For the purpose of EPS scheme, salary is considered as basic wage plus dearness allowance (DA). So, according to the amended rules, if an individual’s basic wage plus DA exceeds Rs 15,000 a month, then he will not be eligible to join the EPS scheme.

Speaking on the EPFO pension benefits SEBI registered tax and investment expert Jitendra Solanki said, “To become eligible for the EPFO pension benefit, the employees needs to contribute for at least 15 years in one EPF account without any disruption.

You must be a member of the EPFO. You must have attained the age of 58 years. In case you defer the pension for 2 years (until you reach the age of 60 years), you will be eligible to receive the pension at an additional rate of 4% per year. You must have completed at least 10 years of service.

One is allowed to withdraw the EPS if their service period has been less than ten years. In case it has been more than ten years, the employee compulsorily gets pension benefits after retirement.

Only once the individual leaves the company and before joining a new company, he/she can withdraw the EPS amount. An individual who has worked for less than 6 months can apply for a scheme certificate but will not be able to withdraw EPS, according to Bankbazaar.

Typically, when you leave a job with a defined benefit pension, you have a few options. You can choose to take the money as a lump sum now, or take the promise of regular payments in the future, also known as an annuity. You may even be able to get a combination of both.

Unlike 401(k)s, pensions aren’t portable. You can’t move a traditional pension account to your new employer or into an IRA rollover when you leave a job. (A cash-balance plan, by contrast, allows you to take your money with you when you leave a job.)

The average 35 year old has a net worth of roughly $35,000 according to the latest Consumer Finance study by the Federal Reserve in 2019. It came out in 2020 and there won’t be another survey out until 2023 for 2022 figures.

Take some of it as cash and leave the rest invested 25% of your pension pot can be withdrawn tax-free, but you’ll need to pay income tax on the rest. You can choose whether to withdraw the full tax-free part in one go or over time.

Pension for Non-Earners You can take your pension benefits from the age of 55, with the first 25% available as a tax-free lump sum. The remaining 75% is available as taxable income. If you are a non-taxpayer (and these pension payments do not push you into tax), this payment would not be taxed.