EPS pension deferment by two years provides an 8% additional pension benefit. For example, if someone is entitled to a pension of Rs 2000 per month at the age of superannuation, i.e., 58 years, and a pension deferment is applied for 2 years, one will receive an additional pension of 8% of Rs 2000, which is Rs 160 per month. Therefore, instead of receiving Rs 2000 as a pension, one will receive Rs 2160 in case the pension is deferred by 2 years from age 58 to 60 years.
However, there is a kind of catch or hidden issue here. Suppose one does not opt for pension deferment but accumulates a 2-year pension from 58 years to 60 years in the bank. Then, if one applies for a fixed deposit of Rs 2000 * 2 years, which is Rs 48000, they will start earning interest at around 6% of Rs 48000 per annum, amounting to approximately Rs 240 per month.
Now, let's compare the above two scenarios. For pension deferment by two years, one receives only Rs 120 extra pension but also loses Rs 48000, which will not be recovered. On the other hand, in the case of a bank fixed deposit started after 2 years, one receives more money, Rs 240, and retains Rs 48000 in their account. Therefore, the pension deferment scheme by EPF is faulty, resulting in monetary losses.
Regrettably, I was not aware of this and applied for pension deferment, and have started receiving the pension. My question is: Can I withdraw or cancel my pension deferment to receive pension arrears for the 2 years from age 58 years to age 60 years? If this is possible, what is the procedure to do so?
From India, Bengaluru
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However, there is a kind of catch or hidden issue here. Suppose one does not opt for pension deferment but accumulates a 2-year pension from 58 years to 60 years in the bank. Then, if one applies for a fixed deposit of Rs 2000 * 2 years, which is Rs 48000, they will start earning interest at around 6% of Rs 48000 per annum, amounting to approximately Rs 240 per month.
Now, let's compare the above two scenarios. For pension deferment by two years, one receives only Rs 120 extra pension but also loses Rs 48000, which will not be recovered. On the other hand, in the case of a bank fixed deposit started after 2 years, one receives more money, Rs 240, and retains Rs 48000 in their account. Therefore, the pension deferment scheme by EPF is faulty, resulting in monetary losses.
Regrettably, I was not aware of this and applied for pension deferment, and have started receiving the pension. My question is: Can I withdraw or cancel my pension deferment to receive pension arrears for the 2 years from age 58 years to age 60 years? If this is possible, what is the procedure to do so?
From India, Bengaluru
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EPS - Form No. 10-D Pension Claim Form Aadhaar.pdf
EPFO-EPS-FUNCTI ONS & BENEFITS.docx