Understanding the Significance of Form 10C and Form 10D in EPS Pension Plans

Orhan Wadia
Orhan Wadia  - Editor
3 Min Read

The Employees’ Pension Scheme (EPS) is an integral part of the social security scheme for employees in the organized sector, managed by the Employees’ Provident Fund Organisation (EPFO). It operates in conjunction with the Employees’ Provident Fund (EPF), which most salaried employees contribute to.

Here’s how the contribution works:

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  1. Employee Contribution: Every month, 12% of the employee’s basic salary, along with dearness allowance, is deposited into the EPF account.
  2. Employer Contribution: The employer also contributes 12% of the employee’s basic salary and dearness allowance. However, out of this employer contribution, 8.33% is deposited into the EPS account, while the remaining 3.67% goes into the EPF account.

Additionally, the Central Government contributes 1.16% of the pay of members to the Employees’ Pension Scheme.

The Significance of Forms 10C and 10D in EPS

To claim the benefits of the Employees’ Pension Scheme and the EPF, an EPFO member needs to fill out specific forms, including Form 10C and Form 10D. These forms are crucial for availing pension benefits.

When to Use Form 10C:

Form 10C should be used when:

  • The EPFO member is ready for the final settlement and intends to withdraw the entire pension amount.
  • The duration of employment is less than 10 years.

Using Form 10C, individuals can obtain a pension scheme certificate, which allows them to transfer their PF balance from one company to another if needed.

When to Use Form 10D:

Form 10D comes into play when:

  • An individual has worked consistently for 10 years or more and has made contributions to the EPS.
  • The person plans to claim pension benefits after retiring.

In certain cases, when a person becomes eligible for an EPS pension, they also need to fill out Form 10D to initiate the process of receiving their pension.

In summary, Forms 10C and 10D are essential documents for EPFO members to access their pension benefits under the Employees’ Pension Scheme. Understanding when and how to use these forms is crucial for a smooth and hassle-free pension claim process.

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