Here’s How You Can Transfer Your EPF to National Pension Scheme

The Pension Fund Regulatory and Development Authority has recently detailed on the procedure for transferring the balance from an Employees’ Provident Fund to National Pension System. This is in line with finance minister Arun Jaitley’s 2015 budget speech in which he announced that employees are free to choose between EPF and NPS.

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The following are the steps for transferring your EPF balance to NPS:

• First off, you have to make sure you have an active NPS Tier-1 account. If you don’t have one, then you can easily open it online through the eNPS portal. Otherwise, you can also approach your employer for the same.
• Approach your employer with your request, and they will initiate the fund’s transfer from EPF scheme to the NPS scheme
• If you are a government employee, then the PF Trust can issue a DD or cheque in the name of Nodal Office Name – Employer Name – Permanent Retirement Account Number (PRAN). If you are working in a private firm, then the same can be issued in the name of Point of Presence, Collection Account-NPS Trust – Subscriber Name – PRAN.
• The employer or Point of Presence (POP) will mention the transfer in the remarks column when uploading the details.
• The POP will receive the funds and upload it to your NPS account.

Since the transfer from EPF to NPS is not treated as income as per PERDA regulations, your funds won’t be taxed. Also, you won’t be able to claim income tax deduction on them as they won’t be treated as a contribution of the current fiscal.