My EPF Transfer Journey : Lessons Learned

One of our client’s EPF transfer did not happen properly and his total working years were not updated properly. He fought for many months and finally he got it updated.

Below is his experience in his own words.. please read.

My EPF Transfer Journey: Lessons Learned

Hi Everyone, I am Alok, a client of Jagoinvestor.com based in Pune.

I wanted to take a moment to share a significant experience related to EPF transfer and some lessons learned from that experience, It’s a bit long but I believe it’s worth recounting in full detail to shed light on a common issue many might face. I hope many others will be able to learn from my experience.

I had dedicated 17 years of my career to Company A before transitioning to Company B in July 2022.

Like any responsible employee, I promptly initiated the process of transferring my Provident Fund (PF) from Company A to Company B. However, to my dismay, my PF transfer request was unexpectedly rejected without a clear explanation.

Undeterred, I delved deeper into the matter and discovered that the rejection was due to an issue with the Non-Contribution Period (NCP) not being updated by my former employer, Company A.

This NCP stemmed from a 14-month period during which I was on an onsite deputation and consequently did not receive an Indian salary, hence no PF contributions were made.

My company failed to inform EPFO

Regrettably, Company A had failed to inform the Employee Provident Fund Organization (EPFO) about this period of non-contribution.

Armed with this newfound knowledge, I reached out to Jagoinvestor RM, whom I had a client relationship with seeking guidance. Their advice, along with insights from Manish, proved invaluable in navigating the complexities of resolving the issue.

My next step involved persistent follow-ups with the finance department of Company A. over five months, I engaged in numerous discussions and provided extensive documentation to rectify the NCP discrepancy.

Finally, after much back and forth, Company A took the matter up with the EPFO, resulting in a resolution that took a total of 13 months to achieve. The process involved a myriad of steps, including submitting joint declarations, compiling various documents, providing evidence of my deputation, and even negotiating penalties levied on the employer for the oversight.

My EPF was transferred finally with a proper update!

Ultimately, my PF was successfully transferred to Company B, and the NCP days were accurately reflected in my records.

What I learned through this ordeal was not just about navigating bureaucratic hurdles, but also about the importance of advocating for oneself and seeking resolution even in the face of daunting challenges. Furthermore, I realized that my experience could serve as a lesson for others who might find themselves in similar predicaments.

One crucial aspect that emerged from this journey is the intricate relationship between the Employee Provident Fund (EPF) and the Employee Pension Scheme (EPS).

While many might perceive EPS as a separate component, it’s vital to understand that the accuracy of both EPF and EPS data is interconnected. In my case, the Non-Contribution Period (NCP) not being updated by my employer had repercussions not only for my EPF but also for my EPS.

This is because the duration of NCP is subtracted from the overall service duration, impacting both components. Despite initially focusing on resolving the PF transfer issue, it became apparent that ensuring the accuracy of both EPF and EPS data was imperative. EPF-EPS interlinkage became evident as I delved deeper into the matter.

EPF Complexity!

Any discrepancies in one component could potentially affect the other, highlighting the need for comprehensive data accuracy across the board. Therefore, the resolution of the NCP issue wasn’t just about facilitating the PF transfer; it was about safeguarding the integrity of my entire Provident Fund account.

By recognizing this interconnection, I realized the importance of advocating not only for the transfer of PF funds but also for the accuracy of all associated data points. This understanding underscores the complexity of managing retirement funds and emphasizes the need for diligence in ensuring that all aspects of one’s financial portfolio are meticulously maintained.

In fact, upon sharing my story with colleagues from Company A who had also been on onsite assignments for extended periods, I discovered that many were unaware of the potential implications until I brought it to their attention.

I hope it helped you

Now, armed with this knowledge, they too are taking steps to ensure their NCP data is accurately updated by their employers. Apologies for the lengthy narrative, but I hope that sharing my journey in detail, it might provide valuable insights and guidance to anyone navigating similar waters.

Remember, persistence and proactive communication can often be the keys to overcoming even the most formidable challenges in the corporate landscape.

I hope my sharing will help others!