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Corporate Legal Framework

Notes 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.

Contribution

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

Service for Pension

Actual service rendered after 16.11.1995 together with the service for which the contribution has
been made under the ceased 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 a minimum service of
10 years.
Six months or more shall be treated as one year and service less than six months shall be
ignored.

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.

13.5 Benefits under Pension Fund Scheme, 1995

1. A member shall be entitled to superannuation pension, if he has rendered eligible service
of 20 years or more and retires at the age of 58 years, or retirement pension if he has
rendered eligible service of 20 years or more and retires before the age of 58 years, or
short service pension if he has rendered eligible service of 10 years or more but less than
20 years.
2. A monthly reduced pension shall be allowed at the option of the member, from a date
earlier than 58 years of age but not earlier than 50 years.

3. A member may opt for commutation of pension up to a maximum of 1/3 of the normal
pension. The commuted value shall be 100 times the amount of pension commuted.
Uncommuted pension shall be paid on monthly basis as per option under clause (d).
4. A member may opt to draw Reduced Pension and avail of Return of Capital equal to 90 or
100 times the original monthly pension, under three alternative plans.
5. If a member has not rendered the minimum eligible service of 10 years on the date of
retirement/superannuation, he shall be entitled to Return of Contribution at the prescribed
rate.
6. A member, who is permanently and totally disabled during the employment shall be
entitled to the monthly member's pension, subject to a minimum of 250 p.m.

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