Understanding Family Provident Fund Transfer and EPF Act Implications

I have a query on FPF. I changed my job after working for 5 years and 7 months. EPF and FPF both were applicable for me. My current company has an Income Tax department-recognized Trust. Hence, it is not a member of the FPF scheme. So, I was told that I cannot transfer my FPF accumulations from my previous company to my new company. I was advised to apply for a withdrawal of the FPF amounts in Form 10C.

I want to transfer the FPF accumulations along with my PF to my new company. Is it permitted? Please advise.

Dear Mr. Subramanyam,

Your company might not be covered under the PF Act, 1952, or if they are covered, then they might have set up a PF trust meant for excluded employees as defined under para 2(f) of the EPF & MP Act, 1952. However, considering your previous membership with the PF commissioner, your status remains that of the statutory member. Therefore, if the PF Act is applicable to your company, then in that case, the employer is not right in not granting FPF membership to you. Alternatively, you may apply for obtaining a Scheme Certificate by filling up form No. 10C and attaching three copies of your children's birth certificates if any. Kindly request your ex-employer to submit the same to the respective PF office.

Further, in view of the amendment introduced to the Finance Act 2006, whereby all recognized provident fund trusts are required to obtain exemption from the PF commissioner and file form No. 40 C to the CIT on or before 31st March 2009.

Regards,
Paresh Pathak