How to transfer EPF balance to NPS account: If you are an Employees Provident Fund (EPF) subscriber, then you can transfer your funds to the National Pension System (NPS) with certain conditions. Pension Fund Regulatory and Development Authority (PFRDA) provides this facility to the subscribers.
Must have Tier-1 account NPS
If you want to transfer your EPF funds to NPS, then you must have an active Tier-1 account of NPS. Alternatively, you can open your NPS account by visiting Point of Presence (POP) or e-NPS portal. You can visit npstrust.org.in to open an NPS account.
Transfer form has to be submitted
After the NPS account is opened, the transfer form has to be submitted to the employer. After receiving the application, EPFO will trigger the transfer of balance amount in the EPF account. A check or draft will be issued by the retirement body on behalf of the NPS nodal office or POP.
Get Verify Alert
Once the funds are deposited, the NPS account will be updated and you will get a Verify Alert for the same on your mobile number registered with NPS. After this the nodal office or POP will update the money in the Tier-1 account of the employee.
Know its benefits
Due to the exposure to equities, the returns through NPS can be higher than EPF in the long term. If we look at the inflation rate, then after a time one will need a good amount of funds after retirement. In such a situation, NPS can be a better option for long term goals. Under section 80C of the Income Tax Act, up to Rs 1.5 lakh can be availed of tax deduction. Apart from this, you can take advantage of additional deduction of up to Rs 50,000 under section 80CCD(1B). If you want higher returns on the funds you are adding for your retirement, you can transfer your EPF to NPS.
