1. INTRODUCTION
Employees' Pension Scheme has been made applicable on 16.11.1995 retrospectively with effect from
1.4.1993. This new scheme replaces the erstwhile Family Pension Scheme 1971.
2. MEMBERSHIP
Every member of the Employees' Provident Fund Scheme 1952 and opted for Family Pension Scheme 1971.
All new entrants to the Employees' Provident Fund Scheme 1952 will become members of the Employees'
Pension Scheme 1995 on compulsory basis.
Every employee who has ceased to be a member of the Employees' Family Pension Scheme 1971 during
1.4.1993 and 15.1I.1995 was given option to become member of the Employees' Pension Scheme 1995 upto
31.3.1998.
Every existing member of the Employees' Provident Fund Scheme 1952 not being member of Employees'
Family Pension Scheme 1971 has option to become member of Employees' Pension Scheme 1995.
3. OPTION REQUIREMENT
Members'who have died during 1.4.1993 and 15.11.1995, shall be deemed to have exercised option of joining
Employees' Pension Scheme 1995 with effect from the date of death.
Members who are alive may exercise option to become members of the Employees' Pension Scheme 1995 on
the date of exit from the employment by depositing amount alongwith interest at the rate of 8.5 per cent per
annum from the date of such withdrawal.
Members will have option to join Employees' Pension Scheme 1995 by depositing the contribution along with up
to date interest under ceased Employees' Family Pension Scheme 1971 with effect from 1.3.1971.
4. CONTRIBUTION
Employee is not required to contribute separately under the Employees' Pension Scheme 1995. Employer share
of Provident Fund contribution at the rate of 8.33 % is diverted to Pension Fund every month.
5. SERVICE FOR PENSION
Actual service rendered after 16.11.1995 together with the service for which the contribution has been made
under the ceased Family Pension Scheme 1971, if any, will be treated as service for pension.
A member is entitled for pension after completing the age of 58 years with minimum service of 10 years.
Six months or more shall be treated as one year and the service less than six months shall be ignored.
6. PENSIONABLE SALARY
Average monthly pay drawn in any manner including on piece rate basis during the contribution period of
service in the span of twelve months preceding the date of exit from the membership of the Employees' Pension
Fund.
Maximum pensionable salary shall be limited to five thousand rupees per month.
7. BENEFITS
- Monthly Members' Pension
- A member retiring at the, age of superannuation i.e. 58 years and has rendered eligible minimum service of 10
years shall be entitled for retirement pension. The pension 'entitlement shall be worked out on the following
formula:
- Member's Monthly pension : Pensionable salary X Pensionable Service
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- PENSION SCHEME CERTIFICATE
Document showing pensionable service and the amount of pension On the date of exit from employment is
issued to the member who has not attained the age of superannuation. Service mentioned in the certificate shall
be counted for determination of pension along with fresh service rendered by way of subsequent employment, if
any, with the establishment covered under the Employees' Pension Scheme 1995.
- INVALIDITY PENSION
The member is entitled for disablement pension in case of permanent and total disablement during the course
of employment. Such member shall be entitled for pension as pel" normal rule subject to a minimum of two
hundred fifty rupees per month. Member with contribution for even one month is entitled for benefit under this
category. The member shall be required to produce invalidity I disability certificate issued by the medical Board
set up under Employees' State Insurance Scheme.
- WIDOW PENSION
Widow of the member shall be entitled for pension from the date following the date of death of member whether
the death has occurred while in service or after exit from employment or after retirement/ commencement of
pension. The pension of widow will be equal to member's pension entitlement in case of death prior to
retirement subject to a minimum of two hundred fifty rupees per month. The pension to widow shall be equal to
half of member's pension subject to a minimum of two hundred fifty rupees per month where death occurs after
retirement /commencement of pension. Pension under this category shall be payable for life or remarriage,
whichever is earlier.
"For purpose of this benefit, 'widow' incorporates 'widower' also, wherever applicable."
- CHILDREN PENSION
Two children of the deceased member shall be entitled to children pension upto age of twenty five years in
addition to pension to widow. The amount of pension for each child shall be equal to twenty five percent of the
amount admissible to the widow subject to a minimum of one hundred fifteen rupees per month.
- ORPHAN PENSION
Orphan children shall be entitled to monthly orphan pension equal to seventy five percent of the amount of
widow pension subject to a minimum of one hundred seventy rupees per month per child, where the member is
survived by children only. Pension under this category shall be payable to a maximum of two orphan children
upto age of 25 years.
- NOMINEE PENSION
Members can nominate a person to receive benefits under the Employees' Pension Scheme 1995 where a
member is unmarried or does not have any family. Such nominee shall be paid pension equal to widow pension
in case of death of member.
8. COMMUTATION OF PENSION
Commutation of pension is available from 16th November, 1998. Members drawing . pension on superannuation
under Employees' Pension Scheme 1995 can opt for Comp1utation up to a maximum of 1/3rd of pension.
Hundred times the amount of pension so commuted will be paid. Balance of the pension after commutation will
be paid or monthly basis thereafter.
9. RETURN OF CAPITAL
Members entitled for monthly' pension have a choice to opt for reduced pension and can avail, "Return of
capital" in addition to the commutation of pension already availed. The scheme provides three alternatives under
this category.
Every employer shall send to the Commissioner within fifteen days of the close of each month a return in
respect of the employees leaving service of the employer during the preceding month, and the new employees
joining the service during the said period.
If there is no employee leaving/joining service of the employer during the preceding month the employer need
send a 'NIL' return.
Every employer shall maintain such accounts in relation to the amounts contributed by him to the Employees'
Pension Fund as the Central Board of Trustees, Employees' Provident Fund may, from time to time, direct and it
shall be the duty of every employer to assist the Central Board of Trustees Employees Provident Fund in making
such payments from the Employees' Pension Fund to his employees as are sanctioned by or under the authority
of the Central Board.
Central Board of Trustees Employees Provident Fund may issue such directions to the employers generally, as
it may consider necessary or expedient, for the purpose of implementing the Scheme, and it shall be the duty of
every employer to comply with such directions.