Employees’ Pension Scheme rights depend far more on service than on the apparent “balance” shown in an EPF passbook. A member leaving before ten years of eligible pensionable service may qualify for withdrawal benefit under Form 10C conditions.
Current rule and what decides the result
EPS choices turn on eligible pensionable service, age and whether the member is continuing in covered employment. A member with less than 10 years of eligible service may qualify for withdrawal benefit or a scheme certificate depending on the case. Once eligible service reaches 10 years, a simple EPS withdrawal benefit is no longer the normal route; the member preserves pension rights through a scheme certificate or claims pension when age conditions are met. Form 10C is used for withdrawal-benefit/scheme-certificate cases, while Form 10D is the pension-claim form.
Key rules to apply
- Once the 10-year service threshold is reached, withdrawal benefit is generally replaced by preservation of pension rights through a scheme certificate or pension claim when age conditions are met.
- A member with eligible pensionable service below 10 years can generally use the withdrawal-benefit route under EPS rules when other conditions are satisfied.
- On reaching 10 years of eligible service, the member normally preserves pension entitlement rather than taking the same withdrawal benefit.
- Form 10C can be used for a scheme certificate so past service is carried and combined with later eligible service.
- Form 10D is used for monthly pension categories when age/service conditions are met.
- Reduced pension can be available from age 50 under the Scheme, while normal superannuation pension is associated with age 58, subject to current EPS provisions.
Eight years of service
A member leaves covered employment after 8 years and 4 months of eligible EPS service at age 34. Because service is below the 10-year pension threshold, the member can evaluate the withdrawal benefit under the EPS table versus taking a scheme certificate and carrying the service into a future covered job. The decision should not be based only on the immediate cash figure; preserving service may materially affect later pension eligibility.
Twelve years of service at age 48
A member exits employment after 12 years of eligible service at age 48. The 10-year threshold has been crossed, so the normal path is not a cash EPS withdrawal benefit. A scheme certificate preserves the pensionable service until pension can be claimed under the age rules. If the member later reaches an eligible age and chooses reduced/regular pension as permitted, Form 10D—not Form 10C withdrawal benefit—is the pension claim route.
How to apply it step by step
- Download the EPFO service history/UAN records and identify EPS-covered service periods.
- Resolve overlapping or missing employment/service entries before choosing a claim.
- Count eligible pensionable service for the 10-year threshold.
- Check the member’s age and whether reduced/regular pension eligibility is relevant.
- For sub-10-year exits, compare withdrawal benefit with preserving service through a scheme certificate.
- For 10 years or more, preserve pension rights and use the appropriate certificate/pension path.
- Use Form 10C for withdrawal-benefit/scheme-certificate cases and Form 10D for pension claims.
- Keep the scheme certificate safely and link it to future UAN/employment records.
Common mistakes and edge cases
- Treating EPF balance and EPS benefit as the same pot of money.
- Assuming every person leaving a job can withdraw EPS in cash.
- Ignoring earlier service that should be combined for the 10-year test.
- Using Form 10C when the actual claim is pension through Form 10D.
- Discarding a scheme certificate and then struggling to establish prior service years later.
FAQs
What is the key EPS threshold?
Ten years of eligible pensionable service is the crucial threshold for pension entitlement versus withdrawal-benefit routes.
Can I withdraw EPS after 10 years of service?
Generally the pension right is preserved rather than paid as a simple withdrawal benefit once the qualifying-service threshold is met.
What is Form 10C used for?
It is used for withdrawal benefit and scheme-certificate situations under EPS.
What is Form 10D used for?
It is the pension-claim form.
Why take a scheme certificate before 10 years?
It preserves earlier pensionable service so it can be combined with future covered employment.
Should I count only my last employer?
No. Eligible service across covered employment can matter, so reconcile the full service history.
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