Confused About EPFO Rejection? Need Help Understanding EPS Deduction Issue

I started my first job in Nov 2011 and left the same in Oct 2014 (firm no. 1). I withdrew my PF amount as I did not have a job in hand, and the claim was settled in March 2015. In April 2015, I joined another organization (firm no. 2) and worked there until Aug 2021. Upon joining my 3rd company (firm no. 3), I raised a transfer request for the PF amount, which got rejected with the statement: "EPS IS DEDUCTED EVEN THOUGH WAGES IS GREATER THAN 15K PLEASE CLARIFY."

Now I have been following up with my ex-employer; however, no one has clarity on what happened and what went wrong. They are saying that I must have filled a form upon joining firm no. 2 indicating that I have a UAN number, etc.; however, there is no clarity on the resolution.

Can someone explain to me in lay terms:

1) What went wrong?
2) Who is responsible?
3) How can this be corrected?
4) Will this affect me in any way financially or on my PF balance?
5) Lastly, should I provide any update on this to my new firm (firm no. 3)?

What Went Wrong:
The issue here is related to the EPS (Employee Pension Scheme) deduction, which is part of the EPF (Employees' Provident Fund) structure. The rejection of your transfer request is likely due to the incorrect calculation or deduction of EPS even though your wages were above the threshold of Rs. 15,000.

Who Is Responsible:
The responsibility for the accurate deduction and contribution to EPS lies with the employers. In this case, the error seems to have occurred during your employment with firm no. 2, where the EPS deduction was not processed correctly despite your wages exceeding the limit.

How Can This Be Corrected:
To address this issue, you should first reach out to your second employer (firm no. 2) and request a detailed explanation of why EPS was deducted incorrectly. They may need to rectify the error and provide you with the necessary documentation to support the correction. If the mistake is acknowledged by your ex-employer, they should assist in rectifying the EPF transfer process by ensuring the correct details are submitted to the EPFO (Employees' Provident Fund Organization).

Will This Affect You Financially or on Your PF Balance:
The incorrect deduction of EPS can impact your pension benefits under the EPF scheme. If EPS contributions were deducted wrongly, it could result in a lower pension amount upon retirement. Therefore, it is crucial to rectify this error promptly to safeguard your future pension benefits.

Should You Provide an Update to Your New Firm (Firm No.3):
It is advisable to keep your current employer (firm no. 3) informed about the situation, especially if it could affect your PF transfer or future benefits. Transparency with your new employer will help them understand any delays or discrepancies in your PF transfer process and may assist in resolving the issue efficiently.

By addressing this issue promptly and seeking clarification from your ex-employer, you can work towards correcting the EPS deduction error and ensuring the smooth transfer of your PF balance to your current account.