I am working in a manufacturing unit as a jr. hr manager. I need some information about employee pension scheme. please give some information.
From India, Bangalore
From India, Bangalore
Dear Subhankar ji,
It is very surprising that a HR Manager and that too who is engaged with manufacturing industry / unit is unaware of Social Security Scheme applicable to his employees by statute.
In this forum, I feel, one can not get knowledge if he doesnot know any basic thing in subject matter. Query on any subject matter can be solved here.
Even any seminar / workshop of two days / three days will be not be helpful to you to understand the pension scheme if you do not know any thing about it. You need to get basic knowledge first from your own sources then participate in such kind of forum to enhance the basic knowledge you gained.
Hope I have not said any thing wrong.
From India, Mumbai
2556It is very surprising that a HR Manager and that too who is engaged with manufacturing industry / unit is unaware of Social Security Scheme applicable to his employees by statute.
In this forum, I feel, one can not get knowledge if he doesnot know any basic thing in subject matter. Query on any subject matter can be solved here.
Even any seminar / workshop of two days / three days will be not be helpful to you to understand the pension scheme if you do not know any thing about it. You need to get basic knowledge first from your own sources then participate in such kind of forum to enhance the basic knowledge you gained.
Hope I have not said any thing wrong.
From India, Mumbai
Dear Subhankar ji,
When you are reading this post, you will find "Related Information" at your right hand side in red. You may read all such information. But mind well, all such information available on this site or any other web site may not correct.
From India, Mumbai
When you are reading this post, you will find "Related Information" at your right hand side in red. You may read all such information. But mind well, all such information available on this site or any other web site may not correct.
From India, Mumbai
well employee pension scheme comes under the Employee Provident Funds and Miscellaneous Act 1952
For the Employee Pension Scheme minimum 10 years contributory service are required for entitlement to pension
the amount of pension will vary and will be calculated as follows
(Pensionable Salary multiplied by pensionable service +2)/70
the pension scheme provides for payment of pension in superannuation ,retirement,permanent total disablement,death
hope that clears your doubt
From India, Pune
For the Employee Pension Scheme minimum 10 years contributory service are required for entitlement to pension
the amount of pension will vary and will be calculated as follows
(Pensionable Salary multiplied by pensionable service +2)/70
the pension scheme provides for payment of pension in superannuation ,retirement,permanent total disablement,death
hope that clears your doubt
From India, Pune
Dear Subhankarji,
First of all you read EPF & MP Act which contains EPS also and understand the whole concept. Then if you require any clarifications on any topics, pls raise them for guidance. Citehr is a forum for that purpose and not for training on any subject or Act.
Best of luck.
From India, Mumbai
First of all you read EPF & MP Act which contains EPS also and understand the whole concept. Then if you require any clarifications on any topics, pls raise them for guidance. Citehr is a forum for that purpose and not for training on any subject or Act.
Best of luck.
From India, Mumbai
Employees Pension Scheme 1995
In response to the long standing demand of the working class for pension benefits, the Employees Pension Scheme 1995 (EPS) was introduced with effect from 16/11/1995. This benefit is in addition to the Employees Provident Fund [EPF] Benefit for the members of the EPF.
This scheme is compulsory for all those who become members of EPF from 16/11/1995 onwards.
NOTE: The details given below are relevant and applicable to only those who entered service and became members of the scheme on or after 16/11/1995 only. For those who joined earlier there are different provisions.
Contributions
Employees need not make any separate special contribution for EPS. A part of the employers’ contribution to the EPF is diverted to the EPS account of the member. Normally the employers contribute 10% or 12% of the wages every month to the EPF account of the member. Out of this 8.33% is diverted to the EPS. Government contributes 1.16% of the wages every month to the EPS. Therefore employee need not contribute anything separately for the EPS. Contributions continue until the member attains the age of 58 years only. Thereafter no contribution is made to the pension scheme. After 58 years of age the member can get pension if he is otherwise eligible.
Benefits donot depend on amount of contribution
One basic point about the pension benefits under the EPS is that no account is kept about the exact amount of contribution made to each account. This is because the benefits donot relate to the amount of contribution at all. Benefits depend solely upon the number of years of pensionable service and the amount of pensionable salary.
Pensionable service
Pensionable service is the service [after 16/11/1995] the member has put in and contributions were made to the scheme. This may be either under one employer continuously or under different employers due to leaving one job and joining the other. The periods of interruption between one employment and the other will not count for pensionable employment since during these periods no contribution has been made to the EPS. Therefore it is necessary that one takes care to stick to the EPS even while changing jobs. This can be done by getting what is called the ‘scheme certificate’ when one leaves one job. On such occasions, when one leaves a job midway, one normally has two choices under the EPS – 1: to opt for the withdrawal benefit under the EPS or 2: to opt for ‘scheme certificate’. The option to get the withdrawal benefit is available only if the service put in is below 10 years. If one has served for more than 10 years one has to compulsorily take the ‘scheme certificate’ only.
Under the ‘withdrawal benefit’ one gets a paltry amount, just a portion of the contributions made to the EPS depending on the length of service. There is a table for this purpose. Since the contribution is normally made on monthly wages of upto Rs.6500 only [being the ceiling for applicability of the scheme] the contribution made will not be a substantial amount. As already told, the percentage of contribution is only 8.33 + 1.16 = 9.49 %. This will work out to only Rs. 616.85 say 617 per month [6500 * 0.0949]. Under withdrawal benefit even this amount is not fully given back. Only a portion is given. For example if one has put in 9 years service, he will get Rs. 617 * 9.88 = 6096 only.
Note: The contribution to Pension Fund can be made beyond the ceiling limit of Rs.6,500/-on the joint request of employee and the employer so as to get more pension benefit; but only when request is made immediately upon salary/wages exceeding the ceiling.
A member leaving the service after putting in 10 years of service will be issued a ‘scheme certificate’. If he joins another service and leaves that also he will get another ‘scheme certificate’ which will include the previous tenure of service. For example if one joins an establishment on 1/1/1996 and leaves it on 1/2/2006, he will get a ‘scheme certificate’ which will show that he has put in a pensionable service of 10 years and one month. Thereafter if he joins another establishment on 1/3/2006 and leaves that also on 1/5/2007 the new scheme certificate will show the pensionable service as 10 yrs 1 mth + one year two months = 11 years and 3 months. The pensionable service gets added on like this until one finally retires or reaches the age of 58 years. In the unfortunate event of the member dyeing during the period of unemployment but holding the scheme certificate, his family will get family pension. In this way having a ‘scheme certificate’ is like having an insurance policy without the need to pay any premium!!
Early pension
If one has put in 10 years of pensionable service and attains the age of 50 years and one decides not to join any further service one can get what is called an early pension at reduced rate. In this case the amount of pension is reduced at the rate of 4% per year that is less than 58 years of age subject to a maximum reduction of 25%. But if after getting the early pension, one joins another job one cannot continue to be member of the EPS. His further spell of service after getting pension will not be counted as pensionable service since the moment he gets pension he ceases to be member of the EPS and becomes a pensioner.
Superannuation Pension
This payable on attaining the age of 58 years after putting in 20 years or more of service.
Retirement Pension
This is payable if a member retires from service before attaining the age of 58 years but after putting in 20 years or more of service.
Formula for calculation of Pension
The formula for calculation of pension is very simple. It is:
Monthly Pension = (Pensionable service x Pensionable Salary) / 70.
Pensionable service has already been explained above. Pensionable salary is the average of last 12 months salary before retirement or superannuation.
Family pension etc.
In addition to the above the EPS also provides for family pension, disability pension etc.
Family Pension is payable in case of death of a Member
• 1. After leaving the employment
• 2. While in employment
• 3. After drawing the Pension
Family Pension is payable even where the death occurs before 10 years of service in case of death while in service. Thus in such cases the minimum eligible service of 10 years is not applicable
On Death of a member pensioner, the Pension is automatically payable to the spouse (widow/widower and eligible children).
When a member dies while in service as Bachelor or Spinster or where there is no spouse or children below 25 years, the Family Pension is payable to Nominee till his/her death
When there is no valid nomination, the Family Pension is payable to dependent father followed by dependent mother.
In addition to Family Pension to Widow/Widower, Children below 25 years are also eligible for Pension simultaneously two a a time in order of their seniority. It is payable to the married daughter/son also
Minimum Widow Pension - Rs.450
Minimum Child Pension - Rs.150
On death or re-marriage of widow/widower, the children will be given enhanced pension treating such children as Orphan.
Minimum Orphan Pension - Rs.250
On behalf of the minor children the pension is payable to guardian.
Any child in a family with total and permanent disablement will receive pension till death; in addition to other eligible children.
Where an employee is totally disabled and leaving the service on account of disablement, disablement Pension is allowed. No age and service is stipulated to claim this pension; provided disability should be 100% rendering the member unable for the job he was in before disablement.
Wherever the Pension claims are received one month before the date of Retirement the Regional Provident Fund Commissioner will deliver the Pension Payment Order on the day of Retirement.
Apart from Pension benefit, a member pensioner can commute up to one-third of his pension and in lieu of this. He will receive a lump sum amount equivalent to 100 times of the commuted value of pension; but once the option is exercised, the same cannot be changed.
A pensioner may nominate a person to receive a lump sum amount after his death as Return of Capital by opting for it.
NOTE: It is once again emphasized that the above details are applicable to only those who joined the Scheme on or after 16/11/1995. For those who joined earlier the methods of calculation are slightly different. For the sake of brevity and simplicity they are not elaborated here.
******************************
From India, Madras
In response to the long standing demand of the working class for pension benefits, the Employees Pension Scheme 1995 (EPS) was introduced with effect from 16/11/1995. This benefit is in addition to the Employees Provident Fund [EPF] Benefit for the members of the EPF.
This scheme is compulsory for all those who become members of EPF from 16/11/1995 onwards.
NOTE: The details given below are relevant and applicable to only those who entered service and became members of the scheme on or after 16/11/1995 only. For those who joined earlier there are different provisions.
Contributions
Employees need not make any separate special contribution for EPS. A part of the employers’ contribution to the EPF is diverted to the EPS account of the member. Normally the employers contribute 10% or 12% of the wages every month to the EPF account of the member. Out of this 8.33% is diverted to the EPS. Government contributes 1.16% of the wages every month to the EPS. Therefore employee need not contribute anything separately for the EPS. Contributions continue until the member attains the age of 58 years only. Thereafter no contribution is made to the pension scheme. After 58 years of age the member can get pension if he is otherwise eligible.
Benefits donot depend on amount of contribution
One basic point about the pension benefits under the EPS is that no account is kept about the exact amount of contribution made to each account. This is because the benefits donot relate to the amount of contribution at all. Benefits depend solely upon the number of years of pensionable service and the amount of pensionable salary.
Pensionable service
Pensionable service is the service [after 16/11/1995] the member has put in and contributions were made to the scheme. This may be either under one employer continuously or under different employers due to leaving one job and joining the other. The periods of interruption between one employment and the other will not count for pensionable employment since during these periods no contribution has been made to the EPS. Therefore it is necessary that one takes care to stick to the EPS even while changing jobs. This can be done by getting what is called the ‘scheme certificate’ when one leaves one job. On such occasions, when one leaves a job midway, one normally has two choices under the EPS – 1: to opt for the withdrawal benefit under the EPS or 2: to opt for ‘scheme certificate’. The option to get the withdrawal benefit is available only if the service put in is below 10 years. If one has served for more than 10 years one has to compulsorily take the ‘scheme certificate’ only.
Under the ‘withdrawal benefit’ one gets a paltry amount, just a portion of the contributions made to the EPS depending on the length of service. There is a table for this purpose. Since the contribution is normally made on monthly wages of upto Rs.6500 only [being the ceiling for applicability of the scheme] the contribution made will not be a substantial amount. As already told, the percentage of contribution is only 8.33 + 1.16 = 9.49 %. This will work out to only Rs. 616.85 say 617 per month [6500 * 0.0949]. Under withdrawal benefit even this amount is not fully given back. Only a portion is given. For example if one has put in 9 years service, he will get Rs. 617 * 9.88 = 6096 only.
Note: The contribution to Pension Fund can be made beyond the ceiling limit of Rs.6,500/-on the joint request of employee and the employer so as to get more pension benefit; but only when request is made immediately upon salary/wages exceeding the ceiling.
A member leaving the service after putting in 10 years of service will be issued a ‘scheme certificate’. If he joins another service and leaves that also he will get another ‘scheme certificate’ which will include the previous tenure of service. For example if one joins an establishment on 1/1/1996 and leaves it on 1/2/2006, he will get a ‘scheme certificate’ which will show that he has put in a pensionable service of 10 years and one month. Thereafter if he joins another establishment on 1/3/2006 and leaves that also on 1/5/2007 the new scheme certificate will show the pensionable service as 10 yrs 1 mth + one year two months = 11 years and 3 months. The pensionable service gets added on like this until one finally retires or reaches the age of 58 years. In the unfortunate event of the member dyeing during the period of unemployment but holding the scheme certificate, his family will get family pension. In this way having a ‘scheme certificate’ is like having an insurance policy without the need to pay any premium!!
Early pension
If one has put in 10 years of pensionable service and attains the age of 50 years and one decides not to join any further service one can get what is called an early pension at reduced rate. In this case the amount of pension is reduced at the rate of 4% per year that is less than 58 years of age subject to a maximum reduction of 25%. But if after getting the early pension, one joins another job one cannot continue to be member of the EPS. His further spell of service after getting pension will not be counted as pensionable service since the moment he gets pension he ceases to be member of the EPS and becomes a pensioner.
Superannuation Pension
This payable on attaining the age of 58 years after putting in 20 years or more of service.
Retirement Pension
This is payable if a member retires from service before attaining the age of 58 years but after putting in 20 years or more of service.
Formula for calculation of Pension
The formula for calculation of pension is very simple. It is:
Monthly Pension = (Pensionable service x Pensionable Salary) / 70.
Pensionable service has already been explained above. Pensionable salary is the average of last 12 months salary before retirement or superannuation.
Family pension etc.
In addition to the above the EPS also provides for family pension, disability pension etc.
Family Pension is payable in case of death of a Member
• 1. After leaving the employment
• 2. While in employment
• 3. After drawing the Pension
Family Pension is payable even where the death occurs before 10 years of service in case of death while in service. Thus in such cases the minimum eligible service of 10 years is not applicable
On Death of a member pensioner, the Pension is automatically payable to the spouse (widow/widower and eligible children).
When a member dies while in service as Bachelor or Spinster or where there is no spouse or children below 25 years, the Family Pension is payable to Nominee till his/her death
When there is no valid nomination, the Family Pension is payable to dependent father followed by dependent mother.
In addition to Family Pension to Widow/Widower, Children below 25 years are also eligible for Pension simultaneously two a a time in order of their seniority. It is payable to the married daughter/son also
Minimum Widow Pension - Rs.450
Minimum Child Pension - Rs.150
On death or re-marriage of widow/widower, the children will be given enhanced pension treating such children as Orphan.
Minimum Orphan Pension - Rs.250
On behalf of the minor children the pension is payable to guardian.
Any child in a family with total and permanent disablement will receive pension till death; in addition to other eligible children.
Where an employee is totally disabled and leaving the service on account of disablement, disablement Pension is allowed. No age and service is stipulated to claim this pension; provided disability should be 100% rendering the member unable for the job he was in before disablement.
Wherever the Pension claims are received one month before the date of Retirement the Regional Provident Fund Commissioner will deliver the Pension Payment Order on the day of Retirement.
Apart from Pension benefit, a member pensioner can commute up to one-third of his pension and in lieu of this. He will receive a lump sum amount equivalent to 100 times of the commuted value of pension; but once the option is exercised, the same cannot be changed.
A pensioner may nominate a person to receive a lump sum amount after his death as Return of Capital by opting for it.
NOTE: It is once again emphasized that the above details are applicable to only those who joined the Scheme on or after 16/11/1995. For those who joined earlier the methods of calculation are slightly different. For the sake of brevity and simplicity they are not elaborated here.
******************************
From India, Madras
Dear Mr.Subhakaranji,
EMPLOYEES’ PENSION SCHEME – 1995
Employees' Pension Scheme-95 came into effect from 16.11.95. The Employees' Pension Scheme-95 has been conceived as a Benefit defined Social Insurance Scheme formulated following actuarial principles for ensuring long term financial sustenance. The new Employees’ Pension Scheme-95, repealed and replaced the erstwhile Family Pension Scheme, 1971. The assets and liabilities of the erstwhile Pension Fund were transferred and merged with the new Pension Fund. The benefits and entitlements to the members under the old scheme remain protected and continued under the new Employees’ Pension Scheme-95.
APPLICATION AND COVERAGE
The Scheme was notified on 16.11.95 and made effective from that date with the provision for retrospective application from 1.4.93 in selective cases. The Scheme on its introduction applied on compulsory basis to all the new members of Provident Fund and the existing members who were contributing to the Employees' Family Pension Scheme-1971. The existing members (as on 16.11.95) of the Provident Fund who did not opt for joining the erstwhile Employees' Family Pension Scheme-1971 and the beneficiaries under the erstwhile Employees' Family Pension Scheme-1971 in case of death/exit occurring between 1.4.93 and 15.11.95 have option to join the new scheme.
CONTRIBUTION
No separate contribution is payable additionally by the member for the Pension Scheme benefits. The new Pension Scheme, alike the old Employees' Family Pension Scheme, 1971 derives its financial resource by partial diversion from the Provident Fund contribution, the rate being 8.33% in lieu of 2.33% against the old ceased Family Pension Scheme-1971.The Central Government continues contributing at the rate of 1.16% as before, on wages at the end of the year.
BENEFITS
Newly introduced Employees' Pension Scheme-95 provides for following benefit package:
1. Pension for life to the member, on superannuation/retirement and invalidation.
2. To the members of the family upon death of the member:
a. Pension to Widow/Widower for life or till re-marriage.
b. To children/orphan, two at a time additionally upto 25 years of age simultaneously with widow/widower pension.
c. Children/orphan with total and permanent disability shall be entitled to payment of children pension or orphan pension as the case may be irrespective of age and number of children in the family.
d. Facility for payment of pension to nominee in the event of member who is unmarried or without any eligible family member to receive pension, and
e. Facility for payment of pension to dependent father/mother in the event the member dies leaving behind no eligible family members and no nomination by such deceased member exist.
3. Facility for capital return (corpus accretion) on option formula basis
4. Commutation of pension up to 1/3rd of pension amount
5. Scheme Certificate to retain membership of the Scheme till attaining the age of 58 years.
Superannuation/retirement pension under the new scheme will be payable on fulfilling:-
a. Minimum 10 years eligible service and
b. Attaining age of 58 years.
On ceasing employment earlier than 58 years, pension may be availed of by a member at his option, before attaining the age of 58 years but not below 50 years. Such early pension will be subject to discounting factor. However, no such age restriction or eligibility requirement shall apply for pension entitlement on disablement or pension payable to the family members on death of the member. Membership with one contribution is enough in such cases.
VALUATION OF PENSION FUND
The Pension Fund is evaluated by an Actuary on an annual basis. Based on valuation recommendations, Central Government determines the amount of relief on pensions to existing pensioners.
THE EMPLOYEE'S PENSION SCHEME, 1995
ARRANGEMENT OF PARAGRAPHS
1. Short title, commencement and application
2. Definitions
3. Employees' Pension Fund
4. Payment of contribution
5. Recovery of damages for default in payment of any contributions
6. Membership of the Employees' Pension Scheme
7. Option for joining the scheme
8. Resolution of doubts
9. Determination of eligible service
10. Determination of Pensionable Service
11. Determination of Pensionable Salary
12. Monthly Member's Pension
12A. Option for commutation
13. Options for return of capital
14. Benefits on leaving service before being eligible for monthly members pension
15. Benefits on permanent and total disablement during the service
16. Benefits to the family on the death of a member
16A. Guarantee of Pensionary Benefits
17. Payments on exercise of option.
17A. Payment of Pension
18. Particulars to be supplied by the employees already employed at the time of commencement of the Employees' Pension Scheme
19. Preparation of contribution cards
20. Duties of employers
21. Employer to furnish particulars of ownership
22. Duties of contractors
23. Allotment of Account Numbers
24. Declaration by persons taking up employment after the Fund has been established
25. Employees' Pension Fund Account
26. Investment of the Employees' Pension Fund
27. Disposal of the Fund
28. Administration Account
29. Forms of Accounts
30. Audit
31. Rounding up of the Benefits
32. Valuation of the Employees' Pension Fund and review of the rates of contributions and quantum of the pension and other benefits
33. Disbursement of Pension and other benefits
34. Registers, Records etc.
35. Power to issue directions
36. Regional Committee
37. Annual Report
38. Application of the provisions of the Employees' Provident Fund Scheme, 1952
39. Exemption from the operation of the Pension Scheme
40. Information to the Central Government
41. Interpretation
42. Punishment for failure to submit return, etc.
43. Payment of pension in the case of a person charged with the offence of murder
44. Repeal and savings
SCHEDULE
THE EMPLOYEES' PENSION SCHEME, 1995
In exercise of the powers conferred by Section 6A of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government hereby makes the following Scheme, namely:-
1. Short title, commencement and application
(1) This Scheme may be called the Employees' Pension Scheme, 1995;
(2) (a) This Scheme shall come into force on 16th day of November, 1995;
(b) Subject to the provisions of this Scheme the employees have an option to become the members of the Scheme with effect from the 1st April, 1993 ;
(3) Subject to the provisions of Section 16 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, this Scheme shall apply to the employees of all factories and other establishments to which the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 applies or is applied under sub-section (3) or sub-section (4) of Section 1 or Section 3 thereof.
2. Definitions
(1) In this Scheme unless the context otherwise requires :--
(i) "Act" means the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952) ;
(ii) "actual service" means the aggregate of periods of service rendered from the 16th November, 1995 or from the date of joining any establishment whichever is later to the date of exit from the employment of the establishment covered under the Act ;
(iii) "Commissioner" means a Commissioner for Employees' Provident Funds appointed under Section 5D of the Act ;
(iv) "contributory service" means the period of 'actual service' rendered by a member for which the contributions to the fund have been 1[received or are receivable] ;
(v) "eligible member" means an employee who is eligible to join the "Employees' Pension Scheme";
(vi) "Existing Member" means an existing employee who is a "Member of the Employees' Family Pension Scheme, 1971";
1. Subs. by G.S.R 134 dated 28th February 1996, for the word "received" (w.e.f 16th March 1996)
(vii) "Family" means
(i) wife in the case of male member of the Employees' Pension Fund;
(ii) husband in the case of a female member of the Employees' Pension Fund ; and
(iii) sons and 1[***] daughters of a member of the Employees' Pension Fund ;
Explanation. The expression "sons" and "daughters" shall include children 2[legally adopted by the member].
(viii) "Pension" means the pension payable under the Employees' Pension Scheme and also includes the family pension admissible and payable under the Employees' Family Pension Scheme, 1971 immediately preceding the commencement of the Employees' Pension Scheme, 1995 with effect from the 16th November, 1995.
(ix) "Member" means an employee who becomes a member of the Employees' Pension Fund in accordance with the provisions of this Scheme.
3.["EXPLANATION - - An employee shall cease to be the member of Pension Fund from the date of attaining 58 years of age or from the date of vesting admissible benefits under the Scheme, whichever is earlier,"]
(x) "Non-Contributory Service" is the period of "actual service" rendered by a member for which no contribution to the "Employees' Pension Fund" has been 4[received or are receivable].
(xi) "orphan" means a person, none of whose parents is alive 5[***].
1. The word "unmarried" omitted, ibid (w.e.f. 16 th March, 1996)
2. Subs. Ibid., for "adopted by the member legally before death in service" (w.e.f. 16th March, 1996).
3. Inserted. by G.S.R. dated the 22nd February, 1999 (w.e.f 6.3.99)
4. Subs. by G.S.R. 134 dated the 28th February, 1996, for the word "received" (w.e.f. 16th March,1996)
5. Certain words omitted, ibid. (w.e.f. 16th March, 1996).
(xii) "past service" means the period of service rendered by an existing member from the date of joining Employees' Family Pension Fund till the 15th November, 1995.
(xiii) "Pay" means basic wages, with dearness allowance, retaining allowance and cash value of food concessions admissible, if any.
(xiv) "Pension Fund" means the Employees' Pension Fund set up under sub-section (2) of Section 6A of the Act.
(xv) "pensionable service" means the service rendered by the member for which contributions have been 1[received or are receivable].
1[(xvi)"permanent total disablement" means such disablement of permanent nature as incapacitates an employee for all work which he/she was capable of performing at the time of disablement, regardless whether such disablement is sustained in the course of employment or otherwise;]
(xvii) "Table" means Table appended to this Scheme.
(xviii) The words and expressions defined in the Act but not defined in this Scheme shall have the same meaning as assigned to them in the Act.
3. Employees' Pension Fund.
(1) From and out of the contributions payable by the employer in each month under Section 6 of the Act or under the rules of the Provident Fund of the establishment which is exempted either under clauses (a) and (b) of sub-section (1) of Section 17 of the Act or whose employees are exempted under either paragraph 27 or paragraph 27-A of the Employees' Provident Fund Scheme, 1952, a part of contribution representing 8.33 per cent of the Employee's pay shall be remitted by the employer to the Employees' Pension fund within 15 days of the close of every month by a separate bank draft or cheque on account of the
1. Subs. By G.S.R. 134 dated the 28th February 1996, (w.e.f. 16th March,1996)
Employees' Pension Fund contribution in such manner as may be specified in this behalf by the Commissioner. The cost of the remittance, if any, shall be borne by the employer.
(2) The Central Government shall also contribute at the rate of 1.16 per cent of the pay of the members of the Employees' Pension Scheme and credit the contribution to the Employees' Pension Fund:
Provided that where the pay of the member exceeds rupees five thousand per month the contribution payable by the employer and the Central Government be limited to the amount payable on his pay of rupees five thousand only.
(3) Each contribution payable under sub-paragraphs (1) and (2) shall be calculated to the nearest rupee, fifty paise or more to b e counted as the next higher rupee and fraction of a rupee less than fifty paise to be ignored.
(4) The net assets of the Family Pension Scheme, 1971 shall vest in and stand transferred to the Employees' Pension Fund.
4. Payment of contribution
(1) The employer shall pay the contribution payable to the Employees' Pension Fund in respect of 1[each member] of the Employees' Pension Fund employed by him directly or by or through a contractor.
(2) It shall be the responsibility of the principal employer to pay the contributions payable to the Employees' Pension Fund by himself in respect of the employees directly employed by him and also in respect of the employees employed by or through a contractor.
5. Recovery of damages for default in payment of any contributions
(1) Where an employer makes default in the payment of any contribution to the Employees' Pension Fund, or in the payment of any charges payable under any other provisions of the Act or the Scheme, the Central Provident Fund Commissioner or such officer as may be authorised by the Central Government, by notification in the Official Gazette, in this behalf, may recover from the employer by way of penalty, damages at the rates given below :- -
1. Subs. by G.S.R.134 dated the 28th February, 96, for "the member" (w.e.f. 16th March, 1996)
Period of default Rate of damages (Percentage
of arrears per annum)
(a) Less than two months Seventeen
(b) Two months and above Twenty-two
but less than four months
(c ) Four months and above Twenty-seven
but less than six months
(d) Six months and above Thirty-seven
(2) The damages shall be calculated to the nearest rupee, 50 paise or more to be counted as the nearest higher rupee and fraction of a rupee less than 50 paise to be ignored.
1[6. Membership of the Employees' Pension Scheme
Subject to sub-paragraph (3) of paragraph 1, the Scheme shall apply to every employee
(a) who on or after the 16th November, 1995, becomes a member of the Employees' Provident Fund Scheme, 1952, or of the Provident Funds of the factories and other establishments exempted by the appropriate Government under section 17 of the Act, or in whose case exemption has been granted under paragraph 27 or 27-A of the Employees' Provident Fund Scheme, 1952, from the date of such membership;
(b) who has been a member of the ceased Employees' Family Pension Scheme, 1971 before the commencement of this Scheme from 16th November, 1995;
(c) Who ceased to be a member of the Employees' Family Pension Scheme, 1971 between 1st April, 1993 and 15th November, 1995 and opts to exercise his option under Paragraph7;
(d) who has been a member of the Employees' Provident fund or of Provident Funds of factories and other establishments exempted by the appropriate Government under section 17 of the Act or in whose case exemption has been granted under Paragraph 27 or 27A of the Employees' Provident Fund Scheme, 1952, on 15 th November, 1995
but not being a member of the ceased Employees' Family Pension Scheme, 1971 opts to exercise his option under paragraph 7].
1. Subs. by G.S.R.134 dated 28th February, 1996 (w.e.f. 16th March, 1996)
1.["6 A Retention of membership
A member of the Employees' Pension Fund shall continue to be such member till he attains the age of 58 years or he avails the withdrawal benefit to which he is entitled under para 14 of the Scheme, or dies, or the pension is vested in him in terms of para 12 of the Scheme, whichever is earlier." ]
2[ 7. Option for joining the Scheme.
(1) Members referred to under sub-para (c ) of Paragraph 6 who have died between 1st April, 1993 and 15th November, 1995 shall be deemed to have exercised the option of joining the Scheme on the date his death.
(2) Members referred to in sub-paragraph (c ) of paragraph 6 who are alive shall have the option to join the Scheme as per the provisions of paragraph 17 from the date of exit from the employment.
(3) Members referred to in sub-paragraph (d) of paragraph 6 shall have the option to join the Scheme as per the provisions of Paragraph 17 from 16th November, 1995.]
8. Resolution of doubts.
If any doubt arises whether an employee is entitled to become a member of the Employees' Pension Fund, the same shall be referred to the Regional Provident Fund Commissioner who shall decide the same:
Provided that both the employer and the employee shall be heard before passing final order in the matter.
9. Determination of eligible service.
The eligible service shall be determined as follows:
(a) In the case of "new entrant" the "actual service" shall be treated as eligible service. The total actual service shall be rounded off to the nearest year. The fraction of service for six months or more shall be treated as one year and the service less than six months shall be ignored.
Explanation.
In the case of employees employed seasonally in any establishment the period of "actual service" in any year, notwithstanding that such service is less than a year shall be treated as a full year.
1. Subs. by G.S.R.134 dated the 28th February, 1996 (w.e.f 16th March, 1996)
2. Inserted by G.S.R. dated 22nd February 1999 (w.e.f. 6.3.99)
(b) In the case of the "existing member" the aggregate of actual service and the 'past service' shall be treated as eligible service.
Provided that if there is any period in the "past service" for which the contributions towards the Family Pension Scheme, 1971 has not been received, the said period shall count as eligible service only if the contributions thereof have been received in the Employees' Pension Fund.
Explanation: For the purpose of this sub-paragraph the total past service for less than six months shall be ignored and the total past service for six months and above shall be rounded to a year.
10. Determination of Pensionable Service.
(1) The pensionable service of the member shall be determined with reference to the contributions 1[received or receivable] on his behalf in the Employees' Pension Fund.
(2) In the case of the member who superannuates on attaining the age of 58 years, and/or who has rendered 20 years pensionable service or more, his pensionable service shall be increased by adding a weightage of 2 years.
11. Determination of Pensionable Salary.
(1) Pensionable salary shall be average monthly pay drawn 2[in any manner including on piece-rate basis] during the contributory period of service in the span of 12 months preceding the date of exit from the membership of the Employees' Pension Fund.
3 .[" Provided that if a member was not in receipt of full pay during the period of twelve months preceding the day he ceased to be the member of Pension Fund, the average of previous 12 months full pay drawn by him during the period for which contribution to the pension fund was recovered, shall be taken into account as pensionable salary for calculating pension." ]
(2) If during the said span of 12 months there are non-contributory periods of service including cases where the member has drawn salary for a part of the month, the total wages during the 12 months span shall be divided by the actual number of days for which salary has been drawn and the amount so derived shall be multiplied by 30 to work out the average monthly pay.
(3) The maximum pensionable salary shall be limited to five thousand rupees per month.
4[Provided that if at the option of the employer and employee, contribution paid on salary exceeding Rs 5,000/- per month from the date of commencement of this Scheme or from the date salary exceeds Rs. 5000/- whichever is later, and 8.33 per cent
1. Subs. by G.S.R. 134 dated the 28th February, 1996 for "received" (w.e.f. 16th March, 1996)
2. Ins. ibid (w.e.f. 16th March, 1996).
3. Inserted by G.S.R. dated 22nd February, 1999.
4. Inserted ibid w.e.f 16.3.96.
share of the employers thereof is remitted into the Pension Fund, pensionable salary shall be based on such higher salary.]
12. Monthly Member's Pension.
(1) A member shall be entitled to :-
(a) superannuation pension if he has rendered eligible service of 20 years or
(b) more and retires on attaining the age of 58 years;
(c) retirement pension, if he has rendered eligible service of 20 years or more and retires or otherwise ceases to be in the employment before attaining the age of 58 years ;
(d) short service pension, if he has rendered eligible service of 10 years or more but less than 20 years.
(2) In the case of a new entrant the amount of monthly superannuation pension or retiring pension, as the case may be, shall be computed in accordance with the following factors, namely :- -
Monthly member's pension = Pensionable salary X Pensionable service
-------------------------------------------------- 70
1[***]
(3) In the case of an employee 2[who was a member of the ceased Family Pension Scheme, 1971] and who has not attained the age of 48 years on the 16th November, 1995 :
Superannuation/retirement/short service pension shall be equal to the
aggregate of :-
(a) Pension as determined under sub-paragraph (2) for the period of pensionable service rendered from the 16th November, 1995 or Rs 635/- per month whichever is more ;
1. Certain words omitted by G.S.R. 134 dated the 28th February, 1996 (w.e.f. 16th March 1996)
2. Subs. by G.S.R. 134 dated the 28th February, 1996 (w.e.f 16th March 1996).
1[(b) Past service pension benefit shall be as given below :- -
The past service benefit payable on completion of 58 years of age on 16.11.95
Years of past Salary upto Salary more than
Service Rs. 2500/- Rs. 2500/- per
per month per month
(1) (2) (3)
(i) Upto 11 years 80 85
(ii) More than 11 95 105
years but
upto 15 years
(iii) More than 15 120 135
years but less
than 20 years
(iv) Beyond 20 150 170
years
subject to a minimum of Rs. 800/- per month provided the past service is 24 years. If the aggregate service of the member is less than 24 years, the pension and the benefits computed as above shall be reduced proportionately subject to a minimum of Rs. 450/- per month]
2[(c) On completion of the age of 58 years after 16-11-95, the benefit under column (2) or column (3) above, as the case may be shall be multiplied by the factor given in Table B corresponding to the period between 16-11-95 and date of attainment of age 58 to arrive at past service pension payable.]
(4) In the case of an employee 3[who was a member of the ceased Family Pension Scheme, 1971] and has attained the age of 48 years but less than 53 years on the 16th November,
1. Subs. by G.S.R. 134, dated the 28th February, 1996 (w.e.f 16th March 1996).
2. Ins.idid. (w.e.f. 16th March 1996).
3. Subs. by G.S.R. 134 dated the 28th February, 1996 (w.e.f. 16th March 1996)
1995, the superannuation/retirement pension shall be equal to the aggregate of : - -
(a) pension as determined under sub-paragraph (2) for the period of service rendered from the 16th November, 1995 or Rs. 438/- per month whichever is more ;
(b) past service benefit as provided in sub-paragraph (3) subject to a minimum of Rs. 600/- per month provided the past service is 24 years. Provided further that if it is less than 24 years the pension payable and the past service benefits taken together shall be proportionately less subject to the minimum of Rs. 325/- per month.
(5) In the case of an employee 1[who was a member of the ceased Family Pension Scheme, 1971] and who has attained the age of 53 years or more on the 16th November, 1995, the superannuation/retirement pension shall be equal to the aggregate of :
(a) pension as determined under sub-paragraph (2) for the period of service rendered from the 16th November, 1995 per month or Rs.335/- per month whichever is more.
(b) Past service benefits provided in sub-paragraph (3) subject to the minimum of Rs. 500/- per month, provided the past service is 24 years. Provided further that if it is less than 24 years the pension payable and the past service benefits shall be proportionately lesser but subject to the minimum of Rs. 265/- per month.
(6) Except as otherwise expressly provided hereinafter the monthly members pension under sub-paragraphs (2) to (5) mentioned herein above, as the case may be, shall be payable from a date immediately following the date of completion of 58 years of age notwithstanding that the member has retired or ceased to be in the employment before that date.
1. Subs. by G.S.R. 134, dated the 28th February, 1996 (w.e.f 16th March, 1996)
(7) A member, if he so desires, may be allowed to draw monthly reduced pension from a date earlier than 58 years of age but not earlier than 50 years of age. In such cases, the amount of pension shall be reduced at the rate of 1[three per cent for every year the age falls short of 58 years].
(8) If a member ceases to be in the employment by way of retirement or otherwise earlier than the date of superannuation from which pension can be drawn, the member may, on his option, either be paid pension as admissible under this Scheme on attaining the age exceeding 50 years or he may be issued a scheme certificate by the Commissioner indicating the pensionable service, the pensionable salary and the amount of pension due on the date of exit from the employment. If he/she is subsequently employed in an establishment coverable under this Scheme, his/her earlier service as per the scheme certificate shall be reckoned for pension along with the fresh spell of pensionable service. The member postponing the commencement of payment of pension under this paragraph shall also entitled to additional relief sanctioned under this Scheme from time to time:
Provided that if the member does not take up an employment coverable under this Scheme, but dies before attaining the age of 58 years, the amount of contributions received in his case shall be converted into a monthly widow pension/children pension. The widow pension in such cases shall be calculated at the scale laid down in Table 'C' and the children pension at 25 per cent thereof for each child (upto two). If there is no widow then the orphan pension shall be payable at the rate of 75 per cent of the amount which would have been payable as a widow pension subject to the provisions of the paragraph 16.
2[12A. Option for commutation.
A member eligible to pension may, in lieu of pension normally admissible under paragraph 12, opt on completion of three years from the commencement of this Scheme, to commute upto a maximum of one third of his pension so as to receive hundred times the monthly pension so commuted as commuted value of pension. Balance pension will be paid on monthly basis as per options exercised under paragraph 13.
1. Subs. by G.S.R. 134, dated the 28th February, 1996b (w.e.f. 16th March, 1996).
2. Ins. ibid. (w.e.f. 16th March, 1996).
Explanation. - - If for example, the normal pension under paragraph 12 is Rs. 600, and the pensioner opts to commute one third of his monthly pension, the commuted value will be equal to 1/3 x 600 x 100 = Rs.20,000 and the same shall be paid at the time of exercise of option for commutation. The balance of pension payable on monthly basis is Rs. 400.]
13. Options for return of capital.
(1) A member eligible to pension may, in lieu of pension normally admissible under paragraph 12, 1[subject to commutation of pension, if any, under paragraph 12A] opt to draw for reduced pension and avail of return of capital under any one of the three alternatives given below :- -
S.No. Alternatives Revised pen- Amount payable as
sion payable return of capital
1. Revised pension 90% of original 100 times the original
during life time monthly pension monthly pension on
of member with death of member to the
return of capital nominee.
On his death.
2. Revised pension 90% of original 90 times the original
during the life time monthly pension monthly pension on
of member, further to the member. On death of widow/re-marriage
reduced pension his death 80% of to the nominee.
During life time of the original
the widow or her monthly pension
remarriage which- to the widow.
Ever is earlier and
return of capital on
Widow's death/re-
marriage.
1. Ins. by. G.S.R. 134, dated the 28th February, 1996(w.e.f 16th March, 1996)
S.No. Alternatives Revised pen- Amount payable
sion payable as return of
Capital
3. Pension for a fixed 87.5% of the 100 times the
period of 20 years riginal monthly original monthly
not withstanding pension for a pension at the end
whether the member fixed period of of 20 years from the
lives for that period 20 years. The pen- date of commence-
or not. sion will cease ment of pension to
thereafter. the member if he
is alive, otherwise
to his nominee.
Explanation 1. -- In alternative 2, if the 1[spouse] dies or remarries before the death of member, capital equal to 90 times the original monthly pension shall be paid to the nominee on the member's death.
Explanation 2. - - In alternative 3, if the member dies before the end of 20 year period, the pension shall be paid to his nominee for the balance period.
Explanation 3. - - In the case of a member who is eligible for permanent total disablement pension, and where the payment of such pension is to commence before his attaining the age of 50 years the options shall also be admissible but in such cases the actual pension payable shall be reduced by 1% and the return of capital shall be further reduced by Rs. 1,000/- for every year by which the age at the commencement of pension falls short of 50 years.
2[Explanation 4. - - In cases of exercise of option for commutation under paragraph 12A, balance monthly pension payable after commutation shall be deemed to be the original monthly pension for the purpose of this paragraph.]
1. Subs. by G.S.R. 134, dated the 28th February, 1996 (w.e.f 16th March 1996).
2. Ins. ibid. (w.e.f. 16th March 1996).,
(2) The option under sub-paragraph (1) shall be exercised by the member at the time of submission of the application form for pension in accordance with the provisions of this Scheme. The option once exercised shall be final. If no option is exercised, the member shall be deemed not to have exercised any option under this paragraph and his/her pension shall be determined under the provisions of paragraph 12.
(3) Notwithstanding that the capital is returned under this paragraph the widow/children shall continue to be eligible for normal widow pension/children pension/orphan pension under paragraph 16 of this Scheme from the date immediately following the date of death of the member.
14. Benefits on leaving service before being eligible for monthly members pension.
(1) If a member has not rendered the eligible service prescribed in paragraph 1[9] on the date of exit, or on attaining 58 years of age whichever is earlier, he/she shall be entitled to a withdrawal benefit as laid down in Table 'D' or may opt to receive the scheme certificate provided on the date he/she has not attained the 58 years of age:
Provided that an existing member shall receive additional return of contributions for his/her past service under the Employees' Family Pension Scheme, 1971 computed as withdrawal-cum-retirement benefits as per Table 'A' multiplied by the factor given in Table 'B'.
15. Benefits on permanent and total disablement during the service
(1) A member, who is permanently and totally disabled during the employment shall be entitled to pension as admissible under sub-paragraph (2) to (5) of paragraph 12 as the case may be subject to a minimum of Rs. 250/- per month notwithstanding the fact that he/she has not rendered the pensionable service entitling him/her to pension under paragraph 12 provided that she/he has made at least one month's contribution to the Pension Fund.
(2) The monthly member's pension in such cases shall be payable from the date following the date of permanent total disablement and shall be tenable for
For the life-time of the member.
1. Subs. by G.S.R. 134, dated the 28th February, 1996, (w.e.f. 16th March 1996).
(3) A member applying for benefits under this paragraph shall be required to undergo such medical examination as may be prescribed by the Central Board to determine whether or not he or she is permanently and totally unfit for the employment which he or she was doing at the time of such disablement.
16. Benefits to the family on the death of a member
(1) 1[Pension to the family] shall be admissible from the date following the date of death of the member if the member dies ..
(a) while in service, provided that at least one month's contribution has been paid into the Employees' Pension Fund, or
(b) after the date of exit but before attaining the age of 58, from the employment having rendered service entitling him/her to monthly member's pension but 1[before the commencement of pension payment or]
(c) after commencement of payment of the monthly member's pension
Note:- The cases where a member has rendered less than 10 years eligible service on the date of exit but has retained the membership of the Pension Fund, and dies before attaining the ge of 58 years, shall be regulated under sub-paragraph (8) of paragraph 12.
(2) (a) The monthly widow pension shall be :--
(i) in the cases covered by clause (a) of sub-paragraph (1), equal to the monthly members pension which would have been admissible as if the member had retired on the date of death or Rs 450/- or the amount indicated in Table 'C' whichever is more.
1. Subs. by G.S.R. 134 dated the 28th February, 1996 (w.e.f. 16th March 1996).
(ii) in the cases covered by clause (b) of sub-paragraph (1), equal to the monthly members pension which would have been admissible as if the member had retired on the date of exit or 1[Rs. 450/- per month] or the amount indicated in Table 'C' whichever is more.
(iii) in the cases covered by clause (c ) of sub-paragraph (1), equal to 50 per cent of the monthly members pension payable to the member on the date of his death subject to a minimum of 1[Rs. 450/- per month.]
2[(iv) in all the cases, where the amount of family pension sanctioned under the Ceased Family Pension Scheme, 1971 and is paid/payable under this scheme is less than Rs. 450/- per month, the amount of family pension in such cases shall be enhanced to Rs. 450/- per month.]
(b) the monthly widow pension shall be payable upto the date of death of the widow or remarriage whichever is earlier.
Note:- In cases where there are 2 or more widows, family pension shall be payable to the eldest surviving widow. On her death it shall be payable to the next surviving widow, if any. The term "eldest" would mean seniority with reference to the date of marriage.
(3) Monthly children pension : - -
(a) If there are any surviving children of the deceased member, falling within a definition of family, they shall be entitled to a monthly children pension in addition to the monthly widow/widower pension.
(b) Monthly children pension for each child shall be equal to 25 per cent of the amount admissible to the widow/widower of the deceased member as monthly widow pension payable under sub-paragraph (2) (a) (i) provided that minimum monthly children pension for each child of the deceased member shall not be less than 3[Rs. 150/- per month.]
4[(c ) Monthly children pension shall be payable until the child attains the age of 25 years.]
(d ) The monthly children pension shall be admissible to maximum of two children at a time and will run from the oldest to the youngest child in that order.
5. [ "(e) If a member dies leaving behind a family having son or daughter who is permanently and totally disabled such son or daughter shall be entitled to payment of monthly children pension or orphan pension, as the case may be, irrespective of age and number of children in the family in addition to the pension provided under clause (d)".]
1. Subs. by G.S.R. dated 12th January, 2000
2. Inserted by G.S.R dated 12th January 2000
3. Subs. by G.S.R dated 12th January 2000
4. Subs. by G.S.R. 134, dated the 28th February, 1996 (w.e.f. 16th March, 1996).
5. Inserted by G.S.R. dated 22nd February, 1999 (w.e.f 6.3.99)
(4) (a) If the deceased member is not survived by any widow but is survived by children falling within the definition of family or if the widow pension is not payable, the children shall be entitled to a monthly orphan pension equal to 75 per cent of the amount of the monthly widow pension as payable under sub-paragraph (2) (a) (i) provided that minimum monthly orphan pension for each orphan shall not be less than 1[Rs. 250/- per month.]
(b) In the event of death or remarriage of the widow/widower after sanctioning of widow/widower pension the children shall be entitled in lieu of the monthly children pension, to a monthly orphan pension from the date following the date of death/remarriage of the widow/widower.
2[(c ) The monthly orphan pension shall be admissible to a maximum of 2 orphans at a time and shall run in order from the oldest to the youngest orphan.]
(5) (a) A member who is not married or who does not have any living spouse and/or an eligible child may nominate a person to receive benefits as laid down hereinafter provided that in the event of his/her acquiring a family subsequently, the nomination so made shall become void. In the event of death of the member such a nominee shall be entitled to receive a monthly pension equal to the monthly widow pension, as admissible under sub-clauses (I) and (ii) of clause (a) of sub-paragraph (2).
3[. "(aa) If a member dies leaving behind no spouse and/or an eligible child falling within the definition of family and no nomination by such deceased member exists, the widow pension shall be paid under sub-clauses (I) and (ii) of clause (a) of sub-paragraph 2 either to dependent father or dependent mother as the case may be. On grant of Pension to such dependant father and in the event of death of the father pensioner, the admissible pension shall be extended to the surviving mother life long".]
(b) If the deceased member had not rendered pensionable service on the date of exit from the employment which would have made him entitled to a monthly members pension under paragraph 12, but had opted to retain the membership of this Scheme under sub-paragraph (8) of paragraph 12, the 4[ "nominee or the dependant father or the dependant mother as the case may be ] shall be entitled to return of capital as provided in sub-paragraph (1) of paragraph 13.
5[16A. Guarantee of pensionary benefits
None of the pensionary benefits under the Scheme shall be denied to any member or beneficiary for want of compliance of the requirement by the employer under sub-paragraph (1) of paragraph 3 provided, however, that the employer shall not be absolved of his liabilities under the Scheme.]
1. Subs. by G.S.R dated 12th January 2000
2. Ins. by G.S.R. 134, dated the 28th February, 1996 (w.e.f 16th March 1996).
3. Inserted by G.S.R. dated 22nd February, 1999. (w.e.f 6.3.99)
4. Sub. by G.S.R dated 22nd February, 1999 (w.e.f 6.3.99)
5. Inserted by G.S.R. 134 dated the 28th February 96 (w.e.f. 16th March 1996)
1[17. Payments on exercise of option
(1) Beneficiaries of the deceased members of Employees' Family Pension Scheme, referred to in sub-para (1) of paragraph 7, shall receive higher of the benefits available under the Employees' Family Pension Scheme, 1971 and under this Scheme.
(2) Members referred to in sub-paragraph (2) of paragraph 7 shall have the option to join the Scheme by returning the amount of withdrawal benefit received, if any, together with interest at the rate of 8.5% per annum from the date of payment of such withdrawal benefit and date of exercise of the option, to receive monthly pension as per the provisions of this Scheme.
(3) Members referred to in sub-paragraph (3) of paragraph 7 shall be deemed to have joined the ceased Employees' Family Pension Scheme, 1971, with effect from 1.3.1971 on remittance of past period contribution with interest thereon.]
2[17A. Payment of Pension
The claims, complete in all respects submitted along with the requisite documents shall be settled and benefit amount paid to the beneficiaries within thirty days from the date of its receipt by the Commissioner. If there is any deficiency in the claim, the same shall be recorded in writing and communicated to the applicant within thirty days from the date of receipt of such application. In case the Commissioner fails without sufficient cause to settle a claim complete in all respects within thirty days, the Commissioner shall be liable for the delay beyond the said period and penal interest at the rate of 12 per cent per annum may be charged on the benefit amount and the same may be deducted from the salary of the Commissioner.]
18. Particulars to be supplied by the employees already employed at the time of commencement of the Employees' Pension Scheme
Every person who is entitled to become a member of the Employees' Pension Fund shall be asked forthwith by his employer to furnish and that person shall, on such demand, furnish to him for communication to the Commissioner particulars concerning himself and his family in the form prescribed by the Central Provident Fund Commissioner.
1. Subs. by G.S.R. 134, dated the 28th February, 1996 (w.e.f 16th March, 1996).
2. Ins. by Notification dated the 27th October, 1997
19. Preparation of Contribution Cards
The employer shall prepare an Employees' Pension Fund Contribution Card in respect of each employee who has become a member of the Employees' Pension Fund.
20. Duties of Employers.
(1) Every employer shall send 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 the basic wage, retaining allowance, if any, and dearness allowance including the cash value of any food concession paid to each of such employees;
Provided that if there is no employee who is entitled to become a member of the Employees' Pension Fund, the employer shall send a "Nil" return.
(2) 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.
Provided that if there is no employee leaving service of the employer during the preceding month the employer shall send a "NIL" return.
(3) Every employer shall maintain such accounts in relation to the amounts contributed by him to the Employees' Pension Fund as the Central Board may, from time to time, direct and it shall be the duty of every employer to assist the Central Board in making such payments from the Employees' Pension Fund to his employees as are sanctioned by or under the authority of the Central Board.
(4) Notwithstanding anything contained in this paragraph, the Central Board may issue such directions to the employers generally, s it may consider necessary or expedient, for the purpose of implementing the Scheme, and it shall be the duty of every employer to carry out such directions.
21. Employer to furnish particulars of ownership.
Every employer in relation to a factory or other establishment to which the Act applies or is applied hereafter shall furnish to the Commissioner particulars of all the branches and departments, owners, occupiers, directors, partners, managers or any other person or persons who have the ultimate control over the affairs of such factory or establishment and also send intimation of any change in such particulars, within fifteen days of such change, to the Commissioner by registered post.
22. 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 respect of whom contributions to the Employees' Pension Fund are payable and shall also furnish to him such information as the principal employer is required to furnish under the provisions of this Scheme to the Commissioner.
23. Allotment of Account 1[Numbers]
(1) For purposes of this Scheme, where the member has already been allotted or is allotted hereafter an account number under the Employees' Provident Fund Scheme, 1952, he shall retain the same account number.
(2) In the case of employees of the establishments exempted from the Employees' Provident Fund Scheme, 1952, under Section 17 of the Act, who are members of the Employees' Family Pension Fund the account number already allotted shall be retained by them.
(3) In the case of employees of the establishments exempted from the Employees' Provident Fund Scheme, 1952, under Section 17 of the Act, who are not members of the Employees' Family Pension Fund but opt to become members of the Employees' Pension Fund and in case of new employees of such establishments, fresh account numbers shall be allotted by the Commissioner.
24. Declaration by persons taking up employment after the Fund has been established
The employer shall before taking any person into employment, ask him, her to state in writing whether or not he is a member of the Employees' Pension Fund and, if he/she is, also ask him/her to furnish a copy of the Scheme Certificate issued by the Commissioner to him/her in respect of the past employment in terms of paragraph 12 as the case may be. If the person concerned was not in employment previously or had availed of return of contribution in respect of his/her previous employment, he/she shall, on demand by the employer, furnish to him, for communication to the Commissioner particulars concerning him/herself and his/her family in the Form prescribed by the Central Provident Fund Commissioner.
1. Subs. by G.S.R 134, dated the 28th February, 1996 (w.e.f 16th March, 1996)
25. Employees' Pension Fund Account
The account called the "Employees' Pension Fund Account" shall be opened by the Commissioner in such manner as may be specified by the Central Board with the approval of Central Government.
26. Investment of the Employees' Pension Fund
(1) All moneys accruing to Employees' Pension Fund Account except the contributions of the Central Government shall be invested in accordance with the provisions of paragraph 52 of the Employees' Provident Funds Scheme, 1952.
(2) Net assets of the Family Pension Fund as on the 16.11.95 shall merge in the Pension Fund and remain invested in the Public Account of the Government of India. The future Central Government's contribution accruing to the Pension fund from 17th November, 1995 onwards shall also be invested in the Public Account of the Government of India.
27. Disposal of the Fund
(1) Subject to the provisions of the Act and this Scheme, the Fund shall not, except with the prior sanction of the Central Government be expended for any purpose other than the payments envisaged in this Scheme, for continued payment of Family Pension, life assurance benefit and retirement-cum-withdrawal benefits sanctioned under the Employees' Family Pension Scheme, 1971, prior to the date of introduction of this Scheme or which may be sanctioned under that Scheme after the 16th November, 1995 in respect of cases arising before that date.
(2) Not exceeding 16% of the administrative expenses shall be met from and out of the Employees' Pension Fund. The remaining administrative expenses shall be met from the Administration Accounts set up under the Employees' Provident Funds Scheme, 1952. The cost of remittance of Pension shall be charged on the Pension Fund.
28. Administration Account
A separate account shall be kept, called the "Employees' Pension Administration Account" for recording of all the administrative expenses of the Employees' Pension Fund.
29. Forms of Accounts
The accounts of the Employees' Pension Fund, as also the Employees' Pension Administration Account shall be maintained by the Commissioner in such form and in such manner as may be specified by the Central Board with the approval of the Central Government.
30. Audit
The accounts of the Employees' Pension Fund including the administrative expenses incurred in running this Scheme shall be audited in accordance with the instructions issued by the Central Government in consultation with Comptroller and Auditor-General of India.
31. Rounding up of the Benefits
All items of benefits shall be calculated to the nearest rupee, 50 paise or more to be counted as the next higher rupee and fraction of a rupee less than 50 paise shall be ignored.
32. Valuation of the Employees' Pension Fund and review of the rates of contributions and quantum of the pension and other benefits
1[(1) The Central Government shall have an annual valuation of the Employees' Pension Fund made by a Valuer appointed by it.]
(2) At any time, when the Employees' Pension Fund so permits the Central Government may alter the rate of contributions payable under this Scheme or the scale of any benefit admissible under this Scheme or the period for which such benefit may be given.
33. Disbursement of Pension and other benefits.
The Commissioner shall with the approval of the Central Board enter into arrangement for the disbursement of pension and other benefits under this Scheme with disbursing agencies like Post Offices or Nationalised Banks or Treasuries. The commission payable to the disbursing agencies and other charges incidental thereto shall be met as provided in paragraph 27 of this Scheme.
1. Subs. by G.S.R. 134, dated the 28th February, 1996 (w.e.f 16th March 1996)
34. Registers, Records, etc.
The Commissioner shall, with the approval of the Central Board, prescribe the registers and records to be maintained in respect of the employees, the form or design of any identity card, token or disc for the purpose of identifying any employee or his nominee or a member of a family entitled to receive the pension and such other forms/formalities as have to be completed in connection with the grant of pension and other benefits or for the continuance thereof subject to such periodical verification as may be considered necessary.
35. Power to issue directions.
The Central Government may issue, such directions as may be deemed just and proper by it for resolving any difficulty in the disbursement of pension and other benefits or for resolving any difficulty in implementation of this Scheme.
36. Regional Committee.
The Regional Committee set up under paragraph 4 of the Employees' Provident Fund Scheme, 1952, shall advise the Central Board, on such matters, in relation to the administration of this Scheme as the Central Board may refer to it from time to time and in particular, on - -
(a) progress of recovery of contributions under this Scheme both from factories and establishment exempted under Section 17 of the Act and other factories and establishments covered under the Act.
(b) expeditious disposal of prosecutions.
(c) Speedy settlement of claims relating to pension and other benefits under this Scheme.
37. Annual Report.
The Central Board shall cause to be included in the Annual Report on the working of the Scheme prepared under paragraph 74 of the Employees' Provident Fund Scheme, 1952, a report on the working of this Scheme during the previous financial year.
38. Application of the provisions of the Employees' Provident Fund Scheme, 1952.
In regard to matters for which either there is no provision or there is inadequate provisions in this Scheme the corresponding provisions in the Employees' Provident Fund Scheme, 1952, shall apply.
39. Exemption from the operation of the Pension Scheme.
The appropriate Government may grant exemption to any establishment or class of establishments from the operation of this Scheme, if the employees of the establishments are either members of any other pension scheme or proposed to be members of a pension scheme wherein the pensionary benefits are at par or more favourable than the benefits provided under this Scheme. Where exemption is granted to any establishment or class of establishments under this paragraph, withdrawal benefits available to the credit of the employees of such establishment(s) under the ceased Family Pension Scheme, 1971, shall be paid, subject to the consent of the employees, to the pension fund of the establishment(s) so exempted. 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, pending disposal of application for exemption under this paragraph employers' share of the contribution shall not be remitted to the pension fund as envisaged in sub-paragraph (1) of paragraph 3. An application for exemption presented under this paragraph shall be disposed of within a period of six months from the date of its receipt or such further time as may be extended for reasons to be recorded in writing. If the application for exemption is not disposed of within the period so specified, the exemption applied for shall be deemed to have been granted.
Explanation. - - For the purpose of this paragraph, the period of six months will count from the date on which the application for exemption is given in compete form to the satisfaction of the Regional Provident Fund Commissioner.]
1. Subs. by G.S.R. 134, dated the 28th February, 1996 (w.e.f 16th March 1996)
40. Information to the Central Government.
The Central Board shall furnish such information to the Central Government from time to time in respect of the income and expenditure from the Employees' Pension fund account in such manner as may be directed by the Central Government.
41. Interpretation.
Where any doubt arises with regard to the interpretation of the provisions of this Scheme, it shall be referred to the Central Government who shall decided the same.
42. Punishment for failure to submit return, etc.
If any person,
(a) deducts or attempts to deduct from the wages or other remuneration of the member, the whole or any part of the employer's contribution, or
(b) fails or refuses to submit any return, statement or other documents required by this Scheme or submits a false returns, statement or other documents, or makes a false declaration, or
(c) obstructs any Inspector or other official appointed under the Act or this Scheme in the discharge of his duties or fails to produce any record for inspection by such inspector or other officials, or
(d) is guilty of contravention of or non-compliance with any other requirement of this Scheme, he shall be punishable with imprisonment which may extend to one year or with fine which may extend to five thousand rupees or with both.
43. Payment of pension in the case of a person charged with the offence of murder
(1) If a person, who in the event of the death of a member of the Pension Fund is eligible to receive pension of the deceased under paragraph 12 or paragraph 16, is charged with the offence of murdering the member or for abetting the commission of such an offence, his claims to receive pension shall remain suspended till the conclusion of the criminal proceedings instituted against him for such offence.
(2) If on the conclusion of the criminal proceedings referred to in sub-paragraph (1), the person concerned is:
(a) convicted for the murder or abetting in the murder of the member, he shall be debarred from receiving pension which shall be payable to other eligible members if any, of the family of the member; or
(b) acquitted of the charge of murder or abetting the murder of the member, pension benefit shall be payable to him.
44. Repeal and savings.
(1) On commencement of this Scheme, the Employees' Family Pension Scheme, 1971, in force immediately before such commencement shall cease to operate with effect from the 16th November, 1995.
(2) Notwithstanding anything contained in sub-paragraph (1) every nomination made under the Employees' Family Pension Scheme, 1971, and every form regarding the details of Family of an employee for the purposes of the Employees' Family Pension Scheme, 1971, shall be deemed to have been made under the provisions of this Scheme.
(3) All orders/authorisations/Pension Payment Orders issued under the Family Pension Scheme, 1971, shall be deemed to have been made under this Scheme.
TABLE A
(See Paragraph 14)
(WITHDRAWAL BENEFIT)
No. of full years' Proportion of pay payable
Contribution paid at cessation of membership
(1) (2)
1 0.20
2 0.41
3 0.62
4 0.84
5 1.06
6 1.29
7 1.51
8 1.75
9 1.98
10 2.23
11 2.47
12 2.72
13 2.98
14 3.24
15 3.51
16 3.78
17 4.05
18 4.34
19 4.62
20 4.92
21 5.21
22 5.52
23 5.83
24 6.14
25 6.46
26 6.79
27 7.12
28 7.46
29 7.81
30 8.16
31 8.52
32 8.89
33 9.26
34 9.64
35 10.03
36 10.43
37 10.83
38 11.24
39 11.66
40 12.08
TABLE B
1[(See Paragraphs 12 and 14)]
FACTOR FOR COMPUTATION OF PAST SERVICE
BENEFIT 1[UNDER THE CEASED] FAMILY PENSION
SCHEME FOR EXISTING MEMEBRES ON EXIT FROM
THE EMPLOYMENT
(1) (2)
1[YEARS] FACTOR
Less than 1 1.049
Less than 2 1.154
Less than 3 1.269
Less than 4 1.396
Less than 5 1.536
Less than 6 1.689
Less than 7 1.858
Less than 8 2.044
Less than 9 2.248
Less than 10 2.473
Less than 11 2.720
Less than 12 2.992
Less than 13 3.292
Less than 14 3.621
Less than 15 3.983
Less than 16 4.381
Less than 17 4.819
Less than 18 5.301
Less than 19 5.810
Less than 20 6.414
Less than 21 7.056
Less than 22 7.761
Less than 23 8.537
Less than 24 9.390
1. Subs. by G.S.R. 134, dated the 28th February, 1996 (w.e.f 16th March, 1996).
TABLE C
(See Paragraph 16)
EQUIVALENT WIDOW PENSION
Salary at day of Equivalent widow pension
death not more
than
(1) (2)
(Rupees) (Rupees)
Upto 300 250
350 327
400 343
450 359
500 375
550 391
600 408
650 425
700 442
750 459
800 476
850 493
900 510
950 527
1000 544
1050 561
1100 578
1150 595
1200 612
1250 629
1300 646
1350 664
1400 682
1450 700
1500 718
1550 736
1600 754
1650 772
1700 797
1750 808
1800 826
Contd../-
Salary at day of Equivalent widow pension
death not more Rs.
than Rs.
1850 844
1900 862
1950 880
2000 898
2050 916
2100 935
2150 954
2200 973
2250 992
2300 1011
2350 1030
2400 1049
2450 1068
2500 1087
2550 1106
2600 1125
2650 1144
2700 1163
2750 1182
2800 1201
2850 1221
2900 1241
2950 1261
3000 1281
3050 1301
3100 1321
3150 1341
3200 1361
3250 1381
3300 1401
3350 1421
3400 1441
3450 1461
3500 1481
Note: In the case of employees drawing wages above Rs. 3500 p.m. the widow pension shall be increased by Rs. 20 p.m for every increase in wages of Rs. 50 or part thereof subject to the maximum of Rs. 1750/-
TABLE D
(Return of contribution on exit from the employment)
(See Paragraph 14)
Year of Service Proportion of wages at exit
1 1.02
2 2.05
3 3.10
4 4.18
5 5.28
6 6.40
7 7.54
8 8.70
9 9.88
Subba Raju.N
From India, Hyderabad
EMPLOYEES’ PENSION SCHEME – 1995
Employees' Pension Scheme-95 came into effect from 16.11.95. The Employees' Pension Scheme-95 has been conceived as a Benefit defined Social Insurance Scheme formulated following actuarial principles for ensuring long term financial sustenance. The new Employees’ Pension Scheme-95, repealed and replaced the erstwhile Family Pension Scheme, 1971. The assets and liabilities of the erstwhile Pension Fund were transferred and merged with the new Pension Fund. The benefits and entitlements to the members under the old scheme remain protected and continued under the new Employees’ Pension Scheme-95.
APPLICATION AND COVERAGE
The Scheme was notified on 16.11.95 and made effective from that date with the provision for retrospective application from 1.4.93 in selective cases. The Scheme on its introduction applied on compulsory basis to all the new members of Provident Fund and the existing members who were contributing to the Employees' Family Pension Scheme-1971. The existing members (as on 16.11.95) of the Provident Fund who did not opt for joining the erstwhile Employees' Family Pension Scheme-1971 and the beneficiaries under the erstwhile Employees' Family Pension Scheme-1971 in case of death/exit occurring between 1.4.93 and 15.11.95 have option to join the new scheme.
CONTRIBUTION
No separate contribution is payable additionally by the member for the Pension Scheme benefits. The new Pension Scheme, alike the old Employees' Family Pension Scheme, 1971 derives its financial resource by partial diversion from the Provident Fund contribution, the rate being 8.33% in lieu of 2.33% against the old ceased Family Pension Scheme-1971.The Central Government continues contributing at the rate of 1.16% as before, on wages at the end of the year.
BENEFITS
Newly introduced Employees' Pension Scheme-95 provides for following benefit package:
1. Pension for life to the member, on superannuation/retirement and invalidation.
2. To the members of the family upon death of the member:
a. Pension to Widow/Widower for life or till re-marriage.
b. To children/orphan, two at a time additionally upto 25 years of age simultaneously with widow/widower pension.
c. Children/orphan with total and permanent disability shall be entitled to payment of children pension or orphan pension as the case may be irrespective of age and number of children in the family.
d. Facility for payment of pension to nominee in the event of member who is unmarried or without any eligible family member to receive pension, and
e. Facility for payment of pension to dependent father/mother in the event the member dies leaving behind no eligible family members and no nomination by such deceased member exist.
3. Facility for capital return (corpus accretion) on option formula basis
4. Commutation of pension up to 1/3rd of pension amount
5. Scheme Certificate to retain membership of the Scheme till attaining the age of 58 years.
Superannuation/retirement pension under the new scheme will be payable on fulfilling:-
a. Minimum 10 years eligible service and
b. Attaining age of 58 years.
On ceasing employment earlier than 58 years, pension may be availed of by a member at his option, before attaining the age of 58 years but not below 50 years. Such early pension will be subject to discounting factor. However, no such age restriction or eligibility requirement shall apply for pension entitlement on disablement or pension payable to the family members on death of the member. Membership with one contribution is enough in such cases.
VALUATION OF PENSION FUND
The Pension Fund is evaluated by an Actuary on an annual basis. Based on valuation recommendations, Central Government determines the amount of relief on pensions to existing pensioners.
THE EMPLOYEE'S PENSION SCHEME, 1995
ARRANGEMENT OF PARAGRAPHS
1. Short title, commencement and application
2. Definitions
3. Employees' Pension Fund
4. Payment of contribution
5. Recovery of damages for default in payment of any contributions
6. Membership of the Employees' Pension Scheme
7. Option for joining the scheme
8. Resolution of doubts
9. Determination of eligible service
10. Determination of Pensionable Service
11. Determination of Pensionable Salary
12. Monthly Member's Pension
12A. Option for commutation
13. Options for return of capital
14. Benefits on leaving service before being eligible for monthly members pension
15. Benefits on permanent and total disablement during the service
16. Benefits to the family on the death of a member
16A. Guarantee of Pensionary Benefits
17. Payments on exercise of option.
17A. Payment of Pension
18. Particulars to be supplied by the employees already employed at the time of commencement of the Employees' Pension Scheme
19. Preparation of contribution cards
20. Duties of employers
21. Employer to furnish particulars of ownership
22. Duties of contractors
23. Allotment of Account Numbers
24. Declaration by persons taking up employment after the Fund has been established
25. Employees' Pension Fund Account
26. Investment of the Employees' Pension Fund
27. Disposal of the Fund
28. Administration Account
29. Forms of Accounts
30. Audit
31. Rounding up of the Benefits
32. Valuation of the Employees' Pension Fund and review of the rates of contributions and quantum of the pension and other benefits
33. Disbursement of Pension and other benefits
34. Registers, Records etc.
35. Power to issue directions
36. Regional Committee
37. Annual Report
38. Application of the provisions of the Employees' Provident Fund Scheme, 1952
39. Exemption from the operation of the Pension Scheme
40. Information to the Central Government
41. Interpretation
42. Punishment for failure to submit return, etc.
43. Payment of pension in the case of a person charged with the offence of murder
44. Repeal and savings
SCHEDULE
THE EMPLOYEES' PENSION SCHEME, 1995
In exercise of the powers conferred by Section 6A of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government hereby makes the following Scheme, namely:-
1. Short title, commencement and application
(1) This Scheme may be called the Employees' Pension Scheme, 1995;
(2) (a) This Scheme shall come into force on 16th day of November, 1995;
(b) Subject to the provisions of this Scheme the employees have an option to become the members of the Scheme with effect from the 1st April, 1993 ;
(3) Subject to the provisions of Section 16 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, this Scheme shall apply to the employees of all factories and other establishments to which the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 applies or is applied under sub-section (3) or sub-section (4) of Section 1 or Section 3 thereof.
2. Definitions
(1) In this Scheme unless the context otherwise requires :--
(i) "Act" means the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952) ;
(ii) "actual service" means the aggregate of periods of service rendered from the 16th November, 1995 or from the date of joining any establishment whichever is later to the date of exit from the employment of the establishment covered under the Act ;
(iii) "Commissioner" means a Commissioner for Employees' Provident Funds appointed under Section 5D of the Act ;
(iv) "contributory service" means the period of 'actual service' rendered by a member for which the contributions to the fund have been 1[received or are receivable] ;
(v) "eligible member" means an employee who is eligible to join the "Employees' Pension Scheme";
(vi) "Existing Member" means an existing employee who is a "Member of the Employees' Family Pension Scheme, 1971";
1. Subs. by G.S.R 134 dated 28th February 1996, for the word "received" (w.e.f 16th March 1996)
(vii) "Family" means
(i) wife in the case of male member of the Employees' Pension Fund;
(ii) husband in the case of a female member of the Employees' Pension Fund ; and
(iii) sons and 1[***] daughters of a member of the Employees' Pension Fund ;
Explanation. The expression "sons" and "daughters" shall include children 2[legally adopted by the member].
(viii) "Pension" means the pension payable under the Employees' Pension Scheme and also includes the family pension admissible and payable under the Employees' Family Pension Scheme, 1971 immediately preceding the commencement of the Employees' Pension Scheme, 1995 with effect from the 16th November, 1995.
(ix) "Member" means an employee who becomes a member of the Employees' Pension Fund in accordance with the provisions of this Scheme.
3.["EXPLANATION - - An employee shall cease to be the member of Pension Fund from the date of attaining 58 years of age or from the date of vesting admissible benefits under the Scheme, whichever is earlier,"]
(x) "Non-Contributory Service" is the period of "actual service" rendered by a member for which no contribution to the "Employees' Pension Fund" has been 4[received or are receivable].
(xi) "orphan" means a person, none of whose parents is alive 5[***].
1. The word "unmarried" omitted, ibid (w.e.f. 16 th March, 1996)
2. Subs. Ibid., for "adopted by the member legally before death in service" (w.e.f. 16th March, 1996).
3. Inserted. by G.S.R. dated the 22nd February, 1999 (w.e.f 6.3.99)
4. Subs. by G.S.R. 134 dated the 28th February, 1996, for the word "received" (w.e.f. 16th March,1996)
5. Certain words omitted, ibid. (w.e.f. 16th March, 1996).
(xii) "past service" means the period of service rendered by an existing member from the date of joining Employees' Family Pension Fund till the 15th November, 1995.
(xiii) "Pay" means basic wages, with dearness allowance, retaining allowance and cash value of food concessions admissible, if any.
(xiv) "Pension Fund" means the Employees' Pension Fund set up under sub-section (2) of Section 6A of the Act.
(xv) "pensionable service" means the service rendered by the member for which contributions have been 1[received or are receivable].
1[(xvi)"permanent total disablement" means such disablement of permanent nature as incapacitates an employee for all work which he/she was capable of performing at the time of disablement, regardless whether such disablement is sustained in the course of employment or otherwise;]
(xvii) "Table" means Table appended to this Scheme.
(xviii) The words and expressions defined in the Act but not defined in this Scheme shall have the same meaning as assigned to them in the Act.
3. Employees' Pension Fund.
(1) From and out of the contributions payable by the employer in each month under Section 6 of the Act or under the rules of the Provident Fund of the establishment which is exempted either under clauses (a) and (b) of sub-section (1) of Section 17 of the Act or whose employees are exempted under either paragraph 27 or paragraph 27-A of the Employees' Provident Fund Scheme, 1952, a part of contribution representing 8.33 per cent of the Employee's pay shall be remitted by the employer to the Employees' Pension fund within 15 days of the close of every month by a separate bank draft or cheque on account of the
1. Subs. By G.S.R. 134 dated the 28th February 1996, (w.e.f. 16th March,1996)
Employees' Pension Fund contribution in such manner as may be specified in this behalf by the Commissioner. The cost of the remittance, if any, shall be borne by the employer.
(2) The Central Government shall also contribute at the rate of 1.16 per cent of the pay of the members of the Employees' Pension Scheme and credit the contribution to the Employees' Pension Fund:
Provided that where the pay of the member exceeds rupees five thousand per month the contribution payable by the employer and the Central Government be limited to the amount payable on his pay of rupees five thousand only.
(3) Each contribution payable under sub-paragraphs (1) and (2) shall be calculated to the nearest rupee, fifty paise or more to b e counted as the next higher rupee and fraction of a rupee less than fifty paise to be ignored.
(4) The net assets of the Family Pension Scheme, 1971 shall vest in and stand transferred to the Employees' Pension Fund.
4. Payment of contribution
(1) The employer shall pay the contribution payable to the Employees' Pension Fund in respect of 1[each member] of the Employees' Pension Fund employed by him directly or by or through a contractor.
(2) It shall be the responsibility of the principal employer to pay the contributions payable to the Employees' Pension Fund by himself in respect of the employees directly employed by him and also in respect of the employees employed by or through a contractor.
5. Recovery of damages for default in payment of any contributions
(1) Where an employer makes default in the payment of any contribution to the Employees' Pension Fund, or in the payment of any charges payable under any other provisions of the Act or the Scheme, the Central Provident Fund Commissioner or such officer as may be authorised by the Central Government, by notification in the Official Gazette, in this behalf, may recover from the employer by way of penalty, damages at the rates given below :- -
1. Subs. by G.S.R.134 dated the 28th February, 96, for "the member" (w.e.f. 16th March, 1996)
Period of default Rate of damages (Percentage
of arrears per annum)
(a) Less than two months Seventeen
(b) Two months and above Twenty-two
but less than four months
(c ) Four months and above Twenty-seven
but less than six months
(d) Six months and above Thirty-seven
(2) The damages shall be calculated to the nearest rupee, 50 paise or more to be counted as the nearest higher rupee and fraction of a rupee less than 50 paise to be ignored.
1[6. Membership of the Employees' Pension Scheme
Subject to sub-paragraph (3) of paragraph 1, the Scheme shall apply to every employee
(a) who on or after the 16th November, 1995, becomes a member of the Employees' Provident Fund Scheme, 1952, or of the Provident Funds of the factories and other establishments exempted by the appropriate Government under section 17 of the Act, or in whose case exemption has been granted under paragraph 27 or 27-A of the Employees' Provident Fund Scheme, 1952, from the date of such membership;
(b) who has been a member of the ceased Employees' Family Pension Scheme, 1971 before the commencement of this Scheme from 16th November, 1995;
(c) Who ceased to be a member of the Employees' Family Pension Scheme, 1971 between 1st April, 1993 and 15th November, 1995 and opts to exercise his option under Paragraph7;
(d) who has been a member of the Employees' Provident fund or of Provident Funds of factories and other establishments exempted by the appropriate Government under section 17 of the Act or in whose case exemption has been granted under Paragraph 27 or 27A of the Employees' Provident Fund Scheme, 1952, on 15 th November, 1995
but not being a member of the ceased Employees' Family Pension Scheme, 1971 opts to exercise his option under paragraph 7].
1. Subs. by G.S.R.134 dated 28th February, 1996 (w.e.f. 16th March, 1996)
1.["6 A Retention of membership
A member of the Employees' Pension Fund shall continue to be such member till he attains the age of 58 years or he avails the withdrawal benefit to which he is entitled under para 14 of the Scheme, or dies, or the pension is vested in him in terms of para 12 of the Scheme, whichever is earlier." ]
2[ 7. Option for joining the Scheme.
(1) Members referred to under sub-para (c ) of Paragraph 6 who have died between 1st April, 1993 and 15th November, 1995 shall be deemed to have exercised the option of joining the Scheme on the date his death.
(2) Members referred to in sub-paragraph (c ) of paragraph 6 who are alive shall have the option to join the Scheme as per the provisions of paragraph 17 from the date of exit from the employment.
(3) Members referred to in sub-paragraph (d) of paragraph 6 shall have the option to join the Scheme as per the provisions of Paragraph 17 from 16th November, 1995.]
8. Resolution of doubts.
If any doubt arises whether an employee is entitled to become a member of the Employees' Pension Fund, the same shall be referred to the Regional Provident Fund Commissioner who shall decide the same:
Provided that both the employer and the employee shall be heard before passing final order in the matter.
9. Determination of eligible service.
The eligible service shall be determined as follows:
(a) In the case of "new entrant" the "actual service" shall be treated as eligible service. The total actual service shall be rounded off to the nearest year. The fraction of service for six months or more shall be treated as one year and the service less than six months shall be ignored.
Explanation.
In the case of employees employed seasonally in any establishment the period of "actual service" in any year, notwithstanding that such service is less than a year shall be treated as a full year.
1. Subs. by G.S.R.134 dated the 28th February, 1996 (w.e.f 16th March, 1996)
2. Inserted by G.S.R. dated 22nd February 1999 (w.e.f. 6.3.99)
(b) In the case of the "existing member" the aggregate of actual service and the 'past service' shall be treated as eligible service.
Provided that if there is any period in the "past service" for which the contributions towards the Family Pension Scheme, 1971 has not been received, the said period shall count as eligible service only if the contributions thereof have been received in the Employees' Pension Fund.
Explanation: For the purpose of this sub-paragraph the total past service for less than six months shall be ignored and the total past service for six months and above shall be rounded to a year.
10. Determination of Pensionable Service.
(1) The pensionable service of the member shall be determined with reference to the contributions 1[received or receivable] on his behalf in the Employees' Pension Fund.
(2) In the case of the member who superannuates on attaining the age of 58 years, and/or who has rendered 20 years pensionable service or more, his pensionable service shall be increased by adding a weightage of 2 years.
11. Determination of Pensionable Salary.
(1) Pensionable salary shall be average monthly pay drawn 2[in any manner including on piece-rate basis] during the contributory period of service in the span of 12 months preceding the date of exit from the membership of the Employees' Pension Fund.
3 .[" Provided that if a member was not in receipt of full pay during the period of twelve months preceding the day he ceased to be the member of Pension Fund, the average of previous 12 months full pay drawn by him during the period for which contribution to the pension fund was recovered, shall be taken into account as pensionable salary for calculating pension." ]
(2) If during the said span of 12 months there are non-contributory periods of service including cases where the member has drawn salary for a part of the month, the total wages during the 12 months span shall be divided by the actual number of days for which salary has been drawn and the amount so derived shall be multiplied by 30 to work out the average monthly pay.
(3) The maximum pensionable salary shall be limited to five thousand rupees per month.
4[Provided that if at the option of the employer and employee, contribution paid on salary exceeding Rs 5,000/- per month from the date of commencement of this Scheme or from the date salary exceeds Rs. 5000/- whichever is later, and 8.33 per cent
1. Subs. by G.S.R. 134 dated the 28th February, 1996 for "received" (w.e.f. 16th March, 1996)
2. Ins. ibid (w.e.f. 16th March, 1996).
3. Inserted by G.S.R. dated 22nd February, 1999.
4. Inserted ibid w.e.f 16.3.96.
share of the employers thereof is remitted into the Pension Fund, pensionable salary shall be based on such higher salary.]
12. Monthly Member's Pension.
(1) A member shall be entitled to :-
(a) superannuation pension if he has rendered eligible service of 20 years or
(b) more and retires on attaining the age of 58 years;
(c) retirement pension, if he has rendered eligible service of 20 years or more and retires or otherwise ceases to be in the employment before attaining the age of 58 years ;
(d) short service pension, if he has rendered eligible service of 10 years or more but less than 20 years.
(2) In the case of a new entrant the amount of monthly superannuation pension or retiring pension, as the case may be, shall be computed in accordance with the following factors, namely :- -
Monthly member's pension = Pensionable salary X Pensionable service
-------------------------------------------------- 70
1[***]
(3) In the case of an employee 2[who was a member of the ceased Family Pension Scheme, 1971] and who has not attained the age of 48 years on the 16th November, 1995 :
Superannuation/retirement/short service pension shall be equal to the
aggregate of :-
(a) Pension as determined under sub-paragraph (2) for the period of pensionable service rendered from the 16th November, 1995 or Rs 635/- per month whichever is more ;
1. Certain words omitted by G.S.R. 134 dated the 28th February, 1996 (w.e.f. 16th March 1996)
2. Subs. by G.S.R. 134 dated the 28th February, 1996 (w.e.f 16th March 1996).
1[(b) Past service pension benefit shall be as given below :- -
The past service benefit payable on completion of 58 years of age on 16.11.95
Years of past Salary upto Salary more than
Service Rs. 2500/- Rs. 2500/- per
per month per month
(1) (2) (3)
(i) Upto 11 years 80 85
(ii) More than 11 95 105
years but
upto 15 years
(iii) More than 15 120 135
years but less
than 20 years
(iv) Beyond 20 150 170
years
subject to a minimum of Rs. 800/- per month provided the past service is 24 years. If the aggregate service of the member is less than 24 years, the pension and the benefits computed as above shall be reduced proportionately subject to a minimum of Rs. 450/- per month]
2[(c) On completion of the age of 58 years after 16-11-95, the benefit under column (2) or column (3) above, as the case may be shall be multiplied by the factor given in Table B corresponding to the period between 16-11-95 and date of attainment of age 58 to arrive at past service pension payable.]
(4) In the case of an employee 3[who was a member of the ceased Family Pension Scheme, 1971] and has attained the age of 48 years but less than 53 years on the 16th November,
1. Subs. by G.S.R. 134, dated the 28th February, 1996 (w.e.f 16th March 1996).
2. Ins.idid. (w.e.f. 16th March 1996).
3. Subs. by G.S.R. 134 dated the 28th February, 1996 (w.e.f. 16th March 1996)
1995, the superannuation/retirement pension shall be equal to the aggregate of : - -
(a) pension as determined under sub-paragraph (2) for the period of service rendered from the 16th November, 1995 or Rs. 438/- per month whichever is more ;
(b) past service benefit as provided in sub-paragraph (3) subject to a minimum of Rs. 600/- per month provided the past service is 24 years. Provided further that if it is less than 24 years the pension payable and the past service benefits taken together shall be proportionately less subject to the minimum of Rs. 325/- per month.
(5) In the case of an employee 1[who was a member of the ceased Family Pension Scheme, 1971] and who has attained the age of 53 years or more on the 16th November, 1995, the superannuation/retirement pension shall be equal to the aggregate of :
(a) pension as determined under sub-paragraph (2) for the period of service rendered from the 16th November, 1995 per month or Rs.335/- per month whichever is more.
(b) Past service benefits provided in sub-paragraph (3) subject to the minimum of Rs. 500/- per month, provided the past service is 24 years. Provided further that if it is less than 24 years the pension payable and the past service benefits shall be proportionately lesser but subject to the minimum of Rs. 265/- per month.
(6) Except as otherwise expressly provided hereinafter the monthly members pension under sub-paragraphs (2) to (5) mentioned herein above, as the case may be, shall be payable from a date immediately following the date of completion of 58 years of age notwithstanding that the member has retired or ceased to be in the employment before that date.
1. Subs. by G.S.R. 134, dated the 28th February, 1996 (w.e.f 16th March, 1996)
(7) A member, if he so desires, may be allowed to draw monthly reduced pension from a date earlier than 58 years of age but not earlier than 50 years of age. In such cases, the amount of pension shall be reduced at the rate of 1[three per cent for every year the age falls short of 58 years].
(8) If a member ceases to be in the employment by way of retirement or otherwise earlier than the date of superannuation from which pension can be drawn, the member may, on his option, either be paid pension as admissible under this Scheme on attaining the age exceeding 50 years or he may be issued a scheme certificate by the Commissioner indicating the pensionable service, the pensionable salary and the amount of pension due on the date of exit from the employment. If he/she is subsequently employed in an establishment coverable under this Scheme, his/her earlier service as per the scheme certificate shall be reckoned for pension along with the fresh spell of pensionable service. The member postponing the commencement of payment of pension under this paragraph shall also entitled to additional relief sanctioned under this Scheme from time to time:
Provided that if the member does not take up an employment coverable under this Scheme, but dies before attaining the age of 58 years, the amount of contributions received in his case shall be converted into a monthly widow pension/children pension. The widow pension in such cases shall be calculated at the scale laid down in Table 'C' and the children pension at 25 per cent thereof for each child (upto two). If there is no widow then the orphan pension shall be payable at the rate of 75 per cent of the amount which would have been payable as a widow pension subject to the provisions of the paragraph 16.
2[12A. Option for commutation.
A member eligible to pension may, in lieu of pension normally admissible under paragraph 12, opt on completion of three years from the commencement of this Scheme, to commute upto a maximum of one third of his pension so as to receive hundred times the monthly pension so commuted as commuted value of pension. Balance pension will be paid on monthly basis as per options exercised under paragraph 13.
1. Subs. by G.S.R. 134, dated the 28th February, 1996b (w.e.f. 16th March, 1996).
2. Ins. ibid. (w.e.f. 16th March, 1996).
Explanation. - - If for example, the normal pension under paragraph 12 is Rs. 600, and the pensioner opts to commute one third of his monthly pension, the commuted value will be equal to 1/3 x 600 x 100 = Rs.20,000 and the same shall be paid at the time of exercise of option for commutation. The balance of pension payable on monthly basis is Rs. 400.]
13. Options for return of capital.
(1) A member eligible to pension may, in lieu of pension normally admissible under paragraph 12, 1[subject to commutation of pension, if any, under paragraph 12A] opt to draw for reduced pension and avail of return of capital under any one of the three alternatives given below :- -
S.No. Alternatives Revised pen- Amount payable as
sion payable return of capital
1. Revised pension 90% of original 100 times the original
during life time monthly pension monthly pension on
of member with death of member to the
return of capital nominee.
On his death.
2. Revised pension 90% of original 90 times the original
during the life time monthly pension monthly pension on
of member, further to the member. On death of widow/re-marriage
reduced pension his death 80% of to the nominee.
During life time of the original
the widow or her monthly pension
remarriage which- to the widow.
Ever is earlier and
return of capital on
Widow's death/re-
marriage.
1. Ins. by. G.S.R. 134, dated the 28th February, 1996(w.e.f 16th March, 1996)
S.No. Alternatives Revised pen- Amount payable
sion payable as return of
Capital
3. Pension for a fixed 87.5% of the 100 times the
period of 20 years riginal monthly original monthly
not withstanding pension for a pension at the end
whether the member fixed period of of 20 years from the
lives for that period 20 years. The pen- date of commence-
or not. sion will cease ment of pension to
thereafter. the member if he
is alive, otherwise
to his nominee.
Explanation 1. -- In alternative 2, if the 1[spouse] dies or remarries before the death of member, capital equal to 90 times the original monthly pension shall be paid to the nominee on the member's death.
Explanation 2. - - In alternative 3, if the member dies before the end of 20 year period, the pension shall be paid to his nominee for the balance period.
Explanation 3. - - In the case of a member who is eligible for permanent total disablement pension, and where the payment of such pension is to commence before his attaining the age of 50 years the options shall also be admissible but in such cases the actual pension payable shall be reduced by 1% and the return of capital shall be further reduced by Rs. 1,000/- for every year by which the age at the commencement of pension falls short of 50 years.
2[Explanation 4. - - In cases of exercise of option for commutation under paragraph 12A, balance monthly pension payable after commutation shall be deemed to be the original monthly pension for the purpose of this paragraph.]
1. Subs. by G.S.R. 134, dated the 28th February, 1996 (w.e.f 16th March 1996).
2. Ins. ibid. (w.e.f. 16th March 1996).,
(2) The option under sub-paragraph (1) shall be exercised by the member at the time of submission of the application form for pension in accordance with the provisions of this Scheme. The option once exercised shall be final. If no option is exercised, the member shall be deemed not to have exercised any option under this paragraph and his/her pension shall be determined under the provisions of paragraph 12.
(3) Notwithstanding that the capital is returned under this paragraph the widow/children shall continue to be eligible for normal widow pension/children pension/orphan pension under paragraph 16 of this Scheme from the date immediately following the date of death of the member.
14. Benefits on leaving service before being eligible for monthly members pension.
(1) If a member has not rendered the eligible service prescribed in paragraph 1[9] on the date of exit, or on attaining 58 years of age whichever is earlier, he/she shall be entitled to a withdrawal benefit as laid down in Table 'D' or may opt to receive the scheme certificate provided on the date he/she has not attained the 58 years of age:
Provided that an existing member shall receive additional return of contributions for his/her past service under the Employees' Family Pension Scheme, 1971 computed as withdrawal-cum-retirement benefits as per Table 'A' multiplied by the factor given in Table 'B'.
15. Benefits on permanent and total disablement during the service
(1) A member, who is permanently and totally disabled during the employment shall be entitled to pension as admissible under sub-paragraph (2) to (5) of paragraph 12 as the case may be subject to a minimum of Rs. 250/- per month notwithstanding the fact that he/she has not rendered the pensionable service entitling him/her to pension under paragraph 12 provided that she/he has made at least one month's contribution to the Pension Fund.
(2) The monthly member's pension in such cases shall be payable from the date following the date of permanent total disablement and shall be tenable for
For the life-time of the member.
1. Subs. by G.S.R. 134, dated the 28th February, 1996, (w.e.f. 16th March 1996).
(3) A member applying for benefits under this paragraph shall be required to undergo such medical examination as may be prescribed by the Central Board to determine whether or not he or she is permanently and totally unfit for the employment which he or she was doing at the time of such disablement.
16. Benefits to the family on the death of a member
(1) 1[Pension to the family] shall be admissible from the date following the date of death of the member if the member dies ..
(a) while in service, provided that at least one month's contribution has been paid into the Employees' Pension Fund, or
(b) after the date of exit but before attaining the age of 58, from the employment having rendered service entitling him/her to monthly member's pension but 1[before the commencement of pension payment or]
(c) after commencement of payment of the monthly member's pension
Note:- The cases where a member has rendered less than 10 years eligible service on the date of exit but has retained the membership of the Pension Fund, and dies before attaining the ge of 58 years, shall be regulated under sub-paragraph (8) of paragraph 12.
(2) (a) The monthly widow pension shall be :--
(i) in the cases covered by clause (a) of sub-paragraph (1), equal to the monthly members pension which would have been admissible as if the member had retired on the date of death or Rs 450/- or the amount indicated in Table 'C' whichever is more.
1. Subs. by G.S.R. 134 dated the 28th February, 1996 (w.e.f. 16th March 1996).
(ii) in the cases covered by clause (b) of sub-paragraph (1), equal to the monthly members pension which would have been admissible as if the member had retired on the date of exit or 1[Rs. 450/- per month] or the amount indicated in Table 'C' whichever is more.
(iii) in the cases covered by clause (c ) of sub-paragraph (1), equal to 50 per cent of the monthly members pension payable to the member on the date of his death subject to a minimum of 1[Rs. 450/- per month.]
2[(iv) in all the cases, where the amount of family pension sanctioned under the Ceased Family Pension Scheme, 1971 and is paid/payable under this scheme is less than Rs. 450/- per month, the amount of family pension in such cases shall be enhanced to Rs. 450/- per month.]
(b) the monthly widow pension shall be payable upto the date of death of the widow or remarriage whichever is earlier.
Note:- In cases where there are 2 or more widows, family pension shall be payable to the eldest surviving widow. On her death it shall be payable to the next surviving widow, if any. The term "eldest" would mean seniority with reference to the date of marriage.
(3) Monthly children pension : - -
(a) If there are any surviving children of the deceased member, falling within a definition of family, they shall be entitled to a monthly children pension in addition to the monthly widow/widower pension.
(b) Monthly children pension for each child shall be equal to 25 per cent of the amount admissible to the widow/widower of the deceased member as monthly widow pension payable under sub-paragraph (2) (a) (i) provided that minimum monthly children pension for each child of the deceased member shall not be less than 3[Rs. 150/- per month.]
4[(c ) Monthly children pension shall be payable until the child attains the age of 25 years.]
(d ) The monthly children pension shall be admissible to maximum of two children at a time and will run from the oldest to the youngest child in that order.
5. [ "(e) If a member dies leaving behind a family having son or daughter who is permanently and totally disabled such son or daughter shall be entitled to payment of monthly children pension or orphan pension, as the case may be, irrespective of age and number of children in the family in addition to the pension provided under clause (d)".]
1. Subs. by G.S.R. dated 12th January, 2000
2. Inserted by G.S.R dated 12th January 2000
3. Subs. by G.S.R dated 12th January 2000
4. Subs. by G.S.R. 134, dated the 28th February, 1996 (w.e.f. 16th March, 1996).
5. Inserted by G.S.R. dated 22nd February, 1999 (w.e.f 6.3.99)
(4) (a) If the deceased member is not survived by any widow but is survived by children falling within the definition of family or if the widow pension is not payable, the children shall be entitled to a monthly orphan pension equal to 75 per cent of the amount of the monthly widow pension as payable under sub-paragraph (2) (a) (i) provided that minimum monthly orphan pension for each orphan shall not be less than 1[Rs. 250/- per month.]
(b) In the event of death or remarriage of the widow/widower after sanctioning of widow/widower pension the children shall be entitled in lieu of the monthly children pension, to a monthly orphan pension from the date following the date of death/remarriage of the widow/widower.
2[(c ) The monthly orphan pension shall be admissible to a maximum of 2 orphans at a time and shall run in order from the oldest to the youngest orphan.]
(5) (a) A member who is not married or who does not have any living spouse and/or an eligible child may nominate a person to receive benefits as laid down hereinafter provided that in the event of his/her acquiring a family subsequently, the nomination so made shall become void. In the event of death of the member such a nominee shall be entitled to receive a monthly pension equal to the monthly widow pension, as admissible under sub-clauses (I) and (ii) of clause (a) of sub-paragraph (2).
3[. "(aa) If a member dies leaving behind no spouse and/or an eligible child falling within the definition of family and no nomination by such deceased member exists, the widow pension shall be paid under sub-clauses (I) and (ii) of clause (a) of sub-paragraph 2 either to dependent father or dependent mother as the case may be. On grant of Pension to such dependant father and in the event of death of the father pensioner, the admissible pension shall be extended to the surviving mother life long".]
(b) If the deceased member had not rendered pensionable service on the date of exit from the employment which would have made him entitled to a monthly members pension under paragraph 12, but had opted to retain the membership of this Scheme under sub-paragraph (8) of paragraph 12, the 4[ "nominee or the dependant father or the dependant mother as the case may be ] shall be entitled to return of capital as provided in sub-paragraph (1) of paragraph 13.
5[16A. Guarantee of pensionary benefits
None of the pensionary benefits under the Scheme shall be denied to any member or beneficiary for want of compliance of the requirement by the employer under sub-paragraph (1) of paragraph 3 provided, however, that the employer shall not be absolved of his liabilities under the Scheme.]
1. Subs. by G.S.R dated 12th January 2000
2. Ins. by G.S.R. 134, dated the 28th February, 1996 (w.e.f 16th March 1996).
3. Inserted by G.S.R. dated 22nd February, 1999. (w.e.f 6.3.99)
4. Sub. by G.S.R dated 22nd February, 1999 (w.e.f 6.3.99)
5. Inserted by G.S.R. 134 dated the 28th February 96 (w.e.f. 16th March 1996)
1[17. Payments on exercise of option
(1) Beneficiaries of the deceased members of Employees' Family Pension Scheme, referred to in sub-para (1) of paragraph 7, shall receive higher of the benefits available under the Employees' Family Pension Scheme, 1971 and under this Scheme.
(2) Members referred to in sub-paragraph (2) of paragraph 7 shall have the option to join the Scheme by returning the amount of withdrawal benefit received, if any, together with interest at the rate of 8.5% per annum from the date of payment of such withdrawal benefit and date of exercise of the option, to receive monthly pension as per the provisions of this Scheme.
(3) Members referred to in sub-paragraph (3) of paragraph 7 shall be deemed to have joined the ceased Employees' Family Pension Scheme, 1971, with effect from 1.3.1971 on remittance of past period contribution with interest thereon.]
2[17A. Payment of Pension
The claims, complete in all respects submitted along with the requisite documents shall be settled and benefit amount paid to the beneficiaries within thirty days from the date of its receipt by the Commissioner. If there is any deficiency in the claim, the same shall be recorded in writing and communicated to the applicant within thirty days from the date of receipt of such application. In case the Commissioner fails without sufficient cause to settle a claim complete in all respects within thirty days, the Commissioner shall be liable for the delay beyond the said period and penal interest at the rate of 12 per cent per annum may be charged on the benefit amount and the same may be deducted from the salary of the Commissioner.]
18. Particulars to be supplied by the employees already employed at the time of commencement of the Employees' Pension Scheme
Every person who is entitled to become a member of the Employees' Pension Fund shall be asked forthwith by his employer to furnish and that person shall, on such demand, furnish to him for communication to the Commissioner particulars concerning himself and his family in the form prescribed by the Central Provident Fund Commissioner.
1. Subs. by G.S.R. 134, dated the 28th February, 1996 (w.e.f 16th March, 1996).
2. Ins. by Notification dated the 27th October, 1997
19. Preparation of Contribution Cards
The employer shall prepare an Employees' Pension Fund Contribution Card in respect of each employee who has become a member of the Employees' Pension Fund.
20. Duties of Employers.
(1) Every employer shall send 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 the basic wage, retaining allowance, if any, and dearness allowance including the cash value of any food concession paid to each of such employees;
Provided that if there is no employee who is entitled to become a member of the Employees' Pension Fund, the employer shall send a "Nil" return.
(2) 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.
Provided that if there is no employee leaving service of the employer during the preceding month the employer shall send a "NIL" return.
(3) Every employer shall maintain such accounts in relation to the amounts contributed by him to the Employees' Pension Fund as the Central Board may, from time to time, direct and it shall be the duty of every employer to assist the Central Board in making such payments from the Employees' Pension Fund to his employees as are sanctioned by or under the authority of the Central Board.
(4) Notwithstanding anything contained in this paragraph, the Central Board may issue such directions to the employers generally, s it may consider necessary or expedient, for the purpose of implementing the Scheme, and it shall be the duty of every employer to carry out such directions.
21. Employer to furnish particulars of ownership.
Every employer in relation to a factory or other establishment to which the Act applies or is applied hereafter shall furnish to the Commissioner particulars of all the branches and departments, owners, occupiers, directors, partners, managers or any other person or persons who have the ultimate control over the affairs of such factory or establishment and also send intimation of any change in such particulars, within fifteen days of such change, to the Commissioner by registered post.
22. 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 respect of whom contributions to the Employees' Pension Fund are payable and shall also furnish to him such information as the principal employer is required to furnish under the provisions of this Scheme to the Commissioner.
23. Allotment of Account 1[Numbers]
(1) For purposes of this Scheme, where the member has already been allotted or is allotted hereafter an account number under the Employees' Provident Fund Scheme, 1952, he shall retain the same account number.
(2) In the case of employees of the establishments exempted from the Employees' Provident Fund Scheme, 1952, under Section 17 of the Act, who are members of the Employees' Family Pension Fund the account number already allotted shall be retained by them.
(3) In the case of employees of the establishments exempted from the Employees' Provident Fund Scheme, 1952, under Section 17 of the Act, who are not members of the Employees' Family Pension Fund but opt to become members of the Employees' Pension Fund and in case of new employees of such establishments, fresh account numbers shall be allotted by the Commissioner.
24. Declaration by persons taking up employment after the Fund has been established
The employer shall before taking any person into employment, ask him, her to state in writing whether or not he is a member of the Employees' Pension Fund and, if he/she is, also ask him/her to furnish a copy of the Scheme Certificate issued by the Commissioner to him/her in respect of the past employment in terms of paragraph 12 as the case may be. If the person concerned was not in employment previously or had availed of return of contribution in respect of his/her previous employment, he/she shall, on demand by the employer, furnish to him, for communication to the Commissioner particulars concerning him/herself and his/her family in the Form prescribed by the Central Provident Fund Commissioner.
1. Subs. by G.S.R 134, dated the 28th February, 1996 (w.e.f 16th March, 1996)
25. Employees' Pension Fund Account
The account called the "Employees' Pension Fund Account" shall be opened by the Commissioner in such manner as may be specified by the Central Board with the approval of Central Government.
26. Investment of the Employees' Pension Fund
(1) All moneys accruing to Employees' Pension Fund Account except the contributions of the Central Government shall be invested in accordance with the provisions of paragraph 52 of the Employees' Provident Funds Scheme, 1952.
(2) Net assets of the Family Pension Fund as on the 16.11.95 shall merge in the Pension Fund and remain invested in the Public Account of the Government of India. The future Central Government's contribution accruing to the Pension fund from 17th November, 1995 onwards shall also be invested in the Public Account of the Government of India.
27. Disposal of the Fund
(1) Subject to the provisions of the Act and this Scheme, the Fund shall not, except with the prior sanction of the Central Government be expended for any purpose other than the payments envisaged in this Scheme, for continued payment of Family Pension, life assurance benefit and retirement-cum-withdrawal benefits sanctioned under the Employees' Family Pension Scheme, 1971, prior to the date of introduction of this Scheme or which may be sanctioned under that Scheme after the 16th November, 1995 in respect of cases arising before that date.
(2) Not exceeding 16% of the administrative expenses shall be met from and out of the Employees' Pension Fund. The remaining administrative expenses shall be met from the Administration Accounts set up under the Employees' Provident Funds Scheme, 1952. The cost of remittance of Pension shall be charged on the Pension Fund.
28. Administration Account
A separate account shall be kept, called the "Employees' Pension Administration Account" for recording of all the administrative expenses of the Employees' Pension Fund.
29. Forms of Accounts
The accounts of the Employees' Pension Fund, as also the Employees' Pension Administration Account shall be maintained by the Commissioner in such form and in such manner as may be specified by the Central Board with the approval of the Central Government.
30. Audit
The accounts of the Employees' Pension Fund including the administrative expenses incurred in running this Scheme shall be audited in accordance with the instructions issued by the Central Government in consultation with Comptroller and Auditor-General of India.
31. Rounding up of the Benefits
All items of benefits shall be calculated to the nearest rupee, 50 paise or more to be counted as the next higher rupee and fraction of a rupee less than 50 paise shall be ignored.
32. Valuation of the Employees' Pension Fund and review of the rates of contributions and quantum of the pension and other benefits
1[(1) The Central Government shall have an annual valuation of the Employees' Pension Fund made by a Valuer appointed by it.]
(2) At any time, when the Employees' Pension Fund so permits the Central Government may alter the rate of contributions payable under this Scheme or the scale of any benefit admissible under this Scheme or the period for which such benefit may be given.
33. Disbursement of Pension and other benefits.
The Commissioner shall with the approval of the Central Board enter into arrangement for the disbursement of pension and other benefits under this Scheme with disbursing agencies like Post Offices or Nationalised Banks or Treasuries. The commission payable to the disbursing agencies and other charges incidental thereto shall be met as provided in paragraph 27 of this Scheme.
1. Subs. by G.S.R. 134, dated the 28th February, 1996 (w.e.f 16th March 1996)
34. Registers, Records, etc.
The Commissioner shall, with the approval of the Central Board, prescribe the registers and records to be maintained in respect of the employees, the form or design of any identity card, token or disc for the purpose of identifying any employee or his nominee or a member of a family entitled to receive the pension and such other forms/formalities as have to be completed in connection with the grant of pension and other benefits or for the continuance thereof subject to such periodical verification as may be considered necessary.
35. Power to issue directions.
The Central Government may issue, such directions as may be deemed just and proper by it for resolving any difficulty in the disbursement of pension and other benefits or for resolving any difficulty in implementation of this Scheme.
36. Regional Committee.
The Regional Committee set up under paragraph 4 of the Employees' Provident Fund Scheme, 1952, shall advise the Central Board, on such matters, in relation to the administration of this Scheme as the Central Board may refer to it from time to time and in particular, on - -
(a) progress of recovery of contributions under this Scheme both from factories and establishment exempted under Section 17 of the Act and other factories and establishments covered under the Act.
(b) expeditious disposal of prosecutions.
(c) Speedy settlement of claims relating to pension and other benefits under this Scheme.
37. Annual Report.
The Central Board shall cause to be included in the Annual Report on the working of the Scheme prepared under paragraph 74 of the Employees' Provident Fund Scheme, 1952, a report on the working of this Scheme during the previous financial year.
38. Application of the provisions of the Employees' Provident Fund Scheme, 1952.
In regard to matters for which either there is no provision or there is inadequate provisions in this Scheme the corresponding provisions in the Employees' Provident Fund Scheme, 1952, shall apply.
39. Exemption from the operation of the Pension Scheme.
The appropriate Government may grant exemption to any establishment or class of establishments from the operation of this Scheme, if the employees of the establishments are either members of any other pension scheme or proposed to be members of a pension scheme wherein the pensionary benefits are at par or more favourable than the benefits provided under this Scheme. Where exemption is granted to any establishment or class of establishments under this paragraph, withdrawal benefits available to the credit of the employees of such establishment(s) under the ceased Family Pension Scheme, 1971, shall be paid, subject to the consent of the employees, to the pension fund of the establishment(s) so exempted. 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, pending disposal of application for exemption under this paragraph employers' share of the contribution shall not be remitted to the pension fund as envisaged in sub-paragraph (1) of paragraph 3. An application for exemption presented under this paragraph shall be disposed of within a period of six months from the date of its receipt or such further time as may be extended for reasons to be recorded in writing. If the application for exemption is not disposed of within the period so specified, the exemption applied for shall be deemed to have been granted.
Explanation. - - For the purpose of this paragraph, the period of six months will count from the date on which the application for exemption is given in compete form to the satisfaction of the Regional Provident Fund Commissioner.]
1. Subs. by G.S.R. 134, dated the 28th February, 1996 (w.e.f 16th March 1996)
40. Information to the Central Government.
The Central Board shall furnish such information to the Central Government from time to time in respect of the income and expenditure from the Employees' Pension fund account in such manner as may be directed by the Central Government.
41. Interpretation.
Where any doubt arises with regard to the interpretation of the provisions of this Scheme, it shall be referred to the Central Government who shall decided the same.
42. Punishment for failure to submit return, etc.
If any person,
(a) deducts or attempts to deduct from the wages or other remuneration of the member, the whole or any part of the employer's contribution, or
(b) fails or refuses to submit any return, statement or other documents required by this Scheme or submits a false returns, statement or other documents, or makes a false declaration, or
(c) obstructs any Inspector or other official appointed under the Act or this Scheme in the discharge of his duties or fails to produce any record for inspection by such inspector or other officials, or
(d) is guilty of contravention of or non-compliance with any other requirement of this Scheme, he shall be punishable with imprisonment which may extend to one year or with fine which may extend to five thousand rupees or with both.
43. Payment of pension in the case of a person charged with the offence of murder
(1) If a person, who in the event of the death of a member of the Pension Fund is eligible to receive pension of the deceased under paragraph 12 or paragraph 16, is charged with the offence of murdering the member or for abetting the commission of such an offence, his claims to receive pension shall remain suspended till the conclusion of the criminal proceedings instituted against him for such offence.
(2) If on the conclusion of the criminal proceedings referred to in sub-paragraph (1), the person concerned is:
(a) convicted for the murder or abetting in the murder of the member, he shall be debarred from receiving pension which shall be payable to other eligible members if any, of the family of the member; or
(b) acquitted of the charge of murder or abetting the murder of the member, pension benefit shall be payable to him.
44. Repeal and savings.
(1) On commencement of this Scheme, the Employees' Family Pension Scheme, 1971, in force immediately before such commencement shall cease to operate with effect from the 16th November, 1995.
(2) Notwithstanding anything contained in sub-paragraph (1) every nomination made under the Employees' Family Pension Scheme, 1971, and every form regarding the details of Family of an employee for the purposes of the Employees' Family Pension Scheme, 1971, shall be deemed to have been made under the provisions of this Scheme.
(3) All orders/authorisations/Pension Payment Orders issued under the Family Pension Scheme, 1971, shall be deemed to have been made under this Scheme.
TABLE A
(See Paragraph 14)
(WITHDRAWAL BENEFIT)
No. of full years' Proportion of pay payable
Contribution paid at cessation of membership
(1) (2)
1 0.20
2 0.41
3 0.62
4 0.84
5 1.06
6 1.29
7 1.51
8 1.75
9 1.98
10 2.23
11 2.47
12 2.72
13 2.98
14 3.24
15 3.51
16 3.78
17 4.05
18 4.34
19 4.62
20 4.92
21 5.21
22 5.52
23 5.83
24 6.14
25 6.46
26 6.79
27 7.12
28 7.46
29 7.81
30 8.16
31 8.52
32 8.89
33 9.26
34 9.64
35 10.03
36 10.43
37 10.83
38 11.24
39 11.66
40 12.08
TABLE B
1[(See Paragraphs 12 and 14)]
FACTOR FOR COMPUTATION OF PAST SERVICE
BENEFIT 1[UNDER THE CEASED] FAMILY PENSION
SCHEME FOR EXISTING MEMEBRES ON EXIT FROM
THE EMPLOYMENT
(1) (2)
1[YEARS] FACTOR
Less than 1 1.049
Less than 2 1.154
Less than 3 1.269
Less than 4 1.396
Less than 5 1.536
Less than 6 1.689
Less than 7 1.858
Less than 8 2.044
Less than 9 2.248
Less than 10 2.473
Less than 11 2.720
Less than 12 2.992
Less than 13 3.292
Less than 14 3.621
Less than 15 3.983
Less than 16 4.381
Less than 17 4.819
Less than 18 5.301
Less than 19 5.810
Less than 20 6.414
Less than 21 7.056
Less than 22 7.761
Less than 23 8.537
Less than 24 9.390
1. Subs. by G.S.R. 134, dated the 28th February, 1996 (w.e.f 16th March, 1996).
TABLE C
(See Paragraph 16)
EQUIVALENT WIDOW PENSION
Salary at day of Equivalent widow pension
death not more
than
(1) (2)
(Rupees) (Rupees)
Upto 300 250
350 327
400 343
450 359
500 375
550 391
600 408
650 425
700 442
750 459
800 476
850 493
900 510
950 527
1000 544
1050 561
1100 578
1150 595
1200 612
1250 629
1300 646
1350 664
1400 682
1450 700
1500 718
1550 736
1600 754
1650 772
1700 797
1750 808
1800 826
Contd../-
Salary at day of Equivalent widow pension
death not more Rs.
than Rs.
1850 844
1900 862
1950 880
2000 898
2050 916
2100 935
2150 954
2200 973
2250 992
2300 1011
2350 1030
2400 1049
2450 1068
2500 1087
2550 1106
2600 1125
2650 1144
2700 1163
2750 1182
2800 1201
2850 1221
2900 1241
2950 1261
3000 1281
3050 1301
3100 1321
3150 1341
3200 1361
3250 1381
3300 1401
3350 1421
3400 1441
3450 1461
3500 1481
Note: In the case of employees drawing wages above Rs. 3500 p.m. the widow pension shall be increased by Rs. 20 p.m for every increase in wages of Rs. 50 or part thereof subject to the maximum of Rs. 1750/-
TABLE D
(Return of contribution on exit from the employment)
(See Paragraph 14)
Year of Service Proportion of wages at exit
1 1.02
2 2.05
3 3.10
4 4.18
5 5.28
6 6.40
7 7.54
8 8.70
9 9.88
Subba Raju.N
From India, Hyderabad
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