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Kapil Tiwari (export executive)     01 January 2013

Withdrawal or transfer of provident fund


1) Since 1/4/2004, in my present job, I have been contributing 50% and for last 2 years 100% (of Rs.6,500) per month to the Provident Fund Scheme and the Employer has been contributing Rs.780 per month. The latest balance in my account is about Rs.3.5 lakhs employees contribution and Rs.58,000 employer's contribution.
2) I will be resigning from this company and shall take up the next job after a gap of 2 months.
Hence, I have the possibility of withdrawing both employees plus employer's contribution after 2 months. If I do not withdraw, in another year (after completion of about 10 years), a significant part of the accumulations in my account will go into the Pension Scheme, where the returns are very low.
3) I am 51 years old, unmarried, with an 82-year old mother, but do not require funds for any emergency presently. 

Dear Sirs, kindly offer your valuable guidance if, in my case, I should withdraw the provident fund accumulations or transfer the balance amount to the Provident Fund account in my new job, even if it means opting for the Pension Scheme. I am unable to make up my mind.


 12 Replies

JANAK RAJ VATSA (ADVOCATE)     01 January 2013

this query would be better answered by financial investment experts

1 Like

Umesh Pawar (AM)     01 January 2013

Only 8.33% of employer share(541.00 PM) will go under pension scheme, for 10 year amount in pension fund will be 541*12*10=64920.00

& pension amount after 10 year of service will be 929.00

1 Like

Kapil Tiwari (export executive)     01 January 2013

Mr. Umesh Pawar, Sir, do you advice that since the amount going into the pension scheme is quite low, it is a good idea not to withdraw provident fund accumulation but transfer it to the new provident fund account in my new job? Kindly do reply. 

Umesh Pawar (AM)     02 January 2013

Mr. Kapil Tiwari, if you make up your mind to accumulate pension fund then you should go for transfer.

1 Like

Sudhir Kumar, Advocate (Advocate)     03 January 2013


1 Like

Kapil Tiwari (export executive)     03 January 2013

Mr. Sudhir Kumar, Sir, kindly elaborate on "YEARS BEING CREDITED TO YOUR ACCOUNT".

The formula for monthly pension receivable is:

Basic Salary (last drawn) multiplied by Number of years employed and divided by 70.

Hence, the more the number of years, the higher will be the monthly pension. Sir, is this what you mean? Would you recommend transfer of provident fund (and not withdrawal) knowing well that the monthly pension will be quite small?  I await to hear from you. Many thanks for your kind interaction with me. 

Sudhir Kumar, Advocate (Advocate)     25 June 2013

when you withdraw the fund you forefeit the earlier contributaroy years and if you seek transfer to new fund then all these years add as contributory period.  Rest of the formula you know.  for EPFO your length of service is irralevent your length olf contribution is relevant.

1 Like

Kapil Tiwari (export executive)     26 June 2013

Mr.Sudhir Kumar, Sir, you have addressed my query very nicely. Many thanks to you. 

Sudhir Kumar, Advocate (Advocate)     26 June 2013

But still you will withdraw and will not seek transfer that is my expereince.

1 Like

Kapil Tiwari (export executive)     26 June 2013

Dear Mr.Sudhir Kumar, Sir, I have not withdrawn.  Many thanks once again, Sir.

Adv k . mahesh (advocate)     26 June 2013

you have to withdraw the amount from the Provident fund to sake of benefit and also enquire about any additional bonus is paid if the account is continous 

1 Like

Kapil Tiwari (export executive)     26 June 2013

Mr. K. Mahesh, Sir, I have noted your point. Thanks. 

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