How to Withdraw Pension ?

EPS is available to all employees who are eligible for the Employees Provident Fund (EPF) plan. The Employees Provident Fund Organisation (EPFO) administers this scheme, which ensures that employees receive a pension once they reach the age of 58.

Let’s look at the eligibility criteria to avail Employee Pension Scheme benefits:

• The individual should be a member of the Employee Provident Fund Organisation (EPFO).
• To avail pension under the Employee Pension Scheme, an individual must work for a minimum of 10 years and should be at least 50 years old to get early pension. Otherwise, the right age to claim the pension is 58 years old.

In case of the pension is not paid for two years, before you turn 60, you can receive the pension at 4 per cent of the additional rate.

To help you understand Employee Pension Scheme, we have highlighted some key features.

Before you can understand how to withdraw pension from EPS, it is important to understand how the amount itself is calculated. Essentially, your pension amount would depend on the number of service years and your salary.

Unlike the EPF contribution, the pension contribution is not split by employees and employers. Only 8.33 percent of the employer's part of the 12 percent goes to the EPS Plan.

Here’s the formula used to calculate the pension amount:

EPS = (Pensionable Salary * Service Period) / 70

Wherein,

According to the Employee Provident Fund Act of 1952, any person who retires after completing 58 years of work is eligible to withdraw the full PF amount and claim the Employee Pension Scheme amount.

If you want to know how to withdraw pension contribution online from your provident fund, there are two ways to do this. Here’s how it works:

To withdraw your pension contribution from EPF, you will have to follow these four conditions:-

We have mentioned a list of documents which you will need to withdraw the pension contribution.

• Form 19
• Form 10C and Form 10D
• Form 31
• Two revenue stamps
• Bank account statement
• Identity proof
• Address proof

To save time and a visit to a branch of the EPFO, we have mentioned a step-by-step guide on how you can withdraw pension contribution online.

• Step 1- Log in to the UAN Member Portal along with your UAN and secret password.
• Step 2- Go to the menu bar, click on ‘Online Services’ and choose ‘Claim (Form-31, 19 & 10C) button.
• Step 3- Now you will see the member details on your screen. Enter the last four digits of your account and click on the ‘Verify‘ button.
• Step 4- Click on ‘Yes’ button to sign the certificate and proceed ahead.
• Step 5- Click on the ‘Proceed for on-line Claim’ option.
• Step 6- Choose the ‘PF Advance (Form 31)’ to withdraw your funds on-line
• Step 7 – Now you will be asked to choose the ‘Purpose that advance is required’, the quantity needed and also the employee’s address
• Step 8 – Choose the tick button on the certification and submit your application
• Step 9 – currently you'll be asked to submit scanned documents of PAN card and your 2 photographs.
• Step 10 – Your boss can now approve your withdrawal request after which your money can be withdrawn from your EPF account and in the bank account.

Follow these simple steps to withdraw your pension contribution online.