If you have worked for four years in a company and then took a career break of two to three years, then it is necessary to know how your total service period will be considered and whether you are eligible for pension under the Employees Pension Scheme (EPS).
To get pension under EPS, you have to complete at least 10 years of service. It is not necessary that this service be constant; If you maintain your universal account number (UAN) and use the same UAN in the new job, then your old and new services can be added.
If it takes time to get a new job after missing your job, there is no need to worry. When you start a new job, use your old UAN. This will connect your previous service period with the new service, and the career break will be ignored.
If you have not completed 10 years of service and do not intend to work further, you can withdraw the amount deposited in your EPS account. For this you have to fill Form 10C. However, no interest is received on this withdrawal, and the amount is calculated based on a special formula.
Recently, the government has amended the 'Table D', under which the service period is now calculated on full months, not on full years. For example, if you have served 6 years and 8 months (80 months), your withdrawal amount will be calculated on 80 months basis.
Under the EPS, monthly pension is calculated on the basis of the following formulas:
Monthly Pension = (Pensionable Salary × Pensionable Service) / 7
Here, pensionable salary reflects your last 12 months average salary, and pensionable service to your total service period.
Always use your old UAN when you join a new job.
If you are unable to complete 10 years of service, select the option of withdrawal through Form 10C.
Keep checking your service period and salary details regularly on the EPFO portal.
If your service period is more than 10 years, you will be eligible for pension at the age of 58.
Despite the career break, if you maintain your UAN and use the same in the new job, then there is no obstruction in your service period calculation. Therefore, keep your UAN active and ensure your pension plan following the rules of EPFO.
