1995:
All the paying branches will notify in the month of October on their notice board the requirement of timely submission of the life and Non-marriage certificate for the benefit of pensioner, as non-submission of the certificate will result in discontinuance of release of pension by EPFO from January next. The Paying Branch shall collect the prescribed life certificate/non-marriage certificates from the pensioner in the month of November, once in a year. On obtaining such certificates the Designated Officer of the paying Branch shall verify each certificate and on being satisfied he will prepare a consolidated statement in respect of all pensioners and furnish it to the Link Branch, who will authenticate/certify the statement and forward it to the concerned office of the EPFO before 15th December. For certificate received after November intimation shall be given to RO/SRO/SAO concerned as and when it is received.
[Ref
: HO Lr. No. Pension-I/7(2)2000/CEPS/LC/Pt./22594 dated 17.9.2004.]24
EMPLOYEES DEPOSIT LINKED INSURANCE SCHEME, 1976 – PROVISIONS IN BRIEF – CASE STUDY
Introduction:
The Central Government with the motive of providing additional social security in the form of life insurance to the family of the deceased member of the Provident Fund, introduced the Employees Deposit Linked Insurance Scheme with effect from 1.8.1976 as provided for under Section 6(C) of the EPF & MP Act, 1952. The benefit under the Scheme is so devised that it acts as an incentive to the members to save more in their Provident Fund Account. As the name of the Scheme says, the benefit is linked to the amount of accumulation in the Provident Fund Account of the member.
Applicability:
The Scheme applies to all the establishments to which the EPF & MP Act applies.
Membership:
All the members of the EPF Scheme (both exempted & unexempted) are covered as members of the EDLI Scheme also.
Contribution:
Under this Scheme, the members do not contribute any amount. However, the employer pays an amount equal to 0.5% of the total wages paid to the members as contribution.
Administrative Charges:
As regards Administrative charges, the employer is required to pay an amount equal to 0.01% of the wages subject to a minimum of Rs.2/- per month.
Exemption: (Section 17(2A) of the Act and Para 28 of the EDLI Scheme, 1976): The provisions are available as per Section 17 (2A) of the Act and Para 28(1) and 28(4) of the EDLI Scheme, 1976, for grant of exemption to an establishment or to an employee or to a class of employees as the case maybe, from the operation of all or any of the provisions of the Scheme if without payment of any separate contribution/premium the employees are entitled to the life assurance benefit of the Scheme in the establishment which are more beneficial than the benefits provided under the statutory scheme.
Inspection Charges:
An employer of an establishment exempted from the provisions of the EDLI Scheme is required to pay inspection charges at the rate of 0.005% subject to a minimum of Re.1/- per month.
Assurance Benefit:
The benefit provided under the EDLI Scheme is called Assurance Benefit. On the death of the member while in service, the nominee or any other person
entitled to receive the Provident Fund benefits will, in addition to the Provident Fund, receive the Assurance Benefit under EDLI Scheme.
Scale of Assurance Benefit:
From 24.6.2000 onwards the amount of Assurance Benefit payable is an amount equal to the average balance in the account of deceased member in the Fund during the preceding 12 months or during the period of his membership whichever is less, except where the average balance exceeds Rs.35,000/- the amount payable shall be Rs.35,000/- plus 25% of the amount in excess of Rs.35,000/- , subject to ceiling of Rs.60,000/-. The form prescribed for claiming the Assurance Benefit under EDLI Scheme, 1976, is Form 5(IF).
CHECK LIST FOR FORM – 5(IF)
1) Whether the Xerox copy of death certificate is attested by the authorised signatory.
2) Whether the beneficiary who prefers a claim under form 5(IF) is the same person who is entitled to receive the Provident Fund accumulations of the deceased member.
3) Whether the date and reason for leaving service given in the application tally with theForm-10 already submitted.
4) Whether the Death while in service certificate is furnished by the Employer. 5) Whether the contributions (both shares) for 12 months preceding the date of
death furnished in page 3 of the form 5(IF) tally with the figures for the respective period shown in the Form 3A already submitted/to be submitted. 6) Whether claims have been preferred under EPFS ’52, EPS 95 and EDLIS ’76
have been submitted simultaneously.
7) Whether all the general check points for preferring a claim are observed such as filling the form without any omission and overwriting, furnishing the correct address and mode of payment, the bank details etc
MODEL PROBLEM ON DETERMINING THE ASSURANCE BENEFIT PAYABLE
Date of joining: 18.10.1991 Date of death : 9.8.2001
1. OB as on 1.4.2000 is Ee : Rs.45,320/- Er : Rs.45,320/-
2. The contributions payable are as follows: (Both Shares) i. from March 2000 to May 2000 : Rs.627/- pm ii. from June 2000 to Sep2000 : Rs.674/- pm
iii. for Oct 2000 : Rs.705/-pm
iv. for Nov 2000 : Rs.736/-pm
v. from Dec 2000 to Feb 01&May 01 : Rs.783/-pm vi. from June 2001 to July 2001 : Rs.1019/- pm
vii. for August 2001 : Rs.305/-
• No wages for the months March and April 2001 • Default on the months June, July and August 2001 • Withdrawal in the month June 2001 – Rs.25,000/- • Interest : 2000-2001 - Rs.10,599/-
• Interest : 2001-2002 - Rs.3,081/-
CALCULATION OF AVERAGE BALANCE FOR EDLI PAYMENTS MODEL WORKING SHEET
SRI/SMT/KUM.________________________ P.F. A/C.No.____________
EDLI.A/C.No.___________ Member died on: - 9.8.2001
The Provident Fund Contribution on 12 months’ wages [from 1.8.2000 to 31.7.2001] are to be considered for calculation of average balance under Para 22 of EDLI Scheme 1976.
I).Closing Balance as on 31.3.2000 | Rs.90,640/- Opening Balance as on 1.04.2000 |
II).Contributions received on wages for | Rs.3,229/- March to July 2000 |
- - -
Total Rs. 93,869/-
- - -
Month (in which Contribution on the wages for Aug 2000 to July 2001 were payable (1) Opening Balance (2) Refund of Withdrawal (3) Both Share Of Contributions (4) Interest (5) Withdrawal (6) Progressive Average Balance (7) 9/2000 93,869 - 674 - - 94,543 10/2000 94,543 - 674 - - 95,217 11/2000 95,217 - 705 - - 95,922 12/2000 95,922 - 736 - - 96,658 1/2001 96,658 - 783 - - 97,441 2/2001 97,441 - 783 - - 98,224 3/2001 98,224 - 783 10,599* - 1,09,606 4/2001 1,09,606 - --@ - - 1,09,606 5/2001 1,09,606 - --@ - - 1,09,606 6/2001 1,09,606 - 783 - 25,000 85,389 7/2001 85,389 - 1019@@ - - 86,408
8/2001 86,408 - 1019@@ 3,081** - 90,508
Total - 11,69,128/-
*Interest for the period 2000-2001 @ 12 % from 4/2000 to 6/2000 & 11 % form 7/2000 to 3/2001
** Interest for the broken period (4 months) for 2001-2002 calculated on IBB @ Member has not earned any wages
@@ Establishment has not remitted the amount of dues. Anyhow, the contributions due even though not paid, has been taken into account.
Total Progressive Balance in 12 months : Rs.11,69,128/-
Average Balance : 11,69,128 / 12 = Rs.97,427/-
Assurance Benefit Payable :-Rs.35,000/- + 25 % of the amount in excess of Rs.35000/- (Subject to a Maximum of
Rs.60,000/-) = Rs.35,000/- + 25 % of Rs.62,427/- = Rs.35,000/- + Rs.15,607/-
= Rs.50,607/-.
Therefore the Assurance Benefit payable is Rs.50,607/-
NOTE:
1. If the Average Balance exceeds Rs.1,35,000/-, then the Assurance Benefit payable to the members family will be restricted to Rs.60,000/-
2. Opening Balance as on 1.4.2000 includes contributions in respect of wages of the member upto 29.2.2000 ( i.e wages for Feb 2000, paid in March 2000)
3. Contributions for 12 months upto the end of the month preceding the date of death are taken (i.e from August 2000 to July 2001 wage month)
4. The interest should be restricted to the month preceding the month in which the death occurred ( in this case upto 31.7.2001)