All provident fund subscribers who have accounts which are not operative for 36 months will cease to accumulate any interest after April 1, 2011. Hence it is important that all non operative provident fund (PF) accounts should be transferred or settled before April 1, 2011.
According to EPFO estimates, there were 30.5 million inoperative accounts across 120 offices. In all, the agency had 47.1 million subscribers at the end of March 2009, which is estimated to have increased during the last financial year.
earlier in this financial year interest in provident fund has been increased by 100 basis points (1%) to 9.5% which happens to be very attractive considering all the returns are tax free.
The idea behind this is that majority of non operative accounts are having balance of less than Rs.5000/- and cost of maintaining these accounts are not borne by anyone which otherwise is done @1.1 % per annum by employers.
How to withdraw the Provident Fund
Fill up the form 19 Provident Fund dues on leaving service /retirement/ termination and send it to regional office through your last employer. Status of the same can be checked online at http://59.177.81.198/homepage_claim_status_new.php
How to transfer the Provident Fund
Fill up the form 13 and forward it to the regional Provident Fund (PF) office through your present employer.
