Lifetime earnings of the salaried employee are in the PF account. But this account can also be closed due to many reasons, after which the account holder may have to face trouble. So today we are going to tell you when the PF account gets closed and what happens to the amount deposited in the closed account.
on change of job
on change of job, employee has to transfer his PF account from old company to new company. If the employee does not do this and the old company is closed, then the PF account can be closed. But this will happen if there is no transaction in the account for 36 months. If there is no transaction for 36 months from the PF account, EPFO puts these accounts in the ‘inoperative’ category.
On settling abroad
Even when the account holders settle abroad permanently, the PF account becomes inactive. Apart from this, it is considered inoperative even after the death of the member or when he withdraws the entire retirement fund.
what happens to the money deposited in the inactive account
- Even after being inactive, you keep getting interest on the money deposited in the account. This money can also be withdrawn.
- Earlier these accounts did not get interest, but in the year 2016, the rules were amended and interest was started paying.
- PF accounts But the interest accrues till you attain the age of 58 years.
- If the account remains dormant for seven years, then the balance that is not claimed is the balance of Senior Citizen Welfare Fund (SCWF). ).
- In SCWF this amount stays for 25 years. During this time you can claim the amount. The government also gives interest on this fund.
How to Reactivate Account
- Application has to be made in EPFO to get the inactive PF account activated again.