An Exempted Provident Fund (PF) Trust is an employer-managed provident fund scheme that operates under the guidelines of the Employees’ Provident Fund Organisation (EPFO) but is not directly managed by it. Instead of contributing to the EPFO, the employer maintains a separate trust that follows EPF rules while offering additional benefits to employees.
Under the exempted PF system, the employer establishes trusts, registered with the EPFO, to manage employees’ provident fund contributions. The EPF members pay their regular contributions, which the employer also matches, similar to the regular EPF scheme.
The primary difference is that in an exempted PF trusts:
Contributions under an exempted PF trusts remain the same as the unexempted EPF system:
Some of the key advantages of an exempted PF trusts include:
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Employees can withdraw funds from exempted PF trusts under the same conditions as regular EPF accounts. These include:
Unlike regular EPF accounts, which employees check through the EPF passbook on the UAN portal, the balance of an exempted PF trusts is available through the employer’s trusts website or HR department.
Employees with Exempted PF Trusts will still have a Universal Account Number (UAN), but their passbook will not be updated on the EPFO portal. Instead, they must check their employer’s trust portal for contributions and interest updates.
If an employee switches jobs from an EPFO-managed company to one managing an Exempted PF Trust, they must transfer their EPF balance. The steps include:
To process an EPF transfer from an unexempted to an exempted employer, the following details are needed:
The EPFO regularly audits and assigns ratings to exempted PF trusts based on compliance, interest rates, fund management, and timely settlements. Employees can check their employer’s trust rating to ensure security and reliability.
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The Exempted PF Trusts system offers employees greater flexibility, faster withdrawals, and potentially higher returns while still operating under EPFO rules. Employees should carefully verify their employer’s trust compliance, interest rates, and withdrawal policies before opting for this scheme.
Exempted PF trusts are employer-managed, whereas unexempted PF is directly managed by the EPFO.
You need to check your employer’s trust website or contact the HR department, as exempted PF balances are not available on the EPFO passbook.&amp;amp;lt;/span></p>
Yes, you can transfer funds using the EPFO’s online transfer facility.
Withdrawals before five years of service are taxable. Post-retirement withdrawals are tax-free.
They must at least match EPFO rates, but some trusts provide higher returns.
Yes, but your EPF passbook will not be updated on the EPFO portal.
You can withdraw the balance or transfer it to your new employer’s EPF account.
No, employers must follow EPFO rules and cannot deny legitimate withdrawals.
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