The Employee’s Pension Scheme is a dedicated savings plan for retirement run by the Employees’ Provident Fund Organization (EPFO). It’s made for people who work and get paid. Speaking of the functioning, A part of your salary gets put into your EPS account every month, and your employer puts in the same amount.
But if you change jobs, you need to move your money from your old EPS account. To do this, you’ll need two important papers: EPS Form 10C and the EPS Scheme Certificate. These papers help make sure your money goes to the right place when you switch jobs.
Keep reading to learn more about how to transfer an existing EPS account to the new employer and other associated details.
What is an Employee Pension Scheme (EPS)?
The Employee Pension Scheme (EPS) is a type of retirement savings plan run by the Employees’ Provident Fund Organisation (EPFO), which is a government agency. It’s part of India’s social security system and is available to certain employees. Specifically, if your monthly salary plus dearness allowance is less than Rs. 15,000, you can be part of this scheme.
Here’s How it Works:
If you’re a salaried employee and contribute to an EPF (Employees’ Provident Fund) scheme, a portion of your salary, around 12%, is set aside every month. Your total contribution goes into your EPF account, while your employer also contributes 12%. However, of the employer’s contribution, 8.33% goes into your EPS account (Employee Pension Scheme), and the remaining 3.67% goes into your EPF account.
Under the EPS scheme, you become eligible for a pension once you reach the age of 58. The minimum pension you may receive is Rs. 1,000 per month, and the maximum monthly contribution towards EPF is Rs. 1,250. One of the major highlights of the scheme is that it provides a financial safety net for employers after they retire, ensuring they have some income to rely on during their golden years.
Eligibility Criteria for an EPS Transfer
Here are the eligibility criteria for an EPS transfer.
| Parameters | Details |
| Eligibility Criteria |
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| Eligibility Criteria |
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| Eligibility Criteria | Nominees, family members, or legal heirs of a deceased member who was over 58 but had less than 10 years of service. |
What is EPS Form 10C?
If you’re moving your EPS account to a new employer, then Form 10C is essential. The form enables you to claim the benefits accumulated in your EPS account after working continuously for at least 180 days but before completing 10 years of service.
To withdraw your pension or continue receiving EPS benefits and remain a member of the Employee Provident Fund (EPF), you must have EPS Form 10C. It’s essential to submit this form to your new employer when you switch jobs.
Moreover, the submission of EPS Form 10C holds significance beyond mere pension withdrawal. Furthermore, it helps in maintaining continuity in receiving EPS benefits and retaining membership in the Employee Provident Fund (EPF) when transitioning to a new job.
What is an EPS Scheme Certificate?
An EPS Scheme Certificate is an important document that contains your job history and serves as a valid service record. It provides details about your employment and also includes information about your family and nominated beneficiaries in case of your unfortunate demise.
When you have completed a service period of 9.5 years and your age is below 50, you will require an EPS Scheme Certificate to transfer your pension from one account to another. It is mandatory to fill out Form 10C whenever you change jobs, regardless of whether you choose to withdraw or transfer your EPS amount.
Additionally, if you leave a company that is covered under the EPF (Employee Provident Fund) and join a company that is not covered, it is important to obtain the Scheme Certificate from the EPFO (Employee Provident Fund Organization). You can submit this certificate when you join another company in the future that is covered under the EPF.
What is the Process for Online EPS Transfer?
Here is the complete online EPS transfer process you should know about.
- Simply visit the official website of the Employees’ Provident Fund Organization (EPFO).
- In the next step, you will need to log in to your EPF Member Portal using your UAN (Universal Account Number) and password.
- After that, you will need to go to the “Online Services” services and select claim (Form 31, 19, and 10C).
- In the next step, you will need to verify your Know Your Customer (KYC) details and member information displayed on the subsequent page.
- After that, simply provide the last 4 digits of your bank account number for validation purposes. Then, you will need to review and accept the terms and conditions specified for the ‘Certificate of Undertaking’.
- Then, choose “Just Pension Withdrawal (Form 10c)” from the options available under the “I want to Apply For’ section located at the bottom of the page”.
- In the further step, you will need to enter your complete address and generate an Aadhaar OTP by clicking on ‘Get Aadhaar OTP’. Then, you will need to validate the OTP received on your Aadhaar-registered mobile number by clicking on ‘Validate OTP and Submit Claim Form’.
- Once the OTP is validated without any difficulty, simply submit your claim form for processing.
- In the final step, the transferred amount will be deposited into your designated bank account after the verification and approval are done by the EPFO.
What is the Offline Process for EPS Transfer
If you prefer the offline method for transferring your EPS benefits, you can start by downloading Form 10C. Once downloaded, carefully fill out the form with accurate details and submit it to the nearest Employees’ Provident Fund Organisation (EPFO) office. Here’s an overview of the offline EPS transfer process:
- Download Form 10C
In the first step, you will need to download Form 10C, which is available on the official EPFO website or from the EPFO office.
- Form Completion
Then, you will need to properly fill out all the required fields in Form 10C with correct and up-to-date information.
- Submission
After completing the form, submit it to the closest EPFO office. Ensure that all necessary documents are attached as per the instructions provided.
Attestation Procedure:
- Centre Obtained Form: If you obtained the Form 10C from an EPFO centre, your former employer must certify it.
- Online Obtained Form: In the case of obtaining the form online, both you and your employer must certify it.
- No Employer Available: If your previous establishment is closed and the authorized signatory/employer is not accessible, you may need attestation from one of the authorized officials listed below:
- Magistrate
- Chairman/Secretary/Member of Municipal/District Local Board
- Member of the Employees Provident Fund’s Regional Committee and Central Board of Trustees
- Member of the Legislative Assembly or Parliament
- Gazetted Officer
- Head of a reputable academic institution
- Post/Sub-postmaster
- President of village union
- President of the Village Panchayath
- Manager of the bank where you hold a savings bank account
Documents Required for EPS Transfer or Withdrawal
Here is a list of the documents required for EPF transfer or withdrawal.
- Blank Cheque
- Succession Certificate (If Applicable)
- Original Death Certificate (If Applicable)
- Birth Certificate (In case of children)
Final Thoughts
So, there you have it! That’s the wrap-up to the process of transferring the existing EPS account to the new employer! The EPS scheme offers a robust financial security net for post-retirement years. Upon the EPS scheme, individuals can opt to withdraw their funds by submitting Form 10C upon reaching the age of 58. Ensure you follow the process carefully and enjoy the golden years of your retirement.
Frequently Asked Questions
Listed below are the frequently asked questions related to the EPS transfer.
You can use Form 10C to withdraw from your EPF account when you turn 58. Also, if you’ve worked for 180 days without a break but less than 10 years, you can withdraw your pension.
Yes, you need to fill out Form 10C whenever you change jobs, as long as your new job is covered under the EPF Act of 1952. It doesn’t matter how many times you switch jobs.
If you quit your job without joining a new one, you can withdraw your EPS savings using Form 10C on the EPFO website.
You can transfer your EPS funds to your new employer if you’ve worked for over 180 days but less than 10 years. However, you can only withdraw your pension when changing jobs.
EPF earns interest at a fixed rate, currently around 8.15% per year, set by the Government. But EPS doesn’t earn any interest.
