1. INTRODUCTION
Employees' Pension Scheme has been made applicable on 16.11.1995 retrospectively with effect from 1.4.1993. This new scheme replaces the erstwhile Family Pension Scheme 1971.
2. MEMBERSHIP
Every member of the Employees' Provident Fund Scheme 1952 and opted for Family Pension Scheme 1971.
All new entrants to the Employees' Provident Fund Scheme 1952 will become members of the Employees' Pension Scheme 1995 on compulsory basis.
Every employee who has ceased to be a member of the Employees' Family Pension Scheme 1971 during 1.4.1993 and 15.1I.1995 was given option to become member of the Employees' Pension Scheme 1995 upto 31.3.1998.
Every existing member of the Employees' Provident Fund Scheme 1952 not being member of Employees' Family Pension Scheme 1971 has option to become member of Employees' Pension Scheme 1995.
3. OPTION REQUIREMENT
Members'who have died during 1.4.1993 and 15.11.1995, shall be deemed to have exercised option of joining Employees' Pension Scheme 1995 with effect from the date of death.
Members who are alive may exercise option to become members of the Employees' Pension Scheme 1995 on the date of exit from the employment by depositing amount alongwith interest at the rate of 8.5 per cent per annum from the date of such withdrawal.
Members will have option to join Employees' Pension Scheme 1995 by depositing the contribution along with up to date interest under ceased Employees' Family Pension Scheme 1971 with effect from 1.3.1971.
4. CONTRIBUTION
Employee is not required to contribute separately under the Employees' Pension Scheme 1995. Employer share of Provident Fund contribution at the rate of 8.33 % is diverted to Pension Fund every month.
5. SERVICE FOR PENSION
Actual service rendered after 16.11.1995 together with the service for which the contribution has been made under the ceased Family Pension Scheme 1971, if any, will be treated as service for pension.
A member is entitled for pension after completing the age of 58 years with minimum service of 10 years.
Six months or more shall be treated as one year and the service less than six months shall be ignored.
6. PENSIONABLE SALARY
Average monthly pay drawn in any manner including on piece rate basis during the contribution period of service in the span of twelve months preceding the date of exit from the membership of the Employees' Pension Fund.
Maximum pensionable salary shall be limited to five thousand rupees per month.
7. BENEFITS
- Monthly Members' Pension
- A member retiring at the, age of superannuation i.e. 58 years and has rendered eligible minimum service of 10 years shall be entitled for retirement pension. The pension 'entitlement shall be worked out on the following formula:
- Member's Monthly pension : Pensionable salary X Pensionable Service
70
- PENSION SCHEME CERTIFICATE
Document showing pensionable service and the amount of pension On the date of exit from employment is issued to the member who has not attained the age of superannuation. Service mentioned in the certificate shall be counted for determination of pension along with fresh service rendered by way of subsequent employment, if any, with the establishment covered under the Employees' Pension Scheme 1995.
- INVALIDITY PENSION
The• member is entitled for disablement pension in case of permanent and total disablement during the course of employment. Such member shall be entitled for pension as pel" normal rule subject to a minimum of two hundred fifty rupees per month. Member with contribution for even one month is entitled for benefit under this category. The member shall be required to produce invalidity I disability certificate issued by the medical Board set up under Employees' State Insurance Scheme.
- WIDOW PENSION
Widow of the member shall be entitled for pension from the date following the date of death of member whether the death has occurred while in service or after exit from employment or after retirement/ commencement of pension. The pension of widow will be equal to member's pension entitlement in case of death prior to retirement subject to a minimum of two hundred fifty rupees per month. The pension to widow shall be equal to half of member's pension subject to a minimum of two hundred fifty rupees per month where death occurs after retirement /commencement of pension. Pension under this category shall be payable for life or remarriage, whichever is earlier.
"For purpose of this benefit, 'widow' incorporates 'widower' also, wherever applicable."
- CHILDREN PENSION
Two children of the deceased member shall be entitled to children pension upto age of twenty five years in addition to pension to widow. The amount of pension for each child shall be equal to twenty five percent of the amount admissible to the widow subject to a minimum of one hundred fifteen rupees per month.
- ORPHAN PENSION
Orphan children shall be entitled to monthly orphan pension equal to seventy five percent of the amount of widow pension subject to a minimum of one hundred seventy rupees per month per child, where the member is survived by children only. Pension under this category shall be payable to a maximum of two orphan children upto age of 25 years.
- NOMINEE PENSION
Members can nominate a person to receive benefits under the Employees' Pension Scheme 1995 where a member is unmarried or does not have any family. Such nominee shall be paid pension equal to widow pension in case of death of member.
8. COMMUTATION OF PENSION
Commutation of pension is available from 16th November, 1998. Members drawing . pension on superannuation under Employees' Pension Scheme 1995 can opt for Comp1utation up to a maximum of 1/3rd of pension. Hundred times the amount of pension so commuted will be paid. Balance of the pension after commutation will be paid or monthly basis thereafter.
9. RETURN OF CAPITAL
Members entitled for monthly' pension have a choice to opt for reduced pension and can avail, "Return of capital" in addition to the commutation of pension already availed. The scheme provides three alternatives under this category.
10. WITHDRAWAL BENEFITS
A member is entitled for withdrawal benefit under Employees' Pension Scheme 1995 only' .where the minimum pensionable service of ten years has not been rendered on attaining age of 58 years.
11. GUARANTEE OF PENSIONARY BENEFITS
Members will be entitled for the benefits under Employees' Pension Scheme 1995 even if the employer has not deposited dues. Amounts due from employer under the Employees' Pension Scheme 1995, however, shall be recovered by due process separately.
12. PAYMENT OF PENSION THROUGH BANKS
Nationalised Banks having largest network in a particular state have been identified for disbursement of monthly pension to the pensioners. Members are required to open account in the Bank where the pension is desired and indicate option in the application in Form 10 D. The following banks have been identified for disbursement of pension under Employees' Pension Scheme 1995
13. VALUATION
Employees' Pension Scheme 1995 has provided for valuation every year by Actuary appointed by the Central Government. First valuation of pension fund by the Actuary has resulted into increase in pension by 4 per cent.
14. DUTIES OF EMPLOYERS
Every employer is, required to furnish to the Commissioner within three months of the commencement of this Scheme, a consolidated return of the employees entitled to become members of the Employees' Pension Fund showing their basic wage, retaining allowance including the cash value of any food concession paid to each of such employees and other relevant details;
Provided that if there is no employee who is entitled to become a member of the Employees' Pension Fund, the employer need send a 'NIL' return.
Every employer shall send to the Commissioner within fifteen days of the close of each month a return in respect of the employees leaving service of the employer during the preceding month, and the new employees joining the service during the said period.
If there is no employee leaving/joining service of the employer during the preceding month the employer need send a 'NIL' return.
Every employer shall maintain such accounts in relation to the amounts contributed by him to the Employees' Pension Fund as the Central Board of Trustees, Employees' Provident Fund may, from time to time, direct and it shall be the duty of every employer to assist the Central Board of Trustees Employees Provident Fund in making such payments from the Employees' Pension Fund to his employees as are sanctioned by or under the authority of the Central Board.
Central Board of Trustees Employees Provident Fund may issue such directions to the employers generally, as it may consider necessary or expedient, for the purpose of implementing the Scheme, and it shall be the duty of every employer to comply• with such directions.
15. DUTIES OF CONTRACTORS
Every contractor shall, within seven days of the close of every month, submit to the principal employer a statement showing the particulars in respect of employees employed by or through him in connection with the "'Work of the establishment and in respect of whom contributions to the
Employees' Pension Fund are payable, The Contractor need also furnish such Information as the principal employer is required to furnish under the provisions of this Scheme to the Commissioner.
16. EXEMPTION FROM THE SCHEME
Any establishment or class of establishments can seek exemption under pare 39 from the operation of Employees' Pension Scheme 1995 provided the employees of such establishments are either members of any other pension scheme or propose to be members of a: pension scheme wherein the pensionary benefits are at par or more favorable than the benefits under this scheme. An application for exemption under this paragraph shall be presented to the Regional Provident Fund Commissioner having jurisdiction by the establishment or class of establishments together with a copy of the pension scheme of the establishment(s) and other relevant documents as may be called for by him. On receipt of, such an application, the Regional Provident Fund Commissioner shall scrutinise it, obtain the recommendations of the Central Provident Fund Commissioner and submit the same to the appropriate Government for decision.
17. PENSION CELL
A Pension Cell, headed by Controller of Pension exist in every Regional Provident Fund Office. Pension Cell attends exclusively all matters relating to Employees' Pension Scheme 1995.
18. FORMS FOR USE BY THE MEMBERS
The following forms have been prescribed for use by the members under the Employees' Pension Scheme 1995 :
(1) Form 2 :To be used for furnishing the particulars of the family .. of the member and Nominee
(2) Form lOC : To be used for claiming withdrawal benefits.
(3) Form lOD : To be used for claiming Monthly Pension/Scheme certificate.
All these forms are available free of cost through the employers or from Facilitation centers set up in all the Provident Fund Offices throughout the country.
DO'S FOR MEMBERS
• Instructions enclosed with the forms should be gone through before completing the forms.
•Saving Bank Account No. and name of the Bank along with the address should be mentioned in capital bold letters.
•Forms should be got attested by the ex-employer where establishment! factories are functioning.
•In case of attestation by the officer other than ex-employer, the name and designation of the attesting authority should be clearly mentioned.
•Claims should be sent directly to the concerned provident fund office.
•Contact Public Relation Officer of concerned provident fund office for any inquiry/information.
•Clarification sought by the provident fund office on the claims should normally be sent through ex-employer.
•In case of any grievance, the complaint should be made Public Officer / Officer-in-charge of the concerned provident fund
DON'TS FOR MEMBERS
•Do not close the Bank Account mentioned in claim form till the payment from the provident fund office is received.
•Do not approach any middle man/consultant /part-timer for settlement of claim.
•Do not contact any other official except Public Relation Officer/ Officer-in-charge of concerned provident fund office for any information about provident fund matters.
•Do not hand over claim forms to any unauthorised person.