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Unit 11: Employees’ Provident Fund Act, 1952

11.3.4 Service for Pension Notes

Actual service rendered after 16.11.1995 together with the service for which the contribution has
been made under the eased Family Pension Scheme 1971, if any will be treated as service for
pension. A person is entitled for pension after, completing the age of 58 years with minimum
service of 10 years. Six months or more shall be treated as one year and the service less than six
months shall be ignored.

11.3.5 Determination of Pensionable Salary

Pensionable salary shall be the average monthly pay drawn in any manner including on piece
rate basis during the contributory period of service in the span of 12 months preceding the date
of exit from membership of the Employees Provident Fund.

11.3.6 Benefits

1. Monthly Member Pension - Superannuation Pension/retirement on attaining the age of 58
years.
2. Pension Scheme Certificate - Document indicating pensionable service and the amount
of reduced pension on the date of exit from employment which shall be counted for
determination of pension along with fresh service where the member has not attained the
age of retirement.

3. Invalidity Pension - In case of permanent and total disablement during the course of
employment.
4. Widow Pension - Pension from the date following the date of death of the, member whether
in service or after exit of employment or after retirement/commencement of monthly
member pension.
5. Children Pension - Pension to two children of deceased member up to the age of 25 years
in addition to widow.
6. Orphan Pension - Two orphan children up to the age of 25 years entitled for monthly
orphan pension equal to 75% of the amount of widow pension.
7. Nominee Pension - In case of unmarried members, a person nominated by the member will
get pension equal to widow pension.

11.3.7 Commutation of Pension

Pension shall be allowed for commutation with effect from November 1998. Member can opt for
commutation up to a maximum of one third of pension.

11.3.8 Withdrawal Benefits

A member is allowed withdrawal benefit where a minimum of pensionable service of 10 years
has not been rendered on the date of exit/on attaining age of 58 years.

11.3.9 Administration

The pension scheme will be administered by the tripartite Central Board of Trustees set up under
the Employees Provident Fund and Miscellaneous Provisions Act. The Regional Committees set
up under the provident fund scheme shall advise the Regional Boards on matters relating to
administration and implementation of the scheme in their respective regions.

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