EMPLOYEES’ DEPOSIT LINKED INSURANCE SCHEME, 1976

Salary Slab (upper limit), Rate of Contribution, Administrative Charges and Inspection Charges to be Borne by Employer

BENEFITS

On the death while in service of the member, the nominee of the deceased shall in addition to PF/EPS accumulation, be paid an amount equal to the average balance in the PF accumulation of the deceased for the preceding twelve months and it the average balance exceeds र 50,000/- then the amount payable shall be र 50,000/- plus 40% in excess of र 50.000/- subject to a ceiling of र 1,00,000/- plus 20%. W.e.f. 24.5.2016, for the family members of the deceased member who was in the employment of the same establishment for a continuous period of twelve months, are entitled for benefits as under. The average monthly wages drawn during the 12 months preceding the month in which he died multiplied by thirty times plus solo of the average balance in the PF of the deceased during preceding 12 months or during the period of his membership, whichever is less, Subject to a total ceiling of 1,50,000 subject to a total ceiling of Rs. 6.00.000/-

Note : (1) w.e.f. 1.1.2015, the Minimum administrative charges payable are र 25/- per Month for non-functional establishments having no contributory member and र 200/- per Month for other establishments.

Employees Pension Scheme, 1995

1. DEFINITION Employees' Pension Scheme is a survivor, old age and disability pension scheme. The Earlier Family Pension Scheme, 1971 offered only one type of benefit, namely, survivor's benefit, i.e. payment of pension to widow/widower on death of the member in service. On the other hand, the new scheme caters for three types of contingencies:-

   1. Survivor pension	:	If death occurs during service period
   2. Old Age Pension	:	Pension on Superannuation.
   3. Permanent Disability Pension	:	In the event of member suffering permanent disability while in service.

2. CHARACTERISTICS: In the scheme three scales of pensionary benefits have been offered according to the length of service.
   1. For service below 10 years Return of contribution on exit from employment - Table -D Example: Suppose a member exits from employment after four years of service his wage on exit is र 4,000. Return of contribution will be calculated as र 4,000 x 4.18 of wages on exit i.e. र 16,720/-
   2. Service above 10 years but below 20 years In the first instance pension will be calculated by applying the formula. i.e. - Pensionable Salary X Pensionable service 70 Say, a member has done 18 years of pensionable Service. Pensionable Salary determined as र 4000/- Pension payable to him will be र 1029/-
   3. Service over 20 years: Full pension according to the formula stated above. It is to be noted here that for rendering 20 years of pensionable service or more, member’s pensionable service shall in all cases be increased by adding 2 years. In other words, 20 years actual pensionable service will be treated as 22 years of pensionable service for calculation of pension.
   4. Special provisions for existing members: Special provisions have been made for calculation of pension in case of member who was a member of the ceased Family Pension Scheme 1971 and who has attained the age of 48 years on the 16th November, 1995 or a member who has attained the age of 48 years but is less than 53 years on 16th November, 1995, member who has attained the age of 53 years of more on the 16th November, 1995. In the aforesaid cases the formula for calculating pension will be as follows. –
      1. Member has not attained the age of 48 years on 16.11.1995: Pension is determined by the above formula i.e. Pensionable Salary X Pensionable service 70 For the period of pensionable service rendered from the 16th Nov. 1995 or र 635/- Whichever is more plus past service benefits as under :-

         Sr. No. Year of past service	*The past service benefit payable on completion of 58 years of age on 16.11.95
         	Salary up to र 2,500/- p.m.	Salary more than र 2,500/- p.m.
         (1)	(2)	(3)
         Up to 11 yrs. More than 11 yrs. but up to 15 yrs. More than 15 yrs. Beyond 20 yrs.	80 95 120 150	85 105 135 170

         
         

         * To arrive at past service benefit, payable on the completion of 58 years of age on 16.11.1995 under column (2) & (3) above, shall be multiplied by the factor given in Table-B corresponding to the period between 16.11.1995 and date of attainment of age 58. Subject to a minimum of र 800/- per month provided the past service is 24 years. If the member's aggregate service is less than 24 years, Pension and the benefits computed as above will be reduced proportionately to a minimum of र 450/- per month.

      2. Member has attained the age of 48 years but less than 53 years on 16.11.1995 Pension as determined by the above mentioned formula i.e. Pensionable Salary X Pensionable service 70

         for the period of service rendered from 16.11.1995 or र438/-per month whichever I more plus past service benefit as laid down in Para 12 (3) subject to a minimum of र 600/- per month, in case the past service is 24 years. If it is less than 24 years, pension payable and the past service benefit taken together shall be proportionately less subjectto a minimum of र325/- p.m.

      3. Member has attained the age of 53 years or more on 16.11.1995 Pension as determined by the above mentioned formula i.e. Pensionable Salary X Pensionable service 70

         for the period of service rendered from 16.11.1995 till the date of exit or र335/- p.m. whichever is more plus past service benefit as provided in para 12 (3) subject to a minimum of र500 /-p. m. (both together) in case past service period is 24 years. If it is less than 24 years pension payable and the past service benefit shall be proportionately lesser subject to a minimum of र265/- p.m.

3. EARLY PENSION ON CESSATION OF EMPLOYMENT Old age pension on account of superannuation/retirement is normally payable on attaining the age of 58 years. However, member cannot opt for taking earlier than 58 years on his exit from employment but under no circumstances pension will be payable before the age of 50 years. A member who desires to draw monthly pension from a date earlier than 58 years of age will be allowed to draw a monthly reduced pension. The amount of pension in such a case shall be reduced at the rate of 4% (Earlier3%) for every year the age falls short of 58 years.
4. SCHEME CERTIFICATE There are occasions when a member may leave employment and or may move from a covered establishment to an uncovered establishment before he reaches the date of superannuation, he may opt for a Scheme Certificate. The certificate will indicate his pensionable salary and the amount of pension due on the date of exit from employment. If the member is subsequently employed in a covered establishment, his pensionable service in the scheme certificate will be taken into account for working out his full pensionable service.
5. WIDOW PENSION
   1. Widow pension is of three categories. (i) of death of, the member during service (ii) on the death of the member after leaving service but before attaining the age of 58 years and (iii) in case of death of the member after commencement of payment of monthly members pension.
   2. Widow pension on death of the member during the service is equal to monthly members pension.
   3. The essential conditions for grant of widow pension are as follows: -
      1. The death of the member occurred while in service.
      2. The member has contributed at least one month's contribution.
      3. The member had not attained the age of 58 years.
      4. The death of the member had taken place before the commencement of monthly members pension.

      Example 1: Mr. 'X', a worker in an establishment, became member of the Employees Pension Scheme on 2nd January 1996, He died in February 1996 after a short illness. His wages at the time of death was र1, 500/- p.m. He left behind his widow aged 22 years and a child aged 1 year. What will be the widow pension in this case?

      It is confirmed that pension contribution for Mr. 'X' was paid by the employer for the month of January 1996. Widow Pension entitlement.

      • Pensionable service One month Pensionable salary र 1500/-
      Either
      • pension according to the formula:
        Pensionable Salary X Pensionable service i. e. 1 x 1500 = र1.78 70 12 70

        Or ii. Minimum pension payable as per para 16 (2) (a) (i) of the Scheme-र450/- p.m.

      Or
      • (iii) The amount indicated in table ‘C’- र 718/- per month – whichever is more. Since (iii) is more than (i) & (ii), Widow pension will be fixed at र 718/- per month for life or remarriage of the widow, whichever is earlier.
      • For the child, 25% of the widow pension will be granted as monthly pension i.e. 25% of र 718 = र 179.50 or र 180/- p.m., till 25 years of age.
        

        Example 2: Mr. ‘Y’ Joined Family Pension Scheme in January 1972. He died while in service, say, on 30 March 1998. He was drawing a salary of र 2,500/- p. m. from January'97 till death. He had attained the age of 48 years at the time of his death. He left behind the widow, two sons – one aged 16 years, one 7 years and one daughter aged 20 years. What would be the widows pension and children pension, payable?

        (i) Mr ‘Y’ had done 26 years 3 months of pensionable service at the time of his death. In calculation of eligible service for pension, fraction of three months will be ignored as per explanation to para 9 (a) of the Scheme and thus eligible service will be taken as 26 years only. The average 12 months’ salary at the time of his death was र 2,500/-. Hence member's monthly pension will be:

        
        Pensionable Salary X Pensionable service 70
        i.e
        • 26 X 2500 = र 928.57 or र 929/- p.m. 70
        Or
        • In terms of para 16(2)(a)(ii)- र 250/- p.m
        Or
        • Table 'C' - र 1087-Whichever is more.

          The amount at (iii) being more than (i) & (ii), the widow pension payable will be र 1087/- for life or remarriage of the widow, whichever is earlier.

   4. Children Pension
      1. The member left behind three children one daughter aged 20 years, one son aged 16 years and the other son age 7 years. To start with, only the elder two, the daughter and the elder son will get pension. The daughter will get pension for 5 years by which time she will be 25 years of age after 5 years of the vesting of pension. After the daughter ceases to be the beneficiary, the youngest child, then aged 12 years, will start receiving pension till the age of 25 years.
      2. The amount of children pension will be @25% of widow pension for each of the two children, viz.

         25% + 25% of र1087 or र272 + र272 for two children.

6. WIDOW PENSION AFTER COMMENCEMENT OF MONTHLY PENSION
   1. In case of death of the member after vesting of pension, the amount of widow pension is payable @ 50% of the monthly member's pension subject to a minimum of र 250/- p.m. for example. Mr. 'Z' a pensioner dies at the age of 66 years leaving behind his widow aged 62 years

      Mr. ’Z’ drawing pension @ र 1000/- p.m. The widow pension in this case will be र 500/- p.m.

   2. In case the member leaves behind any child less than 25 years of age, children pension is payable for each equal to 25% of the widow pension subject to a minimum of र 250/- p.m.
   3. The Minimum Monthly orphan pension which is payable where a deceased member is not survived by any widow or where pension is not payable to the widow (in case of remarriage) is subject to a Minimum of र 750/-
7. COMMUTATION OF PENSION (Benefit withdrawn wef 01/07/2008)
8. OPTION FOR RETURN OF CAPITAL (Benefit withdrawn wef 01/07/2008)
9. Summary of Benifits to existing members of paras 12(3), 12(4) & 12(5)

   Vide Para of E.P.S. 1995	Age of employees as on 16.11.1995	Pension amount for service After 16.11.1995 till date		Past service Benefit till 15.11.1995		If aggregate service less than 24 yrs. then the minimum MMP payable
   		Amount as per calculation	Minimum Pension Payable	Min. Past Service benefit Payable for 24 years Past service	If PSB is less than 24 yrs
   12 (3) 12 (4) 12 (5)	Upto 47 yrs 48 yrs to 52 yrs 53 yrs and	Do Do Do	र 635/- र 438/- र 500/-	र 800/- र 600/- र 500/-	On proportionate basis of the min. PSB payable or as per calculation whichever is more	र 450/- र 325/- र 265/-

10. Withdrawal Benefit:

    If the member renders less than 10 years pensionable service on the date of exit or an attaining the age of 58 years, whichever is earlier, he is entitle for withdrawl benefit as per Table 'D' or he may opt for scheme certificate.

    The existing member, i.e. member of F.P.F. shall receive additional benefit for his past service under the F.P.F. Scheme 1971, as per Table 'A' multiplied by factor given in Table 'B'.

11. Payment of Pension Through Banks

    The pension is disbursed through Nationalised Banks of the respective state. The member/pensioner are required to open an account in the Bank where pension is desired and indicate the option in the application in Form 10-D. The Statewise list of Banks, where pension can be opted is given below.

    
    

    REGION	NOMINATED BANK	REGION	NOMINATED BANK
    Andhra Pradesh	Andhra Bank & SBI	Maharashtra	Bank of India, PNB & SBI
    Bihar	Punjab National Bank	North East Region (Assam)	Punjab National Bank & State Bank of India
    Delhi	Punjab National Bank & SBI	Orrisa	Bank of India & SBI
    Gujarat	Dena Bank & SBI	Punjab	Punjab National Bank & SBI
    Haryana	Punjab National Bank & SBI	Rajasthan	State Bank of Bikaner & Jaipur, Punjab National Bank
    Karnataka	Canara Bank	Tamilnadu	Indian Bank & SBI
    Kerala	Canara Bank & SBI	Uttar Pradesh	PNB & SBI
    Madhya Pradesh	Punjab National Bank & SBI	West Bengal	Punjab National Bank & Union Bank of India
    Himachal Pradesh	Punjab National Bank & SBI	In addition to above :	HDFC, UTI & ICICI Bank for all Regions

    
    WITHDRAWAL BENEFIT (See Paragraph 14) TABLE-A
    

    No. of full year’s Contribution paid (1)	Proportion of pay payable at cessation of membership (2)	No. of full year’s Contribution paid (1)	Proportion of pay payable at cessation of membership (2)	No. of full year’s Contribution paid (1)	Proportion of pay payable at cessation of membership (2)	No. of full year’s Contribution paid (1)	Proportion of pay payable at cessation of membership (2)
    1 2 3 4 5 6 7 8 9 10	0.20 0.41 0.62 0.84 1.06 1.29 1.51 1.75 1.98 2.23	11 12 13 14 15 16 17 18 19 20	2.47 2.72 2.98 3.24 3.51 3.78 4.05 4.34 4.62 4.92	21 22 23 24 25 26 27 28 29 30	5.21 5.52 5.83 6.14 6.46 6.79 7.12 7.46 7.81 8.16	31 32 33 34 35 36 37 38 39 40	8.52 8.89 9.26 9.64 10.33 10.43 10.83 11.24 11.66 12.08

    TABLE-B FACTOR FOR COMPUATION OF PAST SERVICE BENEFIT UNDER THE CEASED FAMILY PENSION SCHEME FOR EXISTING MEMBERS ON EXIT FROM THE EMPLOYMENT(See Paragraph 14)
    

    (1) years	(2) Factor	(1) years	(2) Factor	(1) years	(2) Factor	(1) years	(2) Factor
    Less than 1	1.039	Less than 10	2.077	Less than 19	4.152	Less than 28	8.301
    Less than 2	1.122	Less than 11	2.243	Less than 20	4.485	Less than 29	8.965
    Less than 3	1.212	Less than 12	2.423	Less than 21	4.843	Less than 30	9.682
    Less than 4	1.309	Less than 13	2.616	Less than 22	5.231	Less than 31	10.457
    Less than 5	1.413	Less than 14	2.826	Less than 23	5.649	Less than 32	11.294
    Less than 6	1.526	Less than 15	3.052	Less than 24	6.101	Less than 33	12.197
    Less than 7	1.649	Less than 16	3.296	Less than 25	6.589	Less than 34	13.173
    Less than 8	1.781	Less than 17	3.560	Less than 26	7.117
    Less than 9	1.923	Less than 18	3.845	Less than 27	7.686

    TABLE-C EQUIVALENT WIDOW PENSION (See Paragraph 16)
    

    Salary at day of death not more than (1)	Equivalent widow pension (2)	Salary at day of death not more than (1)	Equivalent widow pension (2)	Salary at day of death not more than (1)	Equivalent widow pension (2)	Salary at day of death not more than (1)	Equivalent widow pension (2)
    र upto 300 350 400 450 500 550 600 650 700 750 800 850 900 950 1000 1050 1100 1150 1200 1250 1300 1350 1400 1450 1500 1550 1600 1650 1700 1750 1800	र 250 327 343 359 375 391 408 425 442 459 476 493 510 527 544 561 578 595 612 629 646 664 682 700 718 736 754 772 797 808 826	1850 1900 1950 2000 2050 2100 2150 2200 2250 2300 2350 2400 2450 2500 2550 2600 2650 2700 2750 2800 2850 2900 2950 3000 3050 3100 3150 3200 3250 3300 3350 3400	844 862 880 898 916 935 954 973 992 1011 1030 1049 1068 1087 1106 1125 1144 1163 1182 1201 1221 1241 1261 1281 1301 1321 1341 1361 1381 1401 1421 1441	3450 3500 3550 3600 3650 3700 3750 3800 3850 3900 3950 4000 4050 4100 4150 4200 4250 4300 4350 4400 4450 4500 4550 4600 4650 4700 4750 4800 4850 4900 4950 5000	1461 1481 1500 1521 1541 1561 1581 1601 1621 1641 1661 1681 1701 1721 1741 1751 1761 1771 1781 1791 1801 1811 1821 1831 1841 1851 1861 1871 1881 1891 1896 1901	5050 5100 5150 5200 5250 5300 5350 5400 5450 5500 5550 5600 5650 5700 5750 5800 5850 5900 5950 6000 6050 6100 6150 6200 6250 6300 6350 6400 6450 6500	1906 1911 1916 1921 1926 1931 1936 1941 1946 1951 1956 1961 1966 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016 2021 2026 2031 2036 2041 2046 2051

    TABLE-D RETURN OF CONTRIBUTION ON EXIT FROM THE EMPLOYMENT
    

    Year of service	Proportion of wages at exit	Year of service	Proportion of wages at exit	Year of service	Proportion of wages at exit
    1 2 3	1.02 1.99 2.98	4 5 6	3.99 5.02 6.07	7 8 9	7.13 8.22 9.33

    General note:
    • w.e.f. 1.9.2014, the part of EPS contribution @ 8.33% of salary the maximum limit of which was Rs. 541/- p.m. has been increased to Rs. 1250/-
    • w.e.f. 1.9.2014, employees drawing basic salary above Rs. 15.000/- are not eligible for pension.
    • Vide notification dated 1st April, 2016, the Monthly Orphan Pension shall be payable to an orphan beyond the age of 25 years, if such orphan is suffering from disorder or disability of mind or is physically crippled or disabled. To avoid any ambiguity this provision has been inserted under para 16(4).
    • W.e.f. 25th April, 2016 a new sub-para (7B) was introduced in para 12 of the Employees’ Pension Scheme. According to the new provision, if the member so desires, he can defer withdrawing his pension beyond 58 years but not more than 60 years. In this case, the pension amount will be increased by 4% for every completed year after 58 years. Further, the member can continue to contribute towards EPS upto the age of 60 years only.
    • Vide notification 19th May, 2016, the Ministry substituted the proviso of sub-para (8) of para 12 of the Employees' Pension Scheme. As per the new proviso –
      • If the member does not take up an employment coverable under the Scheme and has rendered less than 10 years eligible service on the date of exit, but dies before attaining the age of 58 years & before a continuous period of 36 months has elapsed during which contributions have not been received to the Pension Fund in respect of the concerned member, then the amount of contributions received in his case will be converted into a monthly widow pension or children pension. The widow pension will be calculated as per Table C and the children pension at 25% thereof for each child (upto 2). The orphan pension will be calculated at 75% of the amount as per provisions of para 16.
      • If the member does not take up an employment coverable under the Scheme and has rendered less than 10 years eligible service on the date of exit, but dies before attaining the age of 58 years after a continuous period of 36 months has elapsed during which contributions have not been received to the Pension Fund in respect of the concerned member, then the family shall be entitled to benefits under para14.

        This notification is applicable to only those employees who will complete 58 years of age after 1st May, 2016.

    • Vide notification dated 16th June, 2016, the Ministry omitted the wordings ‘for financial year 2014-15’, thereby continuing the minimum pension amount Rs.1,000/- beyond 31st March, 2015.
    • Vide notification dated 1st July, 2016, the Ministry amended para 11(4) of the Employees' Pension Scheme, wherein the wordings "and the pensionable salary for the existing members who prefer such fresh option shall be based on the higher salary" shall be inserted after the words “on salary exceeding fifteen thousand rupees per month".
    • In the 7the October. 2016 circular, EPFO provided analysis for the 2 sample months of April & May 2016 in respect of employees contributing to the Pension Fund exceeding salary of Rs. 15,000/- p.m. As per papra 11(4) of the Employees' Pension Scheme, members who have opted to contribute on salary exceeding Rs. 15.000/- p.m. have to additionally contribute @ rate of 1.16% on the salary exceeding Rs. 15.000/- from & out of the contributions payable by the employees for each month. Accordingly, they have been advised to examine the compliance under para 11(4) regarding additional contribution of 1.16% & also regarding submission of fresh option for contribution on salary exceeding Rs. 15,000/- p.m. as per para 11(4).

Universal Account Number (UAN)