Leaving After 13 Years: Should I Transfer or Withdraw My Provident Fund? Seeking Advice!

Hi, I am on the verge of leaving my company at the end of this month after almost 13 years of service. I work in a retail organization in Hyderabad with the corporate office in Mumbai. I have a few questions related to my PF which I need guidance on.

Questions About Provident Fund (PF)

1. Should I transfer my PF or withdraw it? What are the benefits of transferring my account?
2. If I decide to transfer it, is there any rule that restricts my withdrawal until my retirement, or can I withdraw it when leaving my new company?
3. I am also contributing to VPF currently. Can I keep contributing to the same from my new company as well? Until what time do I need to keep contributing to VPF? (I started contributing around November 2011 or 2012, but I am not sure of the year.)

P.S: My company merged with my parent company in May this year, thereby we have got new PF numbers from May. Earlier, our corporate office was based out of Chennai, so I have 2 PF numbers, one each in Chennai and Mumbai.

Handling Multiple PF Accounts: A Practical Approach

It is strange that you have two PF numbers. Ideally, both should be merged, and you should have only one account. Normally, when you switch organizations, it is better to transfer the PF amount to the new one. However, the transfer of funds takes a long time and requires persistent follow-up.

In your case, since you already have two accounts and are also contributing to VPF, you may be better off settling both of these accounts and starting a new one in your new company to avoid protracted correspondence, chasing, etc.

Dear Mr. Anand,

Though you have two PF numbers, I presume that both are from different periods. You can merge them or withdraw by submitting Form 19 and Form 10C. When filling out Form 10C, you may opt for a pension scheme certificate. You will receive a pension when you reach 58 years. Please keep all the scheme certificates safe. Do not submit this scheme certificate to any new company; this is as advised by the PF authority in Hyderabad.

Forget about VPF; you need to submit a fresh declaration as per the revised GO, and additional service charges are now applicable. It might be better for you to start a PPF.

Save your PF amount and Gratuity amounts in LIC; this way, your future will be secure.

Regards,
NV Subba Rao