Confused About PF Transfer from EPFO to Trust? Seeking Advice on EPS Withdrawal

Hi, my previous company maintained its PF with EPFO, Mumbai, but my new company (a foreign bank) has its own Trust. I applied for the transfer of PF from EPFO to my new firm's Trust by filling up the relevant form and submitting it to the HR of my new firm, who in turn submitted it to EPFO. However, EPFO rejected the request, stating:

“AS EPF ACT IS NOT APPLICABLE TO THE BANK, MEMBER IS REQUESTED TO SUBMIT FORM 10C FOR WITHDRAWAL OF PF & FPF AMOUNT.”

My firm's HR explained that the above comment is slightly confusing and actually, EPFO means to say: I can transfer the PF from EPFO to the Trust. But since my firm's trust only takes care of EPF and not EPS (for pension), EPFO wants me to withdraw the EPS amount by filling up form 10C, and then they'll allow the transfer of EPF to my firm's Trust.

Questions Regarding PF Transfer

1) In such a case (PF transfer from EPFO to Trust), is it really mandatory to withdraw the EPS amount? If not mandatory, should I contact EPFO again?

2) I am in no need of surplus funds at the moment, so what is beneficial in the long run (and how) - withdraw EPS or let it remain with them?

Kindly advise.

Regards,
Vaibhav

Enclosing the instructions for EPF accumulation transfer for your reference, hoping this will be beneficial.

Thanks & Regards,

Sumit Kumar Saxena

Hi Sumit, thanks for that document. It provides some useful information, but it still doesn't answer my questions.

As per the document, I assume my current employer falls under category 1c, i.e., it's exempted from EPF since it has its own trust. I also suppose it's exempt from EPS since it doesn't maintain an EPS amount.

In such a case, the document says I should "Apply to EPFO for transfer." That is what I did, but it was rejected (details mentioned by me in the original post).

So, I am not sure how to proceed. I am thinking of withdrawing my EPS (but not EPF) amount but would like to know if it's advisable to do so. Am I right in thinking that it is indeed possible to withdraw EPS without withdrawing EPF?

EPF and EPS Management Clarification

You're right that the EPF trust manages only the EPF accumulation, i.e., 12% + 3.67%. The rest, EPS accumulation of 8.33%, is managed by the EPFO. Firstly, if you need to transfer the same, you are required to fill out Form 13, which is enclosed. However, if you want to withdraw the same, you will have to fill out Form 10C.

Secondly, the transfer of EPS accumulation is possible only when the EPS account was managed by the EPFO. Withdrawal can only be possible if the service is less than 10 years.

Thirdly, forms are enclosed for reference, the choice is yours.

Thanks & Regards,

Sumit Kumar Saxena