The age should be determined with reference to the date of birth.
Wherever the date of birth is not given, it shall be determined in the following manner:
1. where the year of birth is given but not the exact date, 1st July shall be treated as the date of birth.
2. where the year and month are given, the 16th of the month shall be treated as the date of birth; and
3. where only the age is indicated the member shall be assumed to have completed that age on that date of the medical certificate accompanying Form 2, and where no medical certificate is attached to From 2, on the date of filing Form 2.
On attaining the age of 58 years the member can normally draw the pension. On attaining the age of 58 years the member is not required to pay the pension contribution.
Further the age as on 16.11.1995 is also relevant to determine the monthly members pension, to the members of EFPS, 1971.
The completed age of the member alone should be taken into account for all purposes and as such the question of rounding off of age does not arise.
A member is entitled to draw reduced pension after attaining the age of 50 years.
A member is entitled to disabled pension before attaining the age of 50 years.
The payment of pension for past service is determined as on 16.11.1995 and for that purpose the Existing members are divided into three groups.
1. those who have not attained the age of 48 years as on 16.11.1995
2. those who have attained the age of 48 years but less than 53 years as on 16.11.1995 and
3. those who have attained the age of 53 years or more as on 16.11.1995.
In the case of children, on attaining 18 years of age they become major. Till then, the guardian is to be appointed to receive the benefit.
The children are entitled to pension upto the age of 25 years.
SALARY
The term “SALARY” means the pay / wages on which contributions is due.
“Pay” for the purpose of contributions means “Basic wages dearness allowance, retaining allowance and cash value of food concession, admissible, if any” [para 2(xiii)]
a) Salary for Calculation of MMP for Past Service:
The Salary drawn as on 16.11.1995 or date of exit whichever is earlier was divided into two groups .
i) Salary upto Rs.2500/- per month. ii) Salary more than Rs.2500/- per month.
b)Salary for Calculation of MMP for Pensionable Service:
Average monthly pay drawn during the contributory period of service of 12 months preceding the date of exit from the membership of the Employees’ Pension Scheme, 1995.
c)Salary for Calculation of Widow Pension (Table C) Salary at the date of death of the member,.
d)Salary for Calculation of Withdrawal Benefit (Table A & Table B): Salary at the date of exit.
e)Salary for Calculation of Return of Contributions (Table D) Salary at the date of exit.
Statutory ceiling of Salary (Pay/Wages)
Statutory ceiling of pay on which contributions are to be made is as follows;
Wage Ceiling From To
1000/- 31.12.1962 (01.03.1971) 28.02.1983 1600/- 01.03.1983 31.08.1985 2500/- 01.09.1985 31.10.1990 3500/- 01.11.1990 30.09.1994 5000/- 01.10.1994 31.05.2001 6500/- 01.06.2001 onwards
IMPORTANT FACTORS TO DECIDE THE ELIGIBILITY AND QUANTUM OF PENSION a).Upto 15.11.1995 1. SERVICE b).On or after 16.11.1995 a) as on 15.11.1995 2. SALARY
b). On or after 16.11.1995 (Pensionable Salary)
3. AGE Date of Birth of the member
Age as on 16.11.1995 Age as on date of exit after 16.11.1995
Date of birth of the family members
SERVICE
The term service is classified into the following four categories
1. Past Service
2. Actual Service
3. Eligible Service
4. Pensionable Service
The total period of each service referred to above is calculated for the following purposes
1. To decide the eligibility of the member for Pensionery Benefits under the Employees’ Pension Scheme, 1995.
2. To decide the Quantum of Pensionery Benefits payable to the member under the Employees’ Pension Scheme, 1995.
3. Minimum quantum prescribed for- factor pension
Pension with 24 years of past service Pension with service less than24 years
DEFINITION:[PARA 2] PAST SERVICE:
‘Past Service’ means the period of service rendered by an existing member from the date of joining Employees’ Family Pension Fund till the date of exit (i.e. death or leaving service) or attainment of age of 60 years or 15th November 1995 whichever is earlier. [para 2 (xii)]
BREAK IN SERVICE:
The period of Break in Service is the period of Past Service for which no contributions to EFPS, 1971 were payable due to non eligibility for wages. (first proviso to para 6 of EFPS, 1971).
ACTUAL SERVICE:
‘Actual Service’ means the aggregate of periods of service rendered from 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 or the date of attaining the age of 58 years, whichever is earlier. [para 2(ii)]
PENSIONABLE SERVICE:
‘Pensionable Service’ means the service rendered by the member for which contributions have been received or are receivable.[para 2(xv)]
CONTRIBUTORY SERVICE:
‘Contributory Service’ means the period of Actual service rendered by a member for which the contributions to the fund have been received or are receivable. [para 2(iv)]
NON CONTRIBUTORY SERVICE:
‘Non Contributory Service’ is the period of Actual service rendered by a member for which no contribution to the ‘Employees Pension Fund’ has been received or are receivable; due to non eligibility for wages. [para 2(x)]
BENEFITS OF PENSION SCHEME – IN NUTSHELL
• A member is eligible for Pension after 10 years of service.
• The Pension is payable on attaining the age of 58 years, whether he is in service or superannuated.
• Early Pension at reduced rate can be availed on leaving the employment, after attaining the age of 50 years.
• Where an employee is totally disabled and leaving service on account of disablement, Disablement Pension is allowed. No age and service stipulation to claim the pension.
• Every year, the pension quantum may increase.
• Wherever the Pension claims are received three months before the date of superannuation, the Regional Provident Fund Commissioner will deliver the Pension Payment Order on the day of superannuation.
• Apart from Pension Benefit, a member can commute upto one-third of his pension and in lieu of this, he will receive a lumpsum amount equivalent to 100 times of the commuted value of pension.
• A Pensioner may nominate a person to receive a lumpsum amount after his death, as Return of Capital.
• Family Pension is payable in case of death of a member: after leaving the employment.
while in employment. after drawing the pension
• Family Pension is payable even where the death occurs before 10 years of service. Thus, the minimum eligible service of 10 years is not applicable.
• On death of a pensioner. the Pension is automatically payable to the spouse (widow / widower).
• When a member dies 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. It is payable to the married daughters also, below the age of 25 years.
• On death or re-marriage of widow / widower, Children will be given enhanced pension treating such children as Orphan.
• On behalf of the minor children the pension is payable to guardian.
• Any child in a family with total and permanent disablement will receive Children Pension till death.
• The monthly pension is payable through Indian Overseas Bank, State Bank of India, Indian Bank, HDFC Bank and Post Offices in Tamil Nadu and Pondicherry States on the first day of every month through the Savings Bank account of the pensioner.
• The pension can be drawn anywhere in India.
• The employees with less than 10 years of service on the day of superannuation may avail the benefit of withdrawal from Pension Fund. • Where an employee has not served for 10 years on the date of leaving
service, he may obtain a Scheme Certificate so as to continue his membership during un-employment period and the same can be used to count the previous service as and when he joins another establishment covered under the Act.
• The employees who have not contributed to the Employees’ Family Pension Scheme, 1971 can also join the Employees’ Pension Scheme before attaining the age of 58 years, at their option, after paying the contribution and interest upto-to-date.
• The contribution to Pension Fund can be made beyond the ceiling limit of Rs.6,500/- on the joint request of the employee and the employer so as to get more benefit.
• The Pension quantum is determined separately for the period of service from 1.3.1971 to 15.11.1995 as fixed amount. This is known as “Past Service” benefit.
• The Pension for the service rendered after 15.11.1995 is calculated through formula namely,
Pensionable Salary x Pensionable Service 70
• An employee on his superannuation is entitled for Pension (through the above formula) upto 60% of the pensionable salary. (Pensionable Salary would mean, the salary drawn by the employee for a period of 12 months prior to the date of superannuation).
POINTS TO BE NOTED WHILE AUDITING Work sheet for Pension
• Date of Birth: As per Form 9 or Form 3 (PS) . EPF members – Form 2 received before 16.11.95. EPS members – Form 2 received on or after 16.11.95
Date of Birth given in Form 10D if it is less than one year to the age in Form 9.
• Date of Cessation of Membership: Date of leaving service. Date of Superannuation. Death in service – Death away from service.
• Date of Entitlement of Pension: date of Superannuation. Date furnished Column 8A of Form 10D, Date of application may be treated as date of option or date first receipt of the claim in EPF Office.
• Rounded off Past service after regularisation if any.
• Wages on the date of exit in respect of Death cases otherwise only minimum pension of 450 alone.
• Wages as on 15.11.95 Maximum Rs.3,500/- upto 30.9.94 and Rs.5,000/- thereafter.
• Formula Pension upto 16.11.2000 Minimum Rs.335/- para 12(5) (a) Upto 16.11.2005 Minimum Rs.335/-
Minimum Rs.438/- para 12(4)(a) After 16.11.2005 Minimum Rs.335/-
Minimum Rs.438/-
Minimum Rs.635/- para 12(3)(a) • Every month Maximum Pension MMP Rs.820/- Jan. 2002.
WMP Rs.205/- for Rs.6500/ To be calculated and given to Auditors for checking.
• Percentage of Commutation opted.
• Form ROC option 1: One or more persons were nominated in Col. No.11. In such case 1st nominee have to be taken into account.
• ROC option 2: Wife should not be nominated in Col.No.11.
• Bank account No.: Xerox copy of Ist page of pass book of account opened in designated bank.
• CMP Cases: Date of Birth of children and Bank account of eligible children. • Parental pension Death while in service or 10 years membership arrears from
6.3.99.
OTHER POINTS TO BE NOTED
1. Where about of the member not known. Date of filing FIR note the date of disappearance.
2. After the death of the member pensioner adopted child – Children Monthly Pension not eligible.
3. Post retiral spouse and children is also eligible for pension.
4. Child or children legally adopted by the member eligible for pension.
5. Permanent total disable children eligible for Pension for life time in addition to regular eligible children.
6. Left service before 1.4.93 more than 10 years. EPF and FPF settled after 1.4.93. Eligible for pension.
7. Multiple memberships – An employee served in more than one establishment.
8. Bachelor died at the time of death he is orphan – No valid nomination - No Pension is payable to Brother/sister.
9. NEPAL (i) SONALI SBI
(ii) RAKSHAL through SRO, Gorakhpur (UP) (iii) BADANI
10. Payment of Pension through NRI account.
11. Two or more wives – Seniority Date of marriage – Children according to Date of Birth.
POINTS TO BE NOTED FOR WITHDRAWAL BENEFIT
For Past Service – upto Date of Cessation 15.11.95; Actual Service from 16.11.95 or Date of Joining;
If fluctuation in wages in Form 3A or Form 7(PS) breaks should not be assessed notionally in the absence of break statement;
If no contribution is received for entire month, it has to be treated as break; For Table D, Actual Service minus NCP days- rounded off;
For Table B, Date of Exit minus Date of Joining or 16.11.95 without deducting NCP days;
Breaks in Past service have to be regularised; However if continuous break is more than one year upto 1.4.88 it cannot be regularised under any pretext. This should be strictly followed to avoid any erroneous/over payment.
In respect of defaulting establishments, the withdrawal can be allowed if the factor in Table D is not altered (Proportion of wages at exit) even after excluding the defaulted period from the total year of service. The Scheme Certificate can be issued wherever the due benefit is not payable, with due remarks on the period of default given in the Scheme Certificate. (The question of extending the withdrawal with reference to the actual period of service for which contribution received is receiving the attention of the Headquarters Office).
NCP days not to be regularised;
If there is abnormal fluctuation in wages, 12 months average can be taken into account, with prior permission of APFC.
If there are NCP days during last month wages, the salary drawn during last 12 months divided by actual number of days worked during the last span of 12 months shall be multiplied by 30 to work out the average monthly pay; Actual Service upto the date of exit or on attaining 58 years of age whichever
is earlier;
For Past and Actual service, full pay last drawn have to be rounded off to next Rs.10/-;
Seasonally employed actual service during the year shall be treated as full year – Not attended, when employment is offered taken as NCP;
EPF and EPS can be settled separately. No question of simultaneous payment: A member can draw his PF account and continue in the Pension membership;
POINTS TO BE NOTED FOR ISSUE OF SCHEME CERTIFICATE
As and when Scheme Certificate is received along with Form 5, it should be recorded in Form 9/Form 3 (PS) and transmitted to Pension Section / EDP for recording the data in the system.
Actual salary and service are not to be rounded off. Rounding off should take place on Superannuation/Pension payable;
The breaks in Past service have to be regularised as per proviso to 9(2) OF EPS, 1995; However if continuous break is more than a year upto 1.4.88, it cannot be regularised under any pretext. This should be strictly followed to avoid any erroneous/over payment;
Bank account details and Advanced Stamped Receipt not necessary;
If total service is more than 10 years after deducting breaks, service falls short of 10 years, withdrawal benefit should not be settled. Only Scheme Certificate or Pension is payable if otherwise entitled;
Family details if not furnished in Form 2 this need not be insisted – for issue of Scheme Certificate.
Date of Birth as per Form 9 or Form 3 (PS) only taken into account – Form 2 received before 16.11.95 for FPF member – Form 2 received after 16.11.95 in respect of new members under EPS 1995 – If the date of birth given in Form 10C tallies age in Form 9. (less than one year on both ways) the actual Date of Birth given by the member may be admitted;
In respect of defaulting establishments, if the yearly returns, such as Form 3A or Form 7 (PS) not submitted, the fact on the period of default should be recorded on the Scheme Certificate, before issue;
Pension to be payable in future will not take place in Scheme Certificate; Wherever Scheme Certificate is already issued, the member has preferred the
claim in Form 10D duly surrendering the Scheme Certificate, the claim is to be verified with reference to Scheme Certificate and after ensuring its issue and also verifying the authority attested the claim, the Form 10D and its enclosures should be verified for its correctness. Thereafter Form 10D along with IDS & Scheme Certificate should be sent to Pension Section;
Once Scheme Certificate is issued, and transfer of provision Account of the member is received, a fresh Scheme Certificate to be issued cancelling the original received from the member;
Scheme Certificate holder dies, his family is entitled for Family Pension, subject to eligibility.
When pension is applied for, Original Scheme Certificate to be surrendered.
CHECK LIST FOR CLAIMS IN FORM –10C
(Form to be used by a member of Employees Pension Scheme 1995 for claiming Withdrawal Benefit/Scheme Certificate)
2) Whether the particulars are written clearly without any overwriting or cutting. Correction, if any, is attested.
3) Whether the member has appended his signature on One Rupee Revenue Stamp affixed in the relevant portion. (To be given where withdrawal benefit is admissible and opted for payment by cheque).
4) Whether the details of wages and period of non-contributory service were already informed through Form 3A.
5) If the member is not eligible for pension and has rendered 10 or more years of eligible service, he/she is not entitled for option but Scheme Certificate only will be issued.
6) Wherever the member is having less than 10 years’ eligible service, he/she may be advised to opt for Scheme Certificate instead of Withdrawal Benefit. 7) Option to be specifically stated either for Scheme Certificate or Withdrawal
Benefit.
8) In case of opting for “Scheme Certificate”, it is not necessary to furnish the Savings Bank Account and enclosing of attested photos.
9) These points are in addition to common points furnished under “Checklist for claim in Form-19”.
CHECKLIST FOR CLAIMS IN FORM-10D
(Form to be used for claiming Superannuation Pension, Retirement Pension, Short- service Pension, Disablement Pension, Widow Pension, Children Pension and Orphan Pension).
1) To check whether the application in Form-10D has been preferred in duplicate in case pension is to be drawn in other SRO/SAO or other Region. 2) Whether all columns are properly filled in without any overwriting.
3) Whether the application in form-10D has been attested by the employer or his authorised official with his official seal and date.
4) Whether the date of birth of the member has been furnished as per records already submitted to the RPFC.
5) In case of death of the member (For Widow, Children or Orphan Pension) ensure that the death certificate is submitted in original and family members’ certificate is furnished.
6) The descriptive roll/finger impressions/Specimen signatures of the claimant are obtained in the prescribed forms (in duplicate) and attested by the employer.
7) Whether 3 copies of Passport Size photograph of the member with spouse (taken together/or claimant) are submitted and the employer has attested with seal on the back side of the Passport size photos duly furnishing the name and Account number of the member below the age of 25 years irrespective of their marital status.
8) Whether the birth certificate of the children of the member, is submitted in original, with one Xerox copy duly attested by the employer.
9) Whether the Personal marks of Identification, if any, on the hand /face or body of the claimant is furnished.
10) The monthly Pension can be disbursed to the Pensioner through the designated Banks such as State Bank of India and other Nationalised Banks or HDFC (or ICICI) or Post Offices. Please check whether the member has