Transferring EPF and EPS from One Company to Another: A Comprehensive Guide

Transfer EPF & EPS

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Employee Provident Fund (EPF) and Employee Pension Scheme (EPS) are essential components of a working individual's financial security. These schemes aim to provide retirement benefits and social security to employees in India. If you are changing jobs or transitioning to a new company, it is crucial to transfer your EPF and EPS funds to ensure seamless continuation of your benefits. In this article, we will guide you through the process of transferring EPF and EPS from one company to another. 

With the advent of technology, the process of transferring EPF and EPS funds has become more convenient and efficient through online platforms. In this article, we will guide you through the step-by-step process of transferring EPF and EPS from one company to another using the online method.

Understanding EPF and EPS

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Before delving into the transfer process, let's briefly understand EPF and EPS.

Employees' Provident Fund (EPF)

EPF is a retirement benefit scheme mandated by the Government of India. It is designed to create a retirement corpus for employees. Both the employer and employee contribute 12% of the employee's basic salary and dearness allowance to the EPF account.

Employees' Pension Scheme (EPS)

EPS is a pension scheme linked to the EPF. Under EPS, the employer contributes 8.33% of the employee's basic salary and dearness allowance towards the pension fund.

Step-by-Step Guide to Transfer EPF and EPS

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Step 1: Activate and Verify your UAN

• Universal Account Number (UAN): Ensure that your UAN is active and linked to your current and previous employers. If you don't have a UAN or need to activate it, visit the official EPFO (Employee Provident Fund Organization) website and select the UAN Activation option.

• Provide Personal Details: Fill in the required personal details, such as your name, date of birth, mobile number, email address, and Aadhaar/PAN details. You will also need to create a password for future login.

• Verification: Once you submit the activation form, an authorization PIN will be sent to your registered mobile number. Enter the PIN on the website to verify your account.

Step 2: Login to the Unified Member Portal

• Visit the EPFO Website: Go to the official EPFO website and click on the For Employees section.

• Select the Unified Member Portal: On the next page, click on the "Our Services" tab and select the "For Employees" option. From the dropdown menu, choose the Unified Member Portal.

• Enter Login Credentials: Enter your UAN, password, and the provided Captcha code. Click on the "Sign In" button to proceed.

Step 3: Initiating the Transfer Request

• Dashboard and Online Services: After logging in, you will be directed to the member dashboard. Locate the "Online Services" tab and select "One Member - One EPF Account (Transfer Request)".

• Verify Member Details: Ensure that your personal details and employment history displayed on the screen are correct. If any information is incorrect, contact your current employer to rectify it before proceeding.

• Previous Employer's Details: Fill in the details of your previous employer, including their establishment number, extension, and EPF office state.

• Current Employer's Details: Provide the necessary information regarding your current employer, such as establishment number, extension, and EPF office state.

• Declaration: Read and agree to the declaration, stating that the details provided are accurate and you understand the terms and conditions of the transfer process.

Note: Before moving further in Attestation through you have to select Pervious Employer if your Previous Employer has its own PF trust, Otherwise you can select any of options i.e. Previous/Present Employer.

Step 4: Submitting the Transfer Request

• Verification and Validation: Review all the details you have entered to ensure accuracy. Once satisfied, click on the "Get OTP" button to receive a One-Time Password (OTP) on your registered mobile number.

• Enter OTP and Submit: Enter the OTP in the designated field and click on the "Submit" button to initiate the transfer request.

Note: If your Previous Company has its own PF trust then after submitting the transfer request Form-13 will be generated which you have to submit to your Pervious Employer and ask for Annexure K. Once you got the Annexure K then you have to submit that to your current organization.

Step 5: Tracking the Transfer

• Transfer Claim ID: After successfully submitting the transfer request, a unique Transfer Claim ID will be generated. Note down this ID as it will be required for tracking purposes.

• Online Tracking: To track the progress of your transfer request, go back to the member dashboard and select the "Track Claim Status" option under the "Online Services" tab. Enter your UAN and the generated Transfer Claim ID to view the status of your transfer.

Benefits of Transferring EPF and EPS

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Transferring your Employee Provident Fund (EPF) from one company to another offers several benefits that contribute to your long-term financial well-being. Let's explore some of the significant advantages of transferring EPF

• Consolidation of Funds: By transferring your EPF account to your new employer, you consolidate your retirement savings in a single account. It simplifies the management of your funds and allows for better tracking of your contributions, interest, and overall growth.

• Uninterrupted Contribution: EPF is a contribution-based scheme where both you and your employer make regular contributions. Transferring your EPF ensures the continuity of these contributions. You don't have to start afresh with your EPF account every time you switch jobs, preserving the growth of your savings.

• Accumulation of Interest: EPF offers a competitive interest rate on your contributions, which is compounded annually. By transferring your EPF, you retain the accumulated interest from your previous account and continue earning interest on the consolidated amount. Over time, this can significantly enhance your retirement corpus.

• Pension Benefits: In addition to the EPF account, the transfer process also covers the Employee Pension Scheme (EPS). Transferring your EPS ensures the continuity of your pension benefits, including the calculation of your pensionable service and the determination of your pension amount based on your average monthly salary and years of service.

• Employer's Contribution: EPF involves a matching contribution from your employer. When you transfer your EPF account, the accumulated employer's contribution from your previous account also gets transferred. This adds to your overall retirement savings and reinforces the importance of transferring your EPF to maximize your financial security.

• Tax Benefits: EPF offers tax benefits both at the time of contribution and withdrawal. The transferred EPF balance retains its tax-exempt status, ensuring that you continue to enjoy tax advantages on your accumulated corpus. This can have a positive impact on your overall tax planning and help you save more in the long run.

• Ease of Monitoring: Transferring your EPF allows you to track the growth of your retirement savings through a single account. It simplifies the monitoring of your contributions, interest earned, and other relevant details. You can access your EPF account online, making it convenient to keep track of your funds and plan your financial goals accordingly.

• Retirement Planning: EPF serves as a vital component of your retirement planning. By transferring your EPF to the new employer, you maintain the continuity of your retirement savings strategy. It ensures that you remain committed to building a robust financial cushion for your post-employment years.

Important Points to Remember

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• Timely initiation: It is advisable to initiate the transfer process as soon as possible to prevent any delays or complications.

• Valid UAN: Ensure that your UAN is active and linked to your current and previous employers. If not, contact the EPFO to resolve any UAN-related issues.

• Correct employer details: Accurate details of both the previous and new employers are crucial for a smooth transfer. Double-check the information provided in the transfer claim form or the online portal.

• Transfer of EPS along with EPF: It is important to transfer both EPF and EPS funds together to ensure uninterrupted pension benefits.

Conclusion:

Transferring your EPF and EPS accounts from one company to another is a crucial step to ensure the continuity of your retirement savings and benefits. By following this step-by-step guide, you can streamline the transfer process and ensure a seamless transition. Remember to gather all the necessary information, communicate with your current and new employers, and stay updated on the progress of your transfer request. By taking these steps, you can safeguard your financial future and enjoy a hassle-free transfer of your EPF and EPS accounts.