The "Provident Fund" Thread

CrackedHead · 14th April 2011, 00:08

I need some advise. I have been working for the last six years but am quiting to peruse a full time one year course.

I'm not sure if I should withdraw my PF or let it lie dormant for one year and then try to transfer it to my future employer? Please share your views. Thanks.

somspaple · 14th April 2011, 00:21

6 years would be a handsome amount. IMO unless you have a good investment plan/thought in mind do not withdraw.

also other details like planned big purchases/marriage/family would influence the decision.

BaCkSeAtDrIVeR · 14th April 2011, 14:11

I would vote for sticking to the existing account till you stop working (50+ years of age). As somebody responded to this statement earlier, I really cannot comment on the processes, levels of corruption, etc in the future. Right now, you have a very risk-free and secure investment, which earns above average rate of returns.

Additionally, longer duration of account's existence means higher possible pension in future when you retire.

Only govt. bonds offer equivalent level of security; and they are still subject to attachment in case you go bankrupt. (a remote possibility, given the defunct legal system; but still a possibility).

CrackedHead · 14th April 2011, 14:54

Quote:

Originally Posted by somspaple

6 years would be a handsome amount. IMO unless you have a good investment plan/thought in mind do not withdraw.

Thanks, I need to clarify a couple of things though - does the account still earn interest while I'm not contributing (earning) ?

The only thing making me want to withdraw is that I am young (below 30) with minimal financial commitments so I prefer riskier investment options with higher potential returns.

Quote:

Originally Posted by BaCkSeAtDrIVeR

Only govt. bonds offer equivalent level of security; and they are still subject to attachment in case you go bankrupt. (a remote possibility, given the defunct legal system; but still a possibility).

True. Not too a remote possibility and I hadn't considered this point. Thanks.

neon_daytona · 14th April 2011, 15:31

Quote:

Originally Posted by e1t1bet

Guys, I need some help. I quit my job last year, and applied for withdrawal (in March 2010). However, I haven't heard anything from epf office, and my company has already made the application. I can see my balance till Mar 2010 online, however, the claim status hasn't updated in a year. It still shows "your claim hasn't reached ..". Should I get a lawyer or file an FIR? How does this work?
I really need the money now as I am back to being a student

What is the site to check the PF balance? I am not aware of one.

@Chaand · 16th April 2011, 12:14

Quote:

Originally Posted by CrackedHead

does the account still earn interest while I'm not contributing (earning) ?

It would have for so far. But of late there is a rule that all accounts will stop receiving interest benefits after 3 yrs of non contribution. Not sure if thats enforced though.

akas_chauhan · 17th April 2011, 22:21

Reposting .
I'm in a situation now.
I applied for PF transfer and it's still under process as per current company's HR department.
Now i'll be joining another company within 2 months and i'm thinking of withdraw all PF.
Lets say in old company i had 50K and current company i've 50K, i need to withdraw all 1 Lac amount, however since PF transfer is not done, not sure what will happen.

Waiting for expert suggestions.

BaCkSeAtDrIVeR · 18th April 2011, 21:34

ajasm AFAICT, you will get a new a/c number, so you will need to wait till the transfer happens to submit the withdrawal application.

naveenroy · 26th May 2011, 15:21

Got a reply to my enquiry with a previous employer and this is what they had to say. "Employees who are applying for PF withdrawal after 3 years from the date of leaving may have to attach an indemnity bond with the claim forms as mandatory requirement, hence we request you attach the same with the forms".

I am not sure of what this indemnity bond is and how to get one. I have sent a reply to this company and awaiting a reply. i have done a search on the internet and some updates say that we will need to get a letter from a notary public mentioning these details etc. But is there a format that I can follow? Has anyone done this before? Please help.

rishie · 26th May 2011, 15:30

Quote:

Originally Posted by naveenroy

Got a reply to my enquiry with a previous employer and this is what they had to say. "Employees who are applying for PF withdrawal after 3 years from the date of leaving may have to attach an indemnity bond with the claim forms as mandatory requirement, hence we request you attach the same with the forms".

I am not sure of what this indemnity bond is and how to get one. I have sent a reply to this company and awaiting a reply. i have done a search on the internet and some updates say that we will need to get a letter from a notary public mentioning these details etc. But is there a format that I can follow? Has anyone done this before? Please help.

Its just a written confirmation of withdrawal application, on a stamp paper (according to my friend working in EPF office).

You can get the format available with the previous employer or any nearby PF office.

naveenroy · 28th May 2011, 19:35

Quote:

Originally Posted by rishie

Its just a written confirmation of withdrawal application, on a stamp paper (according to my friend working in EPF office).

You can get the format available with the previous employer or any nearby PF office.

Thanks for that info! Will await to see if ex-employer provides this format or I will try and get it from somewhere...

bullboy · 14th June 2011, 10:33

I recently change my job and wanted to transfer my PF, So basically do I need to submit only Form13 to my new employer or do i have to get some forms signed from my previous employer? My current employer is saying i have to get a form (enclosure to form 10A,10C,10D to be filled in by the employer,Employee's pension scheme 1995) signed from my previous employer.I searched the net and could not find anything like this.Help is much appreciated.

sgiitk · 14th June 2011, 12:07

My first instinct will be to hold it. However, it will also depend on the dynamics of the whole thing.

NetfreakBombay · 14th June 2011, 13:12

Quote:

Originally Posted by bullboy

I recently change my job and wanted to transfer my PF, So basically do I need to submit only Form13 to my new employer or do i have to get some forms signed from my previous employer?

For PF, you need to submit form to new employer. But for EPS (part of PF) you have to route it through previous employer.

moralfibre · 3rd July 2011, 12:06

FYI...

PF Balances are now available via sms online - EPFO

14th April 2011, 00:08	#106
CrackedHead BHPian Join Date: Apr 2009 Location: Seattle Posts: 585 Thanked: 81 Times	re: The "Provident Fund" Thread I need some advise. I have been working for the last six years but am quiting to peruse a full time one year course. I'm not sure if I should withdraw my PF or let it lie dormant for one year and then try to transfer it to my future employer? Please share your views. Thanks.
	() Thanks

14th April 2011, 00:21	#107
somspaple BHPian Join Date: Jan 2008 Location: Bangalore Posts: 349 Thanked: 954 Times	re: The "Provident Fund" Thread 6 years would be a handsome amount. IMO unless you have a good investment plan/thought in mind do not withdraw. also other details like planned big purchases/marriage/family would influence the decision.
	() Thanks

14th April 2011, 14:11	#108
BaCkSeAtDrIVeR Senior - BHPian Join Date: Jun 2007 Location: Kochi Posts: 2,540 Thanked: 758 Times	re: The "Provident Fund" Thread I would vote for sticking to the existing account till you stop working (50+ years of age). As somebody responded to this statement earlier, I really cannot comment on the processes, levels of corruption, etc in the future. Right now, you have a very risk-free and secure investment, which earns above average rate of returns. Additionally, longer duration of account's existence means higher possible pension in future when you retire. Only govt. bonds offer equivalent level of security; and they are still subject to attachment in case you go bankrupt. (a remote possibility, given the defunct legal system; but still a possibility).
	() Thanks

17th April 2011, 22:21	#112
akas_chauhan BHPian Join Date: Dec 2008 Location: San Antonio Posts: 596 Thanked: 26 Times	re: The "Provident Fund" Thread Reposting . I'm in a situation now. I applied for PF transfer and it's still under process as per current company's HR department. Now i'll be joining another company within 2 months and i'm thinking of withdraw all PF. Lets say in old company i had 50K and current company i've 50K, i need to withdraw all 1 Lac amount, however since PF transfer is not done, not sure what will happen. Waiting for expert suggestions.
	() Thanks

18th April 2011, 21:34	#113
BaCkSeAtDrIVeR Senior - BHPian Join Date: Jun 2007 Location: Kochi Posts: 2,540 Thanked: 758 Times	re: The "Provident Fund" Thread ajasm AFAICT, you will get a new a/c number, so you will need to wait till the transfer happens to submit the withdrawal application.
	() Thanks

26th May 2011, 15:21	#114
naveenroy Senior - BHPian Join Date: May 2009 Location: Atlanta, GA Posts: 1,518 Thanked: 1,318 Times	re: The "Provident Fund" Thread Got a reply to my enquiry with a previous employer and this is what they had to say. "Employees who are applying for PF withdrawal after 3 years from the date of leaving may have to attach an indemnity bond with the claim forms as mandatory requirement, hence we request you attach the same with the forms". I am not sure of what this indemnity bond is and how to get one. I have sent a reply to this company and awaiting a reply. i have done a search on the internet and some updates say that we will need to get a letter from a notary public mentioning these details etc. But is there a format that I can follow? Has anyone done this before? Please help.
	() Thanks

14th June 2011, 10:33	#117
bullboy BHPian Join Date: Sep 2006 Location: Trivandrum Posts: 613 Thanked: 106 Times	re: The "Provident Fund" Thread I recently change my job and wanted to transfer my PF, So basically do I need to submit only Form13 to my new employer or do i have to get some forms signed from my previous employer? My current employer is saying i have to get a form (enclosure to form 10A,10C,10D to be filled in by the employer,Employee's pension scheme 1995) signed from my previous employer.I searched the net and could not find anything like this.Help is much appreciated.
	() Thanks

14th June 2011, 12:07	#118
sgiitk Senior - BHPian Join Date: Dec 2007 Location: Gurugram Posts: 7,971 Thanked: 4,808 Times	re: The "Provident Fund" Thread My first instinct will be to hold it. However, it will also depend on the dynamics of the whole thing.
	() Thanks

3rd July 2011, 12:06	#120
moralfibre Team-BHP Support Join Date: Dec 2004 Location: MH-12 Posts: 8,562 Thanked: 14,451 Times	re: The "Provident Fund" Thread FYI... PF Balances are now available via sms online - EPFO
	(1) Thanks