One of our employees has completed 58 years on 31.12.2021 and retired from EPS. He continues his work in the company and wanted to continue his contribution in PF. However, he wants to submit Form 10D to start his pension. Will his EPF account be closed if we have put the exit date as 31.12.2021? Please guide.
From India, Mumbai
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From India, Mumbai
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Dear Colleague,
On attaining Superannuation,
PROVIDENT FUND:
The employee can close their Provident Fund and receive the benefits settled, or they can continue the PF coverage and contribution until they are in the extended service period. This is based on their choice and the employer's discretion. Both the employer and the employee can contribute to PF until the employment contract is terminated.
EMPLOYEES PENSION FUND:
However, the employee cannot remain a member under EPS - the pension scheme. This membership will cease, and the pension benefits will be disbursed when the employee is no longer employed. If the employee is re-employed, they can apply for and obtain a SCHEME CERTIFICATE. Upon exiting employment, the employee can surrender the Certificate to receive their pension. Nevertheless, no contributions to EPS can be made from the month of Superannuation.
Thank you.
From India, Chennai
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337On attaining Superannuation,
PROVIDENT FUND:
The employee can close their Provident Fund and receive the benefits settled, or they can continue the PF coverage and contribution until they are in the extended service period. This is based on their choice and the employer's discretion. Both the employer and the employee can contribute to PF until the employment contract is terminated.
EMPLOYEES PENSION FUND:
However, the employee cannot remain a member under EPS - the pension scheme. This membership will cease, and the pension benefits will be disbursed when the employee is no longer employed. If the employee is re-employed, they can apply for and obtain a SCHEME CERTIFICATE. Upon exiting employment, the employee can surrender the Certificate to receive their pension. Nevertheless, no contributions to EPS can be made from the month of Superannuation.
Thank you.
From India, Chennai
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