Dear HR's
Im sai having 4 years HR Experience. Presently working as Executive HR in one of the leading Pharma Company.
Recently one of my employee asked me the benefit of Pension Scheme as he his working here from past 11 years. My querry is, i know once a person completes the service of 10 years with out any break is eligible for pension scheme. so what is procedure for that? how he has to aproach to avail this scheme.
AND
After resigning can he/ she have the chance to withdraw provident fund? or his/her entire contribution is converted into pension?
Hope im clear about my querry..
Please advice.
Regards,
Sai..
From India, Hyderabad
18Im sai having 4 years HR Experience. Presently working as Executive HR in one of the leading Pharma Company.
Recently one of my employee asked me the benefit of Pension Scheme as he his working here from past 11 years. My querry is, i know once a person completes the service of 10 years with out any break is eligible for pension scheme. so what is procedure for that? how he has to aproach to avail this scheme.
AND
After resigning can he/ she have the chance to withdraw provident fund? or his/her entire contribution is converted into pension?
Hope im clear about my querry..
Please advice.
Regards,
Sai..
From India, Hyderabad
Once an individual completes 10 years of continues service of PF, his contribution by the company towards his pension scheme ( approx Rs.541 maximum per month from Rs.6500/-( 8.33%*6500 ) which is the limit for pension contribution by the company, goes into the Provident Fund Scheme and gets dissolved. You become eligible for the pension after retirement and the PF office fixes an approx amount to be given to an individual after retirement, taking into consideration total number of years you have contributed. Please, one should not think that the amount what an individual is receiving as pension is from the contribution amount credited through his contribution by the company into his pension scheme. It from the ocean of PF pension scheme in which all over Indians working in private organisations have contributed into the scheme.
after serving more than 10 years and then resigning, one can withdraw the Provident Fund amount like 12% of Individuals contribution and 3.67% of Managements contribution amount through Form No. 19. He cannot apply for withdrawing pension amount by Submitting Form No. 10-C.
From India, Madras
after serving more than 10 years and then resigning, one can withdraw the Provident Fund amount like 12% of Individuals contribution and 3.67% of Managements contribution amount through Form No. 19. He cannot apply for withdrawing pension amount by Submitting Form No. 10-C.
From India, Madras
A small clarification to post #2 above would be in order, I think. The contribution towards pension does not go to the EPF account and get dissolved. It goes to a separated 'pension fund'. Pension after the age of 58 is paid out of this 'ocean of fund'. It is paid as per the formula. The formula is as follows:
Monthly Pension = (Pensionable salary X Pensionable service) / 70.
This has no connection with the payment of provident fund (EPF) accumulations. That will be paid separately.
Pension is payable only after the subscriber attains the age of 58. (Family pension to the nominee of the member can be paid immediately after death of the member without waiting for the age of 58.) The member has to make an application in the prescribed form to the RPFC concerned through the last employer. RPFC will sanction pension.
From India, Madras
Monthly Pension = (Pensionable salary X Pensionable service) / 70.
This has no connection with the payment of provident fund (EPF) accumulations. That will be paid separately.
Pension is payable only after the subscriber attains the age of 58. (Family pension to the nominee of the member can be paid immediately after death of the member without waiting for the age of 58.) The member has to make an application in the prescribed form to the RPFC concerned through the last employer. RPFC will sanction pension.
From India, Madras
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PF & Pension Amdmt Scheme 2010 for IW.pdf