Employee Pension Scheme (EPS): Know importance of Form 10C and 10D in pension withdrawal?

The Employees’ Provident Fund Organisation (EPFO) manages the Employees' Pension Scheme (EPS), which has been designed to provide pension to salaried employees in the private sector. As per the EPFO rules, every month, 12 per cent of the employee's basic salary plus dearness allowance (DA) is deposited into the Employees’ Provident Fund (EPF) account. The employer also contributes an equal amount to EPF. From the employer’s contribution, 8.33 per cent goes to the EPS account and the remaining 3.67 per cent is deposited in the EPF account.

Over the years, a substantial amount accumulates in the EPF account, which can be partially or fully withdrawn according to the EPFO rules. This amount can be beneficial for employees in times of need, especially after retirement.

On the other hand, the money deposited in EPS accumulates as a pension fund for retirement. If the employment duration is less than 10 years, the EPS amount can be withdrawn in a lump sum during final settlement.

However, if the service period is 10 years or more, this money is received as a pension after retirement.

Different forms need to be filled by the EPFO members to claim the EPF amount and the pension. These forms include Form 10C, Form 10D, Form 19 and Form 31. While, Form 10D and 10C are meant for pension benefits, Form 19 is needed for final settlement and Form 31 is used for partial withdrawal.

EPFO Form 10C

An EPFO member needs to submit Form 10C at the time of full and final settlement to withdraw the entire pension amount. This form should be submitted if the employment period is less than 10 years. This form can also be used to obtain a pension scheme certificate, which allows the transfer of the PF balance from one company to another.

Form 10D

According to the EPFO rules, if a person has continuously worked for 10 years and contributed to the Employee Pension Scheme (EPS), they need to fill Form 10D to claim pension benefits after retirement. Moreover, in other situations where a person is eligible for an EPS pension income, they must also fill out Form 10D.