SALIENT FEATURES OF

the

employees’ pension scheme, 1995

Salient features

Applicability

Employees’ Pension Scheme, 1995 is applicable to all the factories and establishments that come under EPF and MP Act, 1952 w.e.f. 16.11.1995 onwards. This Act was made applicable to Educational Institutions w.e.f. 01.08.1982.

membership

The Employees Pension Scheme, 1995 is compulsory and shall apply to every employee: -

Who on or after 16.11.1995 becomes member of the Employees’ Pension Scheme.

Who has been a member of the ceased Family Pension Scheme, 1971 before commencement of this Scheme from 16.11.1995.

eligible service for pension

In case of "New Entrants" the "Actual Service" shall be treated as eligible service w.e.f. 16.11.1995 onwards.

In case of "Existing Members" the total of "Past Service" (i.e. w.e.f. 01.08.1982 upto 15.11.1995) + "Actual Service" (i.e. w.e.f. 16.11.1995) shall be treated as eligible service.

benefits to employee under pension scheme

A member of the Employees’ Pension Scheme, (EPS) will get the following benefits: -

With less than 10 years service	With 10 years or more service
Employee will get "Withdrawal Benefit" i.e. he/she will get back his/her 8.33% Pension Contribution which was diverted to Pension Fund in full, with some increase as per prescribed Table.	Employee will get "Pension" for life provided he/she has completed 58 years of age. Reduced Pension can also be claimed after the age of 50 onwards.
(Form 10-C to be filled-up by the employee)	(Form 10-D to be filled-up by the employee)

withdrawal benefit

The employees who have not completed 10 years service are not eligible for Monthly Pension but are paid "Withdrawal Benefit" as per Table-D given below: -

TABLE – D -- Return of Contribution on exit from Service

Year of Service	Proportion of Wages on exit
1	1.02
2	2.05
3	3.10
4	4.18
5	5.28
6	6.40
7	7.54
8	8.70
9	9.88

method for counting 10 years eligible service

(i) past service : (01.08.1982 to 15.11.1995)

Number of years for which Pension Contribution has been paid in ceased Family Pension Scheme, 1971

(ii) present service : (w.e.f 16.11.1995 onwards)

Number of years for which Pension Contribution has been paid.

(Total of "Past Service" and "Present Service" is called "Eligible Service")

calculation of Employee’s Pension

Pension is calculated in two parts

For the period of service rendered upto 15.11.1995 (Past Service)

For the period of service rendered from 16.11.1995 onwards (Present Service)

(The above two periods are counted in complete years. Period of less than 6 months is ignored and the period of 6 months and above is treated as one year)

method for CALCULATION OF AMOUNT OF EMPLOYEES’ MONTHLY PENSION FOR THE PAST SERVICE (FPS-MEMBERSHIP) 01.08.1982 TO 16.11.1995

1^st Step: Write down the following data of the employee

(1)

No. of years of FPS Membership as on 15.11.1995

=

(2)

Rate of Salary / Wages as on 16.11.1995

=

(3)

Age as on 16.11.1995

=

(4)

No. of years remaining as on 16.11.1995 in attainment of 58 years of age

=

2^nd Step: With reference to above data (1^st Step) find out the amount of Basic Pension on the basis of the Table A given below: -

TABLE – A -- Basic Pension for Past Service Benefit

Years of

Past

Service

(1/8/82 to 15/11/95)
Pensionable Salary upto Rs. 2500/-

Per month

(Past Service Benefit)
Pensionable Salary more than

Rs. 2500/-

per month

(Past Service Benefit)

(1)

(2)

(3)

Basic Pension (Rs.)

Basic Pension (Rs.)

(i)

Upto 11 years

80

85

(ii)

More than 11 years but upto 15 years

95

105

(iii)

More than 15 years but less than 20 years

120

135

(iv)

Beyond 20 years

150

170

3^rd Step: Basic Pension to be multiplied by the Factor of Table-B given below: -

TABLE – B -- Factor for Computation of past service benefit under ceased Family Pension Scheme for existing members after their exit from the employment

(1)

(2)

(1)

(2)

Years

Factor

Years

Factor

Less than 1 year

1.049

Less than 13 years

3.292

Less than 2 years

1.154

Less than 14 years

3.621

Less than 3 years

1.269

Less than 15 years

3.983

Less than 4 years

1.396

Less than 16 years

4.381

Less than 5 years

1.536

Less than 17 years

4.819

Less than 6 years

1.689

Less than 18 years

5.301

Less than 7 years

1.858

Less than 19 years

5.810

Less than 8 years

2.044

Less than 20 years

6.414

Less than 9 years

2.248

Less than 21 years

7.056

Less than 10 years

2.473

Less than 22 years

7.761

Less than 11 years

2.720

Less than 23 years

8.537

Less than 12 years

2.992

Less than 24 years

9.390

Amount of Basic Pension for the past service will be as per particulars of Item (1) and (2) of 1^st Step.

Factor of Table-B multiplied to the above amount of Basic Pension will be as per Item (3) and (4) of the 1^st Step.

EXAMPLE

1)	No. of years of FPS Membership (Past Service) as on 15.11.1995	=	12 years
2)	Rate of Salary / Wages as on 16.11.1995	=	Rs. 2500/- PM
	(A) AMOUNT OF BASIC PENSION DUE	=	Rs. 95/- PM
3)	Age as on 16.11.1995		52 years
4)	No. of years remaining as on 16.11.1995 in attainment of 58 years of age	=	6 years
	(B) Factor pertaining to "Less than" 7 years (See Table-B)	=	1.858
	(C) (Amount of Pension for the past service due on completion of 58 years of age will be X (B) i.e. Rs. 95 X 1.858 i.e.	= =	Rs. 176.51 PM Rs. 177 PM

READY RECKONER
For calculation of the amount of Pension due for the

PAST SERVICE (FPS MEMBERSHIP)

(Applicable to Education Institution w.e.f. 01.08.1982)

Years less than
Factor of

Table-B multiplied to

Basic Pension Basic Pension

(Rs.)

80

85

95

105

120

135

150

170

1

1.049

83

89

99

110

125

141

157

178

2

1.154

92

98

109

121

138

155

173

196

3

1.269

101

107

120

133

152

171

190

215

4

1.396

111

118

132

146

167

188

209

237

5

1.536

122

130

145

161

184

207

230

261

6

1.689

135

143

160

177

202

228

253

287

7

1.858

148

157

177

195

222

250

278

315

8

2.044

163

173

194

214

245

275

306

347

9

2.248

179

191

213

236

269

303

337

382

10

2.473

197

210

234

259

296

333

370

420

11

2.720

217

231

258

285

326

367

408

462

12

2.992

239

254

284

314

359

403

448

508

13

3.292

263

279

312

345

395

444

493

559

14

3.621

289

307

343

380

434

488

543

615

15

3.983

318

338

378

418

477

537

597

677

16

4.381

350

372

416

460

525

591

657

744

17

4.819

385

409

457

505

578

650

722

819

18

5.301

424

450

503

556

636

715

795

901

19

5.810

464

493

551

610

697

784

871

987

20

6.414

513

545

609

673

769

865

962

1090

21

7.056

564

599

670

740

846

952

1058

1199

22

7.761

620

659

737

814

931

1047

1164

1319

23

8.537

682

725

811

896

1024

1152

1280

1451

24

9.390

751

798

892

985

1126

1267

1408

1596

method for CALCULATION OF FORMULA PENSION W.E.F. 16.11.1995 ONWARDS UNDER Employees’ Pension Scheme, 1995

FORMULA

Pensionable Salary	X	Pension Service
	70

1. Pensionable Salary = Rs. 6500/- (Maximum at Present)

Employees’ Pension = 10 Years

Scheme Membership

Rs. 6500	X	10	=	Rs. 928/-
	70		=	Rs. 928/-

READY RECKONER

Pensionable Service	Pensionable Salary (Rs.)
Years	1000	1500	2000	2500	3000	3500	4000	4500	5000	5500	6000	6500
1	14	21	28	36	42	50	57	64	71	79	86	93
2	29	43	58	71	87	100	114	129	143	364	171	186
3	43	64	86	107	129	150	171	193	214	236	257	279
4	57	86	104	143	171	200	229	257	286	314	343	371
5	71	107	142	179	213	250	286	321	357	393	429	464
6	86	129	172	214	258	300	343	386	429	393	514	557
7	100	150	200	250	300	350	400	450	500	550	600	650
8	114	171	228	286	342	400	457	514	571	629	686	743
9	129	193	258	321	387	450	514	579	643	707	771	836
10	143	214	286	357	429	500	571	643	714	786	857	928
11	157	236	314	393	471	550	629	707	786	864	943	1021
12	171	257	342	429	513	600	686	771	857	943	1028	1114
13	186	279	372	464	558	650	743	836	929	1021	1114	1207
14	200	300	400	500	600	700	800	900	1000	1150	1200	1400
15	243	321	486	536	642	750	857	964	1071	1179	1286	1393
16	229	343	457	571	686	800	914	1029	1143	1257	1371	1486
17	243	364	486	607	729	850	971	1093	1214	1336	1457	1579
18	257	386	514	643	771	900	1029	1157	1286	1414	1542	1671
19	271	407	543	679	814	950	1085	1221	1357	1493	1629	1764
20+2	314	471	629	786	943	1100	1257	1414	1571	1729	1886	2043
21+2	329	493	657	821	986	1150	1314	1479	1643	1807	1971	2136
22+2	343	514	686	857	1029	1200	1371	1543	1714	1886	2057	2229
23+2	357	536	714	893	1071	1250	1429	1607	1786	1964	2143	2321
24+2	371	557	743	929	1114	1300	1486	1671	1857	2043	2229	2414
25+2	386	579	771	964	1157	1350	1543	1736	1929	2121	2314	2507
26+2	400	600	800	1000	1200	1400	1600	1800	2000	2200	2400	2600
27+2	414	621	829	1036	1243	1450	1657	1864	2071	2279	2486	2693
28+2	429	643	857	1071	1286	1500	1714	1929	2143	2357	2571	2786
29+2	443	664	886	1107	1329	1550	1771	1993	2214	2436	2657	2879
30+2	457	686	914	1143	1371	1600	1829	2057	2286	2514	2743	2971
31+2	471	707	943	1179	1414	1650	1886	2121	2357	2593	2829	3064
32+2	486	729	971	1214	1457	1700	1943	2186	2429	2671	2914	3157
33+2	500	750	1000	1250	1500	1750	2000	2250	2500	2750	3000	3250
34+2	514	771	1029	1286	1543	1800	2057	2314	2571	2829	3086	3342
35+2	529	793	1057	1321	1586	1850	2114	2379	2643	2907	3171	3436

Note: After 20 years of Service under Employees Pension Scheme, 1995 a weightage of 2 years is given while calculating the Pension.

full pension

Full calculated amount of Pension is paid, as explained above, if the Pension is taken at 58 years of age.

reduced pension

When pension is taken between 50-58 years of age, the amount of pension is reduced by 3% for each year if taken in advance before of 58 years of age.

OPTION FOR COMMUTATION of pension

A member eligible to pension may, in lieu of pension normally admissible, opt to commute upto a maximum of one third of his pension so as to receive hundred times the monthly pension so commuted as commuted value of pension. Balance pension will be paid on monthly basis as illustrated below:

The original (Normal) Pension	Rs. 900/- PM
Option for commutation	1/3 of Monthly pension i.e. Rs. 300/-
Commutation Value of Rs. 300/= is 100 times	Rs. 300x100 = Rs. 30,000/-
Balance of Pension PM	Rs. 600/- (This will be subject to further reduction if Return of Capital is also opted by the Pensioner.

OPTION FOR RETURN OF CAPITAL

A member eligible to pension may, in lieu of pension normally admissible under the Rules, can opt to draw Reduced Pension and avail of Return of Capital under any one of three alternatives given below :-

S.No.	Alternative	Revised pension payable	Amount payable as Return of Capital
1	Revised pension during life time of member with return of capital on his death.	90% of original monthly pension.	100 times the original monthly pension on death of member to the nominee.
2	Revised pension during the life time of member, further reduced pension during life time of the widow or her remarriage whichever is earlier and return of capital on Widow’s death/re-marriage.	90% of original monthly pension to the member. On his death 80% of the original monthly pension to the widow.	90 times the original monthly pension on death of widow/ remarriage to the nominee.
3	Pension for a fixed period of 20 years notwithstanding whether the member lives for that period or not.	87.5% of the original monthly pension for a fixed period of 20 years. The pension will cease thereafter.	100 times the original monthly pension at the end of 20 years from the date of commencement of pension to the member if he is alive, otherwise to his nominee.

OPTION FOR scheme certificate

A member of the Employees Pension Scheme remains its member even after leaving service, if he has not completed 58 years of age and not joined any other establishment. During this period he can opt for issue of "Scheme Certificate" by applying in Form 10-C. This status is called "Relation of EPS Membership".

benefit for retenTION of eps membership

If a member dies before completing 58 years of age, his widow/children will be entitled for Monthly Pension – even if he may not be contributing to EPS at the time of his death.

If he joins the service again in any other establishment covered under EPF and MP Act, his previous pensionable service will be added to his subsequent service.

disablement pension

When an employee gets permanently and totally disabled, while in service, he is entitled for pension with immediate effect – even if he is below 50 years of age at that time and may not have put in 10 years eligible service till then.

pensions – after death of the employee

family pension

Admissible from the date following the death of the member.

Admissible after one month’s Contribution under Pension Scheme.

Admissible while Death in service.

Death after the date of exit but before attaining the age of 58 years

Death after commencement of Monthly Member Pension.

WIDOW/WIDOWER PENSION

The following are the benefits to family on death of the member: -

On Death of the member, the family (spouse and two children below 25 years) is entitled to receive Monthly Family Pension.

The Pension is payable from the date following the date of death of the member upto the date of death or re-marriage of widow/widower, whichever is earlier.

CHILDREN PENSION

In addition to widow pension, the Children Pension is payable to two children below the age of 25 years in addition to widow/widower pension.

Monthly children pension shall be equal to 25% of pension admissible to widow.

ORPHAN PENSION

Orphan pension is payable in the following contingencies :-

Where none of the parent is alive.

Member died without spouse.

Widow/Widower died as Family Pensioner.

On re-marriage of Widow/Widower being a Fami

(1)	No. of years of FPS Membership as on 15.11.1995	=
(2)	Rate of Salary / Wages as on 16.11.1995	=
(3)	Age as on 16.11.1995	=
(4)	No. of years remaining as on 16.11.1995 in attainment of 58 years of age	=

	Years of Past Service (1/8/82 to 15/11/95)	Pensionable Salary upto Rs. 2500/- Per month (Past Service Benefit)	Pensionable Salary more than Rs. 2500/- per month (Past Service Benefit)
	(1)	(2)	(3)
		Basic Pension (Rs.)	Basic Pension (Rs.)
(i)	Upto 11 years	80	85
(ii)	More than 11 years but upto 15 years	95	105
(iii)	More than 15 years but less than 20 years	120	135
(iv)	Beyond 20 years	150	170

(1)	(2)	(1)	(2)

Years	Factor	Years	Factor
Less than 1 year	1.049	Less than 13 years	3.292
Less than 2 years	1.154	Less than 14 years	3.621
Less than 3 years	1.269	Less than 15 years	3.983
Less than 4 years	1.396	Less than 16 years	4.381
Less than 5 years	1.536	Less than 17 years	4.819
Less than 6 years	1.689	Less than 18 years	5.301
Less than 7 years	1.858	Less than 19 years	5.810
Less than 8 years	2.044	Less than 20 years	6.414
Less than 9 years	2.248	Less than 21 years	7.056
Less than 10 years	2.473	Less than 22 years	7.761
Less than 11 years	2.720	Less than 23 years	8.537
Less than 12 years	2.992	Less than 24 years	9.390

Years less than	Factor of Table-B multiplied to Basic Pension	Basic Pension (Rs.)
Years less than	Factor of Table-B multiplied to Basic Pension	80	85	95	105	120	135	150	170

1	1.049	83	89	99	110	125	141	157	178
2	1.154	92	98	109	121	138	155	173	196
3	1.269	101	107	120	133	152	171	190	215
4	1.396	111	118	132	146	167	188	209	237
5	1.536	122	130	145	161	184	207	230	261
6	1.689	135	143	160	177	202	228	253	287
7	1.858	148	157	177	195	222	250	278	315
8	2.044	163	173	194	214	245	275	306	347
9	2.248	179	191	213	236	269	303	337	382
10	2.473	197	210	234	259	296	333	370	420
11	2.720	217	231	258	285	326	367	408	462
12	2.992	239	254	284	314	359	403	448	508
13	3.292	263	279	312	345	395	444	493	559
14	3.621	289	307	343	380	434	488	543	615
15	3.983	318	338	378	418	477	537	597	677
16	4.381	350	372	416	460	525	591	657	744
17	4.819	385	409	457	505	578	650	722	819
18	5.301	424	450	503	556	636	715	795	901
19	5.810	464	493	551	610	697	784	871	987
20	6.414	513	545	609	673	769	865	962	1090
21	7.056	564	599	670	740	846	952	1058	1199
22	7.761	620	659	737	814	931	1047	1164	1319
23	8.537	682	725	811	896	1024	1152	1280	1451
24	9.390	751	798	892	985	1126	1267	1408	1596