Dear Members,
A few of our employees who have reached 58 years of age are requesting to be exited from EPS so that they can start drawing EPS Pension (they do not want to defer Pension till 59 or 60) while continuing PF contribution until age 60, which is our company's compulsory retirement age.
My doubt pertains to the "reason for exit" while leaving EPS. Should it be "Retirement" or should it be "Superannuation"?
Many people I have spoken with have advised me to choose "superannuation" as the reason for EPS Exit. However, my own understanding is that Superannuation indicates the person has vacated the position he/she held, and therefore, selecting "superannuation" as the exit reason would imply that he cannot continue PF contribution from Age 58 to Age 60.
What is the correct approach?
I would appreciate some input on this.
From India, Kochi
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56A few of our employees who have reached 58 years of age are requesting to be exited from EPS so that they can start drawing EPS Pension (they do not want to defer Pension till 59 or 60) while continuing PF contribution until age 60, which is our company's compulsory retirement age.
My doubt pertains to the "reason for exit" while leaving EPS. Should it be "Retirement" or should it be "Superannuation"?
Many people I have spoken with have advised me to choose "superannuation" as the reason for EPS Exit. However, my own understanding is that Superannuation indicates the person has vacated the position he/she held, and therefore, selecting "superannuation" as the exit reason would imply that he cannot continue PF contribution from Age 58 to Age 60.
What is the correct approach?
I would appreciate some input on this.
From India, Kochi
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Retirement and superannuation could mean the same, but retirement is a broader term and implies giving up employment at any point of time. Superannuation means attaining the prescribed age of retirement. So if the retirement is on attaining superannuation, either term can be used. However, if it is premature or compulsory retirement, it won't be correct to use the term superannuation.
From India, Mumbai
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From India, Mumbai
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I feel this is dishonesty. If one does not want to retire, he ought to receive payment and honor his liabilities towards PF and EPS. He wants PF to be contributed, but not EPS. Is it proper? He can either continue contributing to both or stop contributing to both and receive salary only.
Vibhakar Ramtirthkar.
From India, Pune
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Vibhakar Ramtirthkar.
From India, Pune
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(Fact Checked)-The user's reply contains some misconceptions. Employees can opt for early pension withdrawal from EPS at 58 but continue PF contribution till 60. This is permissible under the law. (1 Acknowledge point)
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I do not think there is any dishonesty in exiting EPS and then starting to draw a pension while continuing to be a contributing member of EPF. The system, or rules if you may, permit this.
Though the PF member stands to gain an additional 8.16% pension if he/she defers EPS exit until Age 60, not many are interested as they see the present cash inflow to be more valuable than what they will receive in the future.
As summed up by KK!HR, the appropriate reason for EPS exit would be "retirement."
Regards, Arun
From India, Kochi
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Though the PF member stands to gain an additional 8.16% pension if he/she defers EPS exit until Age 60, not many are interested as they see the present cash inflow to be more valuable than what they will receive in the future.
As summed up by KK!HR, the appropriate reason for EPS exit would be "retirement."
Regards, Arun
From India, Kochi
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(Fact Check Failed/Partial)-The user's reply is incorrect. The appropriate EPS exit reason should be "Superannuation" as per EPFO guidelines. This allows for continued PF contribution till age 60.
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(Fact Checked)-The user reply is [B]incorrect[/B]. (1 Acknowledge point)