How To Withdraw Pension Contribution In EPF?

Mini Balakrishnan

• April 30, 2023
• 2 min read
• Saving

Withdrawal of the pension contribution in EPF (Employee Provident Fund) is a complex process and is subject to certain eligibility criteria. As per the EPF scheme rules, an employee can withdraw the pension contribution only under certain circumstances, such as resignation, retirement, or death.

Steps To Withdraw EPF Pension

Here is a step-by-step process to withdraw the pension contribution in EPF:

1. Eligibility: To withdraw the pension contribution in EPF, an employee must have completed at least 10 years of service. In case of death or permanent disability, the requirement of 10 years of service is waived.
2. Application: The employee must fill out the Composite Claim Form (CCF) which includes the withdrawal form for pension contributions. This form is available on the EPF website or can be obtained from the nearest EPF office.
3. Documents: The employee must submit the following documents along with the CCF:

• A canceled cheque or bank account passbook to ensure that the pension amount is credited to the correct bank account.
• The employee’s EPF account number, UAN (Universal Account Number), and other personal details such as name, date of birth, and contact information.

4. Submission: The employee must submit the filled-out CCF along with the required documents to the nearest EPF office or can also submit the form online through the EPF portal.
5. Verification: The EPF office will verify the employee’s details and the documents submitted, and process the application. This process might take up to 30 days.
6. Crediting of amount: Once the application is processed, the pension contribution amount will be credited to the employee’s bank account.

It is important to note that withdrawing the pension contribution in EPF would result in the forfeiture of the employer’s contribution towards the pension fund. This means that the employee would only receive the amount contributed by the employer towards the PF account and not towards the pension fund. Additionally, withdrawing the pension contribution in EPF may also result in lower pension benefits in the future.

Therefore, it is recommended that employees carefully evaluate their financial needs and retirement goals before opting for the withdrawal of pension contributions in EPF. It is also advisable to consult a financial advisor or an expert to understand the implications of withdrawing the pension contribution and explore other options such as transferring the pension amount to a National Pension Scheme (NPS) account or annuity schemes.