How to transfer funds from EPF to NPS?Chris Jordan
National pension system offers an opportunity to employees to accumulate money for their retirement. Also, there are tax benefits of Rs. 1.5 Lakhs under Section 80C of the income tax act. Due to this, a huge number of employees become part of national pension system to take benefit of this system. Many people also shift from Employee Provident Fund to National Pension System to gain the advantages of this system. In this post, we have given the step-by-step process to transfer funds from EPF to NPS.
Open NPS Account
The prerequisite to carry out the transfer from EPF to NPS is to have a tier 1 National Pension System. Either this account could be opened through an employer or it is possible to open it via point of presence (POP). Also, if this facility is not available with an employer, then NPS account could be opened by accessing NPS portal by visiting the website, npstrust.org.in. Not only the opening of account is easy, but also the process to invest in online NPS does not involve any complications.
Request to EPF for Transfer
In the next step, you need to issue a request to the recognised employee provident fund through your current employer to transfer EPF to NPS account. This step involves the verification of all your credentials and could take some time to reach completion stage.
Start of Transfer
Post filing the application for the transfer, the process to transfer funds from EPF/superannuation to NPS. If you are a government employee then a cheque or demand draft needs to be issued in the name of Nodal Officer of NPS. However, in the case of citizen model, then the cheque or demand draft should be issued in the name of the POP (Point of Presence) collection account.
Notifying the Employer for the Transfer
The letter from the recognised Employee provident fund should be issued to the employer to notify him about the transfer of EPF to NPS Tier-1 account. Post this, it is the responsibility of the nodal officer or POP to collect and update the amount into Tier -1 NPS account..
So, these are the popular steps which you need to follow in order to ensure the transfer of funds from Employee Provident Fund to NPS account.