New Delhi: The EPF to NPS transfer process has been laid down by pension fund regulator PFRDA to facilitate a scheme shift for numerous employees working in the government as well as private sector. Transferring your corpus from EPF to NPS can be beneficial since it earns more interest.
It is to be noted that EPF is an interest rate-based guaranteed return scheme, while, NPS is a market-linked investment programme. Both are contributory schemes for the accumulation of funds a part of which would serve as pension for the employee after his retirement.
The government of India fixes interest rates on EPF, while, no such interest is given on NPS. Money deposited in NPS is in turn invested by the government-assigned fund managers in various asset classes to generate higher returns for the subscriber.
Employees can generate a higher return on investment if they transfer EPF corpus to their NPS account. For FY24, the government has fixed an 8.25 per cent interest rate for the EPF accounts of citizens.
How to transfer from EPF to NPS
The PFRDA circular detailed the entire process of the transfer of funds from EPF account of employees to their NPS account. If you also want to transfer the savings accumulated in your PF to your NPS account and reap more returns on your investment then, lets see how you can do it:
To transfer funds from your account to your NPS account, you need to have NPS tier 1 account in your name.
There are two types of NPS accounts – NPS Tier 1 and NPS Tier 2. You can open an NPS account through your employer, or on your bank’s website or online on the e-NPS portal.
You then need to submit a transfer request form to your employer. He will then initiate the balance transfer process from your EPF account to your NPS account.
As an employee, you must request a letter in which the amount transferred from the EPF to your NPS’s Tier 1 account would be stated.
Your employer would then have to mention the transfer from the PF/Superannuation fund when he uploads the transfer form.
If you are a government employee, then, the recognised PF/Superannuation fund will issue a cheque or demand draft (DD) in the name of the following – ‘Nodal Office Name – Employer Name – Permanent Retirement Account Number (PRAN).
If you are a corporate employee, then a cheque or demand draft will be issued under the name of the following – ‘Point of Presence, Collection Account-NPS Trust – Subscriber Name – PRAN.’
EPF to NPS transfer: Pension fund regulator PFRDA has detailed the EPF to NPS transfer process for all government and corporate employees. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
