Transferring and Withdrawing Pension Amounts from an Old PF Account
When transferring from an old PF account to a new one, a common issue often arises: the pension fund is not transferred along with the account balance. This article aims to clarify the process of transferring and withdrawing pension amounts from your old PF account, ensuring you understand the steps and timelines involved.
Understanding the Transfer Process
If you are currently employed and holding a live PF account, you can only transfer the old PF account, and not withdraw from it. If you do not have a UAN (Unique Account Number) account, create one with your current employer and then proceed to submit an online form for the transfer. Rest assured, your old PF account will continue to earn interest on the balances.
Waiting for the Transfer of Pension Amount
EPF (Employee Provident Fund) amounts are typically transferred more quickly compared to pension amounts. Normally, it takes between 3 to 4 weeks. While the process is underway, if you have concerns, you can file a complaint through the PF Grievance Portal. Your issue will be addressed immediately once the complaint is registered.
Transferring Pension Funds
According to the PF Act, only pension services are transferred from one RPFC (Regulation and Pension Fund Committee) office to another. No need to transfer the pension amount to the current account since it is already transferred. In the EPF system, the pension amount will be calculated based on your cumulative service period, ensuring that no service is overlooked. Pension amounts are generally invested in government or private funds, making it not easy to withdraw.
Withdrawing Pension Amounts
Typically, you can withdraw your pension amount after a 2-month non-contribution period following job resignation. Additionally, if your total experience or total contribution period is less than 10 years, you cannot withdraw at this stage. The pension amount will eventually be used for your pension, which will be calculated as the lesser of 15,000 or your actual pension, multiplied by your total contribution experience, divided by 70. The government is planning to increase the basic pay for 15,000, which will likely lead to higher pensions. However, it is important to note that the entire calculation will not be based on the new base pay in this case.
Checking Service Particulars and Retirement Calculations
When checking your service particulars, ensure the following details are correct: date of birth, date of joining, date of leaving, date of service, wage, and breaks in service. These details are crucial for accurate pension calculations. Once you have crossed the 10-year mark from the contributory period, you can no longer withdraw the amount, as it will be used to fund your monthly pension.
Conclusion
The process of transferring pension amounts can be complex, but understanding the steps and timelines involved can help you manage your finances more effectively. If you have any doubts or unfinished business regarding your PF account, it's always best to seek guidance from a financial advisor or HR representative to ensure a smooth transition and withdrawal process.