PF Account: For salaried people, the money of Provident Fund is their lifetime earnings. As long as you remain in the job, you contribute to the EPF, and when you retire, you have a substantial amount, so that you can spend your old age on the basis of this money.
EPF Account: For salaried people, the money of Provident Fund is their lifetime earnings. In such a situation, it is very important for you to know about the rules related to EPFO. As long as you remain in the job,
you contribute to the EPF, and when you retire, you have a substantial amount, so that you can spend your old age on the basis of this money. But many times it happens that due to lack of information or some mistakes, the PF account gets closed. Therefore, it is very important for you to know that you should not make any such mistake.
1. Account may be closed
If you have not transferred your PF account to the new company from the company in which you used to work earlier, and the old company got closed. In such a situation, if there was no transaction from your PF account for 36 months, that is, money was not put in it. So in this case your PF account will be closed. EPFO puts such accounts in the ‘Inoperative’ category.
2. How will it be active again?
Once the account becomes ‘inoperative’ then you will not be able to do the transaction, to make the account active again, you will have to go to EPFO and apply. Even after being ‘inoperative’, interest continues to accrue on the money lying in the account, which means that your money is not sunk, you get it back. Earlier, interest was not available on these accounts. But, in 2016 the rules were amended and interest was started. You should know that interest accrues on your PF account till you attain the age of 58 years.
3. When is the account ‘Inoperative’
According to the new rules, the EPF account becomes ‘inoperative’ if the employee has not applied for withdrawal of EPF balance, when
A- even after 36 months of retirement when the member turns 55 years after that
B- when the member is permanent Settled in a foreign country
C- If the member has died
D- If the member has withdrawn all the retirement funds is put into the Fund.
