BENEFITS OF PENSION SCHEME
a. An Employee is eligible for Pension after 10 years of service.
b. The Pension is payable on attaining the age of 58 years, whether he is in service or superannuated.
c. Early Pension at reduced rate can be availed on leaving the employment, after attaining the age of 50 years.
d. 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.
e. 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.
g. A Pensioner may nominate a person to receive a lumpsum amount after his death, as Return of Capital.
h. Family Pension is payable in case of death of a member:
– 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 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 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
i. 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).