A Scheme Certificate in the Employees’ Provident Fund (EPF) system is a document issued to employees when they leave a job. This EPF 10C Scheme Certificate details the duration of service and contributions made to the Pension Fund. It helps preserve pension benefits even when an employee changes jobs or withdraws their EPF. We provide a step-by-step guide to understanding, applying for, and utilizing a Scheme Certificate.
What is an EPF 10C Scheme Certificate?
When you leave a job, you have two options regarding your EPF account:
1. Withdraw the entire EPF and Pension Fund balance.
2. Transfer the EPF balance to your new employer’s account.
However, if you choose not to withdraw your Pension Fund, you can apply for a Scheme Certificate instead. The certificate reflects your total service tenure with a particular employer and ensures that your pension eligibility remains intact when you join another company or retire.
When Should You Apply for an EPF 10C Scheme Certificate?
You should apply for a Scheme Certificate in the following scenarios:
1. Mandatory (After 9.5 Years of Service)
If your total service exceeds 9.5 years, you cannot withdraw the Pension Fund. You must apply for a Scheme Certificate to secure future pension benefits.
2. Voluntary (For Less Than 9.5 Years of Service)
If you have worked for less than 9.5 years and don’t wish to withdraw your Pension Fund, you can apply for a Scheme Certificate. This allows you to consolidate the service period with future employment and become eligible for monthly pension benefits after completing 10 years of service.
Why Do Employees Opt for a Scheme Certificate?
1. By obtaining a Scheme Certificate, you retain your previous service record. This is crucial for qualifying for a monthly pension upon reaching retirement age (58 years).
2. If you withdraw the Pension Fund, your service period becomes void. This affects your pension eligibility.
Example:
If you worked for 12 years in one company and withdrew the Pension Fund, your service period is reset to zero.
But with a Scheme Certificate, these 12 years will count towards your pension eligibility.
How to Apply for an EPF 10C Scheme Certificate?
Follow these steps to apply for a Scheme Certificate:
1. Complete Your Nomination Form
Ensure your nomination form includes details of your spouse and children. Missing details may lead to complications.
Update your nomination details through the EPFO portal.
2. Log in to the EPFO Member Portal.
Navigate to Online Services and select Claim (Form-19, Form-10C, and Form-31).
3. Verify and enter your bank account details for claim processing.
4. Select Scheme Certificate (Form 10C)
If your service is eligible, you will see the option for a Scheme Certificate under Form 10C.
Choose this option and submit your application.
5. Verify the service details, family details, and address provided.
Submit the application using your Aadhaar-based OTP.
6. The Scheme Certificate will be sent to your registered address via courier. Ensure that your address is updated and correct to avoid delays.
Key Points to Remember :
1. Address Accuracy: Ensure your address is correct when filling out the form, as the Scheme Certificate will be delivered to this address.
2. Avoid Mistakes: If you apply for the Scheme Certificate by mistake, you can cancel the application ‘only if it is still in process’. Once processed, it cannot be reversed.
3. Multiple Scheme Certificates: Currently, only one Scheme Certificate can be applied for at a time when applying online. Use offline process to add multiple scheme certificate.
Benefits of a Scheme Certificate :
Secures Pension: Guarantees eligibility for a monthly pension after completing 10 years of service.
No Service Reset: Preserves service history even if you change jobs or temporarily stop working.
Future Flexibility: Allows consolidation of service periods across multiple employers.
How to Use a Scheme Certificate for a Pension?
At retirement or after completing 10 years of service, you can use the Scheme Certificate to claim a monthly pension through Form 10D. During this process:
Enter the Scheme Certificate number, state, and office details.
Provide the unique identification number mentioned in the certificate.
A Scheme Certificate is a valuable document that ensures your service tenure is preserved and pension benefits are secured. By following the correct application process, you can avoid losing years of service and secure a comfortable retirement. If you have further doubts, consult with an EPF expert or refer to official guides on the EPFO portal.
FAQs: EPF 10C Scheme Certificate
1. What is a Scheme Certificate?
A document preserving your service tenure and Pension Fund contributions when leaving a job, ensuring pension eligibility in the future.
2. When should I apply?
- Mandatory: After 9.5 years of service (withdrawal of Pension Fund not allowed).
- Voluntary: For less than 9.5 years of service to retain pension benefits.
3. Why is it important?
It secures pension eligibility, prevents service reset when changing jobs, and consolidates service periods.
4. How do I apply?
- Update nomination details on the EPFO portal.
- Log in and select Scheme Certificate under Form 10C.
- Verify details, submit with Aadhaar OTP, and receive it via courier.
5. Key points to note
- Ensure your address is correct.
- Mistakes can only be corrected if the application is in process.
- Apply offline for multiple certificates.
6. Benefits
Preserves service history, ensure pension eligibility, and allows flexibility across jobs.
7. How to use it?
Use it with Form 10D to claim a pension after completing 10 years of service or at retirement.
Preserve your pension benefits by applying for a Scheme Certificate when needed.
