How to Withdraw Pension Contribution in EPF Online?

The Employee Provident Fund Organisation (EPFO) has provided a social security scheme called the Employee Pension Scheme (EPS). This scheme makes employees working in the organised sector to be eligible for a pension after their retirement at the age of 58 years.

A lot of people after quitting their jobs neither withdraw their PF, nor do they get it transferred to their new employer. The reason being that they are under the impression that their money is safe with the EPFO and they can keep earning tax-free returns from it.Read also : How to Calculate Pension Under Employees Pension Scheme However, in November 2017, the Bangalore bench of the Income Tax Appellate Tribunal made the interest earned on an EPF account taxable after an employee quits their job. Hence, an individual must withdraw the EPF amount or transfer it to the new employer at the earliest.

Before you start the withdrawal process, make sure you have merged your PF accounts from all your previous organisations along with the current organisation. One is allowed to withdraw the EPS if their service period has been less than ten years. In case it has been more than ten years, the employee compulsorily gets pension benefits after retirement.To withdraw the PF and the EPS amount, here are the two processes recognised by the EPFO:

1. Activate your UAN (Universal Account Number)
2. Fill your bank account details and your Aadhar card number on the UAN portal.
3. Submit a filled Form 11 (new) to your employer
4. Submit a filled Composite Claim Form (Aadhar) to the concerned EPFO office along with a cancelled cheque.

1. Submit two copies of Form 15G/15H if applicable.
2. Furnish your PAN card number if the service period has been less than five years.
3. Furnish your UAN if available, if not, then submit your PF account number.
4. Submit a filled Composite Claim Form (Non-Aadhar) to the concerned EPFO office.

1. Withdraw PF and the EPS with Aadhar Card:
2. Withdraw PF and the EPS without Aadhar Card:

Read also : Follow These Simple Steps to Generate, Register, and Activate Your UAN In addition to the above conditions, the withdrawal process will also depend on the following terms and necessary changes will have to be made accordingly:

1. Withdrawal of PF balance and EPS amount for less than 10 years of service You can claim PF as well as EPS even if you have completed less than 10 years of service. All you need to do is fill the Composite Claim Form and choose the Final PF balance option and Pension withdrawal option.
2. Withdrawal of PF balance and EPS amount more than 10 years of service If you have served for more than 10 years, then you are not eligible to withdraw the EPS amount, but you can fill the Composite Claim Form and Form 10C to acquire the scheme certificate. You can claim the pension after completing 58 years of age.
3. Withdrawal of only PF balance and reduced pension age 50-58; more than 10 years of service If your age is between 50 to 58 years and you have served more than 10 years at a company, then you can claim for the early pension. All you must do is fill the Composite Claim Form and 10D.
4. Withdrawal of PF balance only and full pension after the age of 58 If you have completed 58 years of age, then this process is straight and simple. You just have to submit Form 10D.

The total PF amount is the total amount contributed by you- the employee and your employer plus the accrued interest. As per the EPF act 1952, any person who retires after completing service of 58 years minimum is eligible to withdraw the full PF amount and claim the EPS amount.

In case of lump sum withdrawal, the lesser the number of years of service, the lower the amount a person will receive. The lump sum withdrawal from EPS is allowed if the person has served less than 10 years. The amount returned to the employee will be based on Table D- EPS Scheme 1995. The amount will be based on the last drawn wages multiplied by the number mentioned in Table D. Table D-

If a person has served more than 10 years, then he/she will receive a certificate of pension. The person will be eligible for a monthly pension.

If a lump sum withdrawal is made, then it will be taxable.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.