Case Study:
An employee left his last company at the age of 57 years with a tenure of 14 years. He has withdrawn all his EPF and EPS benefits. Now he is associated with the current company and wants to claim for a pension. Can he be entitled to the same? What should be the stance of his current employer?
Please reply in reference to the EPF Act only.
Regards,
Manager-HR
From India, Ahmedabad
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An employee left his last company at the age of 57 years with a tenure of 14 years. He has withdrawn all his EPF and EPS benefits. Now he is associated with the current company and wants to claim for a pension. Can he be entitled to the same? What should be the stance of his current employer?
Please reply in reference to the EPF Act only.
Regards,
Manager-HR
From India, Ahmedabad
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Hi, Dual pension is not premissible in EPS, it is employee duty to fill Form 11 and submit to present employer. so that employer should not pay the EPS amount for respective employee.. Regards, Anand
From India, Madras
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21From India, Madras
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After attaining the age of 58 years, employees cease to be members of EPS. The complete contribution of such employees, i.e., 24% (both employer and employee), shall be remitted to the PF account only.
Even otherwise, if an employee is 57 years old, for one year, contributions can be made to both EPS and EPF. However, after one year, the EPS contribution will automatically be diverted to the EPF account. For eligibility for a pension, one should have 10 years of contributions in the EPS scheme. In any case, if the employee is not eligible for a pension, the one year's EPS contribution will need to be withdrawn at the end of the day.
Regards
From India, Delhi
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Even otherwise, if an employee is 57 years old, for one year, contributions can be made to both EPS and EPF. However, after one year, the EPS contribution will automatically be diverted to the EPF account. For eligibility for a pension, one should have 10 years of contributions in the EPS scheme. In any case, if the employee is not eligible for a pension, the one year's EPS contribution will need to be withdrawn at the end of the day.
Regards
From India, Delhi
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I fully agree with the best of the opnion, Sir Kind regards. ( J.S.Walia)
From India, Chandigarh
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From India, Chandigarh
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Dear Queriest and other participants,
The correct answer to the case study is as follows:
The employee leaves at the age of 57 after serving for 14 years. He is entitled to PF withdrawal and is eligible for pension, which he has already claimed.
Now, he has joined another employment. In his new job, he is eligible to join PF and can continue to remain in PF until his separation, as long as he and his employer agree to it. Both his shares will go into the PF accounts only.
My request to members is to study the matter before replying (and before appreciating any replies). Viewers may carry wrong ideas with them.
The answer provided by me is intentionally brief to offer you a chance to study further. I also request that you refrain from presenting differing answers, at least for now.
Thank you.
From India, Mumbai
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The correct answer to the case study is as follows:
The employee leaves at the age of 57 after serving for 14 years. He is entitled to PF withdrawal and is eligible for pension, which he has already claimed.
Now, he has joined another employment. In his new job, he is eligible to join PF and can continue to remain in PF until his separation, as long as he and his employer agree to it. Both his shares will go into the PF accounts only.
My request to members is to study the matter before replying (and before appreciating any replies). Viewers may carry wrong ideas with them.
The answer provided by me is intentionally brief to offer you a chance to study further. I also request that you refrain from presenting differing answers, at least for now.
Thank you.
From India, Mumbai
Acknowledge(0)Amend(0)
Case Study:
An employee left his last company at the age of 57 years with a tenure of 14 years. He has withdrawn all his EPF and EPS benefits. Now, he is associated with his current company and wants to claim for a pension. Can he be entitled to the same? What should be the stance of his current employer?
ANSWER:
In the above case, he has one year to complete 58 years, so he will be eligible for EPF and EPS benefits for one year. After that, the management's decision to continue contributions is not guaranteed. If contributions continue, the total contribution will go to EPF.
From India, Mumbai
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An employee left his last company at the age of 57 years with a tenure of 14 years. He has withdrawn all his EPF and EPS benefits. Now, he is associated with his current company and wants to claim for a pension. Can he be entitled to the same? What should be the stance of his current employer?
ANSWER:
In the above case, he has one year to complete 58 years, so he will be eligible for EPF and EPS benefits for one year. After that, the management's decision to continue contributions is not guaranteed. If contributions continue, the total contribution will go to EPF.
From India, Mumbai
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Dear nagaraju0001,
I welcome your different answer even though I expected no different answer.
Since you have given a different answer, I would like to have a clarification from you.
Once a person leaves at 57 and settles his accounts - both EPF and EPS, and thereafter he joins another employment where his employer contributes towards EPS for one year, i.e. up to his age 58, what benefit will he get out of this?
You mean to say, at 58 management can decide to stop his contributions - both the shares.
Can you enlighten the HR community on where you got the answer?
Dear friend, my intention is not to discourage you or any member. Each member has a right to express his views, but I request the members to think before responding. Study the matter before responding. We are HR professionals. Our views carry a certain weight. I am not telling you this alone. I am writing this since it is observed that we HR professionals write anything in this forum without studying or thinking.
If I have offended you, please excuse me, dear. I have complete confidence in my answer.
From India, Mumbai
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I welcome your different answer even though I expected no different answer.
Since you have given a different answer, I would like to have a clarification from you.
Once a person leaves at 57 and settles his accounts - both EPF and EPS, and thereafter he joins another employment where his employer contributes towards EPS for one year, i.e. up to his age 58, what benefit will he get out of this?
You mean to say, at 58 management can decide to stop his contributions - both the shares.
Can you enlighten the HR community on where you got the answer?
Dear friend, my intention is not to discourage you or any member. Each member has a right to express his views, but I request the members to think before responding. Study the matter before responding. We are HR professionals. Our views carry a certain weight. I am not telling you this alone. I am writing this since it is observed that we HR professionals write anything in this forum without studying or thinking.
If I have offended you, please excuse me, dear. I have complete confidence in my answer.
From India, Mumbai
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Dear Sohm,
An employee, after completing 10 years of service, automatically becomes a member of EPS. Therefore, an employee is entitled to claim only 13.61% through Form 19 and apply for a Scheme Certificate through Form 10C. Even if an employee applies for both EPF and EPS, as per the PF Act, EPS cannot be claimed after completing 10 years of service as the member is eligible for receiving a pension after attaining the age of 58 years.
If a member joins another organization, they must provide the Scheme Certificate to the present employer. Since the member has completed 10 years of service, the present employer will automatically cease the EPS contributions, and 24% will be directly credited to the EPF account.
A member has to apply in Form 10D after attaining 58 years. They can continue their services while receiving a pension.
Seniors are requested to provide their suggestions or corrections if any.
Regards, K. Saikishore 09396445535
From India
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An employee, after completing 10 years of service, automatically becomes a member of EPS. Therefore, an employee is entitled to claim only 13.61% through Form 19 and apply for a Scheme Certificate through Form 10C. Even if an employee applies for both EPF and EPS, as per the PF Act, EPS cannot be claimed after completing 10 years of service as the member is eligible for receiving a pension after attaining the age of 58 years.
If a member joins another organization, they must provide the Scheme Certificate to the present employer. Since the member has completed 10 years of service, the present employer will automatically cease the EPS contributions, and 24% will be directly credited to the EPF account.
A member has to apply in Form 10D after attaining 58 years. They can continue their services while receiving a pension.
Seniors are requested to provide their suggestions or corrections if any.
Regards, K. Saikishore 09396445535
From India
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Dear Saikishore ji,
1. An employee, after completing 10 years of service, automatically becomes entitled to withdraw EPS.
2. So, an employee is entitled to claim the PF share - his own and employer's - through Form 19 and apply for a Scheme Certificate through Form 10C.
3. Even if an employee applies for both EPF and EPS, as per the PF Act, EPS cannot be claimed after completing 10 years of service, as the member is eligible for a pension after attaining the age of 58 years.
4. If the member joins another organization, he has to provide the Scheme Certificate to the present employer. As the member completes 10 years of service, the present employer will automatically cease his EPS, and 24% will be directly credited to his EPF account. I believe the second sentence should be corrected to: As the member completes 58 years of age, the present employer...
5. A member has to apply in Form 10D after attaining 58 years. Even if he can continue his services while receiving a pension.
In the given case, the inquirer said that the employee has withdrawn all his EPF and EPS benefits. Here, I believe he meant to say that the employee has withdrawn all his EPF and applied for Early Pension at 57. The question is, in this case, can an employee become an EPS member?
Kind regards,
[Your Name]
From India, Mumbai
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1. An employee, after completing 10 years of service, automatically becomes entitled to withdraw EPS.
2. So, an employee is entitled to claim the PF share - his own and employer's - through Form 19 and apply for a Scheme Certificate through Form 10C.
3. Even if an employee applies for both EPF and EPS, as per the PF Act, EPS cannot be claimed after completing 10 years of service, as the member is eligible for a pension after attaining the age of 58 years.
4. If the member joins another organization, he has to provide the Scheme Certificate to the present employer. As the member completes 10 years of service, the present employer will automatically cease his EPS, and 24% will be directly credited to his EPF account. I believe the second sentence should be corrected to: As the member completes 58 years of age, the present employer...
5. A member has to apply in Form 10D after attaining 58 years. Even if he can continue his services while receiving a pension.
In the given case, the inquirer said that the employee has withdrawn all his EPF and EPS benefits. Here, I believe he meant to say that the employee has withdrawn all his EPF and applied for Early Pension at 57. The question is, in this case, can an employee become an EPS member?
Kind regards,
[Your Name]
From India, Mumbai
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Dear All,
I would like to inquire about a scenario where an employee leaves one organization at the age of 57 and withdraws money from EPF and EPS. If the employee then joins another company and applies for EPS, what benefits would they receive for the 1 year period until they turn 58 years old in terms of EPS deductions?
Thank you.
From India, Nagpur
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I would like to inquire about a scenario where an employee leaves one organization at the age of 57 and withdraws money from EPF and EPS. If the employee then joins another company and applies for EPS, what benefits would they receive for the 1 year period until they turn 58 years old in terms of EPS deductions?
Thank you.
From India, Nagpur
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Dear Bittu, Pl.note the following:
Pension Benefits
1. Pension to Member
2. Pension to Family (on death of member)
3. Scheme Certificate
• This Certificate shows the service & family details of a member
• This is issued if the member has not attained the age of 58 while leaving an establishment and he applies for this certificate
• Member can surrender this certificate while joining another establishment and the service stated in the certificate is added with the service he is gaining from the new establishment.
• After attaining the age of 50 or above, the member can apply for Pension by surrendering this scheme certificate (if total service is atleast 10 years)
• This is a better choice than Withdrawal Benefit, as a member dies holding a valid scheme certificate, his family will get pension (Death when NOT in service)
3. Withdrawal Benefit
• If not eligible for pension, member may withdraw the amount accumulated in his pension account
• The calculation of this amount is based only on (i) Last average salary and (ii) Service (Not based on actual amount available in Pension Fund Account)
5. No amount is taken from Member to give Pension to the Member. Employer and Govt. contributes to Pension fund @8.33% and @1.16% respectively
6. EPFO guarantees pension to members, even if the Employer has not contributed to Pension Fund.
4. Death Benefits
1. Provident Fund Amount to Family (or to Nominee)
2. Pension to Family (or to Parent / Nominee)
3. Capital Return of Pension
4. Insurance (EDLI) amount to Family (or to Nominee)
• No amount is taken from Member for this facility. Employer contributes for this.
5. Nominee is basically determined as per the information submitted by the member at this office through FORM-2
-- grant of exemption from the operation of the scheme/s framed under the Act to an establishment , to a class of employees and to an individual employee , on certain conditions.
-- Penalties to employers/trustees of exempted Provident Fund who contravene the provision of the Act and the Scheme.
-- appointment of inspector to secure compliance under the Act and the Schemes framed there under.
-- mode of recovery of moneys due from employers.
kumar.s.
From India, Bangalore
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Dear Bittu, Pl.note the following:
Pension Benefits
1. Pension to Member
2. Pension to Family (on death of member)
3. Scheme Certificate
• This Certificate shows the service & family details of a member
• This is issued if the member has not attained the age of 58 while leaving an establishment and he applies for this certificate
• Member can surrender this certificate while joining another establishment and the service stated in the certificate is added with the service he is gaining from the new establishment.
• After attaining the age of 50 or above, the member can apply for Pension by surrendering this scheme certificate (if total service is atleast 10 years)
• This is a better choice than Withdrawal Benefit, as a member dies holding a valid scheme certificate, his family will get pension (Death when NOT in service)
3. Withdrawal Benefit
• If not eligible for pension, member may withdraw the amount accumulated in his pension account
• The calculation of this amount is based only on (i) Last average salary and (ii) Service (Not based on actual amount available in Pension Fund Account)
5. No amount is taken from Member to give Pension to the Member. Employer and Govt. contributes to Pension fund @8.33% and @1.16% respectively
6. EPFO guarantees pension to members, even if the Employer has not contributed to Pension Fund.
4. Death Benefits
1. Provident Fund Amount to Family (or to Nominee)
2. Pension to Family (or to Parent / Nominee)
3. Capital Return of Pension
4. Insurance (EDLI) amount to Family (or to Nominee)
• No amount is taken from Member for this facility. Employer contributes for this.
5. Nominee is basically determined as per the information submitted by the member at this office through FORM-2
-- grant of exemption from the operation of the scheme/s framed under the Act to an establishment , to a class of employees and to an individual employee , on certain conditions.
-- Penalties to employers/trustees of exempted Provident Fund who contravene the provision of the Act and the Scheme.
-- appointment of inspector to secure compliance under the Act and the Schemes framed there under.
-- mode of recovery of moneys due from employers.
kumar.s.
From India, Bangalore
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EPS - Form No. 10-D Pension Claim Form Aadhaar.pdf
Employee Benefits.doc