EPFO Rule: Many people prefer to invest in EPS Scheme to get the benefit of pension after retirement. In EPFO scheme , a fixed amount is deposited in the PF account every month by the company along with the investor. Annual interest is given by the government on the investment amount.
In this scheme of EPFO , the investor easily gets the benefit of pension along with a lump sum amount after retirement. The benefit of pension is available only to those members who invest in the Provident Fund for more than 10 years. Let us tell you that the benefit of pension is available when the investor is 58 years old.
If an investor wants to take early pension before the age of 58 years, then the method is different.
How can you claim
For early pension, the age of the investor should be between 50 years and 58 years. If the age of the investor is less than 50 years, then he does not get the benefit of pension. Let us tell you that if the investor is unemployed for 2 months continuously, then he can withdraw the entire amount from the PF fund.
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For early pension, the investor has to fill and submit the Composite Claim Form. Apart from this, he will also have to select the option of Form 10D.
How much pension does an investor get
Let us tell you that if you take advantage of early pension, you get less pension. According to the rules of EPFO, the investor gets pension after deduction of 4%.
If the investor avails pension at the age of 56, he will get only 92 percent pension. The investor has applied 2 years ago, so 8 percent has been deducted from his pension amount.
These investors will not get pension
If an investor has contributed to EPFO for less than 10 years, then he will not get the benefit of pension. In such a situation, he has two options to get pension. First option – If the investor does not want to do a job, then he can withdraw the entire amount from the PF fund.
Second option- The investor can take a pension certificate. In this, when the investor gets a new job, with the help of this pension certificate, he can get the old pension account added on to the new job.
