to follow to withdraw your pension corpus online.

• Step 1: Visit the official EPFO website.
• Step 2: Click on the ‘For Employees’ option under the ‘Services’ tab.
• Step 3: Click on the ‘Member UAN/Online Service (OCS/OTCP)’ option under the ‘Services’ tab on the new webpage.
• Step 4: Log into your account using your Universal Account Number (UAN) and your password.
• Step 5: Click ‘Online Services’ and then on the Claim option.
• Step 6: Select the form that applies to you. Use Form 10C if you haven’t completed 10 years of service otherwise use Form 10D.
• Step 7: Proceed to fill out the form entirely.
• Step 8: Check the details and status of your employment.
• Step 9: Enter the last 4 digits of your bank account number and click ‘Verify’.
• Step 10: Click on the ‘Yes’ option to sign the certificate.
• Step 11: Select the pension withdrawal mode.
• Step 12: Choose the ‘Aadhaar OTP’ mode of verification.
• Step 13: Enter the OTP that you receive on the mobile number linked with your Aadhaar.
• Step 14: Click on the ‘Validate OTP and Submit Claim Form’ option.

Your pension withdrawal request will be placed. After due verification, your pension will be credited to the linked bank account within a few days.

How To Withdraw Pension Contribution Offline?

You can also withdraw your pension corpus via the offline mode. Here’s what you would have to do in this case.

• Step 1: Download the relevant form applicable to you. Use Form 10C if you haven’t completed 10 years of service otherwise use Form 10D.
• Step 2: Fill out the form and attach all the necessary documentation. Make sure to self-attest copies of your identity and address proof.
• Step 3: Submit the duly filled form along with the other documents at the EPFO regional office under whose jurisdiction you fall under.

Conclusion

With this, you must now be aware of how to withdraw your pension contribution. The Employees’ Pension Scheme (EPS) was primarily designed to provide post-retirement financial security. Therefore, it is advisable to refrain from withdrawing your corpus until after your retirement.

Related Articles:

• Tax on provident fund
• Will my Provident Fund Savings not be Sufficient?
• How to withdraw PF and EPF after leaving the job?
• Pension Fund Investment - Meaning and Types

ARN - INT/ED/12/23/6855