When a person switches his/her job, their Employees' Provident Fund (EPF) balance gets transferred to the Provident Fund (PF) account. However, one might wonder, what happens to one's Employee Pension Scheme (EPS) balance?
When a person switches his/her job, their Employees’ Provident Fund (EPF) balance gets transferred to the Provident Fund (PF) account. However, one might wonder, what happens to one’s Employee Pension Scheme (EPS) balance? An employee is automatically enrolled in the EPS scheme once he opens an EPF account. The Central government also contributes to an employee’s EPS along with employer contribution of 8.33 per cent of the salary.
Earlier, when a person opted for changing a job, he was required to fill Form 11 and Form 13 to get his Provident Fund balance transferred from his organisation. Form 11 was filled up to declare that the person has an EPF account while Form 13 was filled for getting the PF balance transferred.
However, the government has done away with all this and has introduced Form 11 which serves both the purposes. However, it is only possible if the employee has an active Universal Account Number (UAN), and Aadhaar is needed to verify KYC. For those who do not have an active UAN number, will have to go through Form 11 and Form 13.
What happens to your EPS?
Once the PF transfer is complete, the customer’s passbook will reflect on his current provident fund account. It will be a lump sum addition in the month of transfer. However, the EPS section shows no addition but instead, it will be reflected in the PF passbook.
On one hand, EPF details are transferred to the new account while on the other hand, EPS remains in the older account. Employees need to note that they are eligible for the pension after working for more than 10 years. If you have worked for less than 10 years, and are unemployed for more than two months, you can withdraw the EPS amount.