Dear sir,
Is there any provision in Pension scheme 1955, to withdraw the lump sum amount even after 10 yrs of service or at retirment, if i dont wish to avail pension.
What is the rate of interet on pension fund and is there any contribution from govt. side.
Regards,
Vishal
From India, Hyderabad
Is there any provision in Pension scheme 1955, to withdraw the lump sum amount even after 10 yrs of service or at retirment, if i dont wish to avail pension.
What is the rate of interet on pension fund and is there any contribution from govt. side.
Regards,
Vishal
From India, Hyderabad
Dear Vishal,
For those who have 10 years or more service in EPS 1995, there is no provision for one term withdrawal.
Usually the PF authorities will not make mention on interest rate for EPS. In addition to employers 8.33% contribution, Govt. of India will contribute 1.17% to pension fund.
Abbas.P.S
From India, Bangalore
517For those who have 10 years or more service in EPS 1995, there is no provision for one term withdrawal.
Usually the PF authorities will not make mention on interest rate for EPS. In addition to employers 8.33% contribution, Govt. of India will contribute 1.17% to pension fund.
Abbas.P.S
From India, Bangalore
Dear Jatin,
1. 1.17% of Basic+DA. Similar to employer's contribution of 8.33%. i.e total contribution is 8.33+1.17 = 9.5%
2. We will not get this 1.17%. Even the 8.33% we are not suppose to get. The EPF Trust will utilize these contributions to pay pension.
For withdrawal benefit there is a factor stipulated in Table D (in compliance with the contributory period) multiplied by last drawn salary, subject to a ceiling of Rs. 6500.
Abbas.P.S
From India, Bangalore
1. 1.17% of Basic+DA. Similar to employer's contribution of 8.33%. i.e total contribution is 8.33+1.17 = 9.5%
2. We will not get this 1.17%. Even the 8.33% we are not suppose to get. The EPF Trust will utilize these contributions to pay pension.
For withdrawal benefit there is a factor stipulated in Table D (in compliance with the contributory period) multiplied by last drawn salary, subject to a ceiling of Rs. 6500.
Abbas.P.S
From India, Bangalore
Dear Vishal,
You have the choice to withdraw the amount in your Pension account upon completing 10 years of service.
You need to submit Form 10 - C for claiming the pension amount. You need to select the option that you are not opting for a scheme certificate in the respective column.
There will be two pension calculations for a person who has served prior to 1995 and continues to be a EPF member after 1995. For those who have become members after 1995 there is just one calculation.
Please refer EPF act for the calculations and you can also access the information on the net.
The pension account is maintained in corpus fund by the EPFO and the pension/ withdrawals are paid only from this account.
M.V.KANNAN
From India, Madras
You have the choice to withdraw the amount in your Pension account upon completing 10 years of service.
You need to submit Form 10 - C for claiming the pension amount. You need to select the option that you are not opting for a scheme certificate in the respective column.
There will be two pension calculations for a person who has served prior to 1995 and continues to be a EPF member after 1995. For those who have become members after 1995 there is just one calculation.
Please refer EPF act for the calculations and you can also access the information on the net.
The pension account is maintained in corpus fund by the EPFO and the pension/ withdrawals are paid only from this account.
M.V.KANNAN
From India, Madras
Dear Vishal and Kannan,
I have learnt that Vishal's query is regarding one term withdrawal after a contributory period of 10 years in EPS.
I reiterate that those who have a service of 9 years and six months or more in EPS are eligible for monthly pension. Accordingly they are not able to get one term withdrawal benefit. If Mr. Kannan has a different openion, please cite that provision in EPS. Also kindly state that what is the factor stipulated for ten years in Table D.
Abbas.P.S
From India, Bangalore
I have learnt that Vishal's query is regarding one term withdrawal after a contributory period of 10 years in EPS.
I reiterate that those who have a service of 9 years and six months or more in EPS are eligible for monthly pension. Accordingly they are not able to get one term withdrawal benefit. If Mr. Kannan has a different openion, please cite that provision in EPS. Also kindly state that what is the factor stipulated for ten years in Table D.
Abbas.P.S
From India, Bangalore
Dear Mr.Abbas,
I appreciate your efforts to clearly present facts to elucidate the queries raised.
In my opinion you have an option Sl.Nr 8 on Page 2 in the EPF Form 10 - C to opt for a scheme certificate or otherwise.
In the event a person is going abroad and is unlikely to continue to be member of EPF or is taking up private business and is unlikely to be covered under the EPF act, then he can make a request before the PF authorities for withdrawal benefit even after completing 10 years of service.
I do agree with you that the process is not simple the EPF authorities verify the process thoroughly and then only approve withdrawal benefit.
Can you kindly forward me the portion Table D you are referring, for my clarification.
Regards
M.V.KANNAN
From India, Madras
I appreciate your efforts to clearly present facts to elucidate the queries raised.
In my opinion you have an option Sl.Nr 8 on Page 2 in the EPF Form 10 - C to opt for a scheme certificate or otherwise.
In the event a person is going abroad and is unlikely to continue to be member of EPF or is taking up private business and is unlikely to be covered under the EPF act, then he can make a request before the PF authorities for withdrawal benefit even after completing 10 years of service.
I do agree with you that the process is not simple the EPF authorities verify the process thoroughly and then only approve withdrawal benefit.
Can you kindly forward me the portion Table D you are referring, for my clarification.
Regards
M.V.KANNAN
From India, Madras
Dear Mr.Abbas,
There is no provision in the EPF act, but I have handled a case in year 2000 when one employee migrated to US and requested me to arrange for a withdrawal of the amount.
We applied to EPFO in Ambattur alongwith the job offer received by the employee, passport and flight tickets as proof. The claim was processed and withdrawal benefit was given though the employee was in service for almost 15 years in the company.
Experts framing acts and rules will not foresee all probable causes and will state the broad guidelines and we professionals will have to see the reasoning behind the claim made by the employee, if it genuine and is likely to benefit the employee then it can be pursued. (Numerous case laws for each sections of the act arise to clarify the position based on nature of each case)
Though the other case I am going to cite is not relevant to the present case I wish to state that for better clarity.
We had a Personal accident policy coverage for employees wherein the premium is computed based on the earning capacity of the employees (subject to ceiling based on company policy). Once an employee met suffered a head injury while travelling in a two wheeler (PA policy covers 24 hours worldwide). The employee suffered from Short Term Memory loss which will mean he cannot be employed in any establishment, but the doctors certified that he was 80% disabled and as per provisions of the policy the company agreed to pay 80% of the sum assured. But we argued the case that stating that the premium is computed based on the earning capacity and that the employee has infact lost 100% earning capacity and sought the balance 20%. Though it was a long drawn process finally we succeeded in winning the case. So it more the logic than the law before hand.
I trust you will agree with me.
M.V.KANNAN
From India, Madras
There is no provision in the EPF act, but I have handled a case in year 2000 when one employee migrated to US and requested me to arrange for a withdrawal of the amount.
We applied to EPFO in Ambattur alongwith the job offer received by the employee, passport and flight tickets as proof. The claim was processed and withdrawal benefit was given though the employee was in service for almost 15 years in the company.
Experts framing acts and rules will not foresee all probable causes and will state the broad guidelines and we professionals will have to see the reasoning behind the claim made by the employee, if it genuine and is likely to benefit the employee then it can be pursued. (Numerous case laws for each sections of the act arise to clarify the position based on nature of each case)
Though the other case I am going to cite is not relevant to the present case I wish to state that for better clarity.
We had a Personal accident policy coverage for employees wherein the premium is computed based on the earning capacity of the employees (subject to ceiling based on company policy). Once an employee met suffered a head injury while travelling in a two wheeler (PA policy covers 24 hours worldwide). The employee suffered from Short Term Memory loss which will mean he cannot be employed in any establishment, but the doctors certified that he was 80% disabled and as per provisions of the policy the company agreed to pay 80% of the sum assured. But we argued the case that stating that the premium is computed based on the earning capacity and that the employee has infact lost 100% earning capacity and sought the balance 20%. Though it was a long drawn process finally we succeeded in winning the case. So it more the logic than the law before hand.
I trust you will agree with me.
M.V.KANNAN
From India, Madras
Dear Kannan,
I agree with you. Because it is your experience. On some particular cases, with the discretionary powers, the authorities may excercise some bye pass or over rule on the general rules. It will depend upon not only the prevailing conditions, but the attitude and determination of the authority also. Even it cannot be restricted on a particular section / provision. But the above experience cannot be quoted as a general rule.
Abbas.P.S
From India, Bangalore
I agree with you. Because it is your experience. On some particular cases, with the discretionary powers, the authorities may excercise some bye pass or over rule on the general rules. It will depend upon not only the prevailing conditions, but the attitude and determination of the authority also. Even it cannot be restricted on a particular section / provision. But the above experience cannot be quoted as a general rule.
Abbas.P.S
From India, Bangalore
Dear Abbas,
We are all aware that we have to serve deligently satisfying both the employer and employees.
If the request of the employee is genuine, then it is important that as a HR professional we need to find ways and means of interpreting the provisions of the act and convince the authorities to consider the case favourably.
You will appreciate that many of our colleagues are aware of the provisions of law/ rules framed, but they seek clarifications to enlighten themselves whether their understanding is correct.
We are trying to share our practical experience that can enlighten our colleagues to deal with situations which could be similar to the ones we had handled in the past.
I fully agree with you on the point that the case may not be viewed in the same perspective as it was dealt by one authority.
In this context you are aware that the ruling of the District Court is over ruled by the High Court and the Supreme Court upholds the ruling of the District Court. So it is the interpretation that matters the most.
I am in agreement with you on the point that it is not a general rule and I thoroughly enjoy and enlighten myself on the various acts and provisions that you cite that I have not come across.
If in your opinion I have misled the forum I sincerely apologise for it.
Best regards
M.V.KANNAN
From India, Madras
We are all aware that we have to serve deligently satisfying both the employer and employees.
If the request of the employee is genuine, then it is important that as a HR professional we need to find ways and means of interpreting the provisions of the act and convince the authorities to consider the case favourably.
You will appreciate that many of our colleagues are aware of the provisions of law/ rules framed, but they seek clarifications to enlighten themselves whether their understanding is correct.
We are trying to share our practical experience that can enlighten our colleagues to deal with situations which could be similar to the ones we had handled in the past.
I fully agree with you on the point that the case may not be viewed in the same perspective as it was dealt by one authority.
In this context you are aware that the ruling of the District Court is over ruled by the High Court and the Supreme Court upholds the ruling of the District Court. So it is the interpretation that matters the most.
I am in agreement with you on the point that it is not a general rule and I thoroughly enjoy and enlighten myself on the various acts and provisions that you cite that I have not come across.
If in your opinion I have misled the forum I sincerely apologise for it.
Best regards
M.V.KANNAN
From India, Madras
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PF guidleines for Pension fund.pdf