One of my colleagues, whose mother passed away in January 2012, has worked in an organization where the PF Act of 1952 is applicable for more than 10 years. She has only her son as a legal heir. At the time of her death, her son had just turned 25 years old. When he claimed pension fund withdrawal through Form 10C, the form was rejected, stating that the member (his mother) had worked for more than 10 years, hence was not eligible for withdrawal benefits. The monthly pension is not payable since her son has turned 25. Now, what are the options available for accessing the pension fund?
Regards,
SDP
From India, Kolhapur
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30Regards,
SDP
From India, Kolhapur
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If her son is the only legal heir, he is entitled to receive a lifelong pension (even after attaining 25 years of age) equal to the widow/widower pension. If her pensionable salary is Rs. 6,500, the minimum pension will be Rs. 2,051.
Regards,
Abbas.P.S
From India, Bangalore
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Regards,
Abbas.P.S
From India, Bangalore
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I do not agree with the views of Mr. Abbas. Please note, as per the EPF Act:
Eligibility for EPF Pension Scheme
If a member completes 10 years of membership under the EPF Act, then he/she is eligible for the EPF Pension Scheme. Under this scheme, the member receives a pension after reaching the age of 50 or 58 years.
Family Members' Eligibility
Additionally, family members are also eligible for the pension. This includes sons (below the age of 25) and daughters (unmarried).
In conclusion, based on the above case, your friend is not eligible to receive a pension under the EPF Act, and there is no other way to withdraw the Pension Fund.
Regards
From India, Delhi
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Eligibility for EPF Pension Scheme
If a member completes 10 years of membership under the EPF Act, then he/she is eligible for the EPF Pension Scheme. Under this scheme, the member receives a pension after reaching the age of 50 or 58 years.
Family Members' Eligibility
Additionally, family members are also eligible for the pension. This includes sons (below the age of 25) and daughters (unmarried).
In conclusion, based on the above case, your friend is not eligible to receive a pension under the EPF Act, and there is no other way to withdraw the Pension Fund.
Regards
From India, Delhi
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For those who die as a member of EPF before attaining the age of 58 years, there is no question of completion of 50/58 years of age. As the member has already completed 10 years of service, the nominee is entitled to receive a lifelong pension. I believe the son is the only legal heir of the deceased member, as she may have nominated her son. In such cases, the age restriction of 25 years is not applicable. Additionally, in EPS, this age factor applies equally to both sons and daughters. Therefore, if the daughter is entitled to receive a pension even after her marriage, it should be on par with the male children.
If the member has already completed 58 years of age, arrears of pension (from the date of completion of 58 years until the date of death) should be given to the legal heir.
Regards,
Abbas.P.S
From India, Bangalore
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If the member has already completed 58 years of age, arrears of pension (from the date of completion of 58 years until the date of death) should be given to the legal heir.
Regards,
Abbas.P.S
From India, Bangalore
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As per the explanation given in THE EMPLOYEES' PENSION SCHEME, 1995 (Updated as on 01.10.2008):
(vii) "Family" means:
- (i) wife in the case of a 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 daughters of a member of the Employees' Pension Fund. The word "unmarried" was omitted, ibid (w.e.f. 16th March 1996).
Explanation: The expression "sons" and "daughters" shall include children legally adopted by the member. Subs. Ibid., for "adopted by the member legally before death in service" (w.e.f. 16th March 1996).
Monthly Children Pension:
(a) If there are any surviving children of the deceased member, falling within the 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 percent of the amount admissible to the widow/widower of the deceased member as a monthly widow pension payable under sub-paragraph (2)(a)(i), provided that the minimum monthly children pension for each child of the deceased member shall not be less than Rs. 150 per month. Subs. by G.S.R dated 12th January 2000.
(c) Monthly children pension shall be payable until the child attains the age of 25 years. Subs. by G.S.R. 134, dated the 28th February 1996 (w.e.f. 16th March 1996).
(d) The monthly children pension shall be admissible to a maximum of two children at a time and will run from the oldest to the youngest child in that order.
Hope this will clear your doubt and will help you in the future.
Regards,
From India, Delhi
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(vii) "Family" means:
- (i) wife in the case of a 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 daughters of a member of the Employees' Pension Fund. The word "unmarried" was omitted, ibid (w.e.f. 16th March 1996).
Explanation: The expression "sons" and "daughters" shall include children legally adopted by the member. Subs. Ibid., for "adopted by the member legally before death in service" (w.e.f. 16th March 1996).
Monthly Children Pension:
(a) If there are any surviving children of the deceased member, falling within the 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 percent of the amount admissible to the widow/widower of the deceased member as a monthly widow pension payable under sub-paragraph (2)(a)(i), provided that the minimum monthly children pension for each child of the deceased member shall not be less than Rs. 150 per month. Subs. by G.S.R dated 12th January 2000.
(c) Monthly children pension shall be payable until the child attains the age of 25 years. Subs. by G.S.R. 134, dated the 28th February 1996 (w.e.f. 16th March 1996).
(d) The monthly children pension shall be admissible to a maximum of two children at a time and will run from the oldest to the youngest child in that order.
Hope this will clear your doubt and will help you in the future.
Regards,
From India, Delhi
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Your posting is regarding family, but my posting is regarding the nominee. The nominee is entitled to receive a pension regardless of age. Age is applicable to child pension, but not to nominee pension.
Regards,
Abbas.P.S
From India, Bangalore
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Regards,
Abbas.P.S
From India, Bangalore
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Mr. Bhuwan C Arya has quoted the Act and made the point. If there is any supporting provision in the Act for the other stand taken by Mr. Abbas PS, he should substantiate it by citing the relevant provisions in the Act for agreeing with him.
From India, Madras
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From India, Madras
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Dear Abbas Sir,
Types of Pensions
As per my knowledge, there are only three types of pensions:
1. Member Pension: Member pension is given to the EPF member who has completed 10 years of service, after attaining the age of 50 (for reduced pension) or 58 (for full pension).
2. Widow/Widower Pension: Widow/Widower pension is paid to the spouse of the member as per the Act, in case of his/her death.
3. Children Pension: Children pension is paid to the two elder children of the deceased member as per the Act, in equal ratio.
If the nominee is the "Spouse," then he/she will receive a pension as per the "Widow/Widower Pension." Whereas, if the nominee is a "Child," then he/she will receive a pension as per the "Children Pension."
Learned members are requested to please correct me if there is anything wrong.
From India, Delhi
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Types of Pensions
As per my knowledge, there are only three types of pensions:
1. Member Pension: Member pension is given to the EPF member who has completed 10 years of service, after attaining the age of 50 (for reduced pension) or 58 (for full pension).
2. Widow/Widower Pension: Widow/Widower pension is paid to the spouse of the member as per the Act, in case of his/her death.
3. Children Pension: Children pension is paid to the two elder children of the deceased member as per the Act, in equal ratio.
If the nominee is the "Spouse," then he/she will receive a pension as per the "Widow/Widower Pension." Whereas, if the nominee is a "Child," then he/she will receive a pension as per the "Children Pension."
Learned members are requested to please correct me if there is anything wrong.
From India, Delhi
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Mr. Bhuvan C Arya has cited the provisions of family. I fully agree with him in this regard. However, the question here is different. If there is no eligible member within the family to receive a pension, what will happen? EPS-95 is not a benefit awarded by the Government or any other bodies. It is the returns on the investment made by the member. Therefore, it should not be denied to the member, and somebody has to receive it on behalf.
Provision for Nomination in EPS-95
For the same, there is a provision in the scheme. Kindly go through provision 16 (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... In the event of death of the member, such a nominee shall be entitled to receive a monthly pension equal to widow's pension..."
Regards,
Abbas.P.S
From India, Bangalore
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Provision for Nomination in EPS-95
For the same, there is a provision in the scheme. Kindly go through provision 16 (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... In the event of death of the member, such a nominee shall be entitled to receive a monthly pension equal to widow's pension..."
Regards,
Abbas.P.S
From India, Bangalore
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Eligibility for Family Pension Under the Employees' Pension Scheme, 1995
The provisions of Para 16(5)(a) of the Employees' Pension Scheme, 1995 are applicable only in cases where the subscriber is not married, or the spouse is not alive at the time of the subscriber's death, and/or there are no living eligible children below 25 years old. In the case under consideration, as explained in Post #1, the subscriber was married. Her spouse's status is not given. The child is above 25 years old. Therefore, none is eligible for a family pension. Nomination is not valid in such cases. Nomination is valid only where the subscriber is not married.
If the husband is alive and eligible for a pension, he will be eligible for a family pension.
A question may arise as to whether it would be proper for the benefits not to be given to anybody and kept within the fund itself. The answer is that the Employees' Pension Scheme itself is a scheme based on cross-subsidy. Therefore, there cannot be any straight-line relationship between the subscription made by the subscriber and the benefits he/she gets or does not get!
From India, Madras
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The provisions of Para 16(5)(a) of the Employees' Pension Scheme, 1995 are applicable only in cases where the subscriber is not married, or the spouse is not alive at the time of the subscriber's death, and/or there are no living eligible children below 25 years old. In the case under consideration, as explained in Post #1, the subscriber was married. Her spouse's status is not given. The child is above 25 years old. Therefore, none is eligible for a family pension. Nomination is not valid in such cases. Nomination is valid only where the subscriber is not married.
If the husband is alive and eligible for a pension, he will be eligible for a family pension.
A question may arise as to whether it would be proper for the benefits not to be given to anybody and kept within the fund itself. The answer is that the Employees' Pension Scheme itself is a scheme based on cross-subsidy. Therefore, there cannot be any straight-line relationship between the subscription made by the subscriber and the benefits he/she gets or does not get!
From India, Madras
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Mr. S.D. Patil has raised two things: 1) As the member has completed 10 years of service, the application for withdrawal benefit is rejected. 2) At the same time, child pension is not eligible as the only son has already attained 25 years. "Now, what options are available for getting the pension fund?" This was the query. Accordingly, I replied with the provisions of the Act and practices being done by the EPFO.
EPS-95 Provisions
The EPS-95 came into force w.e.f. 16.11.1995 (more than 18 years ago). If we are not fully aware of the provisions and practices, kindly inquire with the Office of the Regional PF Commissioner.
Here B. Pugazhenthi has quoted, "The provisions of Para 16(5)(a) of the Employees Pension Scheme, 1995, are applicable only in those cases where the subscriber is not married or the spouse is not alive at the time of the subscriber's death and/or there are no living eligible (below 25 years old) children." Consider this quotation for a moment. Nomination to receive a pension is valid under the following context:
1) If the subscriber is not married.
2) If the spouse is not alive and the age of children is not below 25.
Mr. S.D. Patil has clearly stated that the member has only one legal heir, a son over 25 years old. Therefore, the second clause is fulfilled, and the nomination is valid. Hence the following statement, "Therefore, none are eligible for family pension. Nomination is not valid in such cases. Nomination is valid only where the subscriber is not married.
The husband, if alive and eligible for a pension, will be eligible for a family pension." is against the above-cited quotation.
"The Employees Pension Scheme itself is a scheme based on cross-subsidy. Therefore, there cannot be any straight-line relationship between the subscription made by the subscriber and the benefits he/she receives or does not receive!" I think Pugazhenthi may be kind enough to explain.
Regards,
Abbas. P.S
From India, Bangalore
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EPS-95 Provisions
The EPS-95 came into force w.e.f. 16.11.1995 (more than 18 years ago). If we are not fully aware of the provisions and practices, kindly inquire with the Office of the Regional PF Commissioner.
Here B. Pugazhenthi has quoted, "The provisions of Para 16(5)(a) of the Employees Pension Scheme, 1995, are applicable only in those cases where the subscriber is not married or the spouse is not alive at the time of the subscriber's death and/or there are no living eligible (below 25 years old) children." Consider this quotation for a moment. Nomination to receive a pension is valid under the following context:
1) If the subscriber is not married.
2) If the spouse is not alive and the age of children is not below 25.
Mr. S.D. Patil has clearly stated that the member has only one legal heir, a son over 25 years old. Therefore, the second clause is fulfilled, and the nomination is valid. Hence the following statement, "Therefore, none are eligible for family pension. Nomination is not valid in such cases. Nomination is valid only where the subscriber is not married.
The husband, if alive and eligible for a pension, will be eligible for a family pension." is against the above-cited quotation.
"The Employees Pension Scheme itself is a scheme based on cross-subsidy. Therefore, there cannot be any straight-line relationship between the subscription made by the subscriber and the benefits he/she receives or does not receive!" I think Pugazhenthi may be kind enough to explain.
Regards,
Abbas. P.S
From India, Bangalore
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I am closely watching the discussions between Mr. Abbas, Mr. BC Arya, and B. Pugazhenti in response to a query posted by Mr. S.D. Patil. As Mr. Abbas has always done, this time also he guided by quoting a clause of EPS-95 which was generally not known to all. I have experienced several times that Mr. Abbas was helpful in solving these types of complicated issues. Of course, he is a master of the scheme. That is why the Moderators of citeHR, Mr. Madhu TK, have requested Abbas to extend guidance (for example, citeHR/319927).
Countering Mr. Abbas, Mr. BC Arya made some false statements: 1) Completion of 50/58 years is a must to get a pension, responding to this death case. 2) A daughter is eligible for a pension until her marriage only. 3) Other than member pension, widow/widower pension, and child pension, there is no other pension. Now, Pugazhenthi is admitting that other than the above pensions, there is a nominee pension. But this will be eligible only if the member is not married, which is contradictory to the clause that Pugazhenthi quoted.
My opinion is that Mr. Abbas is providing very good help to the citeHR community. If our colleagues are not thorough with the various provisions of the scheme, kindly keep mum instead of raising these types of arguments.
Regards,
Asok Kumar R.
Asst. Commercial Officer,
ITI Ltd,
PALAKKAD - 678 623.
From India, Bangalore
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Countering Mr. Abbas, Mr. BC Arya made some false statements: 1) Completion of 50/58 years is a must to get a pension, responding to this death case. 2) A daughter is eligible for a pension until her marriage only. 3) Other than member pension, widow/widower pension, and child pension, there is no other pension. Now, Pugazhenthi is admitting that other than the above pensions, there is a nominee pension. But this will be eligible only if the member is not married, which is contradictory to the clause that Pugazhenthi quoted.
My opinion is that Mr. Abbas is providing very good help to the citeHR community. If our colleagues are not thorough with the various provisions of the scheme, kindly keep mum instead of raising these types of arguments.
Regards,
Asok Kumar R.
Asst. Commercial Officer,
ITI Ltd,
PALAKKAD - 678 623.
From India, Bangalore
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But, I would like to add one more thing. Asok Kumar Sir took the meaning of my words wrongly and stated that I have made false statements. Whereas, as per this discussion, I provided the correct input based on my knowledge. In this:
1. Eligibility for EPF Pension Scheme
If a member completes 10 years of membership under the EPF Act, then in this case, he/she is eligible for the EPF Pension Scheme. Under this scheme, the member receives a pension after reaching the age of 50/58 years; here, I was referring to "Member Pension," not Family or Children Pension.
2. Family Members' Eligibility
Family members are also eligible for the pension, where a son (should be below the age of 25) and a daughter (should be unmarried). Here, I made a mistake because I was not aware that the word "unmarried" was omitted in the amendment.
3. Other Pension Types
Other than member pension, widow/widower pension, and child pension, there are no other pensions. Here, I also made a mistake because I was not aware of "Orphan Pension, Nominee Pension, and Dependent Parents Pension."
Although I didn’t make these mistakes knowingly, I am not a master of this, but that doesn’t mean I lack knowledge. I will take care in the future regarding the updates and amendments in the Acts and will confirm before posting them.
From India, Delhi
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1. Eligibility for EPF Pension Scheme
If a member completes 10 years of membership under the EPF Act, then in this case, he/she is eligible for the EPF Pension Scheme. Under this scheme, the member receives a pension after reaching the age of 50/58 years; here, I was referring to "Member Pension," not Family or Children Pension.
2. Family Members' Eligibility
Family members are also eligible for the pension, where a son (should be below the age of 25) and a daughter (should be unmarried). Here, I made a mistake because I was not aware that the word "unmarried" was omitted in the amendment.
3. Other Pension Types
Other than member pension, widow/widower pension, and child pension, there are no other pensions. Here, I also made a mistake because I was not aware of "Orphan Pension, Nominee Pension, and Dependent Parents Pension."
Although I didn’t make these mistakes knowingly, I am not a master of this, but that doesn’t mean I lack knowledge. I will take care in the future regarding the updates and amendments in the Acts and will confirm before posting them.
From India, Delhi
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