Hi,
I have been working at a private organization (company X) for the past 9 months. A couple of months ago, I submitted an EPF transfer claim on the EPFO portal. The claim was rejected by the field office with the reason: "EPS CONTRIBUTION NOT DEPOSITED WHEREAS MEMBER IS ELIGIBLE." I resubmitted the claim, but it got rejected again due to the same reason: "PENSION CONTRIBUTION NOT DEDUCTED FROM ER SHARE. EMPLOYEE IS ELIGIBLE."
I contacted the finance department of my previous organization (company Y) and learned that I had an active EPS, which I did not declare when joining company Y. They explained that this is why my EPF transfer claims are being rejected.
I am still seeking a solution to this issue. I would appreciate any guidance on the next steps to successfully transfer my EPF. Additionally, I would like to know if I will encounter the same problem if I switch to a new organization in the future and submit an EPF transfer claim again.
Thank you,
Gaurav
From India, New Delhi
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I have been working at a private organization (company X) for the past 9 months. A couple of months ago, I submitted an EPF transfer claim on the EPFO portal. The claim was rejected by the field office with the reason: "EPS CONTRIBUTION NOT DEPOSITED WHEREAS MEMBER IS ELIGIBLE." I resubmitted the claim, but it got rejected again due to the same reason: "PENSION CONTRIBUTION NOT DEDUCTED FROM ER SHARE. EMPLOYEE IS ELIGIBLE."
I contacted the finance department of my previous organization (company Y) and learned that I had an active EPS, which I did not declare when joining company Y. They explained that this is why my EPF transfer claims are being rejected.
I am still seeking a solution to this issue. I would appreciate any guidance on the next steps to successfully transfer my EPF. Additionally, I would like to know if I will encounter the same problem if I switch to a new organization in the future and submit an EPF transfer claim again.
Thank you,
Gaurav
From India, New Delhi
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The issue seems to be like this. You worked with company Y, and that was your first company with EPF. When you joined that company, your salary was more than Rs 15,000, and therefore, the employer contributed the entire contribution payable by him to your EPF only without bifurcating it as 8.33% to EPS and the remaining, i.e., 3.67% to EPF.
When you try to transfer the PF, the system finds that the EPF contributions are blank and hence rejected.
This can only be solved by means of physical intervention, and for that, you have to write to the RPFO concerned or go to the EPFO Office and submit such a declaration.
Suppose, if that company Y is not your first company but you had a PF account with your earlier company, then company Y had committed a mistake. They had erroneously remitted their contribution solely to EPF. They have to take a call, and you can write to the EPFO with a copy marked to the company Y for necessary action.
In such cases, the members are innocent and they cannot do anything. Therefore, EPFO is expected to respond to such grievances of the members.
Caution: In the backdrop of COVID-19, many offices of EPFO are still working with 'limited resources,' and they still continue the same protocol that no outsider (even a member of EPF for whose benefits the entire system of EPFO is built is an outsider) is permitted to enter the office, and if you have any query to be clarified, you have to wait holding a token outside. When your turn comes, you can go to the counter where you will be assisted by an employee of the EPFO in the class IV level who seldom knows how to speak to a customer but behaves like a superpower of the EPFO. Therefore, you cannot get a positive reply to any of your queries. The only answer that this class IV employee, who acts as if he is the PRO of the EPFO, is that "now everything is online and you do it online...." Then you can ask him, "then why are you sitting here? What are you paid for...?"
From India, Kannur
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4766When you try to transfer the PF, the system finds that the EPF contributions are blank and hence rejected.
This can only be solved by means of physical intervention, and for that, you have to write to the RPFO concerned or go to the EPFO Office and submit such a declaration.
Suppose, if that company Y is not your first company but you had a PF account with your earlier company, then company Y had committed a mistake. They had erroneously remitted their contribution solely to EPF. They have to take a call, and you can write to the EPFO with a copy marked to the company Y for necessary action.
In such cases, the members are innocent and they cannot do anything. Therefore, EPFO is expected to respond to such grievances of the members.
Caution: In the backdrop of COVID-19, many offices of EPFO are still working with 'limited resources,' and they still continue the same protocol that no outsider (even a member of EPF for whose benefits the entire system of EPFO is built is an outsider) is permitted to enter the office, and if you have any query to be clarified, you have to wait holding a token outside. When your turn comes, you can go to the counter where you will be assisted by an employee of the EPFO in the class IV level who seldom knows how to speak to a customer but behaves like a superpower of the EPFO. Therefore, you cannot get a positive reply to any of your queries. The only answer that this class IV employee, who acts as if he is the PRO of the EPFO, is that "now everything is online and you do it online...." Then you can ask him, "then why are you sitting here? What are you paid for...?"
From India, Kannur
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I am also facing the same problem. My last organization did not remit EPS even when I was an EPS member, and now the claim is being rejected.
@Madhu: Thanks for your guidance here. Could you share any form that the last employer can fill out and submit to EPF to resolve this?
From India, Hyderabad
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@Madhu: Thanks for your guidance here. Could you share any form that the last employer can fill out and submit to EPF to resolve this?
From India, Hyderabad
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Hello @Gaurav, I am going through the same challenge as of now.
The solution is to reach out to your previous employer where your passbook shows that all the funds are directed to EPF instead of EPS (a few portions).
Your employer has to submit:
1) Clarification letter to EPFO commissioner (Provided by HR or Employer)
2) Revised form 3 A (Which shows revised EPF and EPS contributions just as they appear in EPFO Passbook) (Provided by HR too)
3) Form 11 composite declaration form (Filled by you and Employer)
After all this, you need to get a physical acknowledgment, and this document has to go through your HR channel (Recommended).
Even after making all necessary corrections, there are still high chances your claim may be rejected by the Social Security assistants employed by EPFO.
You can raise a grievance within the EPFO portal attaching all these documents, and you can also raise complaints in CPGRAMS under the Labor Ministry category, where you will get an answer by RPFC - 1 or RPFC - 2 Officers.
The rest relies on luck. God save our money from these EPFO bakwaas duffers.
Thanks and Regards,
NS Sripad
From India, Bengaluru
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The solution is to reach out to your previous employer where your passbook shows that all the funds are directed to EPF instead of EPS (a few portions).
Your employer has to submit:
1) Clarification letter to EPFO commissioner (Provided by HR or Employer)
2) Revised form 3 A (Which shows revised EPF and EPS contributions just as they appear in EPFO Passbook) (Provided by HR too)
3) Form 11 composite declaration form (Filled by you and Employer)
After all this, you need to get a physical acknowledgment, and this document has to go through your HR channel (Recommended).
Even after making all necessary corrections, there are still high chances your claim may be rejected by the Social Security assistants employed by EPFO.
You can raise a grievance within the EPFO portal attaching all these documents, and you can also raise complaints in CPGRAMS under the Labor Ministry category, where you will get an answer by RPFC - 1 or RPFC - 2 Officers.
The rest relies on luck. God save our money from these EPFO bakwaas duffers.
Thanks and Regards,
NS Sripad
From India, Bengaluru
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Hi, sir,
I have received a show cause notice from the PF Commissioner regarding the issue of EPS remittance after an employee completes 58 years, alleging false return filing under Section 14(2) of the EPF & MP Acts, 1952. Could someone please help me in drafting a reply to the PF Commissioner for this matter?
Thank you.
From India, Bengaluru
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I have received a show cause notice from the PF Commissioner regarding the issue of EPS remittance after an employee completes 58 years, alleging false return filing under Section 14(2) of the EPF & MP Acts, 1952. Could someone please help me in drafting a reply to the PF Commissioner for this matter?
Thank you.
From India, Bengaluru
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The EPF Organisation is finding fault with the employers for everything nowadays. Earlier, we had remitted the employer's contribution to EPS after the employee reaches 58 years. What the EPFO used to do was just transfer the same to EPF. Now they have started issuing show cause notices! This is clear evidence that EPFO has become hostile towards the members and employers.
Section 14 of the EPF & MP Act provides for penalties. The penalties are imposed for non-compliance, with the aim of avoiding any payment to be made by the employer under this Act. It shall also be for making any false statement or false representation knowingly. What is important is, "knowingly making false statement." Here, the employer had paid the contribution due by him unknowingly to the Pension Fund also, without paying it exclusively to EPF alone. How can there be a charge sheet in this case?
You can reply with the reason that "since the employee was continuing in service even after 58 years of age, we really missed stopping his contribution to EPS. Due to this, the amount went to EPS as well. The amount paid to EPS shall be transferred to his EPF account at your end, and in the future, we will ensure that EPS is not credited with any payment for persons aged above 58 years."
Please note that when EPFO was in need of money, they even issued a circular stating that if the employee wishes to postpone receipt of pension at the age of 58, he can do so until he attains 60 years of age. In such circumstances, the employee would get an additional 4% for each year postponed. This could be done either with a contribution to EPS or without a contribution to EPS. If paying to EPS is deemed a crime to issue a show cause notice, EPFO should answer for the move made by them in April 2016. The same is attached for reference.
From India, Kannur
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Section 14 of the EPF & MP Act provides for penalties. The penalties are imposed for non-compliance, with the aim of avoiding any payment to be made by the employer under this Act. It shall also be for making any false statement or false representation knowingly. What is important is, "knowingly making false statement." Here, the employer had paid the contribution due by him unknowingly to the Pension Fund also, without paying it exclusively to EPF alone. How can there be a charge sheet in this case?
You can reply with the reason that "since the employee was continuing in service even after 58 years of age, we really missed stopping his contribution to EPS. Due to this, the amount went to EPS as well. The amount paid to EPS shall be transferred to his EPF account at your end, and in the future, we will ensure that EPS is not credited with any payment for persons aged above 58 years."
Please note that when EPFO was in need of money, they even issued a circular stating that if the employee wishes to postpone receipt of pension at the age of 58, he can do so until he attains 60 years of age. In such circumstances, the employee would get an additional 4% for each year postponed. This could be done either with a contribution to EPS or without a contribution to EPS. If paying to EPS is deemed a crime to issue a show cause notice, EPFO should answer for the move made by them in April 2016. The same is attached for reference.
From India, Kannur
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@Sripadns I am having the same issue now. Do you have a template for the clarification letter ? That would be really helpful. Did your issue get resolved ultimately?
From India, Hyderabad
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From India, Hyderabad
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Epf compsite form death cases Revised-Composi te-Claim-Form-i n-Death-Cases-F -EPS-EDLI___201 708231.pdf