Can your EPF be attached to recover liabilities against you? 3 lesser known facts about EPFO account

Employees’ Provident Fund (EPF) enjoys legal protection against attachment by any court of law under the provisions prescribed by Section 10 of the EPF & MP Act, 1952. The information is available on the EPFO website.

The amount standing to the credit of any member in the Fund 1[or of any exempted employee in a provident fund] shall not in any way be capable of being assigned or charged and shall not be liable to attachment under any decree or order of any court in respect of any debt or liability incurred by the member 1[or the exempted employee], and neither the official assignee appointed under the Presidency-towns Insolvency Act, 1909 (3 of 1909), nor any receiver appointed under the Provincial Insolvency Act, 1920 (5 of 1920), shall be entitled to, or have any claim on, any such amount,” the Section 10 provision says.

“ 2[(2) Any amount standing to the credit of a member in the Fund or of an exempted employee in a provident fund at the time of his death and payable to his nominee under the Scheme or the rules of the provident fund shall, subject to any deduction authorised by the said Scheme or rules, vest in the nominee and shall be free from any debt or other liability incurred by the deceased or the nominee before the death of the member of the exempted employee 3[and shall also not be liable to attachment under any decree or order of any court],” it further says.

“4[(3) The provisions of sub-section (1) and sub-section (2) shall, so far as may be, apply in relation to the 5[pension] or any other amount payable under the 5[Pension] Scheme 6[and also in relation to any amount payable under the Insurance Scheme] as they apply in relation to any amount payable out of the Fund.],” it says.

Here are 5 lesser facts know about the EPF:

1) EPF cannot be attached by any court of law under Section 10 of the EPF & MP Act.

2) The Act also prohibits an employer from recovering any dues from the PF contribution payable to the member.

3) Section 10 also provides protection against attachment of pension fund or insurance fund by a court.