EPFO: What is EPS scheme certificate? How does it help you in pension transfer when changing jobs?

The Employees' Pension Scheme is managed by the Employees' Provident Fund Organisation (EPFO). The scheme has been formulated to provide pension to the employees working in the private sector after their retirement. When employees switch their jobs for better opportunities, they can always transfer their EPF accounts to their new employer. Notably, all those employees who are part of the Employees' Provident Fund (EPF) Scheme and also the Employees' Pension Scheme (EPS) need to transfer their EPF account as per their new employment.

However, not many employees are aware that they should also obtain an EPS certificate from the Employees' Provident Fund Organisation (EPFO) to transfer the pension amount.

The EPS scheme certificates are issued as a part of the Employees' Pension Scheme, 1995.

What is the EPS scheme certificate?

An EPFO member is eligible for pension after 58 years of age and the pension can be availed after retirement. An EPS Scheme certificate is issued to those employees who want to transfer the pension amount to a new account after changing their jobs. If the total service period of the EPFO member is 10 years or more the pension amount can only be transferred from one account to another using the EPS Scheme Certificate.

It’s optional for the employee to transfer the EPS fund if the service period is more than 180 days and less than 10 years.

The certificate ensures that their previous pensionable service is added to the current employment period.  This not just helps in increasing their pension benefit, but also extends the pension benefits to the family members in case of the member's untimely death.

How EPS scheme certificate helps in pension transfer

Those who switch their jobs will need to submit their EPS Scheme Certificate (issued by filling EPF 10C Form) to the EPFO. This submission through the new employer will also transfer the pension amount to the new account.

Once the service period crosses 9.5 years and the employee's age is under 50, then they will need the EPS Scheme Certificate to transfer the pension from one account to another. Every time an employee changes the job it’s mandatory to fill Form 10C irrespective of your choice to withdraw or transfer the EPS amount.