EPFO Rules: Every month, working employees contribute a fixed amount of their salary to EPFO . EPFO provides pension benefits after retirement. When a member reaches the age of 58, he can take pension as per EPFO rules.
To avail pension, an EPFO member has to make continuous contributions for 10 years. Pension is calculated on the basis of service along with contribution amount. EPAO also gives the option of Early Pension to its members. This means that users can avail pension even before 58 years of age.
Early Pension Rules
According to EPFO rules, employees between 50 and 58 years can choose the option of Early Pension. Let us tell you that the pension amount reduces if you take pension before 58 years. According to the rules, for every year before 58 years of age, the pension amount will be reduced by 4%. Understand it this way, if you have claimed for Early Pension at the age of 56, then you will only get 92% of the basic pension amount as pension. You will get 4% reduction every year, i.e. 8% reduction in 2 years.
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For early pension claim, you have to fill the Composite Claim Form and choose the option of Form10D.
Pension will increase at the age of 60
If an employee does not take the benefit of pension even after 58 years and takes pension after 60 years, then he gets increased pension. According to the rules of EPFO, if an employee stops pension for two years after 58 years, then he is given the benefit of additional pension at the rate of 4 percent every year. That is, at the age of 60, he gets pension at the rate of 8 percent extra.
You can also withdraw money from pension fund
If you have contributed to EPFO for a period of less than 10 years, then you will not get the benefit of pension. In such a situation, the question arises that what will happen to the pension fund? The answer is that if you do not want to do the job, then you can make a full withdrawal from the pension fund. At the same time, if you do a job again in the future, then you can take a Pension Scheme Certificate. On joining the job again, with the help of this certificate, you have to link the previous pension account to the account of the new job. Now this will reduce the duration of the job by 10 years and you will also be entitled to pension.
