Last Updated on September 21, 2023 by ufiling
The DepEd Provident Fund (DEPF) is a program initiated by the Philippine Department of Education (DepEd) for its employees to provide financial assistance upon retirement. One of the features of DEPF is the 30 percent withdrawal option, which allows qualified members to withdraw 30% of their accumulated contributions before their retirement.
The 30 percent withdrawal option is intended to provide short-term financial assistance to members who need it. This option is available to members who have made contributions for at least five years, and have not made any withdrawals from their DEPF accounts in the last two years. The amount that can be withdrawn is based on the member’s total contribution and the interest earned.
However, it is important to note that withdrawing a portion of the DEPF balance will reduce the amount that will be received upon retirement. This can have a significant impact on the overall retirement plan of an individual. Therefore, members should carefully consider the pros and cons of the 30 percent withdrawal option before availing of it.
On the positive side, the 30 percent withdrawal option can provide immediate financial assistance to members who are facing financial difficulties. It can be used to pay for medical expenses, education expenses, or other urgent needs. Additionally, members who plan to retire in the near future may also use this option to fund their transition into retirement.
On the negative side, members who avail of the 30 percent withdrawal option will have a reduced balance in their DEPF account, which will ultimately result in a lower retirement benefit. Members who are still far from retirement may find it more beneficial to keep their DEPF contributions intact and allow it to grow through the years.
In conclusion, the 30 percent withdrawal option of DEPF can be a helpful feature for members who are in need of immediate financial assistance. However, members should also consider the long-term impact of withdrawing a portion of their DEPF balance, particularly in relation to their retirement plans. It is always best to seek advice from financial experts before making any significant financial decision, including availing of the 30 percent withdrawal option.