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Employees lose pension benefits by withdrawing funds instead of choosing a Scheme Certificate, which preserves service years for EPFO pension eligibility
The taxpayer reported investments worth Rs 69 lakh. (representative image)
Many employees make a costly mistake while switching jobs. They transfer their Provident Fund (PF) from the previous company but withdraw the pension amount or leave it untouched without proper planning. If the total service period is less than 10 years, withdrawing pension money can mean losing valuable future benefits. Instead, opting for a “Scheme Certificate” can prove to be a strong support during old age.
As per EPFO rules, this certificate preserves past service and helps in completing the required 10 years by adding it to the service period at a new job. While some people prefer to take the small amount available at present, they often overlook the long-term advantage of a fixed monthly pension. A steady pension ensures financial security, a dignified life after retirement, and support for the family. For this reason, choosing a Scheme Certificate while changing jobs is considered a wise decision.
What is a Scheme Certificate?
The EPFO issues a Scheme Certificate when an employee leaves a job after working for more than six months but less than 10 years. It records the years of pensionable service and acts as an official government document showing how long a person has worked.
This certificate can be presented at the next workplace to add previous service to the new one. For instance, if someone worked for seven years and withdrew the pension amount, the earlier service becomes zero and they must complete the full 10 years again. However, by keeping the Scheme Certificate, only the remaining three years need to be completed to become eligible for pension benefits.
Benefits of Scheme Certificate
The biggest advantage of Scheme Certificate is that after completing 10 years of total service, an employee becomes eligible for a lifetime monthly pension starting at the age of 58. If a person completes 20 years of service, EPFO provides an additional weightage of two years, which increases the pension amount.
In case of an employee’s sudden death, the family becomes eligible to receive a family pension. With a Scheme Certificate, pension can be started after retirement from anywhere in India.
Who Can Obtain a Scheme Certificate?
Anyone whose service period is more than 6 months but less than 10 years can apply for it. Once 10 years of service are completed, it becomes mandatory. Service from different jobs can be linked using this certificate.
Even if the certificate is lost, there is no need to worry. EPFO has digitised records, and the entire service history can be viewed on the UAN portal. A physical or digital copy can also be obtained through the former employer.
How to Obtain a Scheme Certificate?
While leaving a job, employees need to fill Form 10C. Instead of selecting the “Withdrawal Benefit” option, they should choose “Scheme Certificate”. This process can also be completed online through the EPFO portal.
As per EPFO’s Table D, the withdrawal amount is usually small, often around Rs 20,000- Rs 30,000. However, by withdrawing this one-time amount, an employee may lose a monthly pension of around Rs 3,000-Rs 5,000 in later years. A small decision taken today can secure financial stability and peace of mind during retirement. This makes the scheme particularly important for private sector employees looking to ensure a safe and stable future.
What happens if the certificate is lost?
The entire process is now online through the EPFO’s UAN portal. Employees can log in to view their full service history. A copy can be requested from the previous employer or downloaded again from the portal.
What benefits are available upon completing 10 years of service?
After completing 10 years, a lifetime pension begins at the age of 58. If 20 years of service are completed, an additional weightage of two years is added, increasing the pension amount. In the event of the employee’s death, the family immediately becomes eligible for a family pension.
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February 13, 2026, 18:55 IST
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