EPS Scheme Certificate: It is necessary to obtain EPFO Scheme Certificate while changing jobs. This is the record of your pension service under EPS, which secures your pension benefits by linking the old service with the new job. Due to this the pension calculation does not start from zero.
PF Transfer Rules: When we change jobs, we keep many things in mind. They are in a hurry to transfer PF account, get relieving letter and complete other formalities. But in this rush, we often forget to take a very important document – EPFO Scheme Certificate. The truth is that no one thinks much about their retirement while changing jobs. But forgetting to take this certificate can prove to be a big mistake for you.
If you contribute to the Employees Pension Scheme (EPS), then this scheme certificate is very important to protect the pension benefits you have earned through years of hard work. This document will be very useful for you when you claim pension in future. This is a sure proof of how many years you have deposited money in the pension fund. It also contains information about eligible members of your family. In simple language, it is a kind of pension record. If you leave a job covered under EPF before becoming eligible for pension, this certificate protects your old service from going waste. Later when you become eligible for pension, you can use it.
Why is this document necessary while changing jobs?
People change jobs many times in their career. Some people take a break from the job and start their work or go to a company where EPF facility is not available. In such a situation, many people mistakenly believe that only PF balance matters.
The Scheme Certificate helps in preserving the period of your service completed under EPS. When you later start a job in a company where EPF is deducted, your old service can be clubbed with the new service to calculate the pension. That is, you do not have to start your service again from zero for pension; You can continue from where you left off.