Employees Provident Fund Organization (EPFO) provides many social security schemes to its members, one of which is the Employees Pension Scheme (EPS), 1995. Under this scheme, the employees of the organized sector get the benefit of pension after the age of 58 years. However, many employees do not know an important aspect of this scheme ‘Scheme Certificate’ in the event of quitting jobs before changing jobs or completing 10 years of service, which protects their pension rights.
What is EPS Scheme Certificate?
The EPS Scheme Certificate is a type of certificate that shows how long you have contributed under the EPS scheme and how much your service period is. This is special for those employees
Which is important from:
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Regular service of 10 years (which is necessary for pension) leaves or replaces before completing.
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Change jobs from one company to another and transfer their PF account.
Benefits of Scheme Certificate:
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Continuation of pension: If you quit the job before completing 10 years of service and take a scheme certificate, when you join a new job and your PF account is transferred to the new employer, then your previous service period also adds to the new service period. This increases your total service period and keeps eligibility for pension.
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Determination of pension amount: Your pension amount depends on your service period and your last salary. The scheme certificate ensures that the service done in your previous companies is also included in the pension calculation.
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Family benefits on the death of the member: If the member dies (whether in service or after taking a scheme certificate but before the pension starts), his family (spouse and children) may get the benefit of pension as per rules, provided they have fulfilled certain conditions. The scheme certificate strengthens this claim.
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Easy to change the job: When you change the job, your pension related formalities become easier with PF transfer as well as a scheme certificate.
When and how do you get the scheme certificate?
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When an employee leaves the job and does not want to withdraw the entire money of PF (or cannot withdraw pension money due to non -completion of 10 years of service), he can apply for the EPS Scheme Certificate.
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For this, you have to fill Form 10C. This form can be downloaded from EPFO’s website or obtained from your employer.
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The filled form has to be submitted through your employer or directly to the EPFO office.
