EPFO News: If you are a private sector employee, you have until June 26th to choose a higher pension under the Employees’ Pension Plan (EPS) run by the Employees’ Provident Fund Organization (EPFO). However, taxpayers have plenty of leeway to choose a higher pension based on EPS. However, it should be noted that choosing a higher annuity option may result in lower EPF contributions and an overall smaller EPF corpus at retirement withdrawal.
EPFO News: If you are a private sector employee, you have until June 26th to choose a higher pension under the Employees’ Pension Plan (EPS) run by the Employees’ Provident Fund Organization (EPFO). However, taxpayers have plenty of leeway to choose a higher pension based on EPS. However, it should be noted that choosing a higher annuity option may result in lower EPF contributions and an overall smaller EPF corpus at retirement withdrawal.
Important considerations for employees before changing EPF, EPS combinations
Taxpayers are given ample leeway to evaluate whether to opt for higher EPS. Those who meet the conditions according to the EPF membership history are eligible.
Important considerations for employees before changing EPF, EPS combinations
Taxpayers are given ample leeway to evaluate whether to opt for higher EPS. Those who meet the conditions according to the EPF membership history are eligible.
1) Clear founder and CEO Archit Gupta said one of the first effects of higher EPS is that such employees will automatically have lower EPF contributions. . This may result in an overall smaller EPF corpus for him at retirement withdrawal.
1) Clear founder and CEO Archit Gupta said one of the first effects of higher EPS is that such employees will automatically have lower EPF contributions. . This may result in an overall smaller EPF corpus for him at retirement withdrawal.
It added that the transfer to EPS could be significant if done with a retroactive effect in which EPF balances are transferred to EPS.
It added that the transfer to EPS could be significant if done with a retroactive effect in which EPF balances are transferred to EPS.
2) Another point to consider is whether these taxpayers have plans to leverage their EPF balances after retirement. Some are buying a home, starting a business, or intending to make such an investment. In such cases, they may want to sit back and use up the EPF corpus when they retire, Gupta explained.
2) Another point to consider is whether these taxpayers have plans to leverage their EPF balances after retirement. Some are buying a home, starting a business, or intending to make such an investment. In such cases, they may want to sit back and use up the EPF corpus when they retire, Gupta explained.
Archit Gupta said taxpayers may opt for EPS if they are looking for a higher monthly pension income (which is fully taxable while EPF withdrawals are completely tax-free). . This is when you don’t need a large amount of assets when you retire and want monthly payments assuming it will last for many years after retirement. You can receive your pension for as long as you live, and depending on your eligibility, your spouse and children may also receive a portion of your pension.
Archit Gupta said taxpayers may opt for EPS if they are looking for a higher monthly pension income (which is fully taxable while EPF withdrawals are completely tax-free). . This is when you don’t need a large amount of assets when you retire and want monthly payments assuming it will last for many years after retirement. You can receive your pension for as long as you live, and depending on your eligibility, your spouse and children may also receive a portion of your pension.
According to tax and investment expert Balwant Jain, there are three factors to consider before changing your EPF, EPS account.
According to tax and investment expert Balwant Jain, there are three factors to consider before changing your EPF, EPS account.
1) Salary: First of all, what is your take home salary?
1) Salary: First of all, what is your take home salary?
2) Age: Another factor to consider before choosing a higher EPS is age.
2) Age: Another factor to consider before choosing a higher EPS is age.
3) Retirement: Mr Balwant Jain said that a rough calculation of salary at retirement should be made.
3) Retirement: Mr Balwant Jain said that a rough calculation of salary at retirement should be made.
Meanwhile, participants opting for a higher annuity will have three months to agree to additional contributions under the EPS or to divert their membership fees, a notice dated May 11 said.
Meanwhile, participants opting for a higher annuity will have three months to agree to additional contributions under the EPS or to divert their membership fees, a notice dated May 11 said.
“Pensioners/members may be given up to three months to agree to deposit and divert these dues (in the prescribed form),” the circular said.
“Pensioners/members may be given up to three months to agree to deposit and divert these dues (in the prescribed form),” the circular said.
Until May 3, 2023, EPFO has provided an online facility for participants to submit a joint option form (with their employer) to opt for a higher pension. The deadline has since been extended to 26 June 2023.
Until May 3, 2023, EPFO has provided an online facility for participants to submit a joint option form (with their employer) to opt for a higher pension. The deadline has since been extended to 26 June 2023.
Earlier this month, the Department of Labor also revealed that an additional contribution of 1.16% of basic wages for members opting for a higher pension would be run from employer contributions to the social security scheme run by EPFO. bottom.
Earlier this month, the Department of Labor also revealed that an additional contribution of 1.16% of basic wages for members opting for a higher pension would be run from employer contributions to the social security scheme run by EPFO. bottom.
