EPFO: While changing jobs from one company to another, an employee needs to transfer his Employees Provident Fund (EPF) account with his previous employer to the new employer.
The twist comes when the new employer runs a private trust for the EPF proceeds, while the previous employer was depositing the EPF money with the Employees’ Provident Fund Organization (EPFO).
In such a situation, can the employee transfer money from the old EPF account to the new EPF account, if the transfer is between a private EPF trust and EPFO.
Financial affairs expert SK Guha explains that as per the EPFO rules, one can easily transfer his EPF account with the old employer to the new employer, irrespective of whether there was a previous or a new account. Is organized with Trust or EPFO.
Now there is no chance of losing money
SK Guha says that with regard to transferring the EPF account, two aspects should be noted.
An EPF member not only transfers money from an old EPF account to a new EPF account, he also transfers the details related to the Employees’ Pension Scheme (EPS) account to the new employer.
In the EPS account, the details relating to the number of years of service are transferred to the new employer.
However, the money deposited by the employer (old and new) in the EPS account is deposited in the EPFO. At the time of transfer, the money is with the EPFO and the pension is paid to you as and when you become eligible to receive. Now the chances of sinking EPF money are negligible.
Online EPF account transfer
Transfer of EPF account can also be done online at the stage of transfer of EPF account from EPFO to Employer’s Trust or vice versa, provided both the employer (old and new) are able to initiate the transfer through the unified portal.
In case the details of any particular company or trust are not available on the Member Services Portal, the employee has to fill Form-13 manually. After that it has to be submitted to your HR department.
Recently, the government has announced automatic transfer of EPF accounts at the time of job change, though the process is yet to be announced.
Before initiating the process of transferring EPF account one should ensure that his/her EPF account is KYC compliant, Universal Account Number (UAN) linked with Aadhaar Number and Mobile Number linked with EPF Account should be linked with Aadhaar Number .
Process to transfer EPF account on portal
- Login to your account on Member Services Portal by entering UAN and Password.
- Once logged in, click on Online Services – and select a member – One EPF Account (Transfer Request).
- A new tab will open. Here the details of the new EPF account will be shown where you want to transfer the money. You need to enter your new EPF account number. This is available on your salary slip or the EPF statement of your new employer.
- You have to choose whether your online transfer will be verified by your current employer or previous employer. You should check with your current employer whether you can select them for verification of EPF account transfer.
- If both your old and new employer have same UAN then enter the member ID (previous EPF account number). If it is different then enter the UAN of the old employer. Click on Get Details. Now your EPF account details will be shown. Select the account from which the money is transferred.
- Click on Get OTP- and a one-time password will be sent to your Aadhaar linked mobile number. Enter the OTP and your transfer request will be submitted successfully. Your Tracking ID will be generated and you can download the submitted form in PDF format.
Time taken for transfer up to 45 days
Guha explains that it usually takes 30 to 45 days for the EPF transfer to be completed. Once the EPF transfer is completed successfully, the old EPF account will be issued by the employer (EPFO/Trust) in duplicate to Annexure K.
One copy will be given to the employee and the other copy will be given to the new employer (Trust/EPFO). If you have not received a copy of the annexure or annexure, you can request your new employer to provide it.
