Navigating Resignation and Benefits: How to Transition from NPCIL to CBEC?

I am working in NPCIL (A Govt. of India Enterprise) since 25.01.2002. NPCIL maintains EPF in which 10% of Basic + DA is deducted from the employee, and 10% of Basic + DA is added by the employer. I applied through the proper channel for the Staff Selection Commission, and I have been selected for the position of Inspector in CBEC (Govt. of India). The posting may be in November 2012.

Questions Regarding Resignation and Benefits

What terms should I use in my technical resignation? What type of benefits am I eligible for from NPCIL? Can my previous service be counted for pension purposes? Am I eligible for the OLD PENSION SCHEME?

From your posting, I understand that the new job is with a government department and that the PF pension is not applicable there. If so, you will be eligible for a pension after reaching 50 years of age. You may withdraw the PF amount, preferably within three years. In addition, you may receive gratuity and other retirement benefits.

If EPF is applicable in the new service, you may transfer both the PF amount and the pension to combine with the new service. One form (Form 13) will suffice for the transfer of both.

Regards,
Abbas.P.S

NPCIL doesn't send PF contributions to EPFO. The contributions of all employees are held by NPCIL. Can I request NPCIL to send the PF amount to my new employer?

Since you are resigning from a PSU and joining a government service, you are not eligible to transfer your EPF account or pension account. Please take a withdrawal of the same from the old employer, viz., NPCIL. You are also not eligible to count your past service in the new central government employment. You are eligible for NPS (New Pension Scheme) only. You cannot join the old pension scheme at the central government.

If I'm correct, you are shifting from a PSU to a central government service. NPCIL is a PSU, and its PF is managed by a PF Trust, am I correct? Have you applied through the proper channel and with the consent of both organizations to take up a new job? I don't know how many years you served in NPCIL. However, don't worry; nothing is lost. Subject to confirmation by the concerned, you will have the following:

Ref. PF/Pension
You can transfer your PF following the relevant procedure. In CBEC, you will not have PF contributions to your PF account, and you cannot opt for the old Pension scheme either.

Gratuity and Continuity of Service
Since you are joining from a CPSU to a Government of India service, your gratuity and past service could be transferred by NPCIL remitting the equivalent of your service rendered in NPCIL, irrespective of duration, to the GOI. In this case, you'll have continuity of service for both gratuity, pension, and possibly leave as well.

For a better understanding, I would advise that you consult the Payroll officer of CBEC to determine what is better for you before joining and act accordingly. It is better not to have any break while joining.

To understand all the benefits you will receive in GOI service, it's advisable to purchase a copy of Swamy's Handbook for Central Government employees, which will provide relevant information.

All the best.

Regards,
Kumar S.

Sir,

I have been working with Central Govt NVS since 1992 and was selected for the state Govt Service in 2011 through the Commission. The State Govt offers the GPF. May I transfer CPF to the existing GPF Account?