New Delhi :
According to EPF regulations, the balance in your account will continue to accrue interest for up to three years after leaving a job, even if you have not joined another company.
To ensure the smooth transfer of funds,
the Employees Provident Fund Organisation advises account holders to wait until they secure a new job before transferring their PF money to the new account with their new employer.
If the individual is unable to secure a new job, they should apply for a withdrawal before the 36-month period ends,
as no interest will be paid after this period, rendering the account inactive.
The EPFO explains that if a new job is obtained, the individual can transfer their PF account to the new account.
However, if a job is not obtained, it is recommended to apply for a settlement before the 36-month period from leaving the previous job to avoid losing out on interest and rendering the account inactive.
Claim forms for final settlement of PF account
Age below 50 years
Upon completion of ten years of eligible service, individuals may apply (in certain cases, after a waiting period of two months) for final settlement of their PF and a Scheme Certificate from the Pension Fund using either the Composite Claim Form (Aadhar) or the Composite Claim Form (Non-Aadhar).
The EPFO clarifies that withdrawal benefits are not permitted in this scenario since the individual has completed over ten years of eligible service.
Instead, only the scheme certificate will be issued. The EPFO explains that individuals may apply for Withdrawal Benefit or Scheme Certificate through Form 10C to retain their Pension Fund Membership.
By retaining their membership, they can add any future period of membership under the Fund and achieve the ten years of eligible service required to receive a pension.
Additionally, in case of the member’s death before the age of 58 with less than ten years of eligible service, their family will still be eligible for pension benefits.
Age above 50 years but below 58 years
Upon completing 10 years of eligible service, individuals may apply for final settlement and a scheme certificate from the Pension Fund through the Composite Claim Form (Aadhar) or Composite Claim Form (Non-Aadhar), or they may apply for reduced pension through Form 10D.
The EPFO states that in this scenario, withdrawal benefits will not be permitted as the individual has completed over 10 years of eligible service, and only a scheme certificate will be issued.
If an individual opts for a pension, it will be paid at a reduced rate from the date of leaving service, the opted date, or age 50, whichever is later.
The EPFO further explains that the pension will be calculated as admissible on completion of 58 years and will be reduced by 4% for each year backward.
The EPFO advises individuals to apply for Withdrawal Benefit or Scheme Certificate through Form 10C to retain their Pension Fund Membership.
Retaining membership will allow for the addition of any future period of membership under the Fund and will attain eligible service of 10 years to receive a pension.
Even with less than 10 years of eligible service, family pension benefits will also be granted in the event of the member’s death before age 58.
Age above 58 years
Individuals who have completed 10 years of eligible service may apply for final settlement of their PF through the Composite Claim Form (Aadhar) or Composite Claim Form (Non-Aadhar), as well as for a pension through Form 10D.
On the other hand, individuals who have not completed 10 years of eligible service may apply for final settlement and withdrawal benefits from the pension fund through the Composite Claim Form (Aadhar) or Composite Claim Form (Non-Aadhar).
