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?
SDP
From India, Kolhapur
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32SDP
From India, Kolhapur
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Dear S.D. Patil,
If her son is the only legal heir, he is entitled to receive 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.
Abbas.P.S
From India, Bangalore
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If her son is the only legal heir, he is entitled to receive 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.
Abbas.P.S
From India, Bangalore
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Dear Mr. Patil,
I do not agree with the views of Mr. Abbas. Please note, as per the EPF Act:
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 gets a pension after reaching the age of 50 or 58 years.
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.
From India, Delhi
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I do not agree with the views of Mr. Abbas. Please note, as per the EPF Act:
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 gets a pension after reaching the age of 50 or 58 years.
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.
From India, Delhi
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Dear Bhuvan C Arya,
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 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.
Abbas.P.S
From India, Bangalore
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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 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.
Abbas.P.S
From India, Bangalore
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Dear Abbas Sir,
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" 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).
And,
(3) 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.
From India, Delhi
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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" 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).
And,
(3) 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.
From India, Delhi
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Dear Bhuwan C Arya,
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.
Abbas.P.S
From India, Bangalore
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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.
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,
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) / 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 will be "Spouse," then he/she will get a pension as per "Widow / Widower Pension." Whereas, if the Nominee will be "Child," then he/she will get a pension as per "Children Pension."
Learned members are requested to please correct me if there is anything wrong.
From India, Delhi
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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) / 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 will be "Spouse," then he/she will get a pension as per "Widow / Widower Pension." Whereas, if the Nominee will be "Child," then he/she will get a pension as per "Children Pension."
Learned members are requested to please correct me if there is anything wrong.
From India, Delhi
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Dear Bhuvan C Arya and B Pugazhendhi,
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.
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..."
Abbas.P.S
From India, Bangalore
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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.
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..."
Abbas.P.S
From India, Bangalore
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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 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 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 pension, he will be eligible for 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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If the husband is alive and eligible for pension, he will be eligible for 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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PF guidleines for Pension fund.pdf