|Employees Pension Scheme is
Pension Scheme for survivors, old aged and disabled
persons. The earlier Family Pension Scheme, 1971
offered only one type of benefit, namely, survivors
benefit, i.e. (payment of pension to widow/widower
on death of the member in service. On the other
hand, the new scheme caters for three types of contingencies
1. Survivor Pension : If death occurs during service
2. Old Age Pension : Pension or Superannuation.
3. Permanent Disability : In the event of member
Pension permanent disability while in service.
|In the scheme three scales
of pensioners benefits have been offered according
to the length of service.
||For service below
10 years Return of contribution on exit from
employment - Table - D
Example : Suppose a member exits from employment
after four years of service his wage on exit
is Rs. 4,000, (Return of contribution will
be calculated as Rs. 4,000 x 4.18 of wages
on exit) i.e., Rs. 16,720/-
||Service above 10
years but below 20 years
In the first instance pension will be calculated
by applying the formula, i.e.
Salary X Pensionable service
Say, a member has done 18 years of pensionable
service, Pensionable Salary determined as
Rs. 4,000/- pension payable to him will be
||Service over 20
years full pension according to the formula
stated above. It is to be noted here that
for rendering 20 years of pensionable service
or more, members pensionable service
shall in all cases be increased by adding
2 years. In other words, 20 years actual pensionable service
will be treated as 22 years of pensionable
service for calculation of pension.
provisions for existing members special provisions
have been made for calculation of pension
in case of member who was a member of the
ceased Family Pension Scheme 1971 and who
has attained the age of 48 years on the 16th
November, 1995 or a member who has attained
the age of 48 years but is less than 53 years
on 16th November, 1995, member who has attained
the age of 53 years or more on the 16th November,
1995. In the aforesaid cases the formula for
calculating pension will be as follows -
|2.4 a. Member has not attained the
age of 48 years on 16.11.1995:
Pension is determined by the above formula; i.e.,
Pensionable Salary X Pensionable Service
|for the period of pensionable
service rendered from the 16th Nov. 1995 or Rs.
635/- whichever is more plus past service benefits
as under :-
Of Past Service
The Past Service Benefits payable
on completion of
58 No. years of age on 16.11.95
||Salary up to
Rs. 2,500/- p.m.
||Salary more than
||Up to 11yrs.
||More than 11 yrs.
but up to 15 yrs.
|| More than 15 yrs.
||Beyond 20 yrs
|Subject to a minimum of Rs. 800/-
per month provided the past service is 24 years.
If the members aggregate service is less than
24 years, Pension and the benefits computed as above
will be reduced proportionately to a minimum of
Rs. 450/- per month.
|2.4.b Member has attained the age
of 48 years but is less than 53 years on 16.11.1995
Pension as determined by the above mentioned formula;
Pensionable Salary X Pensionable
|for the period of service rendered
form 16.11.1995 or Rs. 438/- per month whichever
is more plus past service as laid down in Para 12(3)
subject to a minimum of Rs. 600/- per month, in
case the past service is 24 years. If it is less
than 24 years, pension payable and the past service
benefit taken together shall be proportionately
less subject to a minimum of Rs. 325/- p.m.
|2.4.c Member has attained the age
of 53 years or more on 16.11.1995
|Pension as determined by the above
mentioned formula i.e.
X Pensionable Service
|for the period of service rendered
form 16.11.1995 till the date of exit or Rs. 335/-
p.m. whichever is more plus past service benefit
as provided in para 12(3) subject to a minimum of
Rs. 500/- p.m. (both together) in case past service
period is 24 years. If it is less than 24 years
pension payable and the past service benefit shall
be proportionately lesser subject to a minimum of
Rs. 265/- p.m.
PENSION ON CESSATION OF EMPLOYMENT
|Old age pension on account of superannuation/retirement
is normally payable on attaining the age of 58
years. However, member can opt for taking earlier
than 58 years on his exit from employment but
under no circumstances pension will be payable
before the age of 50 years. A member who desires
to draw monthly pension from a date earlier than
58 years of age will be allowed to draw a monthly
reduced pension. The amount of pension in such
a case shall be reduced at the rate of 3% for
every year the age falls short of 58 years.
|There are occasions when a member
may leave employment and or may move from a covered
establishment to an uncovered establishment before
he reaches the date of superannuation, he may
opt for a Scheme Certificate. The certificate
will indicate his pensionable salary and the amount
of pension due on the date of exit from employment.
If the member is subsequently employed in a covered
establishment. his pensionable service in the
scheme certificate will be taken into account
for working out his full pensionable service.
pension is of three categories one
of death of the member during service, second
on the death of the member after leaving
service but before attaining the age of
58 years and the third in case of death
of the member after commencement of payment
of monthly members pension.
||Widow pension on death of the
member during the service is equal to monthly
||The essential conditions for
grant of widow pension are as follows:-
|| The death of the
member occurred while in service.
||The member has contributed at
least one months contribution.
||The member had not attained
the age of 58 years.
||The death of the member had
taken place before the commencement of monthly
Mr. X, a worker in an establishment,
became member of the Employees Pension Scheme on
2nd January, 1996. He died in February 1996 after
a short illness. His wages at the time of death
were Rs. 1,500/- p.m. He left behind his widow aged
22 years and a child aged 1 year What will be the
widows pension in this case? It is confirmed that
pension contribution for Mr. X was paid
by the employer for the month of January 1996.
Widows pension entitlement.
|(i) Pensionable service One month Pensionable
salary Rs. 1500/-
Either (ii) Pension according to the
Service X Pensionable Salary i.e.
1 X 1500
Minimum pension payable as per para 16(2)(a)(i)
of the Scheme - Rs. 450/- p.m.
The amount indicated in-table C
Rs. 718/- per month whichever is more.
(iii) is more than (i) & (ii), Widow pension
will be fixed at Rs. 718/- per month for life or
remarriage of the widow, whichever is earlier.
For the child, 25% of the widow pension will be
granted as monthly pension; i.e., 25% of Rs.
718 = Rs. 179.50 or Rs.180/- p.m., till 25 years
Mr. Y joined Family Pension Scheme in
January 1972. He died while in service, say, on
30 March, 1998. He was drawing a salary of Rs. Rs.
2,500/- p.m. from January, 97 till death. He had
attained the age of 48 years at the time of his
death. He left behind the widow, two sons - one
aged 16 years, one 7 year and one daughter aged
20 years. What would be the widow pension and children
(i) Mr. Y had done 26 years 3 months
of pensionable service at the time of his death.
In calculation of eligible service for pension,
fraction of three months will be ignored as per,
explanation to para 9(a) of the Scheme and thus
eligible service will be taken as 26 years only.
The average 12 months. salary at the time of his
death was Rs. 2,500/-
|Hence members monthly pension
will be :
Pensionable Service X Pensionable Salary
i.e. (i) 26 x 2500 = Rs. 928.57 or Rs. 929/-
Or (ii) In term of para 16(2)(a)(ii)Rs. 250/-
|| The member
left behind three children one daughter
aged 20 years, one son aged 16 years
and the other son age 7 years. To start
with only the elder two, the daughter and
the elder son will get pension. The daughter
will get pension for 5 years by which time
she will be 25 years for age after 5 years
of the vesting of pension. After the daughter
ceases to be the beneficiary, the youngest
child, then age 12 years, will start receiving
pension till the age of 25 years.
|| The amount
of children pension will be @ 25% of widow
pension for each of the two children. Viz.
25%+25% of Rs.1,087 or Rs. 272+Rs. 272 for
PENSION AFTER COMMENCEMENT OF MONTHLY PENSION
|| In case
of death of the member after vesting of
pension, the amount of widow pension is
payable @ 50% of the monthly members
pension subject of minimum of Rs. 250/-
p.m. for example. Mr. Z a pensioner,
dies at the age of 66 years leaving behind
his widow aged 62 years. Mr. Z
drawing pension @Rs. 1000/- p.m. The widow
pension in this case will be Rs. 500/p.m.
|| In case
the member leaves behind any child less
than 25 years of age, children pension is
payable for each equal to 25% of the widow
pension subject to a minimum of Rs. 115/p.m.
|(This facility is available three
years after the commencement of the scheme, i.e.
w.e.f. 16th November 1995.)
The member may commute one-third of his monthly
pension. The commuted value shall be 100 times the
monthly pension. Balance Pension shall be paid on
monthly basis. He may also opt for return capital
u/p 13 of the EPS of the balance pension payable.
FOR RETURN OF CAPITAL
|The member may opt to draw revised
pension and avail of return of capital under any
one of the three alternatives as per the table shown
u/p 13 of the scheme.