Question:
How can I withdraw my provident fund money from an umbrella provident fund scheme without resigning if I suspect that my employer might be liquidated( highest probability). Can we withdraw from the scheme? If We cant what happens to my provident fund if the company is liquidated.
Answer:
Richard, You cannot withdraw from the fund without first resigning. When the company is liquidated, the provident fund will be closed and members will be paid out - they can choose to receive cash (net of tax) or they can preserve tax-free in a preservation fund, or they can transfer tax-free to their new employer's provident fund. Note that your employers assets and liabilities are separate from the provident fund, and the company's creditors cannot access your retirement savings.
