Is it Possible to Withdraw Your Total Pension Fund at Age 59 with 10 Years of Service?

Introduction

If you have served your employer for 10 years and are nearing retirement age, the question of withdrawing your pension fund might arise. However, the rules around pension withdrawals are fairly strict and have specific conditions. In this article, we will explore the limitations and alternatives available to you.

Current Status on the Payroll

If you are still on the payroll of your company and continuing to contribute to your public provident fund (PPF), then a full withdrawal is not possible at this stage. According to the guidelines, you can only withdraw your full PPF contribution after 60 days from the date you leave your employment.

You can withdraw full PPF after 60 days of the Date of Leaving.

Additionally, you might be eligible for a non-refundable advance on your PPF savings for various purposes such as marriage, education, or emergency medical conditions, but this is subject to specific requirements outlined in Form 31. It's important to check the terms and conditions as they may vary depending on your specific circumstances.

Early Withdrawal and Pension Scheme

Upon completing 10 years of service, a unique set of rules applies to your pension fund. Specifically, the Employee Provident Fund Scheme (EPS) amount cannot be withdrawn, and only a scheme certificate can be issued by filling out Form 10C along with the Composite Claim Form and presenting either an Aadhaar or Non-Aadhaar card. This certificate serves as confirmation of your contribution and service record.

Here are the key points regarding the pension withdrawal process:

Pension Eligibility: The pension is to be paid from the age of 58, even if the employee has completed 10 years of service. Early Pension Option: A reduced pension can be paid from the age of 50, though this is not a common practice and may require special approval from your employer.

Note: It's important to consult with your HR department or an expert in the field to understand the nuances of these rules and to ensure that you are fully compliant with the relevant regulations.

Conclusion

In summary, withdrawing the total amount of your pension fund at age 59 after 10 years of service is not feasible. You must ensure that you comply with the rules and regulations set by your employer and the governing authorities. Early withdrawal is a complex process and may have implications on your social security benefits.

For detailed information and assistance, it is recommended that you contact your HR department or seek professional advice from a certified financial advisor.