Page 189 - DCOM207_LABOUR_LAWS

Labour Laws

Notes Self Assessment

Fill in the blanks:
4. ................... means the Deposit-linked Insurance Scheme framed under sub-section (2) of
section 6C.
5. ................... in relation to an employee, who is the member of the Pension Scheme, means
the attainment, by the said employee, of the age of fifty-eight years.
6. ................... means the Employees Pension Fund established under sub-section (2) of section
6A.

11.3 The Employees’ Pension Scheme, 1995

Employees’ Pension Scheme 1995 has been made applicable on 16.11.1995 retrospectively with
effect from 1.4.1993. This new Scheme replaces the erstwhile Family Pension Scheme, 1971.

11.3.1 Membership

1. Every member of the Employees’ Provident Scheme 1952 and opted for Employees Family
Pension Scheme 1971.
2. All new entrants to the Employees’ Provident Fund Scheme 1952 will become member of
the Employees’ Pension Scheme 1995 on compulsory basis.
3. Every employee who has ceased to be a member of the Employees Family Pension Scheme
1971 during 1.4.1993 and 15.11.1995 was given option to become member of the Employees’
Pension Scheme 1995 upto 31.3.1998.

4. Every existing member of the Employees’ Provident Fund Scheme 1952 not being member
of Family Pension Scheme 1971 has option to become member of Employees’ Pension
Scheme, 1995.

11.3.2 Option Requirement

1. Members who have died during 1.4.1993 and 15.11.1995 shall be deemed to have exercised
option of joining Employees’ Pension Scheme 1995 with effect from the date of death:
2. Members who are alive may exercise option to become member of the Employees’ Pension
Scheme 1995 on the date of exit from the employment by depositing amount along with
interest at the rate of 8.5 per cent per annum from the date of such withdrawal.

3. Members will have option to join Employees’ Pension Scheme 1995 by depositing the
contribution along with up to date interest under ceased Employees’ Family Pension
Scheme 1971 with effect from 1.3.1971.

11.3.3 Contribution

Employee is not required to contribute separately under the Employees’ Pension Scheme 1995.
Employer share of provident fund contribution at the rate of 8.33 % is diverted to pension fund
every month.

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