(a) Unexempted Provident Fund Scheme :

The establishment to whom the Employees’ Provident Fund & Miscellaneous Provisions Act 1952, is made applicable and compliance in respect of their employees are made with the Regional Provident Fund Commissioner, Set-up in respective region, and the returns, claims for settlements, applications for withdrawals are processed through the office of the Regional Provident Fund Commissioner. In the case of Unexempted Provident Fund Scheme the employer has to.Generate Electronic Challan cum Return (ECR) through the online EPFO Portal and the payment against the said challan can be done either online or by depositing the same with any branch of State Bank of India. Employer need not do any investments nor bother of paying the statutory rate of interest.

(b) Exempted Provident Fund Scheme :

Under the Exempted Provident Fund Scheme, the employer forms his own Provident Fund Trust for benefits of his employees. The employer executes the Trust Deed, prepares the Provident Fund Rules and nominates the trustees amongst its employees for administering and managing the Trust. On formation of Provident Fund Trust the employer has to obtain recognition to the Provident Fund Trust from the Commissioner of the Income Tax and thereafter apply to the office of the Regional Provident Fund Commissioner for granting exemption from the Provisions of the Employees’ Provident Fund & Miscellaneous Provisions Act 1952 and the Schemes framed thereunder. Such recognised and exempted Trust is a separate legal arrangement. The employer pays its monthly contributions to the Trustees who are in charge and responsible for day to day management and administration of the trust including that of doing necessary investments as per the pattern laid down in Rule 67 of  the Income Tax Rules 1962.

2) Advance for - Purchase of Dwelling House/Flat.

3) Advance for - Construction of a House.

4) Advance for - Repayment of Housing Loan to State Government Housing Board or any other Government recognised Housing Finance Body.

5) Advance for - Illness viz Hospitalisation for more than a month major surgical operations or suffering from T.B., leprosy, paralysis, cancer, heart ailment etc.

6) Advance for -  Marriage of Self/Son/Daughter/Sister/Brother.

7) Advance for -  Post Matriculation Education of Son/Daughter.

8) Advance for -  Damage to the property Due to Natural Calamity (Flood/Earth Quake).

9) Advance for - Member affected by cut in the supply of electricity.

10) Advance for - Member who is physically handicapped.

A member employee can also withdraw full amount standing to his credit in fund in following circumstances (Para 69)...

a) On Resignation.

b) On Retirement from the service on attaining the age of 58 years.

c) On Retirement on account of permanent or total incapacity to work.

d) Immediately before Migration from India for permanent settlement abroad or for taking up employment abroad.

e) On termination due to voluntary Retirement Scheme, Retrenchment, Closer of the factory/establishment.

DETAILS ABOUT THE AVAILABILITY OF THE ADVANCES PROVIDED UNDER THE EMPLOYEES’ PROVIDENT FUND SCHEME, 1952 AND THE DOCUMENTS REQUIRED FOR THE PURPOSE

It is applicable to all establishments wherein the Employees Provident Fund & Miscellaneous Provisions Act, 1952 is applicable.

Employees’ Pension Scheme is a survivor, old age and disability pension scheme. The earlier Family Pension Scheme, 1971 offered only one type of benefit, namely, survivor’s benefit, i.e. payment of pension to widow/widower on death of the member in service. On the other hand the new scheme caters for three types of contingencies :-

    1. Survivor Pension                           :  If death occurs during service period
    2. Old Age Pension                           :  Pension on superannuation.
    3. Permanent Disability Pension   : In the event of member suffering permanent disability while in service.

In the Scheme three scales of pension benefits have been offered according to the length of service.

2.1.     For service below 10 years.
Return of contribution on exit from employment -- (Table - D) multiplied by wages on exit.
Example : A member exits from employment after four years of service his wage on exit is Rs.4000/-. Return of contribution will be calculated as 4000 X 4.18 of wages on exit i.e. Rs.16,720/-.

2.2.     Service above 10 years but below 20 years.           
Pension will be calculated by applying the formula

                        Pensionable Salary  X  Pensionable Service
                                                        70
Say, a member has done 18 years of pensionable service, Pensionable Salary determined is  Rs.4000/-. Pension payable to him will be Rs.1029/-

2.3.      Service over 20 years.
Full pension according to the formula stated above, it is to be noted here that for rendering 20 years of pensionable service or more, member’s pensionable service shall in all cases be increased by adding 2 years. In other words, 20 years actual pensionable service will be treated as 22 years of pensionable service for calculation of pension.

2.4.      Special provisions for existing member :
Special provisions have been made for calculation of pension in case of member who was a member of the ceased Family Pension Scheme 1971 and who has attained the age of 48 yrs. on the 16th Nov. 1995 or a member who has attained the age of 48 yrs. but less than 53 yrs. on 16th Nov. 1995 or member who has attained the age of 53 yrs. or more on the 16th Nov. 1995. In the aforesaid cases the formula for calculating Pension will be as follows :-

2.4.a.   Member has not attained the age of 48 yrs. on 16.11.1995 :
Pension is determined by the above formula, i.e.

                                      Pensionable Salary  X  Pensionable Service
                                                                                70
For the period of Pensionable service rendered from 16th Nov. 1995 or Rs.635/- whichever is more plus past service benefits as under :

2.4.b. Member has attained the age of 48 years but less than 53 years on 16.11.95:
    
Pension as determined by the above mentioned formula i.e.

                        Pensionable Salary  X  Pensionable Service
                                                       70
for the period of service rendered from 16.11.95 or  Rs.438/- p.m. whichever is more plus past service as laid down in para 12(3) subject to a minimum of Rs. 600/- p.m., in case the past service is 24 yrs. If it is less than 24 yrs., pension payable and the past service benefit taken together shall be proportionately less subject to minimum Rs.325/- p.m

Example:-

Age on 16.11.1995      =   50 years
Date of Birth                  =   30.11.1945
Pensionable Salary     =   Rs. 4000/-
Date of Joining             =   01.07.1975
Date of Leaving            =   01.12.2002
Pensionable Service   =  7 years

Date of attainment of 58 years = 30.11.2003

Period between 16.11.1995 to 30.11.2003 = 8 years

Monthly Member’s Pension       =          4000 x 7
                                                                           70
                                                         =          400

Minimum Pension Payable = Rs. 438/-                            .·.  MMP = Rs. 438/-                

Past Service Benefit :

Minimum Past Service Benefit Payable =Rs. 600/- for 24 years
Proportionate Minimum Past Service Benefit for 20 years =  600 x 20 = Rs. 500
                                                                                               24
Since Actual Past Service Benefit is less than Proportionate Minimum Past Service Benefit

Past Service Benefit = Rs. 500/-

Aggregate of Monthly Member’s Pension + Past Service Benefit  = 438 + 500= 938/-

.·. Monthly Member’s Pension Payable = Rs. 938/-

2.4.c. Member has attained the age of 53 yrs. or more on 16.11.95 :

Pension as determined by the above mentioned formula i.e.

                        Pensionable Salary  X  Pensionable Service
                                                       70
for the period of service rendered from 16.11.95 till the date of exit or Rs. 335/- p.m. whichever is more plus past service benefit as provided in para 12(3) subject to minimum of Rs. 500/- p.m. (both together) incase past service period is 24 yrs , if it is less than 24 yrs. pension payable and past service benefit shall be proportionately lesser subject to a minimum of Rs. 265/- p.m.

Age on 16.11.1995         =    55 years
Date of Birth                     =    01.08.1940
Pensionable Salary        =    Rs. 4000/-
Date of Joining (FPF)     =    01.03.1971
Date of Leaving               =    31.07.1998
Pensionable Service      =    2 years, 9 months = 3 years

Date of attainment of 58 years    =     31.07.1998

Period bet 16.11.1995 to 31.07.1998   =   2 years, 9 months

Monthly Member’s Pension                    =          4000 x 3           
                                                                                      70
                                                                     =          171.42
                                                                     =          171/-

Since Minimum Pension Payable = Rs. 335/- is more than actual Pension calculated.

Past Service Benefit :

Minimum Past Service Benefit Payable for 24 years Service = Rs. 500/-

The Past Service Benefit           =  Rs. 500/-

Actual Monthly Member’s Pension Payable =

Aggregate of Monthly Member’s Pension + Past Service Benefit = 335 + 500 = 835/-

Aggregate Service more than 24 years

.·. Monthly Member’s Pension  =  835/-

Old age pension on account of superannuation/retirement is normally payable on attaining the age of 58 yrs. However member can opt for taking earlier than 58 yrs. on his exit from employment but under no circumstances pension will be payable before the age of 50 yrs. A member who desires to draw monthly pension from a date earlier than 58 yrs. of age will be allowed to draw a monthly reduced pension. The amount of pension in such a case shall be reduced @ 4%(earlier 3%) for every year the age falls short of 58 yrs.

4. SCHEME CERTIFICATE :

5.1. Widow pension is of three categories
i)   Death of the member during service 
ii)  Death of member after commencement of payment of monthly member’s pension 
iii) Death of the member after leaving service but before attaining the age of 58 years.

5.2. Widow pension on death of the member during the service is equal to monthly member’s  pension.
Widow pension is calculated on the principal as if the member had retired on the date of death.

5.3. The essential conditions for grant of widow pension are as follows :
      5.3.a.          The death of member occurred while in service.
      5.3.b.          The member has contributed at least one month’s contribution.
      5.3.c.          The member had not attained the age of 58 yrs.
      5.3.d.          The death of the member had taken place before the commencement of monthly member’s  pension.

Example 1:
Mr. X, a worker in an establishment, became member of the Employees’ Pension Scheme on 2nd Jan. 1996. He died in Feb. 1996 after a short illness. His wages at the time of death was Rs. 1500/- p.m. He left behind his widow aged 22 yrs. and a child aged 1 year. What will be the widow pension in this case?
It is confirmed that pension contribution for Mr. X, was paid by the employer for the month of  Jan 1996.

Widow pension entitlement.

Pensionable service                   : One month
Pensionable salary                     : Rs. 1500/-

Either
 (i)              Pension according to the formula  :

       Pensionable Salary  X  Pensionable Service             1/12   X  1500/70
                                                    70                                         i.e.  ------------------  = Rs. 1.78
         

                          Or

(ii) Minimum Pension payable as per para 16 (2) (a) (i) of the scheme - Rs. 450/- p.m.
                                    Or
(iii) The amount indicated in table `C' - Rs. 718/- per month - whichever is more.
                      Since (iii) is more than (i) & (ii), Widow pension will be fixed at Rs. 718/- per month for life or remarriage of the widow, whichever is earlier.

(iv) For the child, 25% of the widow pension will be granted as monthly pension i.e. 25% of Rs. 718  = Rs. 179.50 or Rs. 180/- p.m., till 25 years of age.

 Example 2 : Mr. `Y' joined Employee's Pension Scheme in January 1972. He died while in service, say, on 30 March 1998. He was drawing a salary of Rs. 2,500/- p.m. from January'97 till death. He had attained the age of 48 years at the time of his death. He left behind the widow, two sons - one aged 16 years, one 7 years and one daughter aged 20 years. What would be the widow pension and children pension, payable?

 Mr. `Y' had done 26 years &  3 months of pensionable service at the time of his death. In calculation of eligible service for pension, fraction of three months will be ignored as per explanation to para 9(a) of the Scheme and thus eligible service will be taken as 26 years only. The average 12 months' salary at the time of his death was Rs. 2,500/-. Hence member's monthly pension will be :

Either                        Pensionable Service  X  Pensionable Salary
                                                                70
     i.e.     (I)     26 x 2500    = Rs. 928.57 or Rs. 929/- p.m.
                           70
Or          (ii)  In terms of para 16(2)(a)(ii) - Rs. 250/- p.m.

Or          (iii) Table `C' - Rs. 1087 - Whichever is more.

The amount at (iii) being more than (i) or (ii), the widow pension payable will beRs. 1087/- for life or remarriage of the widow, whichever is earlier.

5. 4. Children Pension

i)       The member left behind three children one daughter aged 20 years. one son aged 16 years and the other son aged 7 years. To start with, only the elder two, the daughter and the elder son will get pension. The daughter will get pension for 5 years by which time she will be 25 years of age after 5 years of the vesting of pension. After the daughter ceases to be the beneficiary, the youngest child, then aged 12 years, will start receiving pension till the age of 25 years.

ii.       The amount of children pension will be @ 25% of widow pension for each of the two children, viz. 25% + 25% of Rs.1087 or Rs.272 + Rs.272 for two children.   

 Note: W.e.f 01-09-2014, the monthly pension including any relief payable to any existing or future member shall not be less than 1,000/- for the financial year 2014-15.   

6.  WIDOW PENSION AFTER COMMENCEMENT OF MONTHLY PENSION :

6.1  In case of death of the member after vesting of pension, the amount of widow pension payable is         @ 50% of the monthly member's pension subject to a minimum of Rs. 450/- p.m. for example, Mr.`Z', a pensioner, dies at the age of 66 years leaving behind his widow aged 62 years.

Mr.`Z' drawing pension @ Rs. 1000/- p.m. The widow pension in this case will be Rs. 500/- p.m.

b) Minimum pension amount  : Rs. 250/- p.m.

8.  NOMINEE PENSION

a) The employee was a bachelor- implying that there existed neither his widow nor any child to have pension after his death, or

10. OPTION FOR RETURN OF CAPITAL : (Benefit withdrawn w.e.f.01.07.2008)

Table-A

Withdrawal Benefit (See Paragraph 14)

 Table B

FACTOR FOR COMPUTATION OF PAST SERVICE BENEFIT UNDER THE CEASED FAMILY PENSION SCHEME FOR EXISTING MEMBERS ON EXIT FROM THE EMPLOYMENT (See Paragraph 14)

Table C

Table – D
RETURN OF CONTRIBUTION ON EXIT FROM THE EMPLOYMENT