EPF is one of the most important money-saving and wealth-building tools for any salaried employee. It can literally turn an employee into a crorepati if there are no interruptions or withdrawals. It not only offers savings benefits but also income tax benefits that will help save even more money. Among the other benefits provided by the Employees Provident Fund Organisation (EPFO) that can accrue include Retirement Savings, Employer Contributions (the employer contributes a similar amount), safety and Security of money, no-risk scheme, withdrawal benefits during emergencies and more. Here we take a look at some of the biggest FAQ that EPF account holders have:
1. EPF formula formula for calculation
pension= (pensionable salary (average salary of last 60 months) x pensionable service) /70.
2. Advantages of a scheme certificate
EPF scheme certificate facilitates transfer of pension accounts when the employment is changed. Also, if the holder of scheme certificate dies the family will receive the family pension.
3. Withdrawing EPF pension benefit along with PF amount
No a member can withdraw his PF amount (member share only) and maintain a lien in the Pension Scheme by availing a Scheme certificate.
4. Delaying the EPF pension beyond 58 years?
Yes a person can delay their pension beyond 58 years. Member can opt for receiving pension after attaining 59 or 60 years of age. In this scenario quantum of pension increases by 4% per year beyond 58 years.
5. Pension paid by money order or cheque?
EPF pension is payable through the designated banks notified for each region through Core Banking Solution.
6. Eligible age for EPF pension
An EPF member is eligible for pension on superannuation at the age of 58 years. If a member leaves employment between 50 and 57 he can avail for an early (reduced) pension.
7. On what basis is pension granted to EPF member
The average salary of the last 60 months is calculated for granting pension to an individual.
This EPF pension guide FAQ will help you understand what these terms are including formula, eligibility, calculation, benefits and more. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
