Provident Fund Problems? Your Qs Answered

Do you have mutual fund, insurance and personal finance-related queries?
Please ask your questions HERE to rediffGURU Reetika Sharma, who has an MBA from the ICFAI, and professional certifications from the FPSB, AMFI and IRDAI.

Kindly note that this illustration generated using Microsoft Copilot has only been posted for representational purposes.

Joy: Hi, I am an NRI (Indian Citizen) for the past 4 years. My questions are as follows:

1. What is the process to reactivate the PF account since the last contribution was in 2021?

2. Is it prudent to keep the PF account since I am planning to comeback to India after few years? Or should I withdraw and apply for another PF once I return and get a job in India?

Being an NRI, you cannot keep your EPF account active. Hence it is advisable for you to withdraw the entire balance immediately without waiting.

If the account is a PPF account, it can remain activated till its tenure of 15 years is completed. You can contribute in the same till that time. Also inform bank about the change in your residency status. And PPF account must be closed upon maturity.

And yes, you can open a new PPF when you return to India.

Anonymous: I am 60 years old and currently working. My PF account started in April 2015 and runs until May 2025. Now, no money is deposited into the PF account. Am I eligible for a pension?

Yes, you are eligible as you meet the basic criteria of 10 years of service and 60 years age.

Kindly submit form 10D on the EPFO Portal using your UAN number. Or you can visit the EPFO nearest to you to submit the form.

Anonymous: I am a Govt employee, now they are asking to opt for UPS or NPS, currently I am in NPS, till now the investment in NSDL NPS is Rs 72,00,000. I am left with a service of another 15 to 20 years. I have three kids, has to look after their education and settlement and my retirement plan. Please suggest, which one is better, UPS or NPS?

Continue with NPS. It is good with much potential for growth.

NPS is ideal for long-term compounding and building a large corpus, while UPS is for a stable, predictable retirement income.

Prasad: I had been paying EPF from 1997 & had applied for higher pension when the options were asked. But my application did not reach EPF authorities since one of the companies (old company which is closed now) did not approve (employer consent) quoting that records are not available with them. Same was the case with all employees who worked with them. What are the options for me now? I am willing to forego that period of service (12 years) also but EPF authorities are declining stating that window period is over and they can't do anything.

Dealing with a closed former employer when applying for a higher pension is a common issue. Since the EPFO needs employer verification to process your application, you have a few ways to address this specific problem.

1. File a Grievance on EPFiGMS: Your first action should be to formally file a complaint using the Employees' Provident Fund Integrated Grievance Management System (EPFiGMS) portal.

Grievance Category: Select 'Higher Pensionary benefits on higher wages' or the most similar option.
Explain Clearly: State that your former employer has closed and cannot provide the necessary verification.
Include Details: Provide the specific period of your service with that company.
Mention Your Application: Confirm that you have already submitted your higher pension application.
Check for Successor: If the old company was bought out or merged, mention if your current employer can provide the wage records.

2. Escalate to the Regional PF Commissioner (RPFC): If the EPFiGMS complaint doesn't resolve the matter, you should take your case directly to the Regional PF office that holds the records for your past service.

Submit a Written Request: Write a formal letter to the RPFC explaining your entire situation and the lack of resolution from the closed company.
Attach Documents: Include a copy of your higher pension application and all supporting documents you possess. Also, include any proof that the company is permanently closed.
Cite Legal Principles: Gently remind the RPFC that legal rulings have established that the EPFO should not block entitlement based on procedural issues when an employer is closed or uncooperative.

This process focuses on creating a clear paper trail and using the mechanisms the EPFO has in place to deal with non-existent employers.

You can ask rediffGURU Reetika Sharma your questions HERE.

Disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this QnA or an attempt to influence the opinion or behaviour of the investors/recipients.

Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.