1) Who will be covered by
the Pension Scheme?
Every member of the ceased Family Pension
Scheme 1971 and anyone who joins any covered
establishment on or after 16-11-95 is compulsorily
to join this scheme, provided his/her salary/wage is
less than Rs. 6500/- per month at the date of
2) What is a covered
Covered establishment is an establishment belonging
to the class of industries / other establishments,
which has been listed in the schedule appended to
the Employees' Provident Fund and Miscellaneous
Provisions Act 1952 and where 20 or more persons are
3) If employee was a Family
Pension Scheme member. He/She has left on 13-12-93
and he/she is 54 years old. He/She has taken his
withdrawal benefit. Can he/she join the new scheme?
Yes, by refunding withdrawal benefit
together with interest. Thereafter, he/she will be
entitled to receive pension from age 58, if he/she
completes atleast 10 years of contributory service
4) If employee is a Family
Pension Scheme Member and he/she has retired after
58 years of age on 15-01-94. Can he/she join the new
Yes, anyone who has retired by reaching age
58 between 01-04-93 and 15-11-95 may join the scheme
by returning the withdrawal benefit along with
interest. He will be paid pension with immediate
effect, from date of exit provided he has rendered
10 years of contributory service.
5) If employee is not a
Family Pension Scheme member and he/she is 56 years
of age, Can he/she join Family Pension?
Yes, by diverting from his/her Provident
Fund balance, Family Pension Scheme contribution
from date of his/her joining or 01-03-71, whichever
6) Whether the Family
Pension Scheme member who has attended the age of 58
years before 01-04-93 and has left employment after
01-04-93 will be admitted to the scheme as member of
Family Pension Scheme, 1971?
Yes, he will be deemed to have retired
after 01-04-93. On repayment of that withdrawal
benefit which was paid, Pension will be paid from
same date, provided he has rendered 10 years of
7) In case Family Pension
member has attained the age of 58 years between
01-04-93 and 16-11-95 then in that case whether
arrears of monthly Member Pension become payable for
the period earlier than 16-11-95 i.e. from the date
of his/her attaining the age of 58 years which is
prior to 16-11-95?
No, he/she will be deemed to have retired
from 16-11-95 and pension paid accordingly.
8) Is employee the only
beneficiary of Fund?
Benefit will be paid to him/her and in
his/her absence to his/her family.
9) What is meant by Family?
Family means employees' spouse and children
below 25 years of age.
10) Suppose an employee does
not have a Family and he/she dies before receiving
benefit. Does his/her pension get lost?
No, if he/she does not have a family,
benefits will be paid to his/her nominee, who will
receive the benefit in his/her absence.
11) Suppose member has not
The pension / ROC will be paid to the
12) Can member change
He/She can change his/her nomination
whenever he/she decides within the framework of
rules for such nomination. In other words if he/she
has a family, nomination should be in favour of a
member(s) of the family. If he/she has no family
he/she can nominate anyone he/she wishes.
13) How many years service
is required to be eligible to receive member
Minimum 10 years eligible service will
entitle for member pension.
14) Employee is a member of
Employees' Pension Scheme. He/She has left
employment at 48 yrs. of age and 8 yrs. of service.
When shall he/she receive his/her pension?
He/She can take either withdrawal benefit
or can take scheme certificate so that the 8 years
service can be added to any future service that he /
she may put in, in any other covered establishment.
By virtue of being a holder of a scheme certificate,
if the member dies before 58 years widow / widower
and children shall be entitled for pension.
15) What is past service pension?
This pension is for the period of
membership of the Employees' Family Pension Scheme,
16) When does an employee
become eligible to become a member of Employees'
Provident Fund Scheme, 1952 and Employees' Deposit
Linked Insurance Scheme, 1976?
An employee becomes a member of Employees
Provident Fund (Employees' Provident Fund) Scheme,
1952 / Employees Deposit Linked Insurance
(Employees' Deposit Linked Insurance) Scheme, 1976
immediately on joining an establishment covered
under the Employees Provident Funds & Miscellaneous
Provision Act, 1952.
17) What is nomination?
Every member has to give the details of
himself & details of the nominee for Employees'
Provident Fund & Employees' Deposit Linked Insurance
Schemes and details of family for Employees Pension
Scheme, 1995 in form no. 2.
A member if, is having a family can nominate any one
or more persons to receive the Provident Fund on his
death. In case of him having no family he can
nominate any other person.
Family for the purpose of Employee Provident Fund
Scheme'52 means wife/husband, children, whether
married or unmarried, including adopted children, if
adoption is recognized and dependant parents of
Employees Deposit Linked Insurance Scheme benefit
will be paid to the nominee under Employees
Provident Fund Scheme, 1952.
For the purpose of Employees Pension Scheme,1995 the
member has to furnish the details, such as name,
relationship & age of all the family members in the
form no. 2. Family for the purpose of Employees
Pension Scheme, 1995 means wife/husband & children.
Whenever member wants to make a change in the
nomination already made for Provident Fund, or to
update the details of family for Employees Pension
Scheme,1995, he has to send a revised form no. 2.
The form no.2 is routed through the employer.
18) What are the periodical
returns to be sent by an employer to the Provident
The employer of an un-exepted establishment
has to forward the following returns. These returns
will include details required under the three
schemes namely, Employees Provident Fund Scheme,
1952, Employee Deposit Linked Insurance Scheme,1976
and Employee Pension Scheme, 1995.
The details of employees enrolled as members of
Employees' Provident FundS'52, Employees' Deposit
Linked Insurance'76 & Employees' Pension Scheme'95
on coverage of the establishment- This is to be
submitted immediately after coverage, within 15 days
The details of the contributions recovered form the
members & paid along with details of employers'
contribution & administrative charges- This is to be
submitted monthly by 25th of following month.
The details of the employees enrolled newly to the
Provident Fund- To be submitted along with Form-12A
every month within 15 days of the following month.
The details of the employees leaving service during
the month- To be submitted along with form-12A.
The triplicate copy of challans in token of having
remitted the Provident Fund dues in the bank- to be
submitted along with form-12A every month.
Nomination form- To be submitted along with
The details of wages & contributions in respect of
each member, to be prepared financial year wise- To
be submitted to the Provident Fund office by 30th of
April every year.
Yearly consolidated statement of contributions- To
be forwarded yearly along with form-3A. It should be
ensured that all the form-3A are entered in form-6A,
irrespective of whether the form-3A was forwarded
for the broken period and the total dues as per the
form-12A for the whole year agrees with the total of
form-6A within 30th April.
Return of ownership of the establishment- To be
forwarded immediately after coverage & whenever
there is a change in the ownership, it has to be
intimated with in 15 days of change.
j) Specimen signature:
Specimen signature of the officer/officers who are
authorized to sign the returns/documents relating to
Provident Fund forwarded immediately after coverage
& whenever there is a change in
19) What is the procedure to
be followed by the member if the employer is not
attesting his claim forms?
It is the duty of the employer under the
Act & Scheme to help Employees' Provident Fund
organisation to settle the Provident Fund dues of
his employees. He has to complete the prescribed
application within 5 days of receipt [para72(5)]
forms & hand over it to the member when he leaves
the service. When a member finds difficult to get
the form attested by the employer, he can get the
attestation of any of the following officer & send
to the Provident Fund office
Manager of a bank.
By any gazetted officer.
Member of the Central Board of
Trustees./ committee/ Regional Committee
Provident Fund Organization).
Magistrate/ Post/ Sub Post
Master/ President of Village Panchayat/ Notary
20) What is the mode of
payment of Provident Fund and Employees' Deposit
Linked Insurance dues?
Provident Fund & Employees' Deposit Linked
Insurance dues is paid by money order/ by deposit in
payees' bank a/c/ through employer/ by depositing
the cheque in payees' name or part of amount in
annuity scheme in any nationalised bank. Payment by
money order is allowed where the amount is not more
than Rs. 2000/-.
21) What are the modalities
to be followed for payment through cheque?
The member has to open an account in the
nationalised bank, scheduled bank, urban bank or
post office savings bank. He has to furnish the
details of bank a/c no. with the full address of the
bank in application form. An advance stamped receipt
has also to be annexed in the form.
For receipt of pension member/claimant has to open
an account only in State Bank of India or Punjab
22) In case of returning of
cheque what is the procedure to be followed?
Generally the cheques are returned by the
bankers when the a/c number is furnished incorrect
or a/c has been closed. On receipt of the cheque
from the bankers the Provident Fund office will
write to the member & employer about the fact &
request them to intimate the bank, a/c number &
detailed address. In case, the member comes to know
about returning of the cheque before this, he can
write to the Provident Fund office through his
former employer regarding his present address & bank
23) What is the time taken
for disposal of the application in the Provident
The claims received complete in all
respects are disposed off within a maximum period of
30 days from the date of receipt of claims in the
office. In case the member is not hearing anything
about his application within 30 days, he can
approach the Public Relation Officer.
24) What is the voluntary
rate of Provident Fund contribution by the member?
As per the Act, the member has to
contribute at the rate of 10% or 12% of his basic
pay, D.A. & retaining allowance if any. In case the
member wants to contribute more than this,
voluntarily he can do so at any rate he desires.
i.e. upto 100% of basic and D.A. But the employer is
not bound to contribute at the enhanced rate.
25) Can member not get pension
Yes, he/she may receive pension on reaching age of
50 years. In that case pension payable from age of
50 years will be reduced by 3% for each year falling
short of 58.
26) Member's pension has been worked out based on
salary at age 48 and service upto 48. Will this
pension remain same until he/she reach age 58?
No, the pension will be increased on subsequent
actuarial valuation along with vested percentage.
27) Past service pension is Rs. 170/- now. If
employee retires after 10 years what will be his/her
past service pension?
His/her past service pension will be accumulated as
per factor Table B. As such pension payable will be
Rs.170 * 2.720 = 462.40.
28) Why are there two pension formulas?
For the past service upto 15.11.95, there is a table
to calculate the benefits. For actual service from
16.11.95 onwards there is a formula which is Pension
formula is 1/70 * Pensionable Salary * Pensionable
Service. From those rendering 20 years service,
pensionable service is enhanced by two years. This
is inline with concept that maximum pension should
be paid to the longest service employee.
29) If employee has reached age of 50 years, what
does he/she has to do to receive monthly pension?
As and when he / she is quitting the employment,
they can apply for reduced monthly pension.
30) Employee is a member of ESIC. On his disablement
he will receive benefit from there as well. Will his
benefit under Employees' Pension Scheme be affected
No, his benefit under the scheme is due to his
contribution under The Employees' Pension Scheme
'95. Accordingly the disablement pension will not be
affected notwithstanding his availing benefit
31) Employee has left his employment on reaching age
45. He has deferred his pension till 58. He has
become permanently disabled after 3 years from
leaving service. Does he receive disablement
pension? No, he will receive disablement pension
from date of disablement only if such disablement
occurs while in service.
32) In case of employee's death in service, what
benefit will be available to his family?
Widow will receive pension :-
a) The pension as he would have received had he
retired on the day of death or
b) Such widow pension would have been payable under
erstwhile Family Pension Scheme or
c) Rs. 450/- per month whichever is highest.
In addition 25% of widow pension with minimum of Rs.
150/- for each child (not exceeding two children at
a time) will be paid until the youngest child
reaches 25 years of age.
33) Employee has left covered establishment after 12
years in service and he has not taken withdrawal
benefit. He has not reached age 58. In case he dies
during deferment of pension what benefit will widow
Widow will receive pension :-
a) Pension that he would have received had he
retired on the day of death, or
b) Family pension payable under erstwhile Family
Pension Scheme, or
c) Rs. 450/- per month whichever is the highest.
34) Employee has left service with 8 years of
service. He has not taken refund of contribution. He
has not reached age 58. If he dies during deferment
what benefit will his widow receive?
She will receive widow pension as prescribed and not
the retirement pension.
35) Employee has made an Option-1 i.e. to receive
90% of original monthly pension. What capital return
on his death?
100 times of original pension.
36) Employee has opted for Option-1 where his wife
is nominee. Does his wife get widow pension after
his death even though she will receive capital sum?
Yes, she will get 50% of pension last drawn by him
or Rs. 450 p.m. whichever is the highest in addition
to payment of Return of Capital.
37) What is Commutation?
It is the option to receive a capital sum today
instead of receiving a monthly pension for rest of
38) What is the rate of commutation?
It is upto 1/3rd of the Original Pension. Suppose
the original pension is Rs.600/-, the commutation
value is Rs.20,000/-. On commutation, the pension
payable will be Rs. 400/-.
39) When will commutation be effective?
This will be effective from 16-11-98.
40) Employee is a member of The Employees' Pension
Scheme. What are his duties?
He should provide his employer with such details as
would be required for the scheme purposes. He should
submit his scheme certificate to his new employer if
he changes his employment.
41) Anyone runs a covered establishment. What are
a) Furnish particulars of ownership.
b) He should obtain from each of his employees,
pension scheme details in form 2 (R). He should send
such details for all existing employees. In case of
new employees, such details are to be sent within 3
months of date of enrollment.
c) He should maintain in Form 3A / Form 7 (PS) such
account in respect of contribution as required.
d) Within 15 days of each month he will remit the
contribution to the Pension Fund. If there is no
employee he shall submit nil return in Form-12A /
Form 6 (PS). Similar details about persons leaving
the job if any in Form-10 / Form 5 (PS) should be
submitted. Nil return may be furnished if no exit
e) Obtain particulars for (a) to (d) from
contractors engaged by him in respect of employees
employed by them, and furnish it to Regional
Provident Fund Commissioner in the manner
42) Will the pension once sanctioned remain
No, this is likely to be increased consequent upon
annual actuarial valuation