Understanding EPS and Pension Eligibility
The Employees' Pension Scheme (EPS) is a social security scheme managed by the Employees' Provident Fund Organisation (EPFO) to provide a pension to employees after they retire at age 58. While you and your employer both contribute to your EPF, only a portion
of the employer's share (8.33%, subject to a wage ceiling) is directed into the EPS. The most critical rule for receiving a monthly pension is completing a minimum of 10 years of 'pensionable service'. This service does not have to be with a single employer or be continuous. This is where understanding service continuity becomes crucial when you switch jobs.
The Importance of Continuous Service
To be eligible for a lifelong pension, your service history across different companies must add up to at least 10 years. Every time you change jobs, it's essential to ensure your service record from your old job is linked to your new one. If you fail to do this, your service history becomes fragmented across multiple PF accounts or member IDs. This can lead to a shortfall in the required 10-year period, potentially making you ineligible for a monthly pension. Even if your previous EPF balance was zero because you withdrew it, transferring the service history is still necessary to protect your pensionable service record.
How to Transfer Your EPS Service History
The good news is that transferring your EPS service is straightforward and is usually linked with your EPF transfer. When you join a new company covered by EPFO, you provide your Universal Account Number (UAN). You then need to initiate a transfer request for your old EPF account to the new one. This can be done online through the EPFO member portal by filling out the 'One Member - One EPF Account (Transfer Request)', which is the digital equivalent of Form 13. Once the EPF transfer is approved, your EPS service record automatically moves with it, ensuring your service years are consolidated under your UAN. This simple step links your past service with your current employment, keeping your pension journey on track.
The Role of the Scheme Certificate
What if you can't transfer your service immediately? For instance, you might join a company not covered under the EPF Act or have a gap in employment. In such cases, you should apply for an 'EPS Scheme Certificate' using Form 10C. This certificate acts as an official record of your service period. When you later join another EPF-covered company, you can submit this certificate to your new employer. This ensures that your previous years of service are added to your new service period, preserving your pension continuity. If you have completed more than 9.5 years but are under 50, obtaining this certificate is the standard procedure instead of withdrawal.
Withdrawing EPS vs. Transferring
If you have been in service for less than 10 years, you have the option to withdraw your accumulated EPS amount. This is also done using Form 10C. However, withdrawing the funds means you forfeit that service period permanently, and your pensionable service counter resets to zero when you join a new job. This move should be considered carefully, as it prioritises short-term cash over long-term retirement security. Recent rules under EPS 2026 have also introduced a waiting period of up to 36 months before you can claim this withdrawal benefit after leaving a job. Given the goal of building a 10-year service history, transferring your service is almost always the better option for your financial future.
