EMPLOYEES'
PENSION SCHEME, 1995
PREAMBLE
In exercise of the powers conferred by Section 6-A of the Employees'
Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the
Central Government hereby makes the following scheme, namely:
Scheme - 1. Short title, commencement and application.
(1)
This Scheme may be called the
Employees' Pension Scheme, 1995.
(2)
(a) This Scheme shall come into force
on 16th day of November, 1995.
(b) Subject
to the provisions of this Scheme the employees have an option to become the
members of the Scheme with effect from the 1st April, 1993.
(3)
Subject to the provisions of Section
16 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952,
this Scheme shall apply to the employees of all factories and other
establishments to which the Employees Provident Funds and Miscellaneous
Provisions Act, 1952 applies or is applied under sub-section (3) or sub-section
(4) of Section 1 or Section 3 thereof.
Scheme - 2. Definitions.
In this
Scheme unless the context otherwise requires
(i)
"Act" means the Employees'
Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952);
(ii)
"Actual service" means the
aggregate of periods of service rendered from the 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;
(iii)
"Commissioner" means a
Commissioner for Employees' Provident Funds appointed under Section 5-D of the
Act;
(iv)
"Contributory service" means
the period of actual service rendered by a member for which the contribution to
the fund have been [received
or are receivable];
(v)
"eligible member" means an
employee who is eligible to join the Employees' Pension Scheme;
(vi)
"existing member" means an
existing employee who is a member of the Employees' Family Pension Scheme,
1971;
(vii)
"family" means
(i)
wife in the case of 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;
Explanation.
The expression "sons" and "daughters" shall include
children [legally
adopted by the member].
(viii)
"pension" means the pension
payable under the Employees' Pension Scheme and also includes the family
pension admissible and payable under the Employees' Family Pension Scheme,
1971, immediately preceding the commencement of the Employees' Pension Scheme,
1995 with effect from the 16th November, 1995;
(ix)
"member" means an employee
who becomes a member of the Employees' Pension Fund in accordance with the
provisions of this Scheme;
(x)
"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;
(xi)
"orphan" means a person,
none of whose parents is alive [
* * * ];
(xii)
"past service" means the
period of service rendered by an existing member from the date of joining
Employees' Family Pension Fund till the 15th November, 1995;
(xiii)
"Pay" means basic wages,
with dearness allowance, retaining allowance and cash value of food concessions
admissible, if any;
(xiv) "Pension Fund" means the Employees' Pension Fund set up under
sub-section (2) of Section 6-A of the Act;
(xv)
"pensionable service" means
the service rendered by the member for which contributions have been received;
[(xvi) "permanent total disablement" means such disablement of
permanent nature as incapacitates an employee for all work which he/she was
capable of performing at the time of disablement, regardless whether such
disablement is sustained in the course of employment or otherwise; J
(xvii) "Table" means table appended to this Scheme;
(xviii) The words and expressions defined in the Act but not defined in
this Scheme shall have the same meaning as assigned to them in the Act.
Scheme - 3. Employees' Pension Fund.
(1)
From and out of the contributions
payable by the employer in each month under Section 6 of the Act or under the
rules of the Provident Fund of the establishment which is exempted either under
Cls. (a) and (b) of sub-section (1) of Section 17 of the Act or whose employees
are exempted under either para. 27 or para. 27-A of the Employees' Provident.
Funds Scheme, 1952, a part of contribution representing 8.33 per cent. of the Employees'
pay shall be remitted by the employer to the Employees' Pension Fund within 15
days of the close of every month by a separate bank draft or cheque on account
of the Employees' Pension Fund Contribution in such manner as may be specified
in this behalf by the Commissioner. The cost of the remittance, if any, shall
be borne by the employer.
(2)
The Central Government shall also
contribute at the rate of 1.16 per cent. of the pay of the members of the
Employees' Pension Scheme and credit the contribution to the Employees' Pension
Fund:
Provided
that where the pay of the member exceeds rupees five thousand per month the
contribution payable by the employer and the Central Government be limited to
the amount payable on his pay of rupees five thousand only.
(3)
Each contribution payable under
sub-paragraphs (1) and (2) shall be calculated to the nearest rupee, fifty
paise or more to be counted as the nearest higher rupee and fraction of a rupee
less than fifty paise to be ignored.
(4)
The net assets of the Family Pension
Scheme, 1971 shall vest in and stand transferred to the Employees' Pension
Fund.
Scheme - 4. Payment of contribution.
(1)
The employer shall pay the
contribution payable to the Employees' Pension Fund in respect of [each
member] of the Employees' Pension Fund employed by him directly or by or
through a contractor.
(2)
It shall be the responsibility of the
principal employer to pay the contributions payable to the Employees' Pension
Fund by himself in respect of the employees directly employed by him and also
in respect of the employees employed by or through a contractor.
Scheme - 5. Recovery of damages for default in payment of any contribution.
(1)
Where an employer makes default in the
payment of any contribution to the Employees' Pension Funds, or in the payment
of any charges payable under any other provisions of the Act or the Scheme, the
Central Provident Fund Commissioner or such officer as may be authorised by the
Central Government, by notification in the Official Gazette, in this behalf,
may recover from the employer by way of penalty, damages at the rates given
below:
|
Period of
default
|
Rate of
damages
(Percentage
of arrears per annum)
|
|
(a) Less
than two months.
|
Seventeen
|
|
(b) Two
months and above but less than four months.
|
Twenty-two
|
|
(c) Four
months and above but less than six months.
|
Twenty-seven
|
|
(d) Six
months and above.
|
Thirty-seven
|
(2)
The damages shall be calculated to the
nearest rupee, 50 paise or more to be counted as the nearest higher rupee and
fraction of a rupee less than 50 paise to be ignored.
Scheme - 6. Membership of the Employees' Pension Scheme.
[Subject to sub-para (3) of Paragraph 1, the Scheme shall apply to every
employee,
(a)
who on or after the 16th November,
1995, becomes a member of the Employees' Provident Funds Scheme, 1952, or of
the provident funds of the factories and other establishments exempted by the
appropriate Government under Section 17 of the Act, or in whose case exemption
has been granted under Paragraph 27 or 27-A of the Employees' Provident Funds
Scheme, 1952, from the date of such membership;
(b)
who has been a member of the ceased
Employees' Family Pension Scheme, 1971, before the commencement of this Scheme
from 16th November, 1995;
(c)
who ceased to be a member of the
Employees' Family Pension Scheme, 1971, between 1st April, 1993 and 15th
November, 1995, and opts to exercise his option under Paragraph 7;
(d)
who has been a member of the
Employees' Provident Fund or of Provident Funds of Factories and other
establishments exempted by the appropriate Government under Section 17 of the
Act or in whose case exemption has been granted under Paragraph 27 or 27-A of
the Employees' Provident Funds Scheme, 1952, on 15th November, 1995, but not
being member of the ceased Employees' Family Pension Scheme, 1971, opts to
exercise his option under Paragraph 7].
Scheme - 7. Option for joining the scheme.
[(1) Members referred to under sub-para (c) of Paragraph 6 who have died
between 1st April, 1993, and 15th November, 1995, shall be deemed to have
exercised the option of joining the Scheme on the date of his death.
(2) Members referred to in
sub-paragraph (c) of Paragraph 6 who are alive shall have the option to join
the Scheme as per the provisions of Paragraph 17 from the date of exit from the
employment.
(3) Members referred to in
sub-paragraph (d) of Paragraph 6, shall have the option to join the Scheme as
per the provisions of paragraph 17 from 16th November, 1995].
Scheme - 8. Resumption of doubts.
If any
doubt arises whether an employee is entitled to become a member of the
Employees' Pension Fund, the same shall be referred to the Regional Provident
Fund Commissioner who shall decide the same:
Provided
that both the employer and the employee shall be heard before passing final
order in the matter.
Scheme - 9. Determination of eligible service.
The
eligible service shall be determined as follows:
(a)
in the case of "new entrant"
the "actual service" shall be treated as eligible service. The total
actual service shall be rounded off to the nearest year. The fraction of
service for six months or more shall be treated as one year and the service
less than six months shall be ignored.
Explanation.
In the case of employees employed seasonally in any establishment the period of
"actual service" in any year, notwithstanding that such service is
less than a year shall be treated as a full year.
(b)
In the case of "existing member"
the aggregate of actual service and the "past service" shall be
treated as eligible service:
Provided
that if there is any period in the "past service" for which the
contributions towards the Family Pension Scheme, 1971, has not been received,
the said period shall count as eligible service only if the contributions
thereof have been received in the Employees' Pension Fund.
Explanation.
For the purpose of this sub-paragraph the total past service for less than six
months shall be ignored and the total past service for six months and above
shall be rounded off to a year.
Scheme - 10. Determination of pensionable service.
(1)
The pensionable service of the member
shall be determined with reference to the contributions [received
or receivable] on his behalf in the Employees' Pension Fund.
(2)
In the case of the member who
superannuates on attaining the age of 58 years and/or who has rendered 20 years
pensionable service or more, his pensionable service shall be increased by
adding a weightage of 2 years.
Scheme - 11. Determination of pensionable salary.
(1)
Pensionable salary shall be the
average monthly pay drawn [in
any manner including on piece-rate basis] during the contributory period of
service in the span of 12 months preceding the date of exit from the membership
of the Employees' Pension Fund.
(2)
If during the said span of 12 months
there are non-contributory periods of service including cases where the member
has drawn salary for a part of the month, the total wages during the 12 months
span shall be divided by the actual number of days for which salary has been
drawn and the amount so derived shall be multiplied by 30 to workout the
average monthly pay.
(3)
The maximum pensionable salary shall
be limited to five thousand rupees per month:
[Provided that if at the option of the employer and employee,
contribution paid on salary exceeding Rs. 5,000 per month from the date of
commencement of this Scheme or from the date salary exceeds Rs. 5,000,
whichever is later, and 8.33 per cent share of the employers thereof is
remitted into the Pension Fund, pensionable salary shall be based on such
higher salary.]
Scheme - 12. Monthly Member's Pension.
(1)
A member shall be entitled to,
(a)
superannuation pension, if he has
rendered eligible service of 20 years or more and retire on attaining the age
of 58 years;
(b)
retirement pension, if he has rendered
eligible service of 20 years or more and retires or otherwise ceases to be in
the employment before attaining the age of 58 years;
(c)
short service pension, if he has
rendered eligible service of 10 years or more but less than 20 years.
(2)
In the case of a new entrant the
amount of monthly superannuation pension or retiring pension, as the case may
be, shall be computed in accordance with the following factors, namely:
Monthly
member pension = Pensionable salary x Pensionable service/70
[* * *]
(3)
In the case of an employee [who
was a member of the ceased Family Pension Scheme, 1971] and who has not
attained the age of 48 years on the 16th November, 1995;
Superannuation/retirement/short
service pension shall be equal to the aggregate of,
(a)
pension as determined under
sub-paragraph (2) for the period of pensionable service rendered from the 16th
November, 1995 of Rs. 635 per month whichever is more;
[(b) past service pension benefit shall be as given below:
The past
service benefit payable on completion of 58 years of age on 16.11.1995.
|
Years of
past service
|
Salary up
to Rs. 2,500 per month
|
Salary
more than Rs. 2,500 per month
|
|
(1).
|
(2)
|
(3)
|
|
(i) Up to
11 years
|
80
|
85
|
|
(ii) More
than 11 years but up to 15 years.
|
95
|
105
|
|
(iii)
More than 15 years but less than 20 years
|
120
|
135
|
|
(iv)
Beyond 20 years
|
150
|
170
|
Subject to
a minimum of Rs. 800 per month provided the past service is 24 years. If the
aggregate service of the member is less than 24 years, the pension and the
benefits computed as above shall be reduced proportionately subject to a
minimum of Rs. 450 per months].
[(c) On completion of the age of 58 years after 16-11-1995, the benefit
under column (2) or column (3) above, as the case may be, shall be multiplied
by the factor given in table B corresponding to the period between 16-11-1995
and date of attainment of age 58 to arrive at past service pension payable].
(4)
In the case of an employee [who
was a member of the ceased Family Pension Scheme, 1971] and has attained the
age of 48 years but less than 53 years on the 16th November, 1995, the
superannuation/retirement pension shall be equal to the aggregate of
(a)
pension as determined under
sub-paragraph (2) for the period of service rendered from the 16th November,
1995 or Rs. 438 per month whichever is more;
(b)
past service benefit as provided in
sub-paragraph (3) subject to a minimum of Rs. 600 per month provided the past
service is 24 years:
Provided
further that if it is less than 24 years the pension payable and the past
service benefits taken together shall be proportionately less subject to the
minimum of Rs. 325 per month.
(5)
In the case of an employee [who
was a member of the ceased Family Pension Scheme, 1971] and who has attained
the age of 53 years or more on the 16th November, 1995, the superannuation/retirement
pension shall be equal to the aggregate of,
(a)
pension as determined under
sub-paragraph (2) for the period of service rendered from the 16th November,
1995 per month or Rs. 335 per month whichever is more;
(b)
past service benefits provided in
sub-paragraph (3) subject to the minimum of Rs. 500 per month, provided the
past service is 24 years:
Provided
further that if it is less than 24 years the pension payable and the past
service benefits shall be proportionately lesser but subject to the minimum of
Rs. 265 per month.
(6)
Except as otherwise expressly provided
hereinafter the monthly member's pension under sub-paragraphs (2) to (5)
mentioned hereinabove, as the case may be, shall be payable from a date
immediately following the date of completion of 58 years of age notwithstanding
that the member has reitred or ceased to be in the employment before that date.
(7)
A member if he so desires, may be
allowed to draw a monthly reduced pension from a date earlier than 58 years of
age, but not earlier than 50 years of age. In such cases, the amount of pension
shall be reduced at the rate of [three
percent for every year, the age falls short of 58 years].
(8)
If a member ceases to be in the
employment by way of retirement or otherwise earlier than the date of superannuation
from which pension can be drawn, the member may, on his option, either be paid
pension as admissible under this Scheme on attaining the age exceeding 50 years
or he may be issued a scheme certificate by the Commissioner indicating the
pensionable service, the pensionable salary and the amount of pension due on
the date of exit from the employment. If he/she is subsequently employed in an
establishment coverable under this Scheme, his/her earlier service as per the
scheme certificate shall be reckoned for pension alongwith the fresh spell of
pensionable service. The member postponing the commencement of payment of
pension under this paragraph shall also be entitled to additional relief
sanctioned under this Scheme from time to time:
Provided
that if the member does not take up an employment coverable under this Scheme,
but dies before attaining the age of 58 years, the amount of contributions
received in his case shall be converted into a monthly widow pension/children
pension. The widow pension in such cases shall be calculated at the scale laid
down in Table 'C and the children pension at 25 per cent. thereof for each
child (upto two). If there is no widow then the orphan pension shall be payable
at the rate of 75 per cent, of the amount which would have been payable as a
widow pension subject to the provisions of para. 16.
Scheme - 12A. Option for commutation.
[A member eligible to pension may, in lieu of pension normally admissible
under Paragraph 12, opt on completion of three years from the commencement of
this Scheme, to commute up to a maximum of one-third of his pension so as to
receive hundred times the monthly pension so commuted as commuted value of
pension. Balance pension will be paid on monthly basis as per option exercised
under Paragraph 13.
Explanation.
If for example, the normal pension under Paragraph 12 is Rs. 600, and the
pensioner opts to commute one-third of this monthly pension, the commuted value
will be equal to 1/3 x 600 x 100 = Rs. 20,000 and the same shall be paid at the
time of exercise of option for commutation. The balance of pension payable on
monthly basis is Rs. 400].
Scheme - 13. Options for return of capital.
(1)
A member eligible to pension may, in
lieu of pension normally admissible under para. 12 [subject
to commutation of pension if any, under Paragraph 12-A] opt to draw for reduced
pension and avail of return of capital under any one of the three alternatives
given below:
|
Sl No.
|
Alternatives
|
Revised
pension payable
|
Amount
payable as return of capital
|
|
1.
|
Revised
pension during lifetime of member with return of capital on his death
|
90% of
original monthly pension
|
100 times
the original monthly pension on dealth of member to the nominee.
|
|
2.
|
Revised
pension during the lifetime of member, further reduced pension during
lifetime of the widow or her remarriage whichever is earlier and return of
capital on widow's death/remarriage.
|
90% of
original monthly pension to the member. On his death 80% of the original
monthly pension to the widow.
|
90 times
the original monthly pension on death of widow/remarriage to the nominee.
|
|
3.
|
Pension
for a fixed period of 20 years notwithstanding whether the member lives for
that period or not.
|
87.5% of
the original monthly pension for a fixed period of 20 years. The pension will
cease thereafter.
|
100 times
the original monthly pension at the end of 20 years from the date of
commencement of pension to the member if he is alive, otherwise to his
nominee.
|
Explanation
1. In alternative 2, if the [spouse]
dies or remarries before the death of member, capital equal to 90 times the
original monthly pension shall be paid to the nominee on the member's death.
Explanation
2.In alternative 3, if the member dies before the end of 20-year period, the
pension shall be paid to his nominee for the balance period.
Explanation
3.In the case of a member who is eligible for permanent total disablement
pension, and where the payment of such pension is to commence before his
attaining the age of 50 years, the option shall also be admissible but in such
cases the actual pension payable shall be reduced by 1% and the return of
capital shall be further reduced by Rs. 1,000 for every year by which the age
at the commencement of pension falls short of 50 years.
[Explanation 4.In cases of exercise of option for commutation under
Paragraph 12-A, balance monthly pension payable after commutation shall be
deemed to be the original monthly pension for the purpose of this paragraph.
(2)
The option under sub-paragraph (1)
shall be exercised by the member at the time of submission of the application
form for pension in accordance with the provisions of this Scheme. The option
once exercised shall be final. If no option is
exercised, the member shall be deemed not to have exercised any option under
this paragraph and his/her pension shall be determined under the provisions of
para. 12.
(3)
Notwithstanding that the capital is
returned under this paragraph the widow/children shall continue to be eligible
for normal widow pension/children pension/orphan pension under para. 16 of this
Scheme from the date immediately following the date of death of the member.
Scheme - 14. Benefits on leaving service before being eligible for monthly member's pension.
(1)
If a member has not rendered the
eligible service prescribed in para. [9]
on the date of exit, or on attaining 58 years of age whichever is earlier,
he/she shall be entitled to a withdrawal benefit as laid down in Table 'D' or
may opt to receive the scheme certificate provided on the date he/she has not
attained the 58 years of age:
Provided
that an existing member shall receive additional return of contributions for
his/her past service under the Employees' Family Pension Scheme, 1971 computed
as withdrawal-cum-retirement benefits as per Table 'A' multiplies by the factor
given in Table 'B'.
Scheme - 15. Benefits on permanent and total disablement during the service.
(1)
A member, who is permanently and
totally disabled during the employment shall be entitled to pension as
admissible under subparagraphs (2) to (5) of para. 12, as the case may be,
subject to a minimum of Rs. 250 per month notwithstanding the fact that he/she
has not rendered the pensionable service entitling him/her to pension under
para. 12 provided that she/he has made atleast one month's contribution to the
Pension Fund.
(2)
The monthly member's pension in such
cases shall be payable from date following the date of permanent total
disablement and shall be tenable for the lifetime of the member.
(3)
A member applying for benefits under
this paragraph shall be required to undergo such medical examination as may be
prescribed by the Central Board to determine whether or not he or she is
permanently and totally unfit for the employment which he or she was doing at
the time of such disablement.
Scheme - 16. Benefits to the family on the death of a member.
(1)
[Pension to the Family] shall be admissible from the date following the
date of death of the member, if the member dies:
(a)
while in service, provided that at
least one month's contribution has been paid into the Employees' Pension Fund;
or
(b)
after the date of exit but before
attaining the age of 58 years, from the employment having rendered service
entitling him/her to monthly member's pension but [before
the commencement of pension payment; or]
(c)
after commencement of payment of the
monthly member's pension.
(2)
(a) The monthly widow pension shall be
(i)
in the cases covered by Cl. (a) of
sub-paragraph (1) equal to the monthly member's pension which, would have been
adminisible as if the member had retired on the date of death or Rs. 450 or the
amount indicated in Table 'C whichever is more;
(ii)
in the cases covered by Cl. (b) of
sub-paragraph (1) equal to the monthly member's pension which would have been
adminisible as if the member had retired on the date of exit or Rs. 250 per
month or the amount indicated in Table 'C' whichever is more;
(iii)
in the cases covered by Cl. (c) of
sub-paragraph (1), equal to 50 per cent. of the monthly member's pension
payable to the member on the date of his death subject to a minimum of Rs. 250
per month.
(b) The
monthly widow pension shall be payable upto the date of death of the widow or
remarriage whichever is earlier.
(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 per cent. of the amount admissible to the
widow/widower of the deceased member as monthly, widow pension payable under
sub-paragraph (2) (a) (i) provided that minimum monthly children pension for
each child of the deceased member shall not be less than Rs. 115 per month.
[(c) monthly children penson shall be payable until the child attains the
age of 25 years]
(d) The monthly children pension
shall be admissible to maximum of two children at a time and will run from the
oldest to the youngest child in that order.
(4)
(a) If the deceased member is not
survived by any widow but is survived by children falling within the definition
of family or if the widow pension is not payable, the children shall be
entitled to a monthly orphan pension equal to 75 per cent, of the amount of the
monthly widow pension as payable under sub-paragraph (2) (a) (i) provided that
minimum monthly orphan pension for each orphan shall not be less than Rs. 170
per month.
(b) In the
event of death or remarriage of the widow/widower after sanctioning of
widow/widower pension the children shall be entitled in lieu of the monthly
children pension, to a monthly orphan pension from the date following the date
of death/remarriage of the widow/widower.
(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 as laid down
hereinafter provided that in the event of his/her acquiring a family
subsequently, the nomination so made shall become void. In the event of death
of the member such a nominee shall be entitled to receive a monthly pension
equal to the monthly widow pension, as admissible under sub-clauses (i) and
(ii) of Cl. (a) of subparagraph (2).
(b) If the
deceased member had not rendered pensionable service on the date of exit from
the employment which would have made him entitled to a monthly member's pension
under para. 12, but had opted to retain membership of this Scheme under sub-paragraph
(8) of para. 12, the nominee shall be entitled to return of capital as provided
in sub-paragraph (1) of para. 13.
Scheme - 16A. Guarantee of Pensionary Benefits.
[None of the pensionary benefits under this Scheme shall be denied to any
member or beneficiary for want of compliance with the requirements by the
employer under subparagraph (1) of Paragraph 3 provided, however, that the
employer shall not be absolved of his liabilities under the Scheme]
Scheme - 17. Payments on exercise of option.
[(1) Beneficiaries of the deceased members of the Employees' Family
Pension Scheme, referred to in sub-para (i) of Paragraph 7, shall receive
higher of the benefits available under the Employees' Family Pension Scheme,
1971 and under this Scheme.
(2) Members referred to in
sub-paragraph (2) of Paragraph 7 shall have the option to join this Scheme by
returning the amount of withdrawal benefit received, if any, together with
interest at the rate of 8.5 per cent per annum from the date of payment of such
withdrawal benefit and date of exercise of the option, to receive monthly
pension as per the provisions of this Scheme.
(3) Members referred to in
sub-paragraph (3) of Paragraph 7 shall be deemed to have joined the ceased
Employees' Family Pension Scheme, 1971 with effect from 1.3.1971 on remittance
of past period contribution with interest thereon.]
Scheme - 18. Particulars to be supplied by the employees already employed at the time of commencement of the Employees' Pension Scheme.
Every
person who is entitled to become a member of the Employees' Pension Fund shall
be asked forthwith by his employer to furnish and that person shall, on such
demand, furnish to him for communication to the Commissioner particulars
concerning himself and. his family in the form prescribed by the Central
Provident Fund Commissioner.
Scheme - 18. Preparation of contribution cards.
The
employer shall prepare an Employees' Pension Fund Contribution Card, in respect
of each employee who has become a member of the Employees' Pension Fund shall
be asked forthwith by his employer to furnish and that person shall, on such
demand, furnish to him for communication to the Commissioner particulars
concerning himself and his family in the form prescribed by the Central
Provident Fund Commissioner.
Scheme - 19. Preparation of contribution cards.
The
employer shall prepare an Employees' Pension Fund Contribution Card, in respect
of each employee who has become a member of the Employees' Pension Fund.
Scheme - 20. Duties of employers.
(1)
Every employer shall send to. the
Commissioner within three months of the commencement of this Scheme, a
consolidated return of the employees entitled to become members of the
Employees' Pension Fund showing the basic wage, retaining allowance, if any,
and dearness allowance including the cash value of any food concession paid to
each of such employees:
Provided
that if there is no employee who is entitled to become a member of the
Employees' Pension Fund, the employer shall send a 'NIL' return.
(2)
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:
Provided
that if there is no employee leaving service of the employer during the preceding
month the employer shall send a 'NIL' return.
(3)
Every employer shall maintain such
accounts in relation to the amounts contributed by him to the Employees'
Pension Fund as the Central Board, may, from time to time, direct and it shall
be the duty of every employer to assist the Central Board in making such
payments from the Employees' Pension Fund to his employees as are sanctioned by
or under the authority of the Central Board.
(4)
Notwithstanding anything contained in
this paragraph, the Central Board 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 carry
out such directions.
Scheme - 21. Employer to furnish particulars of ownership.
Every
employer in relation to a factory or other establishment to which the Act
applies or is applied hereafter shall furnish to the Commissioner particulars
of all the branches and departments, owners, occupiers, directors, partners,
managers or any other person or persons who have the ultimate control over the
affairs of such factory or establishment and also send intimation of any change
in such particulars, within fifteen days of such change, to the Commissioner by
registered post.
Scheme - 22. Duties of contractors.
Every
contractor shall, within seven days of the close of every month, submit to the
principal employer a statement showing the particulars in respect of employees
employed by or through him in respect of whom contributions to the Employees'
Pension Fund are payable and shall also furnish to him such information as the
principal employer is required to furnish under the provisions of this Scheme
to the Commissioner.
Scheme - 23. Allotment of account numbers.
(1)
For purposes of this Scheme, where the
member has already been allotted or is allotted hereafter an account number
under the Employees' Provident Funds Scheme, 1952, he shall retain the same
account number.
(2)
In the case of employees of the
establishments exempted from the Employees' Provident Funds Scheme, 1952, under
Section 17 of the Act, who are members of the Employees' Family Pension Fund
the account number already allotted shall be retained by them.
(3)
In the case of employees of the
establishments exempted from the Employees' Provident Funds Scheme, 1952, under
Section 17 of the Act, who are not members of the Employees' Family Pension
Fund but opt to become members of the Employees' Pension Fund and in case of
new employees of such establishments, fresh account numbers shall be allotted
by the Commissioner.
Scheme - 24. Declaration by persons taking up employment after the fund has been established.
The
employer shall before taking any person into employment, ask him/her to state
in writing whether or not he is a member of the Employees' Pension Fund and, if
he/she is, also ask him/her to furnish a copy of the scheme certificate issued
by the Commissioner to him/her in respect of the past employment in terms of
para. 12 as the case may be. If the person concerned was not in employment
previously or had availed of return of contribution in respect of his/her self
previous employment, he/she shall, on demand by the employer, furnish to him,
for communication to the Commissioner particulars concerning him/her self and
his/her family in the Form prescribed by the Central Provident Fund
Commissioner.
Scheme - 25. Employees' Pension Fund Account.
The account
called the "Employees' Pension Fund Account" shall be opened by the
Commissioner in such manner as may be specified by the Central Board with the
approval of Central Government.
Scheme - 26. Investment of the Employees' Pension Fund.
(1)
All moneys accruing to Employees'
Pension Fund Account except the contributions of the Central Government shall
be invested in accordance with the provisions of para. 52 of the Employees'
Provident Funds Scheme, 1952.
(2)
Net assets of the Family Pension Fund
as on 16th November, 1995 shall merge in the Pension Fund and remain invested
in the Public Account of the Government of India. The future Central
Government's contribution accruing to the Pension Fund from 17th November,
1995, onwards shall also be invested to the Public Account of the Government of
India.
Scheme - 27. Disposal of the Fund.
(1)
Subject to the provisions of the Act
and this Scheme, the Fund shall not, except with the prior sanction of the
Central Government be expended for any purpose other than the payments
envisaged in this Scheme; for continued payment of Family Pension, life
assurance benefit and retirement-cum-withdrawal benefits sanctioned under the
Employees" Family Pension Scheme, 1971, prior to the date of introduction
of this Scheme or which may be sanctioned under that Scheme after the 16th
November, 1995 in respect of cases arising before that date.
(2)
Not exceeding 16 per cent. of the
administrative expenses shall be met from and out of the Employees' Pension
Fund. The remaining administrative expenses shall be met from the
Administration Accounts set up under the Employees' Provident Funds Scheme,
1952. The cost of remittance of pension shall be charged on the Pension Fund.
Scheme - 28. Administration Account.
A separate
account shall be kept, called the "Employees' Pension Administration
Account" for recording of all the administrative expenses of the
Employees' Pension Fund.
Scheme - 29. Forms of Accounts.
The
accounts of the Employees' Pension Fund, as also the Employees' Pension
Administration Account shall be maintained by the Commissioner in such form and
in such manner as may be specified by the Central Board with the approval of
the Central Government.
Scheme - 30. Audit.
The
accounts of the Employees' Pension Fund including the administrative expenses
incurred in running this Scheme shall be adudited in accordance with the
instructions issued by the Central Government in consultation with Comptroller
and Auditor-General of India.
Scheme - 31. Rounding up of the benefits.
All items
of benefits shall be calculated to the nearest rupees, 50 paise or more to be
counted as the nearest higher rupee and fraction of a rupee less than 50 paise
shall be ignored.
Scheme - 32. Valuation of the Employees' Pension Fund and review of the rates of contributions and quantum of the pension and other benefits.
[(1) The Central Government shall have an annual valuation of the
Employees' Pension Fund made by a valuer appointed by it].
(2) At any time, when the
Employees' Pension Fund so permits, the Central Government may alter the rate
of contributions payable under this Scheme or the scale of any benefit
admissible under this Scheme or the period for which such benefit may be given.
Scheme - 33. Disbursement of pension and other benefits.
The
Commissioner shall, with the approval of the Central Board, enter into
arrangement for the disbursement of pension and other benefits under this Scheme
with disbursing agencies like Post Offices or Nationalised Banks or Treasuries.
The commission payable to the disbursing agencies and other charges incidental
thereto shall be met as provided in para. 27 of this Scheme.
Scheme - 34. Registers, records, etc.
The
Commissioner shall, with the approval of the Central Board, prescribed the
registers and records to be maintained in respect of the Employees, the form or
design of any identity card, token or disc for the purpose of identifying any
employee or his nominee or a member of a family entitled to receive the pension
and such other forms/formalities as have to be completed in connection with the
grant of pension and other benefits or for the continuance thereof subject to
such periodical verification as may be considered necessary.
Scheme - 35. Power to issue directions.
The Central
Government may issue, such directions as may be deemed just and proper by it
for resolving any difficulty in the disbursement of pension and other benefits
or for resolving any difficulty in implementation of this Scheme.
Scheme - 36. Regional Committee.
The
Regional Committee set up under para. 4 of the Employees' Provident Funds
Scheme, 1952, shall advise the Central Board, on such matters, in relation to
the administration of this Scheme as the Central Board may refer to it from
time to time and in particular, on
(a)
progress of recovery of contributions
under this Scheme both from factories and establishments exempted under Section
17 of the Act and other factories and establishments covered under the Act,
(b)
expeditious disposal of prosecutions,
(c)
speedy settlement of claims relating
to pension and other benefits under this Scheme.
Scheme - 37. Annual Report.
The Central
Board shall cause to be included in the Annual Report on the working of the
Scheme prepared under para. 74 of the Employees' Provident Funds Scheme, 1952,
a report on the working of this Scheme during the previous financial year.
Scheme - 38. Application of the provisions of the Employees' Provident Funds Scheme, 1952.
In regard
to matter for which either there is no provision or there is inadequate
provisions in this Scheme the corresponding provisions in the Employees'
Provident Funds Scheme, 1952, shall apply.
Scheme - 39. Exemption from the Operation of the Pension Scheme.
[The appropriate Government may grant exemption to any establishment or
class of establishment from the operation or this Scheme, if the employees of
the establishments are either members of any other Pension Scheme or propose to
be members of a Pension Scheme wherein the pensionary benefits are at par or
more favourable than the benefits provided under this Scheme. Where exemption
is granted to any establishment or class of establishments under this
paragraph, withdrawal benefits available to the credit of the employees of such
establishment(s) under the ceased Family Pension Scheme, 1971 shall be paid,
subject to the consent of the employees, to the Pension Fund of the
establishment(s) so exempted. An application for exemption under this paragraph
shall be presented to the Regional Provident Fund Commissioner having
jurisdiction by the establishment or class of establishments together with a
copy of the Pension Scheme of the establishment(s) and other relevant documents
as may be called for by him. On receipt of such an application, the Regional
Provident Fund Commissioner shall scrutinise it, obtain the recommendations of
the Central Provident Fund Commissioner and submit the same to the appropriate
Government for decision. Pending disposal of application for exemption under
this paragraph, employees' share of the contribution shall not be remitted to
the Pension Fund as envisaged in subparagraph (1) of Paragraph 3. An
application for exemption presented under this paragraph snail be disposed of
within a period of six months from the date of its receipt or such further time
as may be extended for reasons to be recorded in writing. If the application
for exemption is not disposed of within the period so specified, the exemption
applied for shall be deemed to have been granted.
Explanation.
For the purpose of this paragraph, the period of six months will count from the
date on which the application for exemption is given in complete form to the
satisfaction of the Regional Provident Fund Commissioner.
Scheme - 40. Information to the Central Government.
The Central
Board shall furnish such information to the Central Government from time to
time in respect of the income and expenditure from the Employees' Pension Fund
Account in such manner as may be directed by the Central Government.
Scheme - 41. Interpretation.
Where any
doubt arises with regard to the. interpretation of the provisions of this
Scheme, it shall be referred to the Central Government who shall decide the
same.
Scheme - 42. Punishment for failure to submit return, etc.
If any
persons,
(a)
deducts or attempts to deduct from the
wages or other remuneration of the member, the whole or any part of the
employers' contributions, or
(b)
fails or refuses to submit any return,
statement or other documents required by this Scheme or submits a false return,
statement or other documents, or makes a false declaration, or
(c)
obstructs any inspector or other
official appointed under the Act or this Scheme in the discharge of his duties
or fails to produce any record for inspection by such Inspector or other
officials, or
(d)
is guilty of contravention of or
non-compliance with any other requirement of this Scheme, he shall be punishable with imprisonment, which may extend to one year,
or with fine, which may extend to five thousand rupees, or with both.
Scheme - 43. Payment of pension in the case a person charged with the offence of murder.
(1)
If a person, who in the event of the
death of a member of the Pension Fund is eligible to receive pension of the
deceased under para. 12 or para 16, is charged with the offence of murdering
the member or for abetting the commission of such an offence, his claim to
receive pension shall remain suspected till the conclusion of the criminal
proceedings instituted against him for such offence.
(2)
If on the conclusion of the criminal
proceedings referred to in subparagraph (1), the person concerned is
(a)
convicted for the murder or abetting
in the murder of the member, he shall be debarred from receiving pension which
shall be payable to other eligible members, if any, of the family of the
member; or
(b)
acquitted of the charge of murder or
abetting the murder of the member, pension benefit shall be payable to him.
Scheme - 44. Repeal and Savings.
(1)
On commencement of this Scheme, the
Employees' Family Pension Scheme, 1971 in force immediately before such
commencement shall cease to operate with effect from the 16th November, 1995.
(2)
Notwithstanding anything contained in
sub-paragraph (1) every nomination made under the Employees' Family Pension
Scheme, 1971, and every form regarding the details of family of an employee for
the purposes of the Employees' Family Pension Scheme, 1971 shall be deemed to
have been made under the provisions of this Scheme.
(3)
All orders/authorisations/Pension
Payment Orders issued under the Family Pension Scheme, 1971, shall be deemed to
have been under this Scheme.