BENEFITS OF PENSION SCHEME PENSION SCHEME IS A BOON TO WORKING CLASS

An Employee is eligible for pension with minimum 10 years of pensionable 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 The Pension quantum is determined separately for the period of service from 1.3.1971 to 15.11.1995 as a 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 The contribution to Pension Fund can be made beyond the ceiling limit of Rs.6,500/-on the joint request of employee and the employer so as to get more pension benefit; but only when request is made immediately upon salary/wages exceeding the ceiling. The employees who have not contributed to the Employees? Family Pension Scheme, 1971 can also join the new Pension Scheme before attaining 58 years at their option, after paying the contribution and interest up-to-date from 1.3.1971 or date of joining whichever is earlier. Where an employee is totally disabled and leaving the service on account of disablement, disablement Pension is allowed. No age and service stipulation to claim this pension; provided disability should be 100% rendering the member unable for the job he was in before disablement. Wherever the Pension claims are received one month before the date of Retirement the Regional Provident Fund Commissioner will deliver the Pension Payment Order on the day of Retirement. Apart from Pension benefit, a member pensioner can commute up to one-third of his pension and in lieu of this. He will received a lump sum amount equivalent to 100 times of the commuted value of pension; but once the option for or against is decided in application form 10D the same can?t be changed. A pensioner may nominate a person to receive a lump sum amount after his death as Return of Capital by opting for it. Family Pension is payable in case of death of a Member

 1. After leaving the employment 2. While in employment 3. After drawing the Pension
Family Pension is payable even where the death occurs before 10 years of service in case of death while in service. Thus in such cases the minimum eligible service of 10 years is not applicable On Death of a member pensioner, the Pension is automatically payable to the spouse (widow/widower and eligible children). When a member dies while in service 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 two a a time in order of their seniority. It is payable to the married daughter/son also Minimum Widow Pension - Rs.450 Minimum Child Pension - Rs.150

On death or re-marriage of widow/widower, the children will be given enhanced pension treating such children as Orphan. Minimum Orphan Pension - Rs.250

On behalf of the minor children the pension is payable to guardian. Any child in a family with total and permanent disablement will receive pension till death; in addition to other eligible children. The monthly pension is payable through Andhra/State Bank of India, UTI, ICICI, HDFC Banks in Andhra Pradesh State 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 the Pension Fund.

Where an employee has not served for 10 years on the date of leaving the service, he may obtain a Scheme Certificate so as to continue his membership during unemployment period and the same can be used to transfer the previous service as and when he joins another establishment. In case of death during unemployment spouse & Children below 25 years become eligible for Pension, if the member is holding scheme certificate.

EMPLOYEES -- KNOW YOUR BENEFITS::

The Provident Fund Act is applicable to specified establishments in which 20 or more persons (including contract employees) are working: Any establishment can seek voluntary application of the Act. All employees are eligible to become a member of Provident Fund from the date of their joining the establishment On becoming a member, an employee is eligible for Provident Fund benefits, Pension benefits and Insurance benefits Every employee is required to pay Contribution to the Provident Fund @ 12%/10% of their Basic wages and Dearness Allowance The employer will also pay an equal amount of contribution of which 8.33% shall be credited to Pension Fund and remaining to Employee P.F. Account. The interest is added annually on the Provident Fund accumulations. The members are informed of the balance of their Provident Fund accumulations every year through the Annual Provident Fund Statement of Accounts (Form 23) The Provident Fund members can avail advances/withdrawals for House constructions, Marriage, Illness, Closure of establishment, etc., through Form 31 which provides details and documents to be submitted On retirement or on leaving the service, the Provident Fund accumulations can be withdrawn in full by submitting Form 19 For premature settlement of P.F accumulations two months waiting period from date of leaving service is compulsory. In case of premature death, the Provident Fund is payable to Nominee?s or family

members, through Form 20 immediately. A member of the Provident Fund is also a member of Insurance Scheme. In case of death of an employee while in service, up to Rs.60,000/- is payable to Nominee/Family members, through Form 5 IF. No contribution is required to be paid by the employee for the insurance benefit. On behalf of the employee, the employer is required to pay the contribution. A member of the Provident Fund also acquires membership under Pension Scheme. No separate amount of contribution is payable by the employee towards Pension Fund. The pensionary benefit is not related to the quantum of contribution paid and no individual account is kept for Pension contribution. Hence no annual statement of account is supplied for pension Account. Pension is based on the service, age and wage of an employee at the time of his leaving the service. The payment of Pension is guaranteed and assured even in cases where the employer fails to deposit the Pension contribution.

EMPLOYERS KNOW YOUR DUTIES ::

1. All employees including contract employees are to be enrolled as Provident Fund members from the date of their Joining your establishments 2. Forward the details of employees enrolled as Provident Fund members and leaving the Establishment before 15th of every month to the Regional Provident Fund Commissioner through Form 5 and Form 10. 3. Obtain the Nomination Form and forward along with Form No.5 & 10. 4. Pay the Provident Fund/Pension/Insurance Fund contributions and Administrative charges before 15th of each month so as to AVOID payment of interest and penal damages on belated deposit and to prevent action of prosecution, imprisonment, sale of movable/immovable property, attachment of Bank Accounts etc. 5. Submit the Annual contribution Card of each member in Form 3A along with Form 6A before 30th of April of each year.

6. Forward the applications for Advance/Withdrawal and Final Settlement of Provident Fund Account, pensionary benefits and insurance benefits, within 5 days. 7. Distribute the Provident Fund Statement of Account in Form 23 to all members immediately on its receipt from the Regional Provident Fund Commissioner.