Difference in EPS (Pension Contribution) amount settled compared to that in passbook

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Recently we submitted form 19A and 10C online for EPS (Pension Contribution) withdrawal for a staff.

The total amount in his EPS (Pension Contribution) Column is Rs. 51,264.00. However, his claim has been settled for only Rs. 35391.00. Rs. 15873.00 is difference. Can this amount be withdrawn?

HIs other passbook entries shows as follows:
Employee Share: 79,718.00
Employer Share: 24,517.00
Pension Contributions: 51,264.00

Years employed: 4 Years and 4 Months

Date of leaving 02-Nov-2020.
Date of filing form 19A and 10C 05-Jan-2020
Date of settlement for Form 10C 07-Jan-2020

Neeraj

Replies (1)

Hey Neeraj! About the EPS withdrawal discrepancy you mentioned — here’s a quick explanation:

Why is the withdrawn EPS amount less than the EPS contribution shown in passbook?

  • The EPS (Employees' Pension Scheme) amount credited in the passbook (Rs. 51,264) is not fully withdrawable as lump sum.

  • The actual withdrawable amount under EPS (Form 10C) is calculated based on a formula considering years of service, average salary, and certain factors prescribed by EPFO.

  • EPS is mainly for pension benefits, so only a part of the EPS contribution is payable as a lump sum if the employee hasn't completed 10 years of service.

  • The difference (Rs. 15,873 in your case) is likely the non-withdrawable portion which will contribute to future pension benefits once the employee completes 58 years or opts for pension.


Additional points:

  • Employee Share and Employer Share in your passbook include both EPS and EPF contributions; only the employer's EPS portion is relevant here (Rs. 51,264).

  • The Employee Share and Employer Share to EPF account is fully withdrawable on resignation after 2 months (if not joining another job with EPF).

  • EPS withdrawal under Form 10C depends on years of service: less than 10 years = partial withdrawal, more than 10 years = pension eligibility.


So, in summary:

  • You cannot withdraw the entire EPS contribution shown in passbook.

  • The difference amount stays in the EPS account for pension calculation.

  • The settled amount Rs. 35,391 is as per EPFO rules for premature EPS withdrawal.


CCI Pro

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