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    Family Pension Scheme

    Uploaded by

    Jitu Choudhary
    This document summarizes the key details of the Employees' Family Pension Scheme-1995 in India. It provides pension to employees upon retirement or death. The employer contributes 8.33% of basic pay and the government contributes 1.16%. To be eligible, one needs 10 years of service. The scheme provides monthly pension to members upon superannuation, retirement or disability. It also provides monthly pension to widows, children and nominees upon a member's death. Members have the option to commute up to 1/3 of their pension or opt for return of capital in exchange for a reduced monthly pension.

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    Family Pension Scheme

    Uploaded by

    Jitu Choudhary
    258 views15 pages
    This document summarizes the key details of the Employees' Family Pension Scheme-1995 in India. It provides pension to employees upon retirement or death. The employer contributes 8.33% of basic pay and the government contributes 1.16%. To be eligible, one needs 10 years of service. The scheme provides monthly pension to members upon superannuation, retirement or disability. It also provides monthly pension to widows, children and nominees upon a member's death. Members have the option to commute up to 1/3 of their pension or opt for return of capital in exchange for a reduced monthly pension.

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    This document summarizes the key details of the Employees' Family Pension Scheme-1995 in India. It provides pension to employees upon retirement or death. The employer contributes 8.33% of basic pay and the government contributes 1.16%. To be eligible, one needs 10 years of service. The scheme provides monthly pension to members upon superannuation, retirement or disability. It also provides monthly pension to widows, children and nominees upon a member's death. Members have the option to commute up to 1/3 of their pension or opt for return of capital in exchange for a reduced monthly pension.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    258 views15 pages

    Family Pension Scheme

    Uploaded by

    Jitu Choudhary
    This document summarizes the key details of the Employees' Family Pension Scheme-1995 in India. It provides pension to employees upon retirement or death. The employer contributes 8.33% of basic pay and the government contributes 1.16%. To be eligible, one needs 10 years of service. The scheme provides monthly pension to members upon superannuation, retirement or disability. It also provides monthly pension to widows, children and nominees upon a member's death. Members have the option to commute up to 1/3 of their pension or opt for return of capital in exchange for a reduced monthly pension.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 15

    EMPLOYEES FAMILY PENSION SCHEME-1995

    Presented by Jitu Choudhary

    Purpose of the Family Pension Scheme


    To provide pension to Employee On death of employee provide Pension to his family including children Thus Scheme makes provision for : * Old age after retirement * Family after untimely death of employee

    PENSION FUND
    Employers contribution - 8.33 % of basic Central Govt.s contribution 1.16 % of basic ---------------------------------------There is no Employees contribution ---------------------------------------(Maximum contribution is made on basic Rs.6500/-)

    Eligibility for monthly Pension


    Minimum service 10 Years (Except in case of permanent and total disablement) Minimum contribution 1 month

    Monthly Pension for member


    Type of Pension
    1 Superannuation Pension 2 Retirement Pension 3 Short Service Pension 4 Permanent & Total Disablement Pension Withdrawal benefit

    Condition
    20 Yrs Service + Age 58 Yrs 21 Yrs Service + Age below 58 Yrs 10 Yrs but less than 20 yrs Service One month's contribution to Pension Fund, (irrespective of Pensionable service) Less than 10 years service

    Pension amount
    Pensionable salary x Pensionable service Monthly Pension = --------------------------------------------70

    *Minimum pension Rs 928/- pm *Permanent & Total Disablement- Min. Pension Rs.250/-pm
    OPTIONS : Option for commutation Option for Return on Capital

    Option for Commutation


    In lieu of monthly pension Members can opt to commute maximum upto 1/3rd of his pension so as to receive 100 times the monthy Pension so commuted as commuted value of pension. Balance pension will be paid on monthly basis. Example : Normal Pension is say Rs. 600/-. The pensioner opts to commute 1/3rd of this pension. The commuted value will be equal to 1/3 x 600 x 100= Rs.20,000/- .This will be paid when option for commutation is exercised. The balance of pension will be paid on monthly basis @ Rs. 400/- PM (Rs.600-200=400)

    PENSION ON DEATH OF MEMBER


    1. Monthly Widow Pension + Monthly Children Pension 2. Monthly Orphan Pension

    3. Monthly Nominee Pension

    Widow pension
    1 If employee died in service 2 If employee died after Service and before attaining age of 58 Years 3 If employee died after commencement of monthly Pension Equal to monthly pension of Member as if he retired on dt. of death OR Rs.450/- p.m. OR Amount in Table C whichever is more Equal to monthly pension of Member as if he retired on dt. of exit OR Rs.450/- p.m. OR amount in Table C whichever is more 50 % of Member's Pension (Minimum Rs. 450/p pm)

    CHILDREN PENSION
    Applicable Pension Eligibility Surviving children of the deceased member 25 % of Widow Pension ( Minimum Rs. 150/- pm) * Maximum - 2 children * Till age of 25 years * Permanent & Total disabled children will get pension irrespective of age and no. of children.

    ORPHAN PENSION
    Applicable If widow pension is not payable (i.e.no widow or widow remarried and only children are there) 75 % of W idow Pension ( M inimum Rs. 250/- pm) * Maximum - 2 Orphan Children * Permanent & Total disabled children will get pension irrespective of age and no. of children(Para 16(3)(e).

    Pension Eligibility

    NOMINEE PENSION
    Applicable Pension If no living spouse or children Equal to Widow Pension

    Option for Return on Capital


    Members can opt for reduce pension to avail Return on capital.
    Sr.No. ALTERNATIVES 1 a) Revised Pension during lifetime . of M ember + b) Return on Capital on death of member 2 a) Revised Pension during lifetime of M ember And lifetime of W idow REVISED PENSION 90 % of original M onthly pension RETURN ON CAPITAL 100 times of original monthly pension on death of M ember to nominee 90 % of original 90 times of original M onthly pension to monthly pension on M ember And on his death of widow/ death 80 % of original remarriage to nominee monthly Pension to W idow 87.5 % of monthly 100 times of original pension for 20 yrs monthly pension at he ( After 20 yrs pension end of 20 years to will cease) M ember if he is alive, otherwise to Nominee

    3 Pension for fixed period of 20 yrs (W hether member lives or dies during the said period)

    This is in addition to W idow/ Children/ Orphan normal pension on death of M ember

    Remember ..
    Types of monthly pension 1. Monthly pension to member on his :
    * Superannuation Pensions( 20yrs service + 58 yrs age) * Retirement Pension ( 20 yrs service + Age below 58 yrs). * Short service pension (10yrs but less than 20 yrs service) Options : Option for commutation Option for Return on Capital

    2. Monthly pension to Member on Permanent & total disablement.(Minimum Rs.250/- p.m.)

    3. Monthly pension to family upon death of member : a) Widow Pension b) Children Pension c) Orphan Pension 4. Pension to nominee If no family or unmarried

    Thank you
    I welcome your question, if any.

    For further details you can contact me on [email protected]

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