EPFO alert! How to avoid, deal with rejections, delays

livemint.com:

NEW DELHI : Mumbai-based Deepa Desai, 47, had a harrowing time transferring her provident fund (PF) from one employer to another. Even withdrawal was not easy. Here's why.

Desai's employer enrolled her in the Employees' Pension Scheme (EPS), even though she wasn't eligible for it. When she joined a new organization and applied for a PF transfer, her request was rejected. From 1 September 2014, if one's basic pay is more than 15,000 per month, they are not eligible for the EPS.

For eligible employees, out of the employer's 12% share, 8.33% goes towards the EPS. In order to withdraw contributions made towards the EPS, one first needs to transfer the amount to their PF account. The Employees' Provident Fund Organisation (EPFO) may ask you to forgo interest on it.

Her new employer, where she worked only for four months, was an exempted organization. Exempt organizations manage employee PF within the ambit of EPFO rules and regulations. She withdrew her PF from this organization, but her PF from the first employer was still stuck.

Meanwhile, Desai started freelancing as an independent financial consultant with an insurance company. However, the company onboarded her as a full-time employee. She discovered it only when she approached the EPFO again to withdraw her PF from her first employer.

She was told she could transfer her PF to the third employer but not withdraw it until the EPS issue is resolved. "I was appalled. First, I got the EPS balance transferred to my PF account.

The EPFO required an undertaking that I would forego interest on EPS contributions when the transfer happens. Once the EPS issue was settled, funds got transferred to the PF account of the so-called third employer," she said. Her troubles did not end