Hi, I am working in an IT company (Private company) for around 5 years. I have worked in the company for 4 years and then switched to the present company. In the new company, they opened a new PF account. I would like to know if it is better to transfer the PF or withdraw that amount. Is there any difference between these two, apart from getting a bulk amount at the retirement stage? Is that the only difference, or are there any other benefits? I feel if that is the only difference, I can withdraw that amount to use for purchasing a plot/flat. I think in IT companies, we have a provident fund, not a pension fund. At the time of retirement, can we convert this provident fund to a pension fund? Please let me know.
Thanks,
Adithya
From India
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Thanks,
Adithya
From India
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Understanding PF, FPF, and EDLI Schemes
The PF scheme includes the Family Pension Fund (FPF) and also the Employees' Deposit Linked Insurance (EDLI) Scheme. So, if you enroll your name in PF, automatically FPF and EDLI will also be applicable for you. However, the contribution was partly diverted from PF to EPF. Hence, you can claim the PF amount and ask to give a scheme certificate for FPF so that you can get the full pension benefit at the time of retirement.
Regards,
Alphonse
From India, Madras
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166The PF scheme includes the Family Pension Fund (FPF) and also the Employees' Deposit Linked Insurance (EDLI) Scheme. So, if you enroll your name in PF, automatically FPF and EDLI will also be applicable for you. However, the contribution was partly diverted from PF to EPF. Hence, you can claim the PF amount and ask to give a scheme certificate for FPF so that you can get the full pension benefit at the time of retirement.
Regards,
Alphonse
From India, Madras
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Early PF withdrawal won’t be easy.pdf
Steps to transfer PF amount.jpg