EPFO balance NPS transfer: There are numerous pension schemes in the country where employees invest during their careers or business ventures. This enables them to build a significant corpus by retirement age, ensuring they maintain independence. Notable examples include the Employees’ Provident Fund (EPF) and the National Pension Scheme (NPS), which offer retirement benefits.
The Employees’ Provident Fund (EPF) and the National Pension Scheme (NPS) differ slightly in their structure. EPFO guarantees returns based on interest rates, whereas NPS operates as a market-driven investment plan through the National Payment System. Many employees often wonder about transferring funds from their EPF accounts to NPS and seek advice on the process. Today, we’re sharing an easy method to facilitate the transfer of funds from EPFO to NPS.
Know what is EPFO and NPS scheme
Let’s begin by explaining EPFO and NPS schemes to provide insight. The Employees’ Provident Fund (EPF) requires both government and private employees to contribute 12% of their basic salary each month to their PF accounts. Employers also match this contribution into the employees’ PF accounts.
Let’s discuss the NPS scheme where all Indian citizens between the ages of 18 and 70 can enroll in the National Pension System, allowing them to invest according to specified amounts and reap pension benefits later on.
This is how you can transfer money from EPF to NPS
To transfer funds from EPF to NPS, an employee can move cash from their EPF account to a Tier-1 NPS account, requiring them to submit a transfer request form to their employer. This form is then forwarded by the employer to the EPFO office, after which EPFO processes the employee’s request.
