Query:
I am an employee of a company that was depositing PF in the company trust. Recently, they have forced resignations from employees, and I am one of them. I am not comfortable leaving this PF corpus with such a company as it is under huge debts. My last working day is on the 31st of November, and I would like to transfer this money from the trust to any of my old non-operative PF accounts. I am planning to start my own work; hence, transferring the corpus to a new PF account will not be possible. I want to retain my money in the PF account as it is safe and has a better interest rate. Please suggest how to go about it, as it is hard-earned money, and I want to save it for the future.
From India, Ambala
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I am an employee of a company that was depositing PF in the company trust. Recently, they have forced resignations from employees, and I am one of them. I am not comfortable leaving this PF corpus with such a company as it is under huge debts. My last working day is on the 31st of November, and I would like to transfer this money from the trust to any of my old non-operative PF accounts. I am planning to start my own work; hence, transferring the corpus to a new PF account will not be possible. I want to retain my money in the PF account as it is safe and has a better interest rate. Please suggest how to go about it, as it is hard-earned money, and I want to save it for the future.
From India, Ambala
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Dear Mr. Goyal,
In this situation, it is better to withdraw your PF accumulation from the trust as per rules. Since you are not willing to work with any other organization, it cannot be transferred.
Thanks,
V K Sharma
From India, Delhi
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30In this situation, it is better to withdraw your PF accumulation from the trust as per rules. Since you are not willing to work with any other organization, it cannot be transferred.
Thanks,
V K Sharma
From India, Delhi
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PF Trust and Withdrawal Conditions
First of all, the PF money lying with the Trust cannot be appropriated by the company. The PF Trust is separate from the exempted organization, so the money with the Trust is safe. Moreover, you can caution the employee trustees or the concerned RPFC to keep a close watch on the Trust.
Circumstances for Final Withdrawal
Para 69 indicates the circumstances in which final withdrawal is permissible. It reads as follows:
69. Circumstances in which accumulations in the Fund are payable to a member:
1) A member may withdraw the full amount standing to his credit in the Fund:
(a) On retirement from service after attaining the age of 55 years:
Provided that a member, who has not attained the age of 55 years at the time of termination of his service, shall also be entitled to withdraw the full amount standing to his credit in the Fund if he attains the age of 55 years before the payment is authorized;
(b) On retirement on account of permanent and total incapacity for work due to bodily or mental infirmity duly certified by the medical officer of the establishment, or where an establishment has no regular medical officer, by a registered medical practitioner designated by the establishment;
(c) Immediately before migration from India for permanent settlement abroad [or for taking employment abroad];
(d) On termination of service in the case of mass or individual retrenchment;
(dd) On termination of service under a voluntary scheme of retirement framed by the employer and the employees under a mutual agreement specifying, inter alia, that notwithstanding the provisions contained in sub-clause (a) of clause (oo) of section 2 of the Industrial Disputes Act, 1947, excluding voluntary retirements from the scope of definition of "retrenchment," such voluntary retirements shall for the purpose be treated as retrenchments by mutual consent of the parties;
(e) In any of the following contingencies, provided the actual payment shall be made only after completing a continuous period of not less than [two months] immediately preceding the date on which a member makes the application for withdrawal:
(i) Where a factory or other establishment is closed but certain employees who are not retrenched are transferred by the employer to another factory or establishment not covered under the Act;
(ii) Where a member is transferred from a covered factory or other establishment to another factory or establishment not covered under the Act, but is under the same employer; and
(iii) Where a member is discharged and is given retrenchment compensation under the Industrial Disputes Act, 1947 (14 of 1947).
2) In cases other than those specified in sub-paragraph (1), the Central Board, or where so authorized by the Central Board, the Commissioner, or where so authorized by the Commissioner, any officer subordinate to him, may permit a member to withdraw the full amount standing to his credit in the fund on ceasing to be an employee in any establishment to which the Act applies, provided that he has not been employed in any factory or other establishment to which the Act applies for a continuous period of not less than two months immediately preceding the date on which he makes an application for withdrawal. The requirement of a two-month waiting period shall not, however, apply in cases of female members resigning from the services of the establishment for the purpose of getting married.
Please examine whether any of the above clauses are applicable, or else you have no option but to take up employment elsewhere, albeit for a short period, and get your PF accumulation transferred to RPFC from the trust and keep it there till you want.
From India, Mumbai
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First of all, the PF money lying with the Trust cannot be appropriated by the company. The PF Trust is separate from the exempted organization, so the money with the Trust is safe. Moreover, you can caution the employee trustees or the concerned RPFC to keep a close watch on the Trust.
Circumstances for Final Withdrawal
Para 69 indicates the circumstances in which final withdrawal is permissible. It reads as follows:
69. Circumstances in which accumulations in the Fund are payable to a member:
1) A member may withdraw the full amount standing to his credit in the Fund:
(a) On retirement from service after attaining the age of 55 years:
Provided that a member, who has not attained the age of 55 years at the time of termination of his service, shall also be entitled to withdraw the full amount standing to his credit in the Fund if he attains the age of 55 years before the payment is authorized;
(b) On retirement on account of permanent and total incapacity for work due to bodily or mental infirmity duly certified by the medical officer of the establishment, or where an establishment has no regular medical officer, by a registered medical practitioner designated by the establishment;
(c) Immediately before migration from India for permanent settlement abroad [or for taking employment abroad];
(d) On termination of service in the case of mass or individual retrenchment;
(dd) On termination of service under a voluntary scheme of retirement framed by the employer and the employees under a mutual agreement specifying, inter alia, that notwithstanding the provisions contained in sub-clause (a) of clause (oo) of section 2 of the Industrial Disputes Act, 1947, excluding voluntary retirements from the scope of definition of "retrenchment," such voluntary retirements shall for the purpose be treated as retrenchments by mutual consent of the parties;
(e) In any of the following contingencies, provided the actual payment shall be made only after completing a continuous period of not less than [two months] immediately preceding the date on which a member makes the application for withdrawal:
(i) Where a factory or other establishment is closed but certain employees who are not retrenched are transferred by the employer to another factory or establishment not covered under the Act;
(ii) Where a member is transferred from a covered factory or other establishment to another factory or establishment not covered under the Act, but is under the same employer; and
(iii) Where a member is discharged and is given retrenchment compensation under the Industrial Disputes Act, 1947 (14 of 1947).
2) In cases other than those specified in sub-paragraph (1), the Central Board, or where so authorized by the Central Board, the Commissioner, or where so authorized by the Commissioner, any officer subordinate to him, may permit a member to withdraw the full amount standing to his credit in the fund on ceasing to be an employee in any establishment to which the Act applies, provided that he has not been employed in any factory or other establishment to which the Act applies for a continuous period of not less than two months immediately preceding the date on which he makes an application for withdrawal. The requirement of a two-month waiting period shall not, however, apply in cases of female members resigning from the services of the establishment for the purpose of getting married.
Please examine whether any of the above clauses are applicable, or else you have no option but to take up employment elsewhere, albeit for a short period, and get your PF accumulation transferred to RPFC from the trust and keep it there till you want.
From India, Mumbai
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