Difference Between Provident Fund and Pension Fund

A provident fund is a retirement fund run by the government. A pension plan is a retirement plan run by an employer. Pension funds operate much like annuities. Provident funds operate more like 401(k) or savings accounts.

1. Which is better provident or pension fund?
2. What is the main difference between pension contribution and provident fund contribution?
3. What is PF amount and pension amount?
4. Is EPF a pension fund?
5. Can you have 2 pensions?
6. Can I check my provident fund balance?
7. How do I calculate my provident fund?
8. Do you get provident fund if you resign?
9. How long do you wait for provident fund money?
10. What is the formula for pension calculation?
11. How is PF pension calculated?
12. How is basic pension calculated?

Which is better provident or pension fund?

The provident fund is usually more flexible than the pension fund. Part of the lump sum can be used to buy a private pension through a private pension company. The main advantage of a pension fund is that it is paid for life. ... Pension funds offer better tax benefits to the worker.

What is the main difference between pension contribution and provident fund contribution?

The advantage of a pension fund is that, although a smaller amount, you will receive a monthly income for the rest of your life. And, there is no risk of spending it all in one go with a lump sum payout. With a provident fund, the member has more flexibility and is given the entire cash lump sum all at once.

What is PF amount and pension amount?

The total PF amount comprises the contribution made by you and your employer plus accrued interest. Under EPF Act 1952, you can withdraw the full PF amount if you retire from your service after having attained the age of 58 years and you can also claim the EPS amount (Employees' Pension Scheme amount) at the same time.

Is EPF a pension fund?

The EPF not only functions as a retirement fund, it is also a multi-purpose savings fund that allows withdrawals to be made to finance housing, education and medical expenses. Since January 2007, contributions to the fund are split between two accounts, which were created for different types of withdrawals.

Can you have 2 pensions?

There are no restrictions on the number of different pension schemes that you can belong to, although there are limits on the total amounts that can be contributed across all schemes each year, if you're to receive tax relief on contributions. ... Most personal pensions are flexible and portable.

Can I check my provident fund balance?

To check your EPF account balance on the EPFO portal, you must have an active Universal Account Number (UAN). To check your balance, you will have to visit https://passbook.epfindia.gov.in/MemberPassBook/Login.jsp and enter your UAN and password. The website allows you to view and download your EPF account statement.

How do I calculate my provident fund?

Employees' Basic Pay + DA: Rs 25000. Employee contribution towards EPF: 12% x 25000 = Rs 3000. As per the Act -12% Employer contribution will be divided into 2 parts i.e. 8.33% towards Employees pension scheme and rest 3.67% towards Employee Provident fund.

Do you get provident fund if you resign?

If you resign, or you are retrenched, you are allowed to withdraw from your employer-sponsored retirement fund (that is a pension or provident fund). The "benefit" you can claim is the balance in your retirement account. Once you have withdrawn, you have no other claim against that fund.

How long do you wait for provident fund money?

Provided your tax affairs are in order, and you have submitted all the required documents (such as a copy of your ID, a completed instruction form stating where the money should go, and proof of banking details), it normally takes 14 to 21 business days to receive your provident fund pay-out.

What is the formula for pension calculation?

So, upon applying the formula, (15000 * 35 / 70) = Rs. 7,500 per month is the maximum pension that one can earn through EPS.

How is PF pension calculated?

Effective from September 1, 2014, the contribution will be made as follows: 8.33% of Rs 15,000 = Rs 1250. Kasturirangan says, "The formula to calculate the EPS pension is as follows: Monthly pension amount= (Pensionable salary X pensionable service) /70."

How is basic pension calculated?

1. Date of Retirement. (dd/mm/yyyy)
2. Total Qualifying Service.
3. Sum of Last 10 months' Emoluments (Basic Pay + NPA + SI +DP)
4. Average Emoluments(in Rs.)
5. Basic Pension Amount (in Rs.)
6. Sum of Last Month Emoluments (Basic Pay + NPA + SI + DP) (in Rs.)
7. Normal Family Pension ( in Rs.)
8. Enhanced Family Pension (in Rs.)