Summary of this article
The EPF transfer issues become particularly sticky in the case of organisations that run their own Provident Fund trusts such as companies like TCS, Wipro, HDFC, and ICICI. These are known as “exempted trusts.”
Here, the employer and employee PF contributions are managed by the company’s trust, while the Employee Pension Scheme (EPS) contributions are handled separately by the EPFO.
Recently, on LinkedIn, Himanshu Rana, a Bengaluru-based professional, voiced a frustration that many salaried employees share: Why is it so complicated to move one’s own Provident Fund money from one employer to another? His post, directed at the Employees’ Provident Fund Organisation (EPFO), quickly drew attention.
Rana pointed out that despite repeated attempts, his funds remain stuck between his old employer’s trust-managed account and the EPFO system. “Given the chance, I’d prefer to withdraw my money and put it in an FD or mutual fund,” he wrote, summing up the helplessness that many workers feel.
What is the dual transfer dilemma with trust-managed organisations?
The problems related to Employee Provident Fund (EPF) transfers become particularly sticky in the case of organisations that run their own Provident Fund trusts such as companies like TCS, Wipro, HDFC, and ICICI. These are known as “exempted trusts.”
Here, the employer and employee PF contributions are managed by the company’s trust, while the Employee Pension Scheme (EPS) contributions are handled separately by the EPFO.
That split management creates what experts call the “dual transfer dilemma.” Employees who shift jobs often assume that a PF transfer from the trust to their new organisation is enough. But when they later try to withdraw funds or consolidate accounts, they hit a roadblock. Rejections with messages like “EPS service not received” are common.
Outlook Money did an extensive story in February 2025 detailing some key EPF transfer issues faced by many employees at scale. In one of the cases noted, Sanjay Kumar Sharma, 55, spoke about his troubles while trying to reconcile his PF accounts for over a decade after moving across multiple employers.
After leaving an exempted trust in 2011, his EPF balance got transferred to the new un-exempted firm but the EPS portion never got updated. Even after multiple rounds of Form 13 submissions, grievances filed on the EPFO portal, and some visits to the regional offices, Sharma was unable to find a resolution on this issue as officials could not update his service history.
Such issues are not just a technical glitch, they have other serious implications. Like in Sharma’s case, this issue, if remains unresolved, would also impact his pension when he retires.
The problem lies partly in how the transfer process is structured. “One of the most common mistakes ex-employees of exempted organisations make is assuming that transferring out their PF balance from the trust to their current organisation is enough,” Amey Kanekar, co-founder of FinRight said. “Employees often encounter rejection messages like ‘EPS service not received’ while initiating transfers or withdrawals.”
What Can You Do?
For employees leaving a trust-managed organisation, two separate steps are essential:
EPS Transfer: Log in to the EPFO Member Portal and file a claim specifically for the pension portion.
PF Balance Transfer: Download Form 13 from the EPFO portal and request your ex-employer’s trust to initiate the transfer.
Only when both transfers are completed and verified does the account truly move into the new system. Skipping either step means trouble later, especially at the time of withdrawals or pension claims.
However, the persistence of such issues, despite the retirement fund body’s ongoing efforts at digitisation, shows why people like Rana have to escalate the matter on social media.
When even the most educated employees have to struggle with the system, the promise of portability and seamless access to retirement savings remains far from reality.
