Confused About PF Transfer from RPFC to Trust? Seeking Clarity from Experts

Dear all,

First of all, a great Diwali wish to you all and happy knowledge sharing. I would like to know from the experts whether PF can be transferred from RPFC to Trust. I am confused because my PF was with RPFC in my last employer, and I recently joined a company where my PF is with Trust. My present employer is saying that PF cannot be transferred from RPFC to Trust, whereas my last employer agrees that it can be transferred.

Can anyone help me out with the provisions/rules/section?

Thanks in advance.

Regards,
Amrita/Sachin Lala
CA/HR-Comp&Ben

Dear Amritha, I cleared the above matter with the Office of the Regional PF Commissioner, Kozhikode. If the pension scheme is directly under EPF, the PF amount can be transferred from RPFC to an exempted Trust. As per the provisions of EPS-95, those providing better benefits will be exempted from EPS. Accordingly, along with the exempted Trust, if your present employer offers an exempted pension scheme, the above transfer is not possible. However, you may clarify or confirm this with your concerned Regional PF Office.

Regards,
Abbas P.S.

Dear friends,

If we keep transferring PF to our new employers when we change jobs, and if the continuity of PF contribution is 5 years, we are eligible for loans. Apart from this, are there any benefits in transferring PF, or is withdrawal better?

My last organization's PF was with RPFC (4 years), and now I am in a Trust (2 months). The concerned person dealing with PF here in my current organization says that from RPFC to Trust, we cannot transfer the PF; we need to withdraw it.

I am confused about whether to transfer or withdraw. If I want to go for a transfer, how should I proceed? And if there is a withdrawal, will I get the pension amount as well?

Which is Better: PF Transfer or PF Withdrawal?

Regards,
Amrita Mishra

Dear Amrita Mishra,

If the pension fund is under EPFO, then the transfer of the PF amount from EPFO to an exempted PF Trust and vice versa is possible. If the employer provides better pension benefits, such organizations may be exempted from EPS. If you are under a so-called exempted pension scheme, the transfer as mentioned above is not possible. Kindly ask your concerned personnel to contact the EPFO in this regard.

Regards,
Abbas P.S.

Dear Amrita Ji,

The highest benefit one derives from the continuation of a PF account despite a change of employers is the continuation of pension subscription. The employee is eligible for a pension after 10 years of continuous service. If the account is continued, the employee gets their past services counted. Otherwise, only the current service is taken into consideration for the grant of a pension.

Whenever one changes a job, please advise them to transfer their PF account to the new account. I disagree with Mr. Abbas on this matter. Even if some firm has its own PF Trust, the amount lying in one's PF account can be transferred to the new account with any EPFO office.

Thanks and regards.

You should not withdraw. You should transfer to the trust. I do not know how your new employer is saying that the amount cannot be transferred. It has to be done. The pension account and EPF account are different. If the trust has an exempted Pension Fund as well, then the transfer becomes difficult. This is because the benefits are calculated by the actuary based on the contributions made, the period for which contributions have been made, the pension settlements done during that period, etc.

Since you were already covered under the EPS (I presume so) along with EPF with the RPFC, transferring your pension wealth to the trust Pension Fund is difficult. That is why in that case (only in that case, i.e., if your new employer has an exempted Pension Fund), you cannot transfer your EPF. You have to settle the EPF in that case.

As per the act, you cannot withdraw the PF if you are in employment as you are giving an undertaking of non-employment in the withdrawal form.

Transfer from Un-exempted to Exempted

The transfer from Un-exempted to Exempted is governed by rules and regulations framed by the Trust (Grant of Exemption). The transferring pension fund is beneficial for the quantum of pension, and the pension is based on the period of contribution to EPS.

Regards

Dear Amritha and all,

Important Points on PF Transfer and Withdrawal

1. The PF amount can be either transferred or withdrawn.
2. PF can be transferred from RPFC to Trusts or vice versa.
3. The pension fund can also be transferred.
4. I think the person who has stated that it cannot be transferred appears to have incomplete knowledge.
5. Regarding the withdrawal of the PF amount: If you have any funding requirements or emergencies, you may withdraw; otherwise, you can transfer. It is your decision—nobody can say 'no' either to withdraw or transfer.
6. If you have completed 10 years of service, you cannot withdraw EPS. It can be transferred, or you can opt for a pension after the completion of 50 years or 58 years.

Hope things are clear.

Regards,
K. Ramachandra
Bangalore

Dear Shyam Agarwal,

In which matter do you disagree with me? I clearly stated that the PF amount may be transferred from RPFC to Trust and vice versa, provided the pension is dealt under the EPS-95. You are also citing the same, but on the second part, you keep mum.

Abbas.P.S

Dear Amritha and all,

Please note:

1. The PF amount can be either transferred or withdrawn.
2. PF can be transferred from RPFC to Trusts or vice versa.
3. The pension fund can also be transferred.
4. I think the person who stated that it cannot be transferred seems to lack complete knowledge.
5. Regarding the withdrawal of PF amount - If you have any requirement for funds or an emergency, you may withdraw; otherwise, you can transfer - it is your decision - nobody can say 'no' either to withdraw or transfer.
6. If you have completed 10 years of service, you cannot withdraw EPS - it can be transferred, or you can opt for a pension after completion of 50 years or 58 years.

Hope things are clear.

Regards,

K. Ramachandra Bangalore

Dear Sir, While working in my previous company as HR, I noticed that both forms, i.e., Form 19 and Form 10C, were submitted to EPFO by our employees after 2 months of resignation, etc.

My query is to know if a person who was employed for less than 5 years in one organization can withdraw his pension amount, which is 8.33% of the employer's monthly contribution, from EPFO or not.

Please, sir, help me out with this particular query.

Hoping for an earliest reply...!!!

Dear Mr. Abbas Ji, I disagree with your statement: "Accordingly, along with the exempted Trust, if your present employer provided to have an exempted pension scheme; the above transfer is not possible."

It may be that I have not correctly followed your statement. Perhaps I hurriedly jumped on your assertion "the above transfer is not possible" without trying to understand what you exactly mean to say. But through this post, I wish to make it clear that I have no disrespect for your post. I otherwise carefully read your posts and find them knowledgeable, well-studied, and most useful.

Thanks and regards,
Shyam Agrawal