There would be many Employees’ Provident Fund Organisation (EPFO) who may not know that that they are eligible for pension at the time of retirement but this would require a Scheme Certificate at the right time. Under the Employees’ Pension Scheme, there are around 3.3 lakh pensioners.
As an EPFO contribution, Your employer contributes 8.33% of your basic salary and dearness allowance (DA) to EPS. The maximum cap on it is of ₹1,250.
The pension to be provided is calculated by multiplying pensionable salary (average of last 60 months) with pensionable service and the dividing it by 70. A person is eligible to get a minimum pension of ₹1,000.
At the age of 58, the employee is eligible to get pension on superannuation. However, if he quits the job when between 50 and 57 years he can avail an early but the amount of pension would be reduced.
If he continues till age of 58, he would be eligible to get pension just after 58.
The PF contributers who contribute EPF for less than 10 years, can withdraw or get a pension at 58.
On death of the EPF subscriber, the pension is automatically payable to the spouse.
The employees who have worked for less than 6 months, would not be able to withdraw the pension amount, as per the EPFO rules.
Scheme certificate is used to transfer the pension accounts when employees change their jobs and therefore serves a purpose of policy.
The employees who have contributed atleast 10 years and arev less tha 58 years are required to issue the scheme certificate for getting pension.
For those whose contribution period is less than 10 years can avail the Scheme Certificate to carry forward his pension service but it is not compulsory for them.
If the holder of the scheme certificate dies, the family will get pension.