This is my notes based on ET article "6 provident fund secrets you did not know" for quick reference.
EPF Entitles Pension
It is called Employees' Pension Scheme.
it is funded by contributing 8.3% of your PF contribution.
Pension on retirement is linked to number of years in service and the average salary drawn in the year of retirement.
so manipulation is possible that one company can increase the salary of a person in the last year and he will get pention according to that.
if you retire before 58 and after 50 years
you can get pention but pension amount will be reduced by 2% for every year.
suppose you are supposed to get Rs.2321 as pention when you retire at an age of 50, you will get only Rs.1950 (16% less)
if you decided to stop working before 10 years of service, you can avail the pension amount as lumsum by opting withdrawal benefit.
if person die before retirement, family will get maximum Rs.1000 as pention.
if you change the job, You need to apply for a scheme certificate though Form 10C and route it though new employer.
The PF is linked to an individual but the EPS scheme can't be started all over again. So when you change jobs, your ealier service si not considered and reuces the pension sum
Insurance
organisation can contribute 0.5% (6500 max) and get insurance for employees.
insured amount is 20times the average wage of the past 12 months.
Claim interest on withdrawn amount.
If you claim is not settled within 30 days of applying, you can move to court. if it is established that the delay was due to 'Inadequate reasons', you will be entitled to an interest on the balance at the rate of 1% for every month of delay.
Premature withdrawal
you cannot withdraw full amount before superannuation. however, if you suffer permenent and complete disablity or moving abroad to settle, you can withdraw this amount. it is also possible in case of mass layoffs.
In normal case, if you retire voluntarily before 55, you can withdraw only 90% after you turn 54 or within one year of retirement or superannuation.
Grievances
it is under consumer protection act. log on to http://epfigms.gov.in and file your grievance.
EPFO is part of Centralized Public Grievances Readressal and Monitoring System.
EPF Entitles Pension
It is called Employees' Pension Scheme.
it is funded by contributing 8.3% of your PF contribution.
Pension on retirement is linked to number of years in service and the average salary drawn in the year of retirement.
so manipulation is possible that one company can increase the salary of a person in the last year and he will get pention according to that.
if you retire before 58 and after 50 years
you can get pention but pension amount will be reduced by 2% for every year.
suppose you are supposed to get Rs.2321 as pention when you retire at an age of 50, you will get only Rs.1950 (16% less)
if you decided to stop working before 10 years of service, you can avail the pension amount as lumsum by opting withdrawal benefit.
if person die before retirement, family will get maximum Rs.1000 as pention.
if you change the job, You need to apply for a scheme certificate though Form 10C and route it though new employer.
The PF is linked to an individual but the EPS scheme can't be started all over again. So when you change jobs, your ealier service si not considered and reuces the pension sum
Insurance
organisation can contribute 0.5% (6500 max) and get insurance for employees.
insured amount is 20times the average wage of the past 12 months.
Claim interest on withdrawn amount.
If you claim is not settled within 30 days of applying, you can move to court. if it is established that the delay was due to 'Inadequate reasons', you will be entitled to an interest on the balance at the rate of 1% for every month of delay.
Premature withdrawal
you cannot withdraw full amount before superannuation. however, if you suffer permenent and complete disablity or moving abroad to settle, you can withdraw this amount. it is also possible in case of mass layoffs.
In normal case, if you retire voluntarily before 55, you can withdraw only 90% after you turn 54 or within one year of retirement or superannuation.
Grievances
it is under consumer protection act. log on to http://epfigms.gov.in and file your grievance.
EPFO is part of Centralized Public Grievances Readressal and Monitoring System.
