Withdrawing EPS pension while changing jobs can be a big mistake. Basically, if you have less than 10 years of service, you can obtain a 'Scheme Certificate', add your old service, and secure a future pension. So, know about Form 10C, its benefits, and rules in simple language.

EPF pension rules

In this era of job change, people often make a big mistake that while leaving the old company , they transfer the PF , but either withdraw the pension (EPS) money or leave it to God's mercy. If your total service is not yet 10 years, then do not withdraw the money because the 'Scheme Certificate' will be a support in old age.

People often think that if they don't work for 10 years, they won't receive a pension. Consequently, when they change jobs, they withdraw a small amount of their pension (withdrawal benefit) and spend it. However, this is not considered financially sound.

Question: What rules does EPFO prescribe to become eligible for pension?

Answer: According to EPFO, instead of withdrawing pension money, you should take a scheme certificate, so that your service remains active and you can get pension in future.

1. What is this 'Scheme Certificate' and why is it necessary?

• When you change jobs and your service is less than 10 years, EPFO gives a certificate.
• This certificate is the government record of your pension service.
• It records how many years you have worked.
• This certificate is very useful in the next job.
• With this your old service gets added to the new service.
• 10 years can be completed by combining service in different jobs.
• As soon as you complete 10 years, you become eligible for lifetime pension.

2. Why is withdrawing pension money a 'loss-making deal'?

• Withdrawing pension money before 10 years can be a loss-making deal.
• EPFO gives very less funds as per 'Table-D'.
• This amount is much less than you expect.
• Once the money is withdrawn, the old service may become void.
• That means the record of the number of years you worked gets destroyed.
• So suppose the money is withdrawn after 7 years.
• You will have to complete full 10 years again in the new job.
• But if you have a scheme certificate, you will have to work only for the remaining 3 years.

3 Magical Benefits of Scheme Certificate

Question: When and how do you get this certificate?

Answer: If your service is more than 6 months and less than 10 years, then you can apply.

• After completion of 10 years, it becomes necessary to obtain the scheme certificate.
• Form 10C has to be filled at the time of leaving the job.
• In this, instead of 'Withdrawal Benefit', select 'Scheme Certificate'.
• This process can also be done online through the EPFO portal.
• By choosing the right option, you can keep your pension service safe.

4. What if it gets lost?

• Now EPFO is making the process digital.
• Your entire service history is recorded on the UAN portal.
• You can view your complete information online anytime.
• Still, caution is necessary to stay safe.
• Be sure to take a physical or digital copy of the certificate from your old employer.

A small amount today or a guaranteed pension tomorrow?

Let us tell you that a pension withdrawal of ₹20-30 thousand may seem very small to you today, but a fixed pension of ₹3000-5000 received every month after the age of 60 will save you from begging before anyone. In fact, the scheme certificate is a guarantee of your self-respect.

Important questions related to the article (FAQs)

Q1 What is a Scheme Certificate?

This is a document issued by EPFO, which protects your pension service of less than 10 years.

Q2 Why is it harmful to withdraw EPS money before 10 years?

After withdrawal, your previous service becomes zero and you will have to complete 10 years again to get pension.

Q3 How to apply for Scheme Certificate?

Fill Form 10C while leaving the job and choose 'Scheme Certificate' option instead of 'Withdrawal Benefit'

Q4 Can services from different jobs be combined?

Yes, 10 years of service can be completed by adding service in different jobs through scheme certificate.

Q5 What are the main benefits of the Scheme Certificate?

Right to lifelong pension, family pension protection and service weightage bonus benefits

PC:ZeeNews