Decision On PF - Taking Up A Role In A New Company

Hi,

I've just resigned from my current company after working there for 9 years. I'll be taking up a role in a new company. I have a few queries.

1) Should I transfer my PF or withdraw it? Lots of people are telling me to withdraw it since it takes 15 months to transfer, and during that period, no interest is calculated. I've been advised to withdraw and put it in an FD. I think there are some clauses to withdraw.

2) If I withdraw, what part will I get? My company has this policy of 3.67% to PF and the rest to EPS (Pension) Rs541/-. If I withdraw, will I get my contribution + employer + the amount in the pension scheme?

3) One more question not related to PF - Can the new company force me to open a new bank account? I just want to continue with my existing one because of EMIs and other stuff associated with it.

Thanks,
Gary

Mrugen,

Thank you for your valuable information. I appreciate it.

Dear Gary,

It's up to you to keep the account or withdraw the whole amount contributed to your PF. Even if you withdraw, you will get all your contributions made until your last contribution to PF along with interest. Nowadays, transferring your existing PF account to a new account is comparatively easy compared to earlier days due to the recent automation of processes in the PF department. So, just check with your new employer if they can do that. If not, then go for withdrawal.

Talking about a new bank account, it depends on the company. If they have the salary account with another bank, they will open your new account, and in that case, you can do the bank transfer to your old account. If they have the salary account in the same bank where you have the account, they can transfer that account to the salary account. This will enable that account to be a zero balance account but under the new company's head. In that case, you can continue with the same account.

Thank you.