Loss of interest amount due to delay in PF transfer from Trust to EPFO
This query is : Resolved
05 March 2023
Hello experts,
I had raised a transfer request from a PF Trust managed by my previous company to EPFO-managed PF account in Feb 2019. Based on facts available, the PF trust issued a settlement cheque dated 26th Feb 2019, which was received by EPFO office on 11th April 2019 (as shown on the acknowledgment slip), and date of credit for this amount in PF passbook is 21st June 2019. No one is clearly stating the reason for this delay of 4 months.
Concern: I have not received the interest for 4 months that were lost during the transfer process. EPFO has given interest on the transferred amount after 21st June 2019.
Steps taken:
1. Email communication with my previous company. PF trust from my previous company (which has now handed over PF operations to EPFO) says they are only liable to pay interest till the date of settlement (26th Feb 2019). They say EPFO should pay the remaining interest.
2. Raised multiple grievances with EPFO (11 on EPFiGMS portal and 5 on PGPortal). EPFO issued a few notices to the PF trust asking it to look into the matter. But no further action was taken by it to resolve the matter. Also, EPFO says it can only give interest from the date when the settlement amount is credited to them (21st June 2019). Being a statutory body for social security, I was expecting EPFO to take the necessary steps to recover the interest that I have lost.
Advice needed:
1. Is it fair on my part to expect that I should receive the interest amount for those 4 months?
2. Who should be liable to pay such interest for these 4 months resulting from the delay in the transfer process - EPFO or the PF Trust? Note that this was an offline transfer process as requested by the PF Trust.
3. What steps can I take now to take it further?
Thank you in advance for your valuable advice!
I had raised a transfer request from a PF Trust managed by my previous company to EPFO-managed PF account in Feb 2019. Based on facts available, the PF trust issued a settlement cheque dated 26th Feb 2019, which was received by EPFO office on 11th April 2019 (as shown on the acknowledgment slip), and date of credit for this amount in PF passbook is 21st June 2019. No one is clearly stating the reason for this delay of 4 months.
Concern: I have not received the interest for 4 months that were lost during the transfer process. EPFO has given interest on the transferred amount after 21st June 2019.
Steps taken:
1. Email communication with my previous company. PF trust from my previous company (which has now handed over PF operations to EPFO) says they are only liable to pay interest till the date of settlement (26th Feb 2019). They say EPFO should pay the remaining interest.
2. Raised multiple grievances with EPFO (11 on EPFiGMS portal and 5 on PGPortal). EPFO issued a few notices to the PF trust asking it to look into the matter. But no further action was taken by it to resolve the matter. Also, EPFO says it can only give interest from the date when the settlement amount is credited to them (21st June 2019). Being a statutory body for social security, I was expecting EPFO to take the necessary steps to recover the interest that I have lost.
Advice needed:
1. Is it fair on my part to expect that I should receive the interest amount for those 4 months?
2. Who should be liable to pay such interest for these 4 months resulting from the delay in the transfer process - EPFO or the PF Trust? Note that this was an offline transfer process as requested by the PF Trust.
3. What steps can I take now to take it further?
Thank you in advance for your valuable advice!
CA R SEETHARAMAN
(Expert)
05 March 2023
1 yes it's fair on your part to expect 4 months interest.
2 PF trust is liable.
3 Request in writing to PF trust for payment of 4 months interest.
Also take it up the issue with labour commissioner.
2 PF trust is liable.
3 Request in writing to PF trust for payment of 4 months interest.
Also take it up the issue with labour commissioner.
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