The Employees’ Provident Fund Organisation (EPFO) manages the Employees Pension Scheme so that private sector employees can take the lavish benefit of receiving pension income after retirement. As per the EPFO, every employee must contribute 12 percent of the to their EPF account, an account where all the fund is accumulated till the employee’s retirement. Further, to the same account, employers also contribute equally, out of which 8.33 percent goes to EPS or Employees Pension Scheme account, and the remaining 3.67 percent goes to the EPF account. Employees get all this money in the form of a pension after retirement. However, there are some specific conditions under which they can perform a partial or full withdrawal. Let’s talk about the details.
EPFO Scheme and Withdrawal Conditions
The funds accumulated in the EPF account over the years can be withdrawn partially or fully as per the specific conditions justified by EPFO. This flexibility in the rules offers great help to employees in needy times.
As for EPS share, the amount accumulated in this can only be withdrawn after a final settlement if the employment period is less than ten years. But after ten years, the amount is only received in the form of pensions.
Moreover, to withdraw under any condition, an employee is required to file a specific form as directed by EPFO. Let’s discuss them.
Role of Different Forms During EPFO Withdrawals
EPFO has released different forms to be used by an employee under specific conditions to claim the EPF amount plus the pension. These are 10C, Form 10D, Form 19 and Form 31. Where 10D and 10C are to be filled for pension-related withdrawals, Form 19 is used for the final settlement of the EPF account and Form 31 is needed during partial withdrawals.
The Need for Form 10C and 10D
Form 10C is related to the Pension amount accumulated over the years in an EPF account. This form is to be filled out during the time of final settlements to withdraw the complete pension amount. However, this form can only be used when the employment period is less than ten years.
As per EPFO, if a person has an employment record of more than ten years, then they can file Form 10D to claim the pension benefits after retirement. Moreover, this form is also filled when a person is eligible for pension income benefits under any specific condition.