The document provides an overview and summary of the Employees' Pension Scheme, 1995 in India. Some key points: - It was implemented in 1995 to replace the previous Employees' Family Pension Scheme of 1971. - It covers over 3 lakh establishments with over 2 crore members and 8.5 lakh beneficiaries including members, pensioners, and dependents. - The scheme is managed by the Employees' Provident Fund Organisation under the Ministry of Labour. - 8.33% of an employee's salary is contributed to the pension fund by the employer, and the central government contributes an additional 1.16%. - The scheme provides pension and other benefits to members and their families

2. .FOREWORD
Success of any service Organisation depends on the efficient service
delivery to its clientele, which in turn depends upon how effectively its
functionaries are equipped.
The Employees' Provident Fund Organisation was assigned the
responsibility of implementing the Employees' Pension Scheme in the year
1995 replacing the erstwhile Employees' Family Pension Scheme, 1971. The
Employees' Pension Scheme, 1995, as of date, has around 3 lakb covered
establishments, over 2 crore members and about 8.5 lakhs total beneficiaries
in the shape of members, member-pensioners, widow/widower pensioners
and children/orphan pensioners.
Various amendments have been made to The Employees' Pension
Scheme, 1995 since its inception. In order to have uniform application
throughout the country, numerous interpretive clarifications/instructions
have also been issued during the last five years. These amendments and
clarifications are lying scattered in the shape of letters and circulars. It was,
therefore, felt that various amendments and the clarifications might be
brought together at one place for instant referencing. Members of the
Pension Implementation Committee also felt the similar need and the
Committee desired that a Handbook comprising of an updated version of the
Employees' Pension Scheme, 1995and various clarifications issued from time
to time, be brought up.
I have been informed that the Central Provident Fund Commissioner
assigned this job to the Pension Wing at Headquarters Office. Shri
V.P.Ramaiah, R.p.F.e. (pension) (Hqrs.) and Shri J.C.Thukral,
Superintendent took over the job of compiling the desired Handbook under

3. the guidance of Shri A.Viswanathan, Addl. c.p.f.e. (Pension). These officers
have done a commendable job in compiling the Handbook covering all the
relevant aspects relating to the implementation of Employees' Pension
Scheme, 1995.
I trust this Handbook will serve as a useful tool to the officers and staff
in the field offices as well as Headquarters office, who are dealing with the
n,,,-k ~viiiii:i::-~d with the Employees' Pension Scheme, 1995. This publication
will also prove to be an instant means of reference to the members of the
Central Board of Trustees, Employees' Provident Fund.
VINOD VAISH
Secretary (Labour),
Government of India,
& Chairman, Pension Implementation
Committee, C.B.T., Employees' Provident Fund.

4. .,
1
PREFACE
The Employees' Pension Scheme, 1995 was brought into force on
16.11.1995 replacing the existing Employees' Family Pension Scheme, 1971.
Since then several amendments have been made and numerous
instruc.tions/clarifications have been issued in regard to implementation.
These amendments and clarifications are lying scattered over a number of
circulars issued from time to time. A need was felt to bring the Scheme
provisions and various clarifications/instructions at one place. Pension
Implementation Committee in its XV meeting held on 21st June, 2000 also felt
that a Handbook containing scbeme and tbe instructions be brought out.
An attempt has been made to bring a comprehensive and uptodate
Handbook on the Employees' Pension Scheme, 1995. It includes the updated
scheme; clarifications/instructions issued from time to time; Forms and
Returns; and the Guidelines on Exemption. The Handbook will be useful to
provide a handy means of reference to the Members of the Board, the officers
and stafTin the Hqrs. office & field offices of the E.P.F. Organisation.
Every effort has been made to make the Handbook as comprehensive
as possible. Nothing contained in it should, however be taken to have
superseded or modified any of the scheme provisions.
Any suggestion to improve the Handbook will be welcomed.
Central Provident Fund Commissioner
New Delhi
January, 2001.

5. INDEX
SECTION CONTENTS PAGE
1. Employees' Pension Scheme, 1995 01-26
2. Clarifications 27-50
3. Computerised Employees' Pension System 51-53
4. Arrangement for Disbursement of Pension 54-58
5. Guidelines for Exemption 59-73
6. Forms & Returns 74-126
7. Consolidated monthly return on EPS, 1995 127-139

6. D D
,,r,
!I
D
-I
EMPLOYEES'S PENSION SCHEME, 1995
(as amended upto May, 2001)
11
EMPLOYEES'S PROVIDENT FUND ORGANISATION
(Ministry of Labour, Government of India)
Head Office:
"Bhavishya Nidhi Bhwan", 14, Bhikaji Cama Place
New Delhi - 110066

7. 1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
12A.
13.
14.
15.
16.
16A.
17.
17A.
18.
t 19.
.it 20. 21.
.! 22. !)
I23.
24.
25.
26.
1j
THE EMPLOYEE'S PENSION SCHEME, 1995
ARRANGEMENT OF PARAGRAPHS
Short title, commencement and application
Definitions
Employees' Pension Fund
Payment of contribution
Recovery of damages for default in payment of any contributions
Membership of the Employees' Pension Scheme
Option for joining the scheme
Resolution of doubts
Determination of eligible service
Determination of Pensionable Service
Determination of Pensionable Salary
Monthly Member's Pension
Option for commutation
Options for return of capital
Benefits on leaving service before being eligible for monthly members pension
Benefits on permanent and total disablement during the service
Benefits to the family on the death of a member
Guarantee of Pensionary Benefits
Payments on exercise of option.
Payment of Pension
Particulars to be supplied by the employees already employed at the time of commencement
of the Employees' Pension Scheme
Preparation of contribution cards
Duties of employers
Employer to furnishparticulars of ownership
Duties of contractors
Allotment of Account Numbers
Declaration by persons taking up employment after the Fund has been established
Em~loyees' Pension Fund Account
Investment of the Employees' Pension Fund

8. 27. Disposal of the Fund
28. Administration Account
29. Forms of Accounts
30. Audit
31. Rounding up of the Benefits
32. Valuation of the Employees' Pension Fund and review of the rates of contributions and
quantum of the pension and other benefits
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
Disbursement of Pension and other benefits
Registers. Records etc.
Power to issue directions
Regional Committee
Annual Report
Application of the provisions of the Employees' Provident Fund Scheme, 1952
Exemption from r+e operation of the Pension Scheme
Information to the Central Government
Interpretation
Punishment for failure to submit return, etc.
Payment of pension in the case of a person charged with the offence of murder
Repeal and savings
SCHEDULE
,;

9. THE EMPLOYEES' PENSION SCHEME, 1995
In exercise of the powers conferred by Section 6A of the Employees' Provident Funds and
Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government hereby makes the following
Scheme, namely;-
1. Short title, commencement and application
(1) This Scheme may be called the Employees' Pension Scheme, 1995;
(2) (a) This Scheme shall come into force on 16th day of November, 1995;
(b) Subject to the provisions of this Scheme the employees have an option to become the
members of the Scheme with effect from the 1st April, 1993 ;
(3) Subject to the provisions of Section 16 of the Employees' Provident Funds and Miscellaneous
Provisions Act, 1952, this Scheme shall apply to the employees of all factories and other
establishments to which the Employees' Provident Funds and Miscellaneous Provisions Act,
1952 applies or is applied under sub-section (3) or sub-section (4) of Section 1 or Section
3 thereof.
2. Definitions
riI
(1) In this Scheme unless the context otherwise requires ;-
(i) "Act" means the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19
of 1952);
(ii) "actual service" means the aggregate of periods of service rendered from the 16th November,
1995 or from the date of joining any establishment whichever is later to the date of exit from
the employment of the establishment covered under the Act;
(iii) "Commissioner" means a Commissioner for Employees' Provident Funds appointed under
Section 5D of the Act;
(iv) "contributory service" means the period of 'actual service' rendered by a member for which
the contributions to the fund have been '[received or are receivable] ;
(v) "eligible member" means an employee who is eligible to join the "Employees' Pension
Scheme";
(vi) "Existing Member" means an existing employee who is a "Member of the Employees' Family
Pension Scheme, 1971";
(vii) "Family" means
(i) wife in the case of male member of the Employees' Pension Fund;
(ii) husband in the case of a female member of the Employees' Pension Fund: and
(iii) sons and 2[***J daughters of a member of the Employees' Pension Fund;
1. . Subs. by G.S.R 134 dated 281h February 1996. for the word "received" (w.e.f 161h March 1996)
The word "unmarried" omitted. ibid (w.e.f, 16 th March, J996)
I1

10. Explanation :
The expression "sons" and "daughters" shall include children '[legally adopted by the
member.
(viii) "Pension" means the pension payable under the Employees' Pension Scheme and also includes
the family pension admissible and payable under the Employees' Family Pension Scheme,
1971 immediately preceding the commencement of the Employees' Pension Scheme, 1995
with effect from the 161h November, 1995.
(ix) "Member" means an employee who becomes a member of the Employees' Pension Fund in
accordance with the provisions of this Scheme.
2Explanation :
An employee shall cease to be the member of Pension Fund from the date of attaining 58
years of age or from the date of vesting admissible benefits under the Scheme, whichever is
earlier.
(x) "Non-Contributory Service" is the period of "actual service" rendered by a member for
which no contribution to the "Employees' Pension Fund" has been 3[received or are
recei vable].
"orphan" means a person, none of whose parents is alive 4[***].
"past service" means the period of service rendered by an existing member from the date
of joining Employees' Family Pension Fund till the 151h November, 1995.
"Pay" means basic wages, with dearness allowance, retaining allowance and cash value
of food concessions admissible, if any.
"Pension fund" means the Employees' Pension Fund set up under sub-section (2) of Section
6A of the Act.
"pensionable~ service" means the service rendered by the member for which contributions
have been' [received or are receivable].
(xi)
(xii)
(xiii)
(xiv)
(xv)
S[(xvi) "permanent total disablement" means such disablement of permanent nature as
incapacitates an employee for all work which he/she was capable of performing at the time
of disablement, regardless whether such disablement is sustained in the course of
employment or otherwise;]
(xvii) "Table" means Tableappended to this Scheme.
(xviii) The words and expressions defined in the Act but not defined in this Scheme shall have'
the same meaning us assigned to them in the Act.
1. Subs. Ibid .. for "adopted by the member legally before death in service' (w.e.f. 16'h March, 1996).
2. Inserted by G.S.R. 66 dated 22nd February. 1999 (w.e.f. 6.3.99)
3. Subs. by.G.S.R. 134 dated the 28th February. 1996 for the word "received" (w.e.f. 16th March. 1996)
4. Certain words omitted, ibid (w.e.f, Ioth March. 1996).
5. Sub. by G.S.R. 134 dated the 28th February 1996. (w.e.r. 16th March. 19961
4
I
II
,
I

11. s
s
~~
f t
ii 5. ,
e
3. Employees' Pension Fund.
(1) From and out of the contributions payable by the employer in each month under Section 6
of the Act or under the rules of the Provident Fund of the establishment which is exempted
either under clauses (a) and (b) of sub-section (1) of Section 17 of the Act or whose
employees are exempted under either paragraph 27 or paragraph 27-A of the Employees'
Provident Fund Scheme, 1952, a part of contribution representing 8.33 per cent of the
Employee's pay shall be remitted by the employer to the Employees' Pension fund within 15
days of the close of every month by a separate bank draft or cheque on account of the
Employees' Pension Fund contribution in such manner as may be specified in this behalf by
the Commissioner. The cost of the remittance, if any, shall be borne by the employer.
(2) The Central Government shall also contribute at the rate of 1.16 per cent of the pay of the
members of the Employees' Pension Scheme and credit the contribution to the Employees'
Pension Fund:
Provided that where the pay of the member exceeds '[rupees six thousand and five hundred]
per month the contribution payable by the employer and the Central Government be limited
to the amount payabl.: on his pay of rupees ~~ sa'I1louaadFiveHu.o.dred Oal,
(3) Each contribution payable under sub-paragraphs (1) and (2) shall be calculated to the nearest
rupee, fifty paise or more to be counted as the next higher rupee and fraction of a rupee less
than fifty paise to be ignored.
(4) The net assets of the Family Pension Scheme, 1971 shall vest in and stand transferred to the
Employees' Pension Fund.
~. Payment of contribution
(1) The employer shall pay the contribution payable to the Employees' Pension Fund m respect
of 2[each member] of the Employees' Pension Fund employed by him directly or by or through
a contractor.
(2) It shall be the responsibi lity of the principal employer to pay the contributions payable to the
Employees' Pension Fund by himself in respect of the employees directly employed by him
and also in respect of the employees employed by or through a contractor.
Recovery of damages for default in payment of any contributions
(1) Where an employer makes default in the payment of any contribution to the Employees'
Pension Fund, or in the payment of any charges payable under any other provisions of the
Act or the Scheme, the Central Provident Fund Commissioner or such officer as may be
authorised by the Central Government, by notification in the Official Gazette, in this behalf,
may recover from the employer by way of penalty. damages at the rates given below :-
Subs. by G.S.R. - dated ~ 1st May. ~()OI for "rupees five thousand" (w.e.f, 1st June. 2001)
Subs. by G.S.R. 134 dated ~8th February. 96. for "the member" (w.e.f, 16th March. 1996)
:;

12. Period of default Rate of damages
(Percentage of arrears per annum]
(a) Less than two months
(b) Two months and above
but less than four months
(c) Four months and above
but less than six months
(d) Six months and above
Seventeen
Twenty-two
Twenty-seven
Thirty-seven
(2) The damages shall be calculated to the nearest rupee, 50 paise or more to be counted as
the nearest higher rupee and fraction of a rupee less than 50 paise to be ignored.
1[6. Membership of the Employees' Pension Scheme
Subject to sub-paragraph (3) of paragraph 1, the Scheme shall apply to every employee
(a) Who on or after the 16th November, 1995, becomes a member of the Employees' Provident
Fund Scheme, 1952, or of the Provident Funds of the factories and other establishments
exempted by the appropriate Government under section 17 of the Act, or in whose rase
exemption has been granted under paragraph 27 or 27-A of the Employees' Provident Fund
Scheme, 1952, from the date of such membership;
(b) Who has been a member of the ceased Employees' Family Pension Scheme, 1971 before
the commencement of this Scheme from 16th November, 1995;
(c) Who ceased to be a member of the Employees' Family Pension Scheme, 1971 between I"
April, 1993 and 15th November, 1995 and opts to exercise his option under Paragraph7;
(d) Who has been a member of the Employees' Provident fund or of Provident Funds of factories
and other establishments exempted by the appropriate Government under section 17 of the
Act or in whose case exemption has been granted under Paragraph 27 or 27A of the
Employees' Provident Fund Scheme, 1952, on 15th November, 1995 but not being a member·
of the ceased Employees' Fami ly Pension Scheme, 1971 opts to exercise his option under
paragraph 7J.
Explanation :
All employer shall cease to be the member of Pension Fund from the date (~f attaining
58 years of age or from the date of vesting admissible benefits under the Scheme,
whichever is earlier.
Z[6A. Retention of membership
A member of the Employees' Pension Fund shall continue to be suclt member till he
attains the age of 58 years or he avails the withdrawal benefit to whicb he is entitled.
under para 14 of the Scheme, or dies, or the pension is vested in him ill terms of para
12 of the Scheme, whichever is earlier.)
L Subs. by G.S.R.134 dated 28th February, 1996 (w.e.f. 16th March, 19%)
2. Ins. by G.S.R. 66, dated the 22nd February. 1999 (w.e.f. 6th March. 1999)
6

13. ted as
vident
ments
e case
t Fund
oeforc
een IS1
'aph7:
ctories
of the
of the
iember
under
aining
iheme.
till he
ntitled
{para
1[7. Option for joining the Scheme.
(1) Members referred to under sub-para (c ) of Paragraph 6 who have died between 151April,
1993 and 151hNovember, 1995 shall be deemed to have exercised the option of joining the
Scheme on the date of his death.
(2) Members referred to in sub-paragraph (c ) of paragraph 6 who are alive shall have the option
to join the Scheme as per the provisions of paragraph 17 from the date of exit from the
employment.
(3) Members referred to in sub-paragraph (d) of paragraph 6 shall have the option to join the
Scheme as per the provisions of Paragraph 17 from 16thNovember, 1995.]
8. Resolution of doubts.
If any doubt arises whether an employee is entitled to become a member of the Employees' Pension
Fund, the same shall be referred to the Regional Provident Fund Commissioner who shall decide
the same:
Provided that both the employer and the employee shall be heard before passing final order in the
matter.
9. Determination of eligible service.
The eligible service shall be determined as follows:
(a) In the case of "new entrant" the "actual service" shall be treated as eligible service. The total
actual service shall be rounded off to the nearest year. The fraction of service for six months
or more shall be treated as one year and the service less than six months shall be ignored.
Explanation :
In the case of employees employed seasonally in any establishment the period of "actual
service" in any year, notwithstanding that such service is less than a year shall be treated
as a full year.
(b) In the ease of the "existing member" the aggregate of actual service and the 'past service'
shall be treated as eligible service.
Provided that if there is any period in the "past service" for which the contributions towards
the Family Pension Scheme, 1971 has not been received, the said period shall count as eligible
service only ifthe contributions thereof have been received in the Employees' Pension Fund. -
Explanation :
For tile purpose of this sub-paragraph the total past service for less than six months shall
be ignored and the total past service for six months and above shall be rounded to a year.
1. Subs. by G.S.R. 114 dated the 28th February. 1996 (w.e.f. 16th March. 1996)
7

14. 10.
~~
Determinatio.n of Pensi~nable Service. .. . f
(1) The pensionable service of the member shall be determined with reference to the contnbutions I'.,.
I[received or receivable] on his behalf in the Employees' Pension Fund. •
(2) In the case of the member who superannuates on attaining the age of 58 years, and/or who'
has rendered 20 years pensionable service or more, his pensionable service shaIl be increased I
by adding a weightage of 2 years. ~•. Determination of Pensionable Salary. I
~. (1) Pensionable salary shall be average monthly pay drawn 2[in any manner including on piece- i
rate basis] during the contributory period of service in the span of 12 months preceding the J
date of exit from the membership of the Employees' Pension Fund.
11.
"[Provided that if a member was not in receipt of full pay during the period of twelve
months preceding the day he ceased to be the member of Pension Fund, the average of
previous 12 months full pay drawn by him during the period for which contribution to
the pension fund was recovered, shall be taken into account as pensionable salary for
calculating pension}
(2) If during the said span of 12 months there are non-contributory periods of service including
cases where the member has drawn salary for a part of the month, the total wages during
the 12 months span shall be divided by the actual number of days for which salary has been i
drawn and the amount so derived shall be multiplied by 30 to work out the average monthly
pay.
(3) The maximum pensionable salary shall be limited tofive thousand rupees per month.
4[Provi?ed that if at the oPti.on of the employer and employee, cont~ib~tion paid on salary f'"
exceeding Rs 5,000/- per month from the date of commencement ot this Scheme or from' .
the date salary exceeds Rs. 5000/- whichever is later, and 8.33 per cent share of the
employers thereof is remitted into the Pension Fund, pensionable salary shall be based on
such higher salary.
12. Monthly Member's Pension.
(1) A member shall be entitled to :-
(a) superannuation pension if he has rendered eligible service of 20 years or more and retires on
attaining the age of 58 years;
(b) retirement pension, if he has rendered eligible service of 20 years ormore and retires or'
otherwise ceases to be in the employment before attaining the age of 58 years;
(c) short seryicc pension, if he has rendered eligible service of 10 years or more but less than
20 years.
1. Subs. by G.S.R. 134 dated the 28'10February. 1996 for "received" (w.e.f. 16,hMarch, 1996).
Ins. ibid (w.e.f. 16'10March. 1996).
Ins. by G.S.R. 66 dated 22"d February. 1999 (w.e.f. 6th March, 19(9).
,11
Ins. by G.S.R. 134. dated 28 February. 1996 (w.e.f. 16th March. 1(96).
2.
3.
4.

15. unions
rr who
reased
piece-
.ng the
twelve
age of
'ion to
'ry for
.luding
during
1S been
ionthly
i salary
r from
of the
ised on
tires on '
tI
f.
ss than I
I
tires or ;
•
(2) In the case of a new entrant the amount of monthly superannuation pension or retiring
pension, as the case may be, shall be computed in accordance with the following factors
namely ;- -
Monthly member's pension = Pensionable salary X Pensionable service
70
'[***]
(3) In the case of an employee 2[who was a member of the ceased Family Pension Scheme,
1971] and who has not attained the age of 48 years on the 16th November, 1995 :
Superannuation/retirement/short service pension shall he equal to the aggregate of ;-
(a) Pension as determined under sub-paragraph (2) for the period of pensionable service renderer
from the 16th November, 1995 or Rs 635/- per month whichever is more;
3[(b) Past service pension benefit shall be as given below :- -
The past service benefit payable on completion of 58 years of age on 16.11,95
Years of past Salary upto Salary more than
Service Rs. 2500/- R~. 2500/- per
per month per month
(1) (2) (3)
(i) Upto 11 years 80 85
(ii) More than 11 years but 95 105
upto 15 years
(iii) More than 15 years but 120 135
less than 20 years
(iv) Beyond 20 years 150 170
subject to a minimum of Rs. 800/- per month provided the past service is 24 years. If the aggregate
service of the member is less than 24 years, the pension and the benefits computed as above shall be
reduced proportionately subject to a minimum of Rs. 450/- per month]
<I[ (c) On completion of the age of 58 years after 16-11-95, the benefit under column (2) or column
(3) above. as the case may be shall be multiplied by the factor given in Table B corresponding
to the period between 16-11-95 and date of attainment of age 58 to arrive at past-service
pension payable.]
I. Certain words omitted by G.S.R. 134 dated the 281h February, 1996 (w.e.f. 161h March 1996)
Subs. by G.S.R. 134 dated the 28.1, February. 1996 (w.e.f 16110 March 1996).
. Subs. by G.S.R. 134. dated the 28'" February, 1996 (w.e.f 16'" March 1996).
Ins. ibid. (w.e.f. 16'" March 199(,).
')

16. (4) In the case of an employee '[who was a member of the ceased Family Pension Scheme, 1~71]
and has attained the age of 48 years but less than 53 years on the 16,thNovember, 11995, the
superannuation/retirement pension shall be equal to the aggregate of : -
(a) pension as determined under sub-paragraph (2) for tne period of service rendered from the
16th November, 1995 or Rs. 438/- per month whichever is more;
(b) past service benefit as provided in sub-paragraph (3) subject to a minimum of Rs. 600/- per
month provided the past service is 24 years. Provided further that if it is less than 24 years
the pension payable and the past service benefits taken together shall be proportionately less
subject to the minimum of Rs. 325/- per month.
In the case of an employee 2[who was a member of the' ceased P~~~!~' ?~!"!~!~!"!Scheme, !971)"~d
who has attained the age of 53 years or more on the 16thNovember, 1995, the superannuation/
retirement pension shall be equal to the aggregate of :
(a) pension as determined under sub-paragraph (2) for the period of service rendered from the
16thNovember, 1995 per month or Rs.335/- per month whichever is more.
(b) Past service benefits provided in sub-paragraph (3) subject to the minimum of Rs. 500/- per
month, provided the past service is 24 years. Provided further that if it is less than 24 years
the pension payable and the past service benefits shall be proportionately lesser but subject
to the minimum of Rs. 265/- per month.
(6) Except as otherwise expressly provided hereinafter the monthly members pension under sub-paragraphs
(2) to (5) mentioned herein above, as the case may be, shall be payable from a date
immediately following the date of completion of 58 years of age notwithstanding that the member
has retired or ceased to be in the employment before that date.
(5)
(7) A member, if he so desires, may be allowed to draw monthly reduced pension from a date earlier
than 58 years of age but not earlier than 50 years of age. In such cases, the amount of pension
shall be reduced at the rate of 3[three per cent for every year the age falls short of 58 years].
(8) If a member ceases to be in the employment by way of retirement or otherwise earlier than the
date of superannuation from which pension can be drawn, the member may, on his option, either
be paid pension as admissible under this Scheme on attaining the age exceeding 50 years or he
may be issued a scheme certificate by the Commissioner indicating the pensionable service, the
pensionable salary and the amount of pension due on the date of exit from the employment. If hel
she is subsequently employed i~ an establishment coverable under this Scheme, his/her earlier service
as per the scheme certificate shall be reckoned for pension along with the fresh spell of pensionable
service. The member postponing the commencement of payment of pension under this paragraph
shall also be entitled to additional relief sanctioned under this Scheme from time to time:
1. Subs. by G.S.R. 134 dated the 28,h February, 1996 (w.e.f. 16'h March 1996)
2 Subs. byG.S.R. 134, dated the 28'h February, 1996 (w.e.f 16'h March, 1996)
3. Subs. by G.S.R. 134, dated the 28,h February. 1996b (w.e.f, 16'hMarch, 1996).
IO

17. l]
~r
rs
,s
rs
::t
)-
te
n
e
:r
e
e
eh
,I
Provided that if the member does not take up an employment coverable under this Scheme, but
dies before attaining the age of 58 years, the amount of contributions received in his Case shall
be converted into a monthly widow pension/children pension. The widow pension in such cases
shall be calculated at the scale laid down in Table 'C' and the children pension at 25 per cent
thereof for each child (upto two). If there is no widow then the orphan pension shall be payable
at the rate of 75 per cent of the amount which would have been payable as a widow pension
subject to the provisions of the paragraph 16.
I
n12A. Option for commutation.
< A member eligible to pension may, in lieu of pension normally admissible under paragraph 12, opt
on completion of three years from the commencement of this Scheme, 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 per option exercised
under paragraph 13. III
I..
r
Explanation :
If for example, the normal pension under paragraph 12 is Rs. 600, and the pensioner opts
to commute one third of his monthly pension, the commuted value will be equal to 1/3
x 600 x 100 = Rs.20,000 and the same shall be paid at the time of exercise of option for
commutation. The balance of pension payable on monthly basis is Rs. 400.
Options for return of capital.
(1) A member eligible to pension may, in lieu of pension normally admissible under paragraph 12,
2[subject to commutation of pension, if any, under paragraph 12A] opt to draw for reduced
pension and avail of return of capital under anyone of the three alternatives given below :-
S.No. Alternatives Revised pension payable Amount payable as
return of capital
1. Revised pension
during life time of
member with return of
capital on his death.
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 capi talon
Widow's death/re-marriage.
90% of original
monthly pension
100 times the original
monthly pension on
death of member to the
nominee.
90 times the original
monthly pension on
death of widow/
remarriage to the
nominee.
2. 90% of original
monthly pension
to the member. On
his death 80% of
the original
monthly pension
to the widow.
G 'h Ins. by .S.R. 134, dated the 28 February, 1996 (w.e.f. 16th March, 1996)
Ins: by. G.S.R. 134, dated the 28th February, 1996 (w.e.f 16'h March, 1996)
11

18. S.No. Alternatives Revised pension Amount payable
payable as return of Capital
3. Pension for a fixed 87.5% of the 100 times the original
period of 20 years original monthly monthly pension at the end
notwithstanding pension for a fixed of 20 years from the
whether the member period of 20 years. date of commencement
lives for that period The pension wiIl of pension to the member
or not. cease thereafter. if he is ali ve, otherwise
to his nominee.
Explanation 1.
In alternative 2, if the '[spouse] dies or remarries before the death of member, capital equal to
times the original monthly pension shall be paid to the nominee on the member's death.
Explanation 2.
In alternative 3, if the member dies before the end of 20 year period, the pension shall be
to his nominee for the balance period.
Explanation 3.
In the case of a member who is eligible for permanent total disablement pension, and where
payment of such pension is to commence before his attaining the age of 50 years the options
also be admissible but in such cases the actual pension payable shall be reduced by 1% and
return of capital shall be further reduced by Rs. 1,000/- for every year by which the age at
commencement of pension falls short of 50 years.
2[Expiallation 4.
In cases of exercise of option for commutation under paragraph 12A, balance monthly pen'
payable after commutation shall be deemed to be the original monthly pension for the purpose
this paragraph.]
(2) The option under sub-paragraph (1) shall be exercised by the member at the time of submissi
of the application form for pension in accordance with the provisions of this Scheme. The opti
once exercised shall be final. If no option is exercised, the member shall be deemed not to
exercised any option under this paragraph and his/her pension shall be determined under
provisions of paragrapn12:- -- - .
(3) Notwithstanding that the capital is returned under this paragraph the widow/children shall
to be eligible for normal widow pension/children pension/orphan pension under paragraph 16 of
Scheme from the date immediately following the date of death of the; member. .
1. Sub';. by G.S.R. 134. dated the 28,h February. 1996 (w.e.f 16,h March 1996).
2. Ins. Ibid. ( we.f. 16'hMarch 1996).
12

19. tal to 90
be paid
iere the
ns shall
and the
e at the
iension
pose of
nission
option
:0 have
der the
mtinue
of this
Benefits on leaving service before being eligible for monthly member's pension.
(1) If a member has not rendered the eligible service prescribed in 'paragraph I[9] on the date
of exit, or on attaining 58 years of age whichever is earlier, he/she shall be entitled to a
withdrawal benefit as laid down in Table 'D' or may opt to receive the scheme certificate
provided on the date he/she has not attained the 58 years of age:
Provided that an existing member shall receive additional return of contributions for his/her
past service under the Employees' Family Pension Scheme, 1971 computed as withdrawal-cum-
retirement benefits as per Table 'A' multiplied by the factor given in Table 'B'.
Benefits on permanent and total disablement during the service
(1) A member, who is permanently and totally disabled during the e~y!~j'~;:~~ ~!iu!!be ~i,~;ikJ
to pension as admissible under sub-paragraph (2) to (5) of paragraph 12 as the case may
be subject to a minimum of Rs. 250/- per month notwithstanding the fact that he/she has not
rendered the pensionable service entitling himlher to pension under paragraph 12 provided
that he/she has made at least one month's contribution to the Pension Fund.
(2) The monthly member's pension in such cases shall be payable from the date following the
date of permanent total disablement and shall be tenable for the life-time of the member.
(3) A member applying for benefits under this paragraph shall be required to undergo such medical
examination as may be prescribed by the Central Board to determine whether or not he or
she is permanently and totally unfit for the employment which he or she was doing at the time
of such disablement.
16. Benefits to the family on the death of a member
(1) 2[Pension to the family] shall be admissible from the date following the date of death of the
member if the member dies ..
(a) while in service, provided that at least one month's contribution has been paid into the
Employees' Pension Fund, or
(b) after the date of exit but before attaining the age of 58, from the employment having
rendered service entitling himlher to monthly member's pension but 3[before the
commencement of pension payment or]
(c) after commencement of payment of the monthly member's pension
The cases where a member has rendered less than 10 years eligible service on the date of
exit but has retained the membership of the Pension Fund, and dies before attaining the age
of 58 years, shall be-regulated under sab-paragraph (8) of paragraph 12. .
(a) The monthly widow pension shall be :-
(i) in the cases covered by clause (a) of sub-paragraph (1), equal to the monthly member's
pension which would have been admissible as if the member had retired on the date of
death or Rs .450/- or the amount indicated in Table CC' whichever is more.
Note:-
,
(2)
l.
2.
3.
Subs. by G.S.R. 134. dated the 28'h February. 1996, (w.e.f, 16·hMarch 1996).
SUbs. by G.S.R. 134 dated the 28·hFebruary. 1996 (w.e.f. 16'hMarch 1996) .
•h Subs. by G.S.R. 134 dated the 28 February. 1996 (w.e.f. 16th March. 1996).
13

20. (ii) in the cases covered by clause (b) of sub-paragraph 0), equal to the monthly member's
pension which would have been admissible as if the member had retired on the date of
exit or l[Rs. 450/- per month] or the amount indicated in Table 'C' whichever is more.
(m) in the cases covered by clause (c ) of sub-paragraph (1), equal to 50 per cent of the
monthly member's pension payable to the member on the date of his death subject to
a minimum of l[Rs. 450/- per month.]
2[(iv)in all the cases, where the amount of family pension sanctioned under the
Ceased Family Pension Scheme, 1971 and is paid/payable under this scheme is
less than Rs. 450/- per month, the amount of family pension in such cases shall
be enhanced to Rs. 450/- per month.]
(b) the monthly widow pension shall be payable upto the date of death of the widow or remarriage
whichever is earlier.
Note:- In cases where there are 2 or more widows, family pension shall be payable to the eldest
surviving widow. On her death it shall be payable to the next surviving widow, if any. The
term "eldest" would mean seniority with reference to the date of marriage.
(3) Monthly children pension: -
(a) If there are any surviving children of the deceased member, falling within the definition
of family, they shall be entitled to a monthly children pension in addition to the monthly
widow/widower pension.
(b) Monthly children pension for each child shall be equal to 25 per cent of the amount
admissible to the widow/widower of the deceased member as monthly widow pension
payable under sub-paragraph (2) (a) (i) provided that minimum monthly children pension
for each child of the deceased member shall not be less than 3[Rs. 150/- per month.]
4[(C) Monthly children pension shall be payable until the child attains the age of 25 years.]
(d) The monthly children pension shall be admissible to maximum oftwo children at a time
and will run from the oldest to the youngest child in that order.
Y(e) If a member dies leaving behind a family having son or daughter who is
permanently and totally disabled such son or daughter shall be entitled to
payment of monthly children pension or orphan pension, as the case may be,
irrespe-ctivlrl/f-age' and number 'of children in the family in addition to the
pension provided under clause (d).] '
1. Subs. by G.S.R. 41 dated 12'hJanuary, 2000 (w.e.f, 29th January, 2000)
2. Inserted by G.S.R. 41 dated 12'10January 2000 (w.e.f. 29th January. 2000)
3. Subs. .by G.S.R. 41 dated 12'10January 2000 (w.e.f, 29th January, 2000)
4. Subs. by G.S.R.134. dated the 28,10February. 1996 (w.e.f. 16,10March. 1996).
5. Inserted by G.S.R. 66 dated 22'td February. 1999 (w.e.f 6.3.99)
14

21. ,
ber's
I .te of
nore.
fthe -ct to I
i
. the
ne is
shall
riage
-ldest
. The
nition
mthly
nount
.nsion
msion
onth.]
ears.]
a time
ho is
ed to
ry be,
o the ..
(4) (a) If the deceased member is not survived by any widow but i~ survived by children falling
within the definition of family or if the widow pension is not payable, the!children shall
be entitled to a monthly orphan pension equal to 75 per cent of the amount of the
monthly widow pension as payable under sub-paragraph (2) (a) (i) provided that
minimum monthly orphan pension for each orphan shall not be less than I[Rs. 250/- per
month.]
(b) In the event of death or remarriage of the widow/widower after sanctioning of widow/
widower pension the children shall be entitled in lieu of the monthly children pension,
to a monthly orphan pension from the date following the date of death/remarriage of the
widow/widower.
2[~r.) Thf" monthly orph:m pension shall be admissible to a maximum of 2 orphans at a time
and shall run in order from the oldest to the youngest orphan.]
(5) (a) A member who is not married or who does not have any living spouse and/or an eligible
child may nominate a person to receive benefits as laid down hereinafter provided that
in the event of his/her acquiring a family subsequently, the nomination so made shall
become void. In the event of death of the member such a nominee shall be entitled to
receive a monthly pension equal to the monthly widow pension, as admissible under
sub-clauses (i) and (ii) of clause (a) of sub-paragraph (2).
3[(aa). If a member dies leaving behind no spouse and/or an eligible child falling
within the definition of family and no nomination by such deceased member
exists, the widow pension shalt be paid under sub-clauses (i) and (ii) of clause
(a) of sub-paragraph 2 either to dependent father or dependent mother as the
case may be. On grant of Pension to such dependant father and in the event of
death of the father pensioner, the admissible pension shall be extended to the
surviving mother life long.]
(b) If the deceased member had not rendered pensionable service on the date of exit from
the employment which would have made him entitled to a monthly members pension
under paragraph 12, but had opted to retain the membership of this Scheme under sub-paragraph
(8) of paragraph 12, 4[~henominee or the dependant father or the
dependant mother as the case may be] shall be entitled to return of capital as
provided in sub-paragraph (1) of paragraph 13.
'[16A. Guarantee of pensionary benefits
None of the pensionary benefits under the Scheme shall be denied to any member or
beneficiary for want of compliance of the requirement by the employer under sub-paragraph
(1) of paragraph 3 provided, however, that the employer shall not be absol ved of his liabilities
under the Scheme.]
1. Subs. by G.S.R. 41 dated 12thJanuary 2000 (w.e.f. 29th January, 2000)
2. Ins. by G.S.R. 134, dated the 28lh February, 1996 (w.e.f 16th March 1996).
1 Inserted by G.S.R. 66 dated 22ndFebruary, 1999. (w.e.f 6.3.99)
4. Sub. by G.S.R. 66 dated 22ndFebruary, 1999 (w.e.f 6.3.99)
S. Inserted by G.S.R. 134 dated the 28th February 96 (w.e.f. 16lh March 1996)
15

22. 1
1[17. Payments on exercise of option
(1) Beneficiaries of the deceased members of Employees' Famify Pension Scheme, referred to
in sub-para (1) of paragraph 7, shall receive higher of the benefits available under the
Employees' Family Pension Scheme, 1971 and under this Scheme. .
(2) Members referred to in sub-paragraph (2) of paragraph 7 shall have the option to join the
Scheme by returning the amount of withdrawal benefit received, if any, together with interest
at the rate of 8.5% per annum from the date of payment of such withdrawal benefit and date.
of exercise of the option, to receive monthly pension as per the provisions of this Scheme.
(3) Members referred to in sub-paragraph (3) of paragraph 7 shall be deemed to have joined
the ceased Employees' Family Pension Scheme, 1971, with effect from 1.3.1971 on remittance
of past period contribution with interest thereon.].
2[17A. Payment of Pension
The claims, complete in all respects submitted along with the requisite documents shall be.
settled and benefit amount paid to the beneficiaries within thirty days from the date of its
receipt by the Commissioner. If there is any deficiency in the claim, the same shall be recorded
in writing and communicated to the applicant within thirty days from the date of receipt of
such application. In case the Commissioner fails without sufficient cause to settle a claim
complete in all respects within thirty days, the Commissioner shall be liable for the delay
beyond the said period and penal interest at the rate of 12 per cent per annum may be,
charged on the benefit amount and the same may be deducted from the salary of the
Commissioner. ]
18. Particulars to be supplied by the employees already employed at the time of commencement
of the Employees' Pension Scheme
Every person who is entitled to become a member of the Employees' Pension Fund shall be asked"
forthwith by his employer to furnish and that person shall, on such demand, furnish to him for.
communication to the Commissioner particulars concerning himself and his family in the form
prescribed by the Central Provident Fund Commissioner.
19. Preparation of Contribution Cards
The employer shall prepare an Employees' Pension Fund Contribution Card in respect of each'
employee who has become a member of the Employees' Pension Fund.
20. Duties of Employers.
(1) Every employer shall send to the Com.~m- ission"er within three months of the commencement
of thiifSch-eme, a consolidated return of the employees entitled to become members 'of the
Employees"Pension Fund showing the basic wage, retaining allowance, if any, and dearness]
allowance including the cash value of any food concession paid to each of such employees;'
Provided that if there is no employee who is entitled to become a member of the
Employees' Pension Fund, the employer shall send a "Nil" return.
1. Subs. by G.S.R. 134, dated the 28'h February, 1996 (w.e.f 16'h March, 1996).
~ ~ 2. Ins. by G.S.R. 376 dated the 27 October, 1997 (w.e.f, 8 November. 1997)
16

23. I
,!
'erred tol
ider thef
join the r
interest I
md date I
)C.h~me·r
~~omedl
ruttance II
(2) Every employer shall send to the Commissioner within fifteen days of the close ofeach month
a return in respect of the employees leaving service of the employer during the preceding
month.
Provided that if there is no employee leaving service of the employer during the preceding
month the employer shall send a "NIL" return.
(3) Every employer shall maintain such accounts in relation to the amounts contributed by him to
the Employees' Pension Fund as the Central Board may, from time to time, direct and it shall
be the duty of every employer to assist the Central Board in making such payments from the
Employees' Pension Fund to his employees as are sanctioned by or under the authority of
the Central Board.
(4) Notwithstanding anything contained in this paragraph, the Central Board may issue such
directions to the employers generally, as it may consider necessary or expedient, for the
purpose of implementing the Scheme, and it shall be the duty of every employer to carry
out such directions.
le of its
ecorded 21. Employer to furnish particulars of ownership.
ceipt of
a claim
e delay
nay be
of the
.ement
~asked
.im for
e form '
feach
ement
of the
irness
iyees:
Every employer in relation to a factory or other establishment to which the Act applies or is
applied hereafter shall furnish to the Commissioner particulars of all the branches and departments,
owners, occupiers, directors, partners, managers or any other person or persons who have the
ultimate control over the affairs of such factory or establishment and also send intimation of any
change in such particulars, within fifteen days of such change, to the Commissioner by registered
post.
22. Duties of contractors
Every contractor shall, within seven days of the close of every month, submit to the principal
employer a statement showing tilt! particulars in respect of employees employed by or through him
in respect of whom contributions to the Employees' Pension Fund are payable and shall also furnish
to him such information as the principal employer is required to furnish under the provisions of this
Scheme to the Commissioner.
23. Allotment of Account l[Numbers]
(1) For purposes of this Scheme, where the member has already been allotted or is allotted
hereafter an account number under the Employees' Provident Fund Scheme, 1952, he shall
retain the same account number.
(2) In the case of employees of the establishments exempted from the Employees' Provident
Fund Scheme-,1952;Unoe"f Section 1Tof the Act, who are members of theEmployees'
Family Pension Fund. the account number already allotted shall be retained by them. '
(3) In the case of employees of the establishments exempted from the Employees' Provident
Fund Scheme, 1952, under Section 17 of the Act, who are not members of the Employees'
Family Pension Fund but opt to become members of the Employees' Pension Fund and in
case of new employees of such establishments, fresh account numbers shall be allotted by the
Commissioner.
I. Subs. by G.S.R 134. dated the 28'h February, 1996 (w.e.f 16'" March. 1996)
17

24. 24. Declaration by persons taking up employment after the Fund has been established
The employer shall before taking any person into employment, ask himther to state in writing Ulh.F>th ••
or not he is a member of the Employees' Pension Fund and, if he/she is, also ask himlher to
a copy of the Scheme Certificate issued by the Commissioner to him/her in respect qf the
employment in terms of paragraph 12 as the case may be. If the person concerned was not i
employment previously or had availed of return of contribution in respect of his/her pre
employment, he/she shall, on demand by the employer, furnish to him, for communication to
Commissioner particulars concerning himlherself and his/her family in the Form prescribed by
Central Provident Fund Commissioner.
25. Employees' Pension Fund Account
T~~~~~vui'~':'a~~vJ i.il~ "Einpioyees' Pension Fund Account" shall be opened by the COImlnISl)IOlrteli
in such manner as may be specified by the Central Board with the approval of Central
26. Investment of the Employees' Pension Fund
(1) All moneys accruing to Employees' Pension Fund Account except the contributions of
Central Government shall be invested in accordance with the provisions of paragraph 52
the Employees' Provident Funds Scheme, 1952.
(2) Net assets of the Family Pension Fund as on the 16.11.95 shall merge in the Pension
and remain invested in the Public Account of the Government of India. The future ,-,,,,,ua.
Government's contribution accruing to the Pension fund from 17thNovember, 1995 OnXI!'lT'n_
shall also be invested in the Public Account of the Government of India.
27. Disposal of the Fund
(1) Subject to the provisions of the Act and this Scheme, the Fund shall not, except with
prior sanction of the Central Government be expended for any purpose other than
payments envisaged in this Scheme, for continued payment of Family Pension, life assuraLllce.
benefit and retirement-cum-withdrawal benefits sanctioned under the Employees'
Pension Scheme, 1971, prior to the date of introduction of this Scheme or which may
sanctioned under that Scheme after the 16'h November, 1995 in respect of cases arisi
before that date.
(2) Not exceeding 16% of the administrative expenses shall be met from and out of
Employees' Pension Fund. The remaining administrative expenses shall be met from
Administration Accounts set up under the Employees' Provident Funds Scheme, 1952.
cost of remittance of Pension shall be charged on the Pension Fund.
28. Administration Account ..----
A separate account shall be kept, called the "Employees' Pension Administration Account"
recording of all the administrative expenses of the Employees' Pension Fund.
29. Forms of Accounts
The accounts of the Employees' Pension Fund, as also the Employees' Pension Admini
Account shall be maintained by the Commissioner in such form and in such manner as may
specified by the Central Board with the approval of the Central Government.
18

25. lhed 30. Audit
The accounts of the Employees' Pension Fund including the administrative expenses incurred in
running this Scheme shall be audited in accordance with the instructions issued by the Central
Government in consultation with Comptroller and Auditor-General of India.
las not i . 31. Rounding up of the Benefits
previou
ion to th
led by th
missione
/emmen
ion Fun
e Central
onwards
All items of benefits shall be calculated to the nearest rupee, 50 paise or more to be counted as
the next higher rupee and fraction of a rupee less than 50 paise shall be ignored.
32. Valuation of the Employees' Pension Fund and review of the rates of contributions and
quantum of the pension and other benefits
1[(1) The Central Government shall have an annual valuation of the Employees' Pension Fund made
by a Valuer appointed by it.]
(2) At any time, when the Employees' Pension Fund so permits the Central Government may
alter the rate of contributions payable under this Scheme or the scale of any benefit admissible
under this Scheme or the period for which such benefit may be given.
33. Disbursement of Pension and other benefits.
The Commissioner shall with the approval of the Central Board enter into arrangement for the
disbursement of pension and other benefits under this Scheme with disbursing agencies like Post
Offices or Nationalised Banks or Treasuries. The commission payable to the disbursing agencies
and other charges incidental thereto shall be met as provided in paragraph 27 of this Scheme.
Registers, Records, etc.
The Commissioner shall, with the approval of the Central Board, prescribe the registers and records
to be maintained in respect of the employees, the form or design of any identity card, token or disc
for the purpose of identifying any employee or his nominee or a member of a family entitled to
receive the pension and such other forms/formalities as have to be completed in connection with
the grant of pension and other benefits or for the continuance thereof subject to such periodical
verfication as may be considered necessary.
34.
35. Power to issue directions.
The Central Government may issue, such directions as may be deemed just and proper by it for
resolving any difficulty in the disbursement of pension and other benefits or for resolving any difficulty
in implementation of this Scheme.
36. Regional Committee •.--· '
The Regional Committee set up under paragraph 4 of the Employees' Provident Fund Scheme,
1952, shall advise the Central Board, on such matters, in relation to the administration of this
Scheme as the Central Board may refer to it from time to time and in particular, on - -
. (a) progress of recovery of contributions under this Scheme both from factories and
establishments exempted under Section 17 of the Act and other factories and establishments
covered under the Act.
I. Subs. by G.S.R. 134, dated the 28th February, 1996 (w.e.f 16th March 1996)
19

26. (b) expeditious disposal of prosecutions.
(c) Speedy settlement of claims relating to pension and other benefits under this Scheme.
37. Annual Report.
The Central Board shall cause to be included in the Annual Report on the working of the Scheme
prepared under paragraph 74 of the Employees' Provident Fund Scheme, 1952, a report on the
working of this Scheme during the previous financial year.
38. Application of the provisions of the Employees' Provident Fund Scheme, 1952.
In regard to matters for which either there is no provision or there is inadequate provisions in this
Scheme the corresponding provisions in the Employees' Provident Fund Scheme, 1952, shall apply.
1[39. Exemption from the operation of the Pension Scheme.
The appropriate Government may grant exemption to any establishment or class of establishments
from the operation of this Scheme, if the employees of the establishments are either members of
any other pension scheme or proposed to be members of a pension scheme wherein the pensionary
benefits are at par or more favourable than the benefits provided under this Scheme. Where
exemption is granted to any establishment or class of establishments under this paragraph,
withdrawal benefits available to the credit of tl.e employees of such establishment(s) under the
ceased Family Pension Scheme, 1971, shall be paid, subject to the consent of the employees, to
the pension fund of the establishment(s) so exempted. An application for exemption under this
paragraph shall be presented to the Regional Provident Fund Commissioner having jurisdiction by
the establishment or class of establishments, together with a copy of the pension scheme of the
establishment (s) and other relevant documents, as may be called for by him. On receipt of such
an application, the Regional Provident Fund Commissioner shall scrutinise it, obtain the
recommendations of the Central Provident Fund Commissioner and submit the same to the
appropriate Government for decision, pending disposal of application for exemption under this
paragraph employers' share of the contribution shall not be remitted to the pension fund as envisaged
in sub-paragraph (1) of paragraph 3. An application for exemption presented under this paragraph
shall be disposed of within a period of six months from the date of its receipt or such further time
as may be extended for reasons to be recorded in writing. If the application for exemption is not
disposed of within the period so specified, the exemption applied for shall be deemed to have been
granted.
Explanation :
For the purpose of this paragraph, the period of six months will count from the date on which the
application for exemptronis gtven in compete form to the satisfaction of the Regional Provident
Fund Commissioner.. ..
40. Information to the Central Government.
The Central Board shall furnish such information to the Central Government from time to time in
respect of the income and expenditure from the Employees' Pension fund account in such manner
as may be directed by the Central Government.
I. Subs. by G.S.R. 134. dated the 28,h February, 1996 (w.e.f 16'h March 1996)
20

27. .herne
m the
in this
apply.
ments
~rsof
ionary
Where
graph,
ler the 43.
ees, to
er this
ion by
of the
.f such
in the
to the
er this
isaged
igraph
.r time
is not
ebeen
44.
ehthe
41. Interpretation.
Where any doubt arises with regard to the interpretation of the provisions of this Scheme, it shall
be referred to the Central Government who shall decided the same.
42. Punishment for failure to submit return, etc.
If any person,
(a) deducts or attempts to deduct from the wages or other remuneration of the member, the
whole or any part of the employer's contribution, or
(b) fails or refuses to submit any return, statement or other documents required by this Scheme
or submits a false returns, statement or other documents, or makes a false declaration, or
,;} UUSlfUCIS any Inspector or other official appointed under the Act or this Scheme in the
discharge of his duties or fails to produce any record for inspection by such inspector or
other officials, or
(d) is guilty of contravention of or non-compliance with any other requirement of this Scheme,
he shall be punishable with imprisonment which may extend to one year or with fine which
may extend to five thousand rupees or with both.
Payment of pension in the case of a person charged with the offence of murder
(1) If a person, who in the event of the death of a member of the Pension Fund is eligible to
receive pension of the deceased under paragraph 12 or paragraph 16, is charged with the
offence of murdering the member or for abetting the commission of such an offence, his claims
to receive pension shall remain suspended till the conclusion of the criminal proceedings
instituted against him for such offence.
(2) If on the conclusion of the criminal proceedings referred to in sub-paragraph (1), the person
concerned is:
(a) convicted for the murder or abetting in the murder of the member, he shall be debarred
from receiving pension which shall be payable to other eligible members if any, of the
family of the member; or
(b) acquitted of the charge of murder or abetting the murder of the member, pension benefit
shall be payable to him.
Repeal and savings.
(I) On commencement of this Scheme, the Employees' Family Pension Scheme, 1971, in force
immediately before s.uchcommencement shall cease to operate with effect from the 16th
November, 1995. -,
(2) Notwithstanding anything contained in sub-paragraph (1) every nomination made under the
Employees' Family Pension Scheme, 1971, and every form regarding the details of Family
of an employee for the purposes of the Employees' Family Pension Scheme, 1971, shall be
deemed to have been made under the provisions of this Scheme.
(3) , All orders/authorisations/Pension Payment Orders issued under the Family Pension Scheme,
1971, shall be deemed to have been made under this Scheme.
21

28. TABLE A
(See Paragraph 14)
(WITHDRAWAL BENEFIT)
,
No.offull years'contribution paid Proportion of pay payable at cessation of membership
(1) (2)
1
234
5
6
7
89
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32·---·-'"7'~
33
34
35
36
37
38
39
40
0.20
0.41
0.62
0.84
1.06
1.29
1.51
1.75
1.98
2.23
2.47
2.72
2.98
3.24
3.51
3.78
4.05
4.34
4.62
4.92
5.21
5.52
5.83
6.14
6.46
6.79
7.12
7.46
7.81
8.16
8.52
8.89
9.26
9.64
10.03
10.43
10.83
11.24
11.66
12.08
22

29. ,
I TABLE B
1[(See Paragraphs 12 and 14)]
I FACTOR FOR COMPUTATION OF PAST SERVICE
rship I BENEFIT I[UNDER THE CEASED] FAMILY PENSION
SCHEME FOR EXISTING MEMEBRES ON EXIT FROM
THE EMPLOYMENT
(1) (2) I I[YEARS] FACTOR
Less than 1 1.049 I Less than 2 1.154
Less than 3 1.269
Less than 4 1.396
Less than 5 1.536
Less than 6 1.689
Less than 7 1.858
Less than 8 2.044
Less than 9 2.248
Less than 10 2.473
Less than 11 2.720
Less than 12 2.992
Less than 13 3.292
Less than 14 3.621
Less than 15 3.983
Less than 16 4.381
Less than 17 4.819
Less than 18 5.301
Less than 19 5.810
Less than 20 6.414 "
Less than 21 7.056
Less than 22 7.761
Less than 23 8.531
Less than 24 9.390
SUbs. by G.S.R. 134, dated the 28'h February, 1996 (w.e.f 16'hMarch. 1996).
23

30. TABLE C
(See Paragraph 16)
EQUIVALENT WIDOW PENSION
Salaryatday of Equivalentwidow pension
death not more than
(1) (2)
(Rupees) (Rupees)
Upto 300 250
~.c;() 327
400 343
450 359
500 375
550 391
600 408
650 425
700 442
750 159
800 476
850 493
900 510
950 527
1000 544
1050 561
1100 578
1150 595
1200 612
1250 629
1300 646
1350 664
1400 682
T45(f·-. 700 ,
1500 718
1550 736
1600 754
1650 772
1700 797
1750 808 Contd.l-
24

31. Salary at day of Equivalent widow pension
death not more than Rs. Rs.
1800 826
1850 844
1900 862
1950 880
2000 898
2050 916
2100 935
2150 954
2200 973
2250 992
2300 1011
2350 1030
2400 1049
2450 1068
2500 1087
2550 1106
2600 1125
2650 1144
2700 1163
2750 1182
2800 1201
2850 1221
2900 1241
2950 1261
3000 1281
3050 1301
3100 1321
3150 1341
3200 1361
3250 1381
3300 1401
3350 1421
3400 1441
3450 1461
1.I- 3500 1481

32. Note: In the case of employees drawing wages above Rs. 3500 p.m. the widow pension shall be
increased by Rs. 20 p.m for every increase in wages of Rs. 50 or part thereof subject to the
maximum ofRs. 1750/-
TABLE D
(Return of contribution on exit from the employment)
(See Paragraph 14)
Year of Service Proportion of wages at exit
1 1.02
2 2.05
3 3.10
4 4.18
5 5.28
6 6.40
.., I 7.54
8 8.70
9 9.88
26

33. be
o the D D
o
CLARIFICATIONS
ON
ElVIPLOYEES' PENSION
SCHEME, 1995
D.

34. CLARIFICATIONS
[PARA 6; PARA 7 & PARA 171
MEMBERSHIP OF THE EMPLOYEES' PENSION SCHEME, 1995
Exercisin2 of option to become member from a retrospective date. j [Refer Para 6 (d) Para 7(3) and Para 17(3)1
IOPTION ADMISSIBLE - FROM 1.3.1971
(i) Para 6 (d) read with Para 7(3) of the Employees' Pension Scheme, 1995 provides that every
employee who has been a member of Employees' Provident Fund Scheme, i952iExemptea r-und
as on 15.11.1995 but not the member of Employees' Family Pension Scheme, 1971 can become
a member of the Employees' Pension Scheme, 1995. It was clarified that option in such cases can
be exercised from 16.11.1995 (on or after 16.11.1995) with retrospecti ve effect from 1.3.1971,
i.e. the date of introduction of the erstwhile EP.Scheme provided that the member pays the arrears
of contribution with interest thereon, as prescribed for EP.Scheme, 1971.
MEMBERS OF EFPS, 1971 - OUT OF EMPLOYMENT - BENEFITS NOT WITHDRAVN
(0) A member of the Provident FundlFamily Pension Scheme, 1971 who is out of employment on
or after }S' April, 1993 but has not withdrawn the benefit, he continues to be a member of
Family Pension Fund. He automatically acquires the membership of the E.P.S., 1995 on its
introduction from 16.11.1995, as an existing member ofE.F.P.S., 1971 on 1511.1995 provided
he has not attained the age of 58 years.
BENEFITS WITHDRAWN - OPTION ADMISSIBLE
(iii) Even if such a member has already withdrawn the benefit under the EFPS, 1971, he may opt
from the date he quits the service by returning the withdrawal benefit with interest calculated @
8.5% per annum as provided in sub-para (2) of para 17 of the Employees' Pension Scheme, 1995,
and avail of the admissible benefits under the Employees' Pension Scheme, 1995. In both the
above cases, no extra contribution will be payable in the given situation.
MEMBERS OF EFPS - RETIRED FROM 1.4.93 ONWARDS - OPTION ADMISSIBLE
6v) Such of the EPFIFJ.>Fmemoors who retired from service from 1.4.1993 onwards and settled their
PF accounts may also opt to join the Employees' Pension Scheme, 1995 from the date of exit by
refunding the withdrawal benefit availed of with interest calculated @ 8.5% per annum as provided
in sub-para (2) of para 17 of the Employees' Pension Scheme, 1995.
[C.P.F.C.'s circular No:2(l)Clarificationl96. dated 22'" December, 1995 and No:2(4)Clarification!96, dated 23"'
May, 1996.]
27

35. OPTION ADMISSIBLE - FROM THE DATE OF COVERAGE - EFPS. 1971
(v) In cases where the establishment was covered from a retrospective date, the E.P.E contri
is also collected from a retrospective date whereas contribution to the E:EP.S, 1971 was rec:ov'ere:c:t.[P•.•I•.
only from the prospective date i.e., from the date of issue of coverage letter. In such cases, al
the employees of that establishment become members of EPF from the date of coverage,
membership to the EFPS, 1971 was treated only from the prospective date (i.e. from the date
issue of coverage letter). Accordingly, the benefits under the EFPS, 1971 are also admissible
reference to his membership to the EFPS, 1971.
In a related case the Gujarat High Court decided the issue and as per the operative part of
judgement, an employee becomes family pension fund member w.e.f. the date he becomes eli
to contribute to the P.E under the E.P.F. Scheme, 1952. In view of this, on option, necessar
diversion may be made from the P.E accumulations from the date the member becomes
to contribute to the E.P.F. (Le. for the pre-discovery period). After such diversion the
would become eligible for Monthly Pension benefits under the Employees' Pension Scheme, 1
with reference to the date from which the employee became member of the EPE
[C.P.F.C.'s circular No:Pensionl2/4/Clarificationl97, dated 7UtApril, 1998]
OPTION NOT ADMISSIBLE
(vi) A PF member who retired between 1.4.1993 and 15.11.1995 and got his P.E account settled
was not a member of the erstwhile Employees' Family Pension Scheme, 1971 .is not eligible to
exercise his option in favour of the E.F.P.S, 1971lEmployees' Pension Scheme, 1995
[C.P.F.C.'s circular No:2(4)Clarificationl96, dated 17thJuly, 1996.]
PARA 9
ROUNDING OFF OF FRACTION OF SERVICE FOR 6{SIX) MONTHS OR MORE
As provided under para 9(a) & 9(b) the fraction of service for 6 months or more shall be treated.
as one year and the service less than 6 months shall be ignored. The eligible service of 9 years and
months and above need be rounded off to 10 years.
[C.P.F.C.'s clrculae No:Pensionl2(4)/Clarificationl96, dated 17'h July, 1996.]
SEASONALLY EMPLOYED - ACTUAL SERVICE
According to the explanation below para 9(a),in the case of employees employed seasonally,
actual service during the year shall be treated-as full year. For the period not attended when
employment is offered it has to be treated as non-contributory service.
[C.P.F.C.'s circular No:Pensionl2(4)/Clarificationl96, dated 17tb July, 1996.]
28

36. By, t
en t
PARA 12
"'ALCULATION OF MONTHLY PENSION UNDER PARA 12(3~ lU41 AND 12(5)
Minimum pension provided for in sub-para (3), (4) and (5) of Para 12 would be applicable in
~pect of retirees who will be availing their pension on attaining 58 years of age. The same consideration
~iJl not be extendable to premature retirees who are applying for early pension. In their cases,
otwithstanding their age, they will be clubbed with the current retirees and their claims settled in
~cordance therewith on par following the provision of sub-para (5) under Para 12 i.e. allowing uniform
~inimum pension of Rs.500 in every case without eo-relating to their age group from the equity point
(view as clarified in the table indicated below:
I
AGE AGGREGATE DISCOUNT NET PENSION
r YEARS MINIMUM @3% PAYABLE
5 Rs. Rs. Rs.
50 500 120 380
51 500 105 395
52 500 90 410
53 500 75 425
d 54 500 60 440
0
55 500 45 455
56 500 30 470
57 500 15 485
58 500 - 500
,; ~unt @ 3% should be on diminishing balances)
":I--P.F.C.'scircular No:PensionlComputer196IPt.I, dated 9th January, 1997.]
d
6 DMISSIBILITY OF PENSION TO MEMBERS IN THE AGE GROUP OF 50-57 YEARS
1 M> ARE CONTINUING IN SERVICE.
In case a member desires to draw Reduced Pension before completion of the age of 58 years, he
ay be granted pension if he is otherwise eligible but subject to the condition that he is not continuing
service. .- .-~-'-'~.-- •..--.-.~ -
he4" [C.P.F.C.'s circular No:PIPIC/v1I96, dated lOth May, 1996.] he:
WAL OF EARLY PENSION DATE OF COMlfENCEMENT OF PENSION
The drawl of early pension under para 12(7), earlier to attaining the age of 58 years is linked to
~conditionalities, namely:
1 .~
.' 29
ibution
.overed
Ithough
e, their
date of
-le with
t of the
eligible
cessary
eligible
rembe
e, 199
led an
!ible t
treate
) and

37. ition
'ered
ough
their
te of
with
PARA 12
CALCULATION OF MONTHLY PENSION UNDER PARA 12(3),12(4) AND 12(5)
Minimum pension provided for in sub-para (3), (4) and (5) of Para 12 would be applicable in
respect of retirees who will be availing their pension on attaining 58 years of age. The same consideration
will not be extendable to premature retirees who are applying for ear1y pension. In their cases,
notwithstanding their age, they will be clubbed with the current retirees and their claims settled in
accordance therewith on par following the provision of sub-para (5) under Para 12 i.e. allowing uniform
minimum pension of Rs.500 in every case without eo-relating to their age group from the equity point
view as clarified in the table indicated below:
fthe
gible
sary
~ible
nber
1995
AGE AGGREGATE DISCOUNT NET PENSION
YEARS MINIMUM @3% PAYABLE
Rs. Rs. Rs.
50 500 120 380
51 500 105 395
52 500 90 4LO
53 500 75 425
54 500 60 440
55 500 45 455
56 500 30 470
57 500 15 485
58 500 500
@ 3% should be on diminishing balances)
.'s circular No:PeosionlComputerI96IPt.I, dated 9th January, 1997.)
In case a member desires to draw Reduced Pension before completion of the age of 58 years, he
be granted pension if he is otherwise eligible but subject to the condition that he is not continuing
The drawl of early pension under para 12(7), earlier to attaining the age of 58 years is linked to
conditionaJities, namely:
29

38. 1. Exit from service; and
2. Express desire indicated by the member to draw reduced pension after discounting at prescri
rate.
It will therefore, be appropriate to regulate it strictly in accordance with the desire/choice
by the member and any decision for regulating it administratively either following the date of
or date of filing the application form will be relatively arbitrary and may not suit every
requirement. Since the payment of early pension involves financial implications in the form of
arrears if allowed retrospectively and permitting higher pension prospectively for a longer
of time besides other preferences of the member, it will be inappropriate to follow any
determined process in this regard rather allowing it to be regulated in accordance with the
being expressed by the member concerned.
It is, therefore, felt that you may ascertain the position properly from the member
Endeavor may be made for providing a column in the application form itself to indicate this pas;t.
by the member concerned while applying for sanction of early pension. In an event, when in
of asking, the member concerned has not indicated any specific choice, date of application
be treated as the date from which the early pension is to be paid.
[C.P.F.C.'s circular No:Pension-In(2)98/CEPSlPt, dated 11th March, 1999.]
As per para 12(7), the pension shall be reduced @ 3% for every year the age falls short
years. Reduced Pension is to be calculated on diminishing balance.
[C.P.F.C.'s circular No:Pensionl2(4)/Clarificationl96, dated 24th January, 1997.]
58 YEARS OF AGE - PENSION TO BE GRANTED - NO DIVERSION OF PF
CONTRIBUTION TO THE PENSION FUND
Such of the members who attain the age of 58 years but still continue in service beyond
of 58 years would start getting pension on attaining the age of 58 years. Thereafter no diversion
contribution to the Pension Fund would be required to be made. The employer's share of
in respect of them will remain in their respective provident fund account.
[C.P.RC. 's circular No:2(1)Clarificationl96, dated 22nd December, 1995 and No:Pensionl2(
dated 23rd May, 1996.]
A member exit from service on voluntary retirement scheme before attaining the age of 50
if so desires, may draw a monthly reduced pension from a date earlier than 58 years of age
earlier than the 50 years of age subject to application of reduction factor as prescribed in Para
of Employees' Pension Scheme, 1995 .
. [C.P.F.C.'s circular No:PensionlClarification!95, dated 29'h January, 1996.]
30

39. MEMBERS OF EFPS. 1971 - NOT ATTAINED THE AGE OF 48 YEARS/ATTAI~ED THE
AGE OF 48 YEARS BUT LESS THAN 53 YEARS/ATTAINED THE AGE OF 53 YEARS. AS
ON 16..11.1995 - CLARIFICATION
The factual legal position as actuarially conceived regarding paragraph 12(3), (4) & (5) of the EPS,
)995, is as under.-
Sub-paragraphs (a) and (b) of paragraphs 12(3), 12(4) and 12(5) are to be read independent of
the words "subject to a minimum of Rs.800/-", "subject to a minimum of Rs.600/-" and "subject to
a minimum of Rs.500/-" provided the past service is 24 years. In other words, a person will be entitled
10 a minimum pension of Rs.800/-, Rs.600/- or Rs.500/-, as the case may be, only if:
0) On the date of his superannuation on attaining the age ot 58 years, he had rendered 24 years of
service; and
(Ji) The aggregate of (a) and (b) under paragraphs 12(3), 12(4) and 12(5), as the case may be, is less
than the prescribed minimum of Rs.800/-, Rs.600/- or Rs.500/- as the case may be.
In case the past service, i.e. eligible service on the date of attaining 58 years of age is less than
24 years of service, pension (i.e. pension according to formula) and the benefit (i.e. the past service
benefit) will be reduced proportionately and in such cases, the minimum pension and past service
benefit taken together will be Rs.450/- p.m., Rs.325/- p.m. and Rs.265/- p.m. respectively.
This may be treated as interpretation of the provisions of paragraph 12 decided by the Central
Government under paragraph 41 of the EPS, 1995.
[Ministry of Labour letter No.R-15025/01/99-SSII, dated 10thMay, 1999 circulated vide C.P.F.C.'s circular
No:PensionlI2/33IEPS/Amendmentl96, dated 11th/17thMay, 1999.]
'ED
YOND
COMPUTATION OF PENSIONARY ENTITLEMENT FOR MONTHLY MEMBER PENSIUN
- REGULATING PENSION QUANTUM - FURTHER CLARIFICATION WITH REGARD TO
GOVT.'S LETTER DATED 10.5.1999
Following further clarification with appropriate examples are issued with regard to computation of
Monthly Member Pension and in regulating the quantum of Pension amount payable under para 12(3)
to 12(5) of E.P.S., 1995 :
icatio
1.1 As per Rule 12(2) Future Service Pension to be calculated (say FPEN). If FPEN is more than the
minimum prescribed (e.g., 635/438/335 as the case may be),then FPEN will not beincreased.
If FPEN is less than the-Minimum, then FPEN will be increased to the Minimum.
50 Y
e but
As per Rule 12(3) Past Service Pension to be calculated (say PPEN).
Aggregate of 1.1 & 1.2 will be called Total Pension (TPEN).
If TPEN is more than the minimum prescribed (e.g. 800/600/500 as the case may be) then TPEN
is the Pension payable.
1.5 If TPEN is less than the minimum, then TPEN shall be increased to the Minimum (say MPEN).
31

40. f 1.6 Total Service == Family Pension Scheme Service + Employees' Pension Scheme Service (Say T
If TS is 24 years and above then MPEN is the Pension Payable. '
If TS is less than 24 years then Pension Payable == MPEN x TSI24. •
2.1 Sub-paragraph (a) & (b) of Para 12(3), 12(4), 12(5) are independent of the minimum pensi
proviso clause, as clarified by Government. That if "Total Pension" is more than "Minimu •
Aggregate Pension" then "Total Pension" shall be payable notwithstanding the period of servi
rendered. In such a case linkage of 24 years service requirement and proportionate reductions
the service is less than 24 years will not be relevant. The aggregate of (a) & (b) being equal
or more than the minimum prescribed in the proviso clause as the case may be, shall be payab] 3)
2.2 Aggregate minimums prescribed under proviso clause of Para 12(1 I ?(d). 12~5) i.e. R:;.~QO,' 3
Rs.600/- or Rs.500/- as the case may be, are payable only if the following conditions are sausned
• The member attains the age of 58 years.
• Member has rendered 24 years of eligible service.
• Aggregate of (a) & (b) is less than the prescribed minimum of Rs.800/-; Rs.600/- and A''' •.JVUI
as the case may be.
If the eligible service is less than 24 years, the aggregate minimum of Rs.800/-, Rs.600/-
Rs.500/- as the case may be, shall be reduced proportionately but not lesser than Rs.500/-
Rs.325/- or Rs.265/- per month respectively.
2.3 If the member leaves the service before attaining the age of 58 years, i.e. early pension
currently upto November, 2000AD only an aggregate minimum of Rs.500/- will be considered
the aggregate minimum pension, subject to having 24 years of eligible service and discounting
pension @ 3% per annum for every year falling short of 58 years. In other words, the early .
till November, 2000 will be clubbed with the Para 12(5) category irrespective of their age as
16.11.1995, in order to remove the anomalies in the early pension cases. Likewise during
five years i.e. from November, 2000 to November, 2005 the early retirees minimum pension q
shall be restricted to Rs.600/ Rs.335 IRs.438 IRs.635 will be regulated. Such as retirees
November, 2000 AD i.e. during first five years shall be given the credit of Rs.335/- or
amount as per pension formula whichever is higher irrespective of age group as on 16.11.1995
Rs.438/- for retirees during next five years, i.e., between November, 2000 AD to N
2005 AD.
2.4 "Minimum Future Pension" has no relation with "Minimum Aggregate Pension". If "Formula
.fallsshort of "Mihiffiumruture Pension" the' "Minimum Future Pension" shall apply. If
. Pension" is more than "Minimum Aggregate Pension" then notwithstanding-
(a) Number of years of service rendered bya member is less than 24 years and/or
(b) "Minimum Future Pension" is more than "Formula Pension", "Total Pension" shall be payable.
2.5 Government in their reference dated 10.5.1999 clarified that "Past Service" may be read as "Eligi
Service" for the purpose of proportionate reduction if the service is less than 24 years.
32

41. SayTS
pensio
I
•
Eligible Service = Actual Service + Past Service
For eligibility purpose
Eligible Service shall be used.
mimu • For calculation of benefits,
servic Eligible service as reduced by period not contributed to be taken i.e.
ctions i Past Service + Pensionable Service.
equal t
oayabl 3) Example 1
s.800/. 3.1) Past Service
atisfie Pensionable Service
Eligible Service
~s.5001
)00/- 0
,00/- 0
ember.
~
ension
"Tot
ible.
:Iigibl
21 years
1,2,3 years
22,23,24 years
Age at exit
Pensionable Salary
58 years
Rs.5,000/-
(above Rs.25001 Past Service benefit Pensionable Service benefit
wages on 16.11.95) Under sub-para (1;) Under sub-para (a)
r----
170 X 1.049 = 178 1 X 5000170 = Rs.71 or Rs.3351-
eX') 170 x 1.154 = 196 2 X 5000170 = Rs.142 or Rs.3351-
170 X 1.269 = 216 3 X 5000170 = Rs.214 or Rs.3351-
(Upto Rs.2500/-
wages on 16.11.95) 150 X 1.049 = 157 1 X 5000170 = Rs.71 or Rs.3351-
150 X 1.154 = 173 2 X 5000170 = Rs.142 or Rs.3351-
('Y') 150 X 1.269 = 190 3 X 5000170 = Rs.214 or Rs.335!-
For 'X' Category
Eligible Service Aggregate of (a) & (b) Proportionate reduction
21 + 1 = 22 years 178 + 335 = 513 Since the aggregate of (a) & (b) is more than
21 + 2 = 23 years 196 + 335 = 531 the minimum aggregate Pension of Rs. 500/-,
21 + 3 = 24 years 216 + 335 = 551 proportionate reduction will not apply even if
-" -.~---•..-. - _. the eligible service is less than 24 years.
Accordingly aggregate of (a) & (b) as -,
~ calculated shall be payable.
For "Y" Category
•. 21 + 1 = 22 years* 157 + 335 = 492 500 X 22124 = 458*
21 + 2.= 23 years 173 + 335 = 508 Proportionate reduction not applicable
-- 21 + 3 = 24 years 190 + 335 = 525 --
33

42. • *In the case of 22 years of eligible service for "Y" category Rs. 458/- will be payable.
• In the case of 23 years of eligible service Rs. 508/- will be payable,
( Please see and be guided as clarified under 2.4)
3.2) Example 2 :-
Past Service
Pensionable Service
Eligible Service
Age at Exit
Pensionable Salary
12 years
5 years
12 + 5 = 17 years
58 years
Rs.5000/-
95 X 1.689 = 160 5000 X 5170 = 3571- 160 + 357 = 517/- Since the aggregate of (a)
105 X 1.689 = 177 50(lO X 5170 = 357/- 177 + 357 = 534/- & (b) is more than the
minimum aggregate Pension
of Rs. 500/-, proportionate
reduction will not apply
even if the eligible service is
less than 24 years.
Accordingly aggregate of (a)
& (b) as calculated shall be
payable.
Aggregate of
(a) & (b)
Past Service
Benefit
[Sub-Para (b)]
Pensionable Service
Benefit
[Sub-Para (a)]
Proportionate Reduction
[C.P.F.C.'s circular No:Pension-If7(2)98/CEPS/Vo!! dated 29th June, 1999.)
PARA 12A
COMMUTATION TO THE EXISTING MEMBERS PENSlONERS AS ON 16.11.1998 -
DATE OF COltlMENCEMENT
Commutation option is permitted to the existing member pensioners as on 16.11.1998, in the month
in which it has been recei ved or from the 151 of the following month.
[C.P.F.C.'s circular N():Pensioll.:v7{2)9'8TCEP8,dated 9'h June, 1999.)
PARA 12A AND PARA 13
COMMUTATION OF PENSION - DATE FROM WHICH ADMISSIBLE - GUIDELINES
Commutation of Pension as provided under para 12A came into force from 16.11.1998. All existing
member pensioners in payment as on l6.11.1998 are entitled to exercise this option alongwith the new
member pensioners from 16.1 t .1998 onwards.
34

43. :tion
The detailed procedure followed in developing the software (for calculation of commutation amount
through computers) for release of commutation is as under.-
i) Commutation of Pension is effective from 16.11.1998 onwards.
ii) All the existing eligible member pensioners (granted under Para 12) in payment as on 16.11.1998
are entitled to exercise the commutation option. Option is required to be filed in writing on a plain
paper by the eligible member pensioner himself.
iii) The commutation option should be from the prospective date oniy. In other words from the date
the application for commutation option is filed (on or after 16.11.1998) the amount of commutation
will be worked out from the first of the following month, so as to make necessary adjustments in
the pension in payment and also to avoid administrative inconvenience,
iv) Commutation can be made upto a maximum of 1I3rdof pension. It implies that the member pensioner
can commute at any percentage rate not exceeding one third (33.33%) of the original monthly
pension.
(a) ~ALCULATION OF REDUCED PENSION UNDER PARA 13(1) - AFTER COMMUTATION
OF PENSION AND ON EXERCISING OPTION FOR RETURN OF CAPITAL
sion
iate
'ply
:e IS
ars.
, (a)
I be
v) On commutation of the original monthly pension, the balance of pension (original monthly pension
minus value of pension commuted) shall be treated as monthly pension for the purpose of payment
of pension on monthly basis and for exercising the option under paragraph 13(1) for Return of
Capital.
vi) In such cases (i.e. after commutation of pension), the reduced pension as provided under para
13(1) shall be calculated on the original monthly pension. The following example will illustrate:
(a)
(b)
(c)
(d) - - (e)
nonth
(f)
(g)
ES
isting
~new (h)
Original monthly pension under para 12
Amount of pension commuted under Para 12A
Amount of commuted value of pension
(200 x 100 = 20,000)
Balance of original monthly pension (600 - 200)
Reduced pension under Para 13(1) for ROC (Reduction
for option-I at the rate of 10% of original pension)
(600 - 200 - 60)
Rs.600
Rs.200
Rs.20,000
Rs.400
Rs.340
Pension in'pllymefft(on commutation andReturn of
Capital)
ROe as per the option exercised
(400 x 100= Rs.40,000 (Option 1 & 3)
(400 x 90 = Rs.36,000 (Option 2)
Spouse Pension on death of Member pensioner
[50% of original monthly pension as at (a)]
Rs.340
Rs.300
35

44. vii) For the existing member pensioners in payment as on 16.11.98, the payment of pension is to be
regulated as per the example shown under point (vi) on filing the option for commutation
on or after 16.11.98.
viii) Option once exercised is final and irrevocable. These options for commutation and Roe shall be
exercised while submitting the claim form in respect of claims that will be filed and received on or
after 16.11.98.
ix) On allowing the commutation option on or after 16.11.98, an Annexure showing the calculation of
commutation revised ROe, Pension in Payment shall be prepared and sent to the paying branches!
members pensioners concerned, for incorporating in the PPOs appropriately. A revised PPO
indicating the changes made be forwarded to the paying branches for record and to regulate the
payment to the member pensioner accordingly.
x) Annual relief as applicable is to be calculated on the original monthly pension as at (a) instead of
on the balance of original monthly pension as at (d), even after allowing commutation, to the eligible
beneficiaries.
xi) Commutation facility is not applicable to permanent and total disablement pensioners.
[C.P.F.C.'s circular No:2/4/Clarificationl961B, dated 30tla October, 1998.]
PARA 13.
RETURN OF CAPITAL TO THE NOMINEE - NOMINEE PREDECEASES - FRESH
NOMINATION
In the event of death of the member pensioner, amount of 'Return of Capital' is admissible to the
nominee (declared by the member-Pensioner in claim Form lO/D). A fresh nomination will be required
to be executed by the Pensioner if the nominee predeceases the pensioner himself.
[C.P.F.C.'s circular No:2(l)Clarificationl95, dated 22'" December, 1995.J
RETURN OF CAPITAL TO THE DISABLED PENSIONERS - IN THE CASE OF PENSION
COMMENCING BEFORE ATTAINING THE AGE OF 50 YEARS - APPLYING THE
REDUCTION FACTOR
Explanation 3 under Para 13(1) of the Employees' Pension Scheme, 1995 provides that in the
case of a member who is eligible for permanent total disablement pension and where the payment of"
such pension is commenced before~his attaining the age of 50 years, the option shall also be
admissible but in suc~h~~s~s the actual pension payable shall be reduced by 1% and the return 6f
capital shall be further reduced by Rs.I ,000/- for every year by which the age at commencement of
pension falls short 50 years.
The matter has been examined in detail in consultation with the Consultant Actuary, and it is
clarified that in the event of payment of disablement pension commencing before attaining age of 50
years thededuction wiIl apply both in the quantum of pension as also in the amount of capital return
as under:-
36

45. 1be
nor
n of
hes/
Jpo
the
dof
ible
the
[red
he
of
f
of
o .m
• Consider a disabled Pensioner aged 35
• Original Pension Rs.500/- - opted for ROC
• ROC Pension in normal course would have been Rs.450/- and ROC as Rs.50,000/-.
• In case of Disablement Retirement Reduction In ROe = ks.45u x.OJ x (50 - 35) = R~.67.50
• ROC Pension Payment = Rs.450 - Rs.67.50 = Rs.382.50
• Return of Capital = Rs.50,OOO - (50-35) x Rs.1,000 = Rs.35,000.
This will mean that a pension in payment is to be reduced by 1% and the Return of Capital is
to be further reduced by Rs.1,000/- per year falling short of years to 50 years of age.
NOMINATION IN FAVOUR OF A PERSON BECOMES VOID ON ACOUIRING A FAMILY
DY THE MEMBER
As per para 16(5)(a) if a nomination is made by any member in favour of a person the same shall
become void in the event the member acquires a family subsequently. Similar is the general provision
in regard to nomination contained in EPF Scheme, 1952 which shall apply by virtue of Para 38 of the
Employees' Pension Scheme, 1995.
ADMISSIBILITY OF PENSION TO WIDOW & CHILDREN AFTER DEATH OF THE
MEMBER WHO DIED AFTER AVAILING PENSION FOR A FIXED PERIOD OF 20
YEARS UNDER ALTERNATIVE 3 BELOW PARA 13(1)
Under 3rd alternative below para 13(1), the member pension will cease after the fixed period of
20 years. However, the benefits for widow/children are to be regulated as per para 13(3).
DEATH OF MEMBER PENSIONER - ADMISSIBILITY OF PENSION FOR THE
UNEXPIRED PORTION OF 20 YEARS VIS-A-VIS THE WIDOW/CHILDREN/ORPHAN
PENSION
On the death of the member-pensioner who had opted for 3rd alternative below para 13(1) i.e.
pension [or a fixed period of 20 years, the pension for the unexpired portion of 20 years shall be
admissible to the nominee in addition to the Return of Capital amount. In addition, Widow/children shall
get pension as per the provisions under para 13(3).
[C.P.F.C.'s circular No:Pensionl2(4)/Clarificationl96, dated 17lb July, 1996.]
PARA 14
CALCULATION OF WITHDRAWAL BENEFIT- ROUNDING OFF OF LAST PAY DRAWN =-
For calculation of Withdrawal Benefits under the Employees' Pension Scheme, 1995, full pay last
drawn may be rounded up to next Rs.lO/- as was done in the erstwhile Employees' Family Pension
SCheme; 1971 .
[C.P.F.C. 's circular No:Pensionl2(4)/Clarificationl96, dated 171b July, 1996.J
37

46. REFUND OF CONTRIBNUTION ON LEAVING SERVICE/MEMBERSHIP WITH LESS
THAN 6(SIX) MONTHS PERIOD
If a member has put in less than 6(six) months contribution and is leaving the membership without
becoming eligible for any benefit under the Employees' Pension Scheme, 1995, he may be refunded the
contribution component only.
[C.P.F.C.'s circular No:PIPICNI/96, dated lOlh May, 1996.]
ISSUE OF SCHEME CERTIFICATE - ACTUAL SERVlCEIPENSIONABLE SERVICE!
SALARY NOT TO BE ROUNDED OF
The Scheme certificates are to be issued with actual salary and actual sp.rvlrp :-Itth~ tj?.!~ of exit,
The principle of rounding of salary/service should take place only at the age of superannuation or when
the pension payment is to be made.
[C.P.F.C.'s circular No:Pensionl2/4/ClarificationlHl98, dated 81hMay, 1998.]
PARA 15 [read with Para 2(xvi)]
BENEFITS ON PERMANENT DISABLEMENT - ADMISSIBLE IF CONTINGENCY
OCCURRED DURING EMPLOYMENT
As per the amended provisions of para 2(xvi) read with para 15(1) of the Pension Scheme, the
benefits will become admissible subject to occurrence of the contingency during employment regardless
whether such disablement is sustained in the course of employment or otherwise.
[C.P.F.C.'s circular No:Pensionl2(4)/Clarificationl96, dated 171hJuly, 1996.]
PERMANENT & TOTAL DISABLEMENT - PRESCRIBED MEDICAL EXAMINATION
In pursuance of sub-para (3) of Para 15 the Central Board of Trustees, E.P.F. has approved that
Medical examination as required under para 15 shall be required to be conducted through a Medical
Board of the area constituted either by the Central Govt. or the State Govt. or the ESIC authorities or
any other local authority competent to constitute such a Medical Board and certificate issued by such
a Medical Board certifying the permanent and total disablement shall hold good for considering and
sanction of disablement pension.
[C.P.F.C.'s circular No:PensionIPICNIlIi96, dated 2nd January, 1997.]
PERMANENT .TOTACDISABLEMENT PENSION - STATUTORY· PROVISION' ~
PRESCRIBED PROC EDURE· CLARIFICATIQN
Para 15(1) of the EPS, 1995 read with definition of the term "Permanent and Total Disablement"
contained in Para 2(xvi) ibid, clarifies the position. Para 15(1) of the Scheme entitles the benefit on
permanent and total disablement during service while the definition provided under Para 2(xvi) defines
the term "Permanent and total disablement".
38

47. s •
lout
the
the
less
•
•
:E/ •
.xit.
hen
.hat
ical
')or
llch
and
nt"
on
nes
It implies that:
The disablement could occur in the course of employment or otherwise, In other words, the injury
need not be restricted to employment injury alone or relating to work place. However, it need be
during employment contributing to the membership of the fund and not extendable during non-cmployrnent
period of membership, if any.
Disablement need be total i.e.100%.
The disablement be of permanent in nature; and that
Such permanent total disablement shall incapacitate the member employee for all work which he/
she was capable of performing at the time of disablement. Incapacitating any member rendering
unfit for the ongoing employment or rendering unfit for any employment partially will not suffice.
The above-mentioned requirements are to be fully satisfied upon conduct of medical examination
of the members concerned by any authorised Medical Board of a Central/State Govt.IESIC Hospital
or other prescribed authorities. In order to follow uniform procedure, two proformae have been
designed one for regulating such cases and other for obtaining the report from the Medical Board.
(For proformae refer to the "Forms and Returns" Section at the end of this Handbook).
[C.P.F.C.'s circular lTo:Pension/2(4)/Clarificationl96/, dated 24thMarch, 1999.]
PARA 16
MONTHLY WiDOW/CHILDREN PENSION - ONE MONTH'S CONTRIBUTION -
MEANING
One month's contribution laid own under Para 16(1)(a) does not mean full month's contribution.
One month's contribution for all purposes wiII constitute of contribution payable in that month in respect
of the employee for the number of days served before death in service. Accordingly, widow and children
would get pension if the member died after contributing for a part of the month during which he served.
[C.P.F.C.'s circular No:Pensionl2(4)/Clarificationl96/3157, dated 9thDecember, 1996.]
DEFINITION OF THE TERM 'SALARY' APPEARING UNDER TABLE 'C'
The term 'SALARY' appearing in table 'C' of EPS,95 may be construed in accordance with the
provision of 'Pensionable Salary', in terms of Para 11(2) read with Para 2(xiii)which defines the 'Pay'
as basic wages with dearness allowance, retaining allowance and cash value of food concession,
admissible, if any. Same is the concept followed in the case of EPF which is relatable in terms of Para
38 of the Employees' Pension Scheme, 1995.
[C.P.F.C;'s circularNo:Pension/2(4)/Clarificationl96, dated 17" July, 1996.]
MONTHLY WIDOW/CHILDREN PENSION - MEMBER RENDERED LESS THAN 10
YEARS SERVICE - RETAINED=THE MEMBERSHIP - DIED BEFORE ATTAINING 58
·YEARS' AGE - ADMISSIBILITY ~
As per note under para 16(1)(c), if a member has rendered less than 10 years of eligible service
on the date of exit but had retained the membership of the pension fund and died before attaining the
39

48. age of 58 years, such cases shall be regulated as per proviso under para 12(8) for payment of widowl
children/orphan pension.
[C.P.F.C.'s circular No:PensionJ2(4)/ClarificationJ96, dated 24thJanuary, 1997.] .
MONTHLY CHILDREN PENSION
Monthly Children Pension is admissible in addition to monthly Widow/Widower Pension in all the
three eventuality under Section 16(1)(a), 16(l)(b) and 16(l)(c), provided there are surviving children
who have not attained the age of more than 25 years and that Children Pension shall be admissible to
maximum of two children at a time.
[C.P.F.C.'s circular No:Pensionl2(4)/Clarificationl96,dated 17thJuly, 1996.]
MONTHLY CHILDREN PENSION TO TWO CHILDREN AT A TIME - FAMILY HAS
TWINS IN ADDITION TO AN ELDER SON - HOW PENSION TO BE PAID
In such cases pension would be released to two children - one who ,S the eldest of the three and
the other elder one of the twins.
[C.P.F.C.'s circular No:Pensionl2(4)/Clarificationl97, dated 7thApril, 1998.]
MONTHLY ORPHAN PENSION -75% OF THE WIDOW PENSIQN - PAYABLE TO EACH
OR TO BE DIVIDED BETWEEN THEM
As per para 16(4)(a) read with para 16(4)(b), 75% of the Monthly widov .•.pension is to be paid
to each of the orphan, subject to a minimum of Rs.170/- per month per orphan (raised to Rs.250/- vide
G.S.R. No.41 dated 12th January, 2000).
[C.P.F.C.'s circular No:Pensionl2(4)/Clarificationl96, dated 24thJanuary, 1991.1
MONTHLY CHILDREN PENSION - PERMANENTLY AND TOTALLY DISABLED
CHILDREN - PARA 16(3)(e)
Para 16(3)(e) provides for payment of monthly pension to permanently and totally disabled children!
orphan irrespective of their age and number of children in the family in addition to the children pension
provided under Para 16(3)(d).
In regard to the doubt raised as to whether Para 16(3)(e) is independent of Para 16(3)(d) for grant
of disabled children pension, Ministry of Labour has clarified as under:-
"Conceptually there is a need to read paragraph 16(3)(d) and 16(3)(e) together. As provided
under para 16(3)(d), the month Iy chi Idren pension will run from the oldest to the youngest child. If, there
are two disabled children and both are age-wise seniors to others, then pension will be payable to these "
two children only. However, if there is any other totally disabled child in the family, he will also be
entitled to get pension but in no case, pension will be payable to other children if two senior disabled
children are already getting pension under the Scheme. In cases where first two children are normal and
age-wise senior, then in their cases, pension will be payable in addition to the pension payable to the
disabled children."
40

49. To understand the implications/clarifications better, six examples are worked out as under:
CASE·I
• pt Normal Child
• 2nd Normal Child
• 3rd Disabled Child
• 4th Disabled Child
First 2 normal children (upto 25 years age) will draw pension. Since 3rd and 4th children are disabled
children they will also get Children pension in addition to 1st and 2nd child.
CASE·II
• pt Normal Child
• 2nd Disabled Child
• 3rd Normal Child
• 4th Disabled Child
151 and 2nd children will get pension automatically on the basis of the seniority to begin with.
4th child being disabled shall also draw pension in addition to first two children.
3rd will not get at all as 2nd and 4th will be drawing pension life long.
CASE·III
• I" Disabled Child
• 2nd Disabled Child
• 3rd Normal Child
• 4th Normal Child
I"' and 2nd children will only get pension since they will draw pension for life.
)'d and 4th child will not have the occasion to draw pension unless any vacancy arises otherwise.
CASE·IV
~st Normal Child
2nd Disabled Child
3rd Normal Child
41h Normal Child
1" and 2nd children will get pension. On completion of age of 25 years of 1st child, 3rd will occupy the
pt child slot, likewise 4th child on completion of 3rd child.
-tl