Can I keep my EPF account operational and earn interest post-retirement?
I retired at age of 64 years in March 2019. I kept my employees’ provident fund (EPF) account operational without any additions. The three-year period allowed to keep the account open without additions ends on 18 March 2022.
I have the following queries:
1) Can I extend my EPF account beyond three years without any additions to the account?
2) I need to close the account on 18 March 2022. In this case, how will the interest for the 2021-22 period get credited to my account, as the rate of interest is generally decided in April, and my account would close a month before that?
3) When do I submit an online application for account closure — on 18 March 2022 or before that date?
– Anonymous
As per the existing provisions under the Indian Provident Fund (PF) law, an EPF account becomes ‘inoperative account’ and does not earn further interest, once an employee retires from service after attaining the age of 55 years, migrates abroad permanently or dies and does not apply for withdrawal of his accumulated balance within 36 months.
Until then, interest will continue to accrue on the PF balances, however, no interest will accrue once the account becomes inoperative.
In your case, as you have retired after completing 55 years of age, you shall receive interest up to 36 months from the date of your retirement. It may be noted that post completion of the above referred 36 months, it is not mandatory to close your PF account. You can keep the account open.
