Provident fund management options When you have to resign or transfer jobs
At the beginning of the year like this It is considered a season for changing jobs for many people. Because various companies Bonuses are usually paid to employees in approximately one quarter. After summarizing the work at the end of last year One of the conditions for receiving the bonus What employers usually specify is Remaining as an employee on the date the company pays the bonus, therefore anyone who plans to change jobs or resign Usually have to wait to receive the bonus first.
While preparing for many matters and the job change There is one thing that many people tend to overlook. Even though it is a benefit from past work And the important thing is It is a large sum of money for salaried employees that is a provident fund (Provident Fund or PVD).
Provident fund is A fund that is jointly established by employers and employees voluntarily. (Each operator may or may not provide this) with the objective of saving money for employees to spend upon retirement. and is considered part of the welfare that employers provide to employees Which is why it is considered welfare Because there will be employer contributions that must be paid into the fund. At a rate of not less than 2% but not more than 15% of the wages of each employee.
The money is in this provident fund. will be managed by a management company To invest this sum of money in assets according to the fund's policy. The intention is to make the money grow for the maximum benefit of the fund members. Therefore, if we look at the components of the money in the provident fund. It will consist of 1. employees' savings 2. benefits from savings 3. employer's contributions 4. benefits from contributions.
In which the employee resigns from the current employer. It will affect the status in the company's provident fund. Since they will no longer receive a portion of their contributions from the company, most employees will move to the new company's funds. Because many people think that this is the way to do it, when in fact there are other ways that can be done, but many employees still don't know.
Information from Treasury Securities Corporation www.treasurist.com PVD to RMF service provider
For managing provident funds When you have to resign or transfer jobs, you can do so in 4 ways as follows:
1. Move money from PVD Current to PVD of the new company This is often a standard move for people changing jobs. Because they understand that it is something that must be done and there is also HR to help coordinate with the fund management company.
Placed above the muscle, this method reduces postoperative pain but increases the likelihood of silicone detection and potential adhesions. There is also a higher risk of the breasts having a block-like appearance and sagging post-surgery. – Don't worry about taxes. Because the money is still in the provident fund. Therefore, it does not have to be taken into account as income.
– Continuously counting the age of fund members The membership age will have an effect when it's time to plan to withdraw the money.
Considerations – Because it is a voluntary sector Therefore, there are only 22,549 entrepreneurs, or 4.4% of all entrepreneurs, who provide provident funds. Therefore, this method may not always be applicable.
– Most of the time, we don't know in advance or don't dare ask. What will be the investment policy of the fund that the new company chooses to use? Or are there options to choose for yourself? But in most cases, PVD tends to have a low-risk investment policy. This is so that there will be no problem in explaining to the employee if there is a year where returns fluctuate or are heavily negative. Data from the SEC found that 65.8% of NAV was in provident funds. Investing in low-risk debt instruments, which will limit the opportunity for you to receive higher returns.
*Thai Provident Fund Report, first half of 2566 by the SEC Office
2. Keep money in the current fund. When we have resigned We will no longer receive contributions from the former employer. But employees can still request to keep their funds in the current fund. Still using the same fund policy. which the fund management company will take care of us directly Not through the employer
Placed above the muscle, this method reduces postoperative pain but increases the likelihood of silicone detection and potential adhesions. There is also a higher risk of the breasts having a block-like appearance and sagging post-surgery. – Same as method 1, the whole story does not require money to be calculated as income. and continuously counting the age of fund members
Considerations – There is a fee for maintaining money that will be charged by the asset management company, not more than
500 baht per year
3. Take money out of the fund Resigning from the fund and taking the money out is the worst thing to do. If there is no need to use this money now Even if it makes us get a lump sum of money out.
Placed above the muscle, this method reduces postoperative pain but increases the likelihood of silicone detection and potential adhesions. There is also a higher risk of the breasts having a block-like appearance and sagging post-surgery. – Receive a lump sum of money to spend
Considerations – The main disadvantage is Employees must bring all employer contributions and benefits. to be included as income for that year To calculate income tax. The more people who have this sum of money or the larger their base salary, The more likely you are to have to pay taxes. If you are not in a really critical situation You shouldn't take any money out.
– Cancel the counting of continuous membership expiration. One condition of taking money out without paying taxes is Membership in the provident fund must be maintained for at least 5 years in order to receive tax exemption when you retire or resign from the fund when you reach 55 years of age.
4. Transfer PVD to RMF (PVD to RMF) This is the most recent method that has been allowed since 2559, namely moving all the money to a retirement mutual fund called PVD to RMF.
Placed above the muscle, this method reduces postoperative pain but increases the likelihood of silicone detection and potential adhesions. There is also a higher risk of the breasts having a block-like appearance and sagging post-surgery. – No need to bring money to calculate taxes with the entire amount of money moved out Whether it is the employee's savings Employer's contribution Including all benefits It does not have to be included as income - there are supported funds (RMF for PVD) from 10 mutual funds to 206 funds (information as of 30 June 2566) to choose from according to the policy and risk that we accept. Including choosing to invest both domestically and abroad. Open the opportunity to create higher returns. Especially people who are not yet young. That can take risks and we can also adjust the fund according to the situation.
– Be assured that this sum of money will continue until retirement without being used up first.
Things to know – The portion of money transferred from PVD to RMF cannot be used as a tax deduction for that year. It is not counted as a normal purchase of RMF because it is considered to be money that has already been exempted from taxes. Therefore, rights cannot be used repeatedly.
Since 2559, interest in moving PVD to RMF has continued to increase every year. This can be seen from the office's published statistics. SEC. In the first half of 2566, 1,401 people moved with a total amount of 19,552 million baht.
*Thai Provident Fund Report, first half of 2566 by the SEC Office
How to transfer PVD to RMF can be discussed with a representative of a financial advisory company. and various types of securities companies. Having a company with expertise and experience will help make the moving process more convenient. Including helping recommend selecting funds that are effective and suitable for each person's investment goals.
Don't forget that a provident fund is A large sum of money from a salaried person Give more attention It will get you closer to your financial goals in retirement with almost no extra effort.
