Refund of benefits from the EPF

A member is eligible to claim refund of benefits should obtain a ‘Form “K” and the set of instructions from the Labour Office and after perfecting it legibly, should obtain from the last served employer a certification in part II of the Form together with ‘B’ card and the under mentioned records, forward to the Commissioner of Labour (EPF). A receipt will be issued in acknowledgement of the application. If the last served establishment remains closed, forward a Form containing personal data certified by the Grama Niladari and countersigned by the District Secretary (documents required to obtain refund of benefits under different reasons will be detailed as and when it applicable.) together with a letter of indemnity.

The refund applications can be handed over to the District Labour Office or to a Sub Office located close to your place of residence. Members can handover the  applications either to the Head Office of the Department of Labour at Narahenpita.

When can you claim refund of benefits?

1. When you reach retirement age and ceased the employment

   The entitlement for refund of benefits arises, for males on completion of 55 years and females on completion of 50 years and leave employment after retirement. Such persons should produce/ furnish form “K” and with completion of section II of the Form by the last employer forward together with “B” Card and a copy of the Birth Certificate that is certified by the Additional Registrar General through the same last employer. It is important that the employer certify in his own handwriting, that the photocopy is a true copy of the original.

2. Leaving employment on grounds of marriage

   Women employees who cease employment, less than one of the two grounds stated hereunder will become eligible to receive refund of benefits.

   • • If marriage had been registered before the expiry of three (3) months from the date of cessation of employment, or
     • Cessation of employment before expiry of 5 years after registration of marriage.

    

   Female employees under these two categories become eligible for refund of benefits. They should duly perfect part I of the “K” Form and part II of the Form should be duly certified by the employer and forward with the following documents.

   • A certified copy of the marriage certificate issued by the registrar of marriage who registered the marriage or marriage certificate issued by the additional district registrar.
   • A certificate issued by the Grama Niladari counter signed by the District Secretary to the effect that the marriage did take place.
   • “B” certificate

3. Cessation of employment due to total incapacitation

   A “M” Form could be obtained from the Commissioner of Labour by forwarding a medical certificate from a doctor in a Government Hospital issued in Form “Health 307” stating that it is no longer possible to engage in work. You will receive together with “M” Form required detailed instructions. The Commissioner of Labour thereafter, will direct the member to a medical board for examination.

4. Cessation of employment on leaving to a foreign country for permanent residency

   A Form “K” annexed with “B” certificate and following documents to be forwarded to EPF office of the Labour Department at Colpetty (prefer if presented in person).

   • Permanent resident visa with a photocopy
   • Original of the passport with a photocopy

5. When engaged in a Permanent Pensionable Post in Government or Local Government Service

   Those employees in permanent pensionable posts in government or local government service should fill a Form “K” application together with “B”Card; original Letter of Appointment with a photocopy should be forwarded to obtain refund of benefits. The original of the Letter of Appointment will be returned. The photocopy needs to be certified as a true copy in employee’s own handwriting. Employees also need to obtain from their present head of department/ institute,a certificate on the official letterhead mentioning that the employee is employed under the respective head of department/ institute at the time of application.

6. Obtaining refund of benefits when government institutions become corporations, closure of corporations, and retrenchment of excess staff, nationalization, and resignation consequent on conversion into companies.

   The members who ceased the employments on following instances are entitled to withdraw the benefits under this category.

   1. On conversion of government owned business undertaking or a corporation into a public company
   2. On conversion of government owned business undertaking into a corporation
   3. Retrenchment of excess staff in a government corporation
   4. Closure of Government corporation or government owned business undertaking

    

   The retrenched employees of the above establishments with a letter obtained either from the competent authority; liquidator or the human resources manager explaining their position should forward the “K” Form  and “B” Card. Refund of benefits, in the circumstance, would be paid only to those employees whose retrenchments have been approved by the Commissioner General of Labour.

How should you obtain refund of benefits of a deceased member?

If the deceased member has made a valid nomination, the nominee has a right for the benefits.

If the deceased member has not made a valid nomination, under law of inheritance, the legal heirs could request for refund of benefits.

Each of heirs claiming refund of benefits of the deceased member should perfect Form “L” certified by the employer under whom the deceased was last employed together with the under mentioned documents with a request to the Commissioner of Labour.

1. The death certificate of the deceased member
2. IF the wife is applying the marriage certificate
3. Birth certificates of children
4. Birth certificate of the deceased member when parents apply
5. In case of minors, details of the guardian in L3 Form (A letter addressed to Commissioner of Labour through the Grama Sevaka and District Secretary certifying the name of the guardian, minor children’s names & their ages)
6. Personal data details of the deceased member in Form L2 certified by the Grama Sevaka and the District Secretary.

If member who has obtained a housing loan, when applying for refund of benefits

Member will have to act as follows;

1. 1. Has applied for a housing loan but not obtained yet

The original and the duplicate (white and pink copies) of certificate of balance EPF loan (Form No 02) should be forwarded together with the application in Form “K”.

1. 1. When housing loan obtained had been settled in full

At the time of application for refund of benefits, if the loan obtained had been settled in full, application form “K” should be forwarded together with 04 copies of the housing loan Form “14” perfected in quadruplicate.

1. 1. When a balance is still available to be paid in the housing loan

An application in Form “K” should be submitted with housing loan Form “14” that perfected in quadruplicate and certified by the relevant loan granting authority and the District Assistant Commissioner of Labour. The delay that may occur in the course of transaction could be minimized if a current or a savings account is opened in the same bank branch and details are indicated in Form “K” (if the loan granting bank branch is far away, he could indicate an account number of a bank branch close to him. Central Bank of Sri Lanka will obtain confirmation from the loan granting bank and release the provident fund money).

Payment methods of benefits

The refund will be made either by Cheque, Directly credited to the member’s bank account through SLIPS*

*If the bank holding the account is registered in the “SLIPS”, the Sri Lanka Inter Bank Payment System.

Part Payment

• • The member’s account will be closed after payment and he will not receive statements on his account thereafter. If contributions are received after the refund, the member will have to apply for a part payment to claim these amounts.
  • Any unpaid balance after a refund of a member account can be claimed under the part payment of refund benefits. A member can apply for a part payment by submitting an application to the EPF Department of the Central Bank. (Printed applications for part payment refunds can be obtained from the EPF Department free of charge or downloaded from the website.)