Confused About Your PF? Should You Transfer or Withdraw After Changing Jobs?

Dear Seniors,

I recently joined a new company, and my PF is with my old company where I worked for 3 years.

Which is the better option:
- Should I transfer my PF to the new company?
- Should I withdraw the PF amount?

Kindly advise.

Anuj

Hi,

I personally think PF withdrawal is better. One girl in my org left last year and joined another company in Mumbai. Her PF transfer is still under process. I think it takes equal time in withdrawal and transfer, so why take chances. There are a lot of complications in transfer, like the new employer has to go through a lot of botheration in contacting the PF office where the previous company had its account. Government-related things can be quite irritating. Also, until a new account is opened, where will your PF go in the new company? So, decide wisely.

Dear Anuj,

Both processes take their own time, whether it's PF withdrawal or PF transfer. You have to wait for two months to apply for it and another 45 days to receive the amount in hand or transfer it to another company. If you are someone who tends to spend money as soon as it's in hand, opt for PF withdrawal. Otherwise, if you prefer to save it for emergencies, go for PF transfer.

Thank you.

Hi Anuj,

PF transfer is better than PF withdrawal for the following reasons:

1. Your PF membership will be continuous, i.e., if you transfer your PF balance from the previous employer where you have worked for 2 years, it will be taken into consideration while calculating your total PF membership. To be more explicit, suppose you have worked for 15 years in 3 different companies and each time you changed companies, you got your PF transferred to the new company, which keeps your PF membership intact for 15 years. This will help you to get non-refundable loans from PF if you want to avail of them at any point in time. Remember, there are various types of non-refundable PF loans like house building, marriage, education, medical, etc., which are available only after a certain period of membership.

2. You earn tax-free interest, and your savings increase.

3. Your pension eligibility does not break, ultimately helping you in the future.

Hi, it's better to withdraw EPF amount only, not the pension amount. Just apply for the scheme certificate of the pension.

Thank you!

You can go for transfer if you think your employer is good in remittance and proper filing process, if you have no immediate requirement for that money, if you are patient even if it does not get credited even after leaving the new company, and if you don't have proper self-control of finance issues.

You can go for withdrawal if you doubt your employer is not good in remittance and filing process, if you have an immediate requirement for that money, if you are restless if it does not get transferred even after leaving the new company, and if you have proper self-control of finance issues.

If the money is withdrawn, it is safe with you in the bank. Otherwise, you have to deal with the PF office and previous employers. Consider what is most suitable for you. This same issue has been discussed many times before, so please refer to the old posts rather than repeating.

Regards,
Chandru

PF transfer, since maintaining the PF account for 10 years, will make you eligible for a pension scheme. However, considering the delays in transferring the amount, I would suggest withdrawal since both processes take the same amount of time - 2 months for applying and a minimum of 45 days to receive the amount. At least you can utilize this amount for your commitments.

Dear,

Both the PF transfer and withdrawal will take a maximum time of 3 months. However, if you are transferring the funds, it might help in your retirement period, and you may also be eligible for a pension policy.

I hereby attach an article from Hindustan Times about PF pendency:

C:Documents and Settings27613580Local SettingsTempnotesBD7F17PF claims pile up, timelines go haywire- Hindustan Times.mht

Thank you.

Hey,
I fully agree with Kalyan. Do not withdraw PF, even if it means a little pain in follow-up, etc. Social Security is something we younger generation do not take seriously due to the government's poor ways of functioning, which are so important when we are old and no one to help.

Ukmitra

In my opinion, withdrawal is better. After withdrawing your amount, you can buy gold, which will fetch you a minimum of 15% return on investment, whereas in PF, it will give only 9%. Also, getting money from PF will take time, but gold can be encashed at any time. Now you can see the gold rate, and it will touch a minimum of 2000 to 2500 per gram soon.

Alternatively, you can buy land, which will add more value to you than PF's 9% return.

Regards, R. Palaniswamy

Hi,

30 days, 45 days, 90 days... I am quite ashamed to say that our government is most incompetent in settling these PF withdrawals or transfers. They just sit on our money, and mind you, PF is one of the richest departments in the government of India.

I am not surprised that, in today's scenario, PF is what we plan for our old age or for any other emergency, house, or marriage loan. Today, we need to plan; if you are young, it's better to transfer your funds and reserve them, even though it takes time. We Indians are known for keeping our patience, and that's the reason we complain and suffer. The system itself is so tough and lengthy that moving papers takes almost 30 days from one table to another.

PF transfer is good for long-term savings requirements. Once PF amount is withdrawn, it is a human tendency to spend whatever you have in hand. My suggestion is to transfer the amount. It may take time, say about 2 months for transfer, but your money will get transferred anyway, unless you are in need of it urgently.

Regards.

Better you should transfer your PF, don't forget to collect all documents.

If you transfer, you will continue getting the same interest. If you withdraw, then you have to open a new account and the interest will be less. There is no harm in transferring, so why withdraw? Anytime in the future, you can fill the form and withdraw. So why now.

Hi,

If the company you are changing to is in the same state where you previously worked, then you can transfer your PF to the new company. Transferring prevents you from forfeiting long-term benefits.

I prefer transferring the funds rather than withdrawing them.

Correct me if I am wrong.

Regards,
Vamsi

Hi,

PF transfer is a better option than PF withdrawal. I have previously mentioned this when I changed my previous organization. However, before that, I had withdrawn the PF amount because at that time, I was not aware of the PF transfer procedure.

Presently, I believe and would like to suggest to everyone that the PF transfer option is better and more beneficial than PF withdrawal.

Regards,
Bimlesh K. Bibhakar

Dear All,

While PF transfer happens almost smoothly, what about SAP (Superannuation Fund)? Can anyone shed some light on this? How do we transfer/withdraw the same?

Cheers,
Raj

Dear Anuj,

It is better to get your old PF account transferred. The membership period is more important than the amount accumulated in the PF account over 2 years. Continuity anywhere is crucial. You can easily break it, but you will benefit at the time of pension calculations.

Thanks and Regards,
SP Maheshwari

My Dear Friend,

As per my knowledge, PF Withdrawal is the right choice because PF Transfer is a big procedure as per PF Office Work. If you withdraw, the process is simpler, and if you complete 10 years of PF membership, the Pension Amount will be given to you by the PF Office after you reach 58 years of age. Therefore, PF Withdrawal is the right choice.

Thank you.

What is the case in the following scenario:

I work in Co. A for 1 year. Here, my PF account is DLxxxxx. For the next three years, I work for Co. B where there is no PF deduction. Then I start working with Co. C where the PF account is MHxxxxx.

In such a scenario, can I transfer my PF to my first PF account from Co. A? Will the account still be active?

Dear Mr. Anuj,

I'm Amit, working as an Assistant HR. I would like to suggest that you can withdraw your old PF, which has an 8.5% interest rate.

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Dear Seniors,

I had recently joined a new company. My PF is with my old company, where I worked for 3 years.

Which is the better option:

- Should I transfer my PF to the new company?
- Should I withdraw the PF amount?

Kindly advise.

Anuj

Dear, it depends on your legal department and your rapport with the HR department.

Nowadays, if our HR department expedites the process, then PF either withdrawal or transfer can be possible in 2 months. PF transfer itself is a significant project because the PF office is very lethargic in completing the work, whereas withdrawal can be processed earlier.

If we choose to withdraw, there may be a disadvantage at the time of pension due to a break in service post-withdrawal. However, if there is an urgent need for funds, then opting for withdrawal is definitely recommended.

If you have any further queries, feel free to contact me at 9909001742.

Regards, Abhijeet Sawant

Dear Anuj,

Since you have approached the seniors for advice, the advice should be as per provisions of the law and not what is generally practiced by the masses.

The PF law provides for saving for a rainy day or old age. The PF scheme is a triple benefit scheme where savings are assured with interest (which is beyond the best being given at present - with full security of deposit); pension and life insurance in case of death.

So the law provides for continuity of membership to reap the maximum benefit when one reaches old age.

The PF Law stipulates that if a member were to leave a job and join elsewhere, he should transfer the PF accumulations to the new job.

Actually, to ensure this, the PF law stipulates that newly joined employees should give a declaration in Form 11 about their past employment, membership, etc.

So, if one were to keep withdrawing his earlier accumulations and join new companies declaring he was never a member of PF earlier, then it amounts to telling a lie.

Instead, what you can do is to continue membership in all the places you work, transfer the accumulations of the previous company to the new company's account, and thus maintain membership. In case of untimely demise, your dependants would be eligible for a pension - whatever it may be.

Secondly, if you are worried about take-home pay, you could limit your PF contributions to a basic salary of Rs. 6500/-. So the outflow towards PF would be small and affordable over the years as your other lifestyle expenses increase.

Actually, many top officers who are knowledgeable about income tax and the way the markets act, making or breaking their money pots, opt for voluntary higher contributions to PF as it is tax-free, while all other savings are taxable.

So take care and plan your future properly.

Regards

Dear Seniors,

I recently joined a new company. My PF is with my old company where I worked for 3 years.

Which is the better option:

Should I transfer my PF to the new company?
Should I withdraw the PF amount?

Kindly advise.

Regards,
S. Kumarasubramanian

Anuj

[QUOTE=S.Kumarasubramanian;949048]

Always go for transfer. Never withdraw unless an extraordinary situation arises. Without your knowledge, you are accumulating money. Just like that, 10 years are completed, and you will get a pension in your old age.

Regards,
S.Kumarasubramanian

How is it that without your knowledge you are accumulating money? It is with your knowledge that you contribute to EPF. What members say is that instead of that money lying with the PF office, at least let it lie in the FD account. Every time you change an employer, encash it and accumulate it in the bank deposit. At least you will have satisfaction; the money is within your reach, and you have the options of multiplying it in many ways with a better yield than PF interest.

The PF forms are attached.

Regards,
veekayk

Hello, dear.

I think the PF transfer option is better than withdrawal of PF. I fully agree with Kalyan Mitra's statement regarding the question raised by yourself. If the option is possible to keep the pension fund and withdraw only EPF, then this one is the better option. Please, friend, also guide me if it is possible to keep the pension in our PF account.

Regards.

Ohhhhh... after receiving so many replies, still confused. All my colleagues have advised based on the circumstances. But still, I doubt you can make a move wisely. Anyway, it's very important for someone how he plans his funds, i.e., Short Term & Long Term. If you are clear in planning, I am sure you will not find any difficulty in making a decision.

Nishi,

Very simple. If you buy provisions in advance and fear that you may cook all within a week, then buy it whenever you need. If you think you are good at managing things, then why worry even if you buy and keep on the shelf. You are going to eat only when you are hungry, but that doesn't mean you should not stock groceries until you feel hungry.

Hope I have confused you better. Haha... just kidding.

Hi Friend,

I would suggest that transferring your Provident Fund (PF) would be a better option, as per the comments from seniors above. PF is a kind of savings that may be unfamiliar to some, but it can be very helpful in later stages of life. Alternatively, you can apply for a loan based on the amount available in your PF account.