Defined Pension Scheme


I have resigned from my current organisation after 9 years of service and I was covered under defined Pension scheme. On enquiry I was informed that my contribution towards my PF will be paid to me and employer contribution stands forfeited. Kindly clarify the same holds true.


Hi ajayoberoi,

We assume that your question refers to the Employee Provident Fund pension scheme. In this case, your employer’s contributions doesn’t stand forfeited. However, the rule is that you must be at least 58 years of age to withdraw 100% of the retirement corpus. Any withdrawals made before attaining the age of 58 years will not include the employer’s contribution and interest. This does not mean that you will never receive the employer’s contribution. That portion of the corpus will be available for withdrawal when you reach retirement age.
If your question is regarding some other pension plan then do write to us with those details and we’ll do our best to answer that for you.

Team BB


Dear Sir,

Kindly clarify that if I will transfer my provident fund balance to my new organisation, then whether entire corpus will be transfered including employers contribution.




We are quite fortunate to get to know about the defined pension scheme through our friends and employers. Our financial situations will change in some months. As per my knowledge, the defined pension scheme plans are actually becoming near-extinct due to costs that are incurred by an employer. Generally, if the pensions are given by the employers, usually Kotak Mutual fund are a defined contribution type.