Employee future fund organization
If you are employed, then every month some part from your salary goes to PF i.e. Provident Fund. This money is for the safety of your future. This PF account can not only save pension after retirement, but for this it is very important to follow some rules. If you accidentally withdraw the entire money of PF, then the dream of pension can be broken.
How much money is deposited in PF?
Every month 12% of your basic salary is deposited in PF account. Not only this, your company also puts the same amount from its treasure. However, this entire money does not go to one place! Of the 12% of the company’s 12%, 8.33% share goes to EPS ie Employees Pension Scheme, and the rest 3.67% in your EPF ie Employees Provident Fund. This EPS is the magical thing that gives you pension in retirement.
If EPS is removed, pension will not be available
You collected money in PF with hard work for 10 years. Now at the age of 50, you are expected to get pension. But if you withdraw all the money from PF while leaving the job or in the middle and there was also a part of EPS, then you will not get a single rupee as a pension. Withdrawing EPS money means that you lost the key of your pension. Many people take out the entire PF in a hurry when changing the job or when needed, and it is wrong here. So next time before taking out PF, take a decision.
How to keep pension safe?
So now the question is how to protect the pension? The answer is easy – do not touch the EPS fund! If you have to withdraw money from PF, then only withdraw the EPF part. Leave the EPS fund in the same way. By doing this, you will remain entitled to pension after the age of 50 years.
According to EPFO rules, if you have contributed to PF for 10 years or more and do not touch the EPS fund, then after the age of 50 you can claim for pension. This pension will make your retirement easier, so that you can live a golden day of life without worrying.
Every bank will get pension!
EPFO has introduced a great feature from 1 January 2025, which has made the way of taking pension easier. Now you can remove your pension from any bank. Earlier this facility was limited to only a particular bank, but now through digital verification you can get your pension from anywhere. Especially for those people who have settled in their village or any other city after leaving the job.