Pension Scheme Amount In EPF Transfer

Hi There,

I have lots of question to ask about EPF transfer. I hope someone can provide the answers. I try to be precise and short so as it would not look like an essay.

Job Profile:

1st Job < = > Company ABC < = > Aug, 2005 to Sep 2007 < = > Regional EPF
2nd Job < = > Company LMN < = > Sep, 2007 to Nov 2010 < = > Regional EPF
3rd Job < = > Company XYZ < = > Dec, 2010 to Apr 2011 < = > XYZ Own Trust
4th Job < = > Company PQR < = > Apr, 2011 to till date < = > Regional EPF

All my EPF accounts are not transferred or withdrawn. I have following questions:-

(1) I left my first Company ABC in Sep, 2007. Till when I received the interest in that EPF account? I believe it is paid till three years from the last addition to the PF account.

(2) I know that 12% of basic is employer’s contribution which is further divided into 8.33 and 3.67. The 8.33 goes into Pension Scheme and 3.67 go to PF. When I submitted form-13 to transfer my EPF lying in Regional EPFO of Company ABC annd LMN to PQR what will happen to amount lying in Pension scheme? Will it be transfer along to the new account?

(3) For Company XYZ where they have their own trust for EPF and allotted me two account no. one for PF and one for Pension Scheme. How I can get it transfer to my new EPF account which is with Regional EPFO? Is transfer took place for both (a) PF amount and (b) Pension Scheme amount?

(4) I inquired from RPFO through SMS regarding the amount lying in Company ABC and got the reply with intended information. But I am confused to find that there is big difference between employee and employer contribution. Approximately, Employee contribution is 2.11 times more than Employer’s contribution. I believe both should be the same. If it is different due to 8.33% going to Pension Scheme than too I am confused because there is no separate account no given to me as Pension Scheme by RPFO. Where is that 8.33 going?

(5) If I opt to withdraw all previous companies EPF then what will happen to amount lying in Pension Scheme? What if I opt to take Pension Certificate instead? What are the losses (apart from losing future saving) if I withdraw? Is the entire amount withdrawn will become taxable?

I know these are lots of questions but I couldn't find there answers anywhere already posted online.

Thank you,
MD

Hi,

I will try to answer your queries in the same format:

1) As per the latest EPFO communication, you will receive interest till the time your PF account was active i.e. interest accrued in company ABC will cease to attract interest from Sep 2007. (This is my understanding of the latest PF communication but advise you to cross check the info with PF office near to you.)

2) Your pension amount will also get transferred to your PF account in company PQR.

3) Company XYZ will have two account numbers because PF is maintained by their PF trust but the pension amount will be with the Regional PF office. You can transfer both your PF account and pension account to your new account by applying for transfer in Form 13.

4) Pension account maintained in Regional PF office will bear the same number as your PF account.

5) Not sure...

I also had a similar case of transfer of PF from covered establishment to an exempted establishment and back to a covered establishment, so I had also faced the same kind of situation. :)

Regards

Gautam