Which Is Better - Pf Withdrawl Or Pf Transfer? - PDF Download

Dear it depend upon your legal department and your repo with HR department.
Now a days if our HR department make the process fast then PF either withdrawal / transfer can be possible in 2 months. Now Pf transfer is itself a big project because PF office is very lethagic in completing the work and withdrawal can be possible earlier.
If we withdraw than we will be at loss at the time of pension becuase after withdrawal their is break in service.
But if we are in need of money than definately we should choose the option of withdrawal only.
if you have further any query than you can call me on 9909001742
Regards
Abhijeet Sawant

Dear Anuj,

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

The PF law provides for saving for the rainy day /old age. The PF scheme is a triple benefit scheme where savings is 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 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 account and thus maintain membership. In case of untimely demise your dependants would be eligible to pension - what ever 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 contribution to PF as it is tax free, while all other savings are taxable.

so take care and plan your future properly.

regards

Always go for transfer.
Never withdraw unless extraordinary situation arises.
Without your knowledge you are accumulating money.
Just like that 10 years are completed you will get pension also in your old age time.
Regards,
S.Kumarasubramanian

How is 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, atleast let it lie in the FD account. Every time you change an employer, encash it and accumulate in the bank deposit. Atleast you will have a satisfaction, the money is within your reach and you have the options of multiplying it in many ways with better yield than PF interest.

The PF forma are attached.
Regards,
veekayk

hello dear
I think the PF transfer option is better than withdrawl of PF.
I fully agree with kalyan mitra statement regarding with the question araised by yr self.
If the option is possible to keep pension fund and withdrawl only EPF, than this one is the better option.
pls frnd also guide me that it is possible to keep pension in our PF account[/email])?
regards.

Ohhhhh......after receiving so many reply still confused.
All my collegues has advised based on the circumtances. But still I doub't you can make a move wisely.
Anyway its 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 to take 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 to worry even if you buy and keep on shelf. You are going to eat only when you are hungry but that doesnt mean you should not stock groceries till you feel hungry.
Hope I have confused you better. hahah....just kidding.

Hi Friend, i would suggest that PF transfer would be a better option as per seniors comments above. PF is a kind of unknown savings which will be very helpful at later stages of life, or you can apply for loan based on your PF amount.