EPFO Rule: In EPFO, people who have been contributing for 10 consecutive years become entitled to pension. Meaning, after retirement, he can get pension from EPFO. How much pension will be, it is decided on the basis of their contribution. You can take pension from EPFO at the age of 58 years. However, if a person wants to take pension quickly, then he gets this opportunity at the age of 50. But the more you take pension from EPFO, the more damage will be done. Understand here what is the rule of EPFO about early pension.
Early Pension Rules
According to the EPFO rule, if you have contributed 10 years or longer to EPFO and you are entitled to pension, then you can claim for pension after retirement. But if you want to take advantage of pension quickly, then at the age of 50 you get a chance to claim for early pension. But it is your disadvantage. The more money you will withdraw from the age of 58, you will get the pension at the rate of 4% every year.
Suppose an EPFO member claims for pension at the age of 56, then he will get 92% (100% – 2 × 4) of the original pension amount. Meaning the investor has applied 2 years ago, so there has been a reduction of 8 percent from his pension amount. Similarly, 88% of the basic pension on the age of 55 years and 84% of the original pension will be received as pension on claiming at 54 years. Pension will be reduced at the rate of 4% every year.
How to do this for early pension
To take Early Pension, you have to fill the Composite Claim Form and select the option of 10D. If you are under 50 years of age and you want to get pension, then you will not get this opportunity. In such a situation, you will get only EPF funds if you leave the job. According to EPFO, the right age to get pension is 58 years. At the same time, it is necessary to have at least 50 years of age for early pension.
On having a job less than 10 years
If the duration of your job is less than 10 years, then you are not entitled to take pension from EPFO. In such a situation you have two options. First- If you do not want to do a job, then you can also withdraw the pension amount along with the amount of PF, meaning full and final settlement. The second option is that if you feel that you will join the job again in future, then you can take a pension scheme certificate. In such a situation, whenever you join the new job, through this certificate you can get the previous pension account added to the new job. Due to this, you can complete the shortage of job in the next job in the next job and can become entitled to pension at the age of 58.