Navigating PF Accounts: Should I Transfer or Withdraw When Changing Jobs?

Hi Sir/Madam, I am currently working with Firm A, which has been acquired by Firm B. I am also in the process of leaving Firm A to join Firm C. Ideally, should I go for a transfer or withdrawal of my PF account? Thank you in advance!

Best, Rajika

If Firm C is covered by PF, you should opt for a transfer only. If you join Firm B and then leave that company to join Firm C, Firm B will be the past employer. If you leave Firm A before its merger with Firm B, Firm A will remain the past employer for effecting the transfer.

Regards,
Madhu.T.K

Thank you, Sir! I have one more query. If I transfer my PF account, will the pension fund also get transferred? Or should I go ahead and avail a Scheme Certificate? Is there any criteria (like years of experience) for applying for a Scheme Certificate?

Regards, Rajika

While transferring your pension fund, it will also be transferred. A scheme certificate is obtained in cases where the Provident Fund is closed, and the pension fund is allowed to remain active. If you have 10 years (9 years and 6 months) of pensionable service, you cannot close the Pension fund account. In that situation, obtaining a scheme certificate along with the withdrawal benefit of the Provident Fund is the only option available. At the same time, a scheme certificate can be obtained even if the service is less than 10 years.

Regards, Madhu.T.K