Page 300 - DCOM404_CORPORATE_LEGAL_FRAMEWORK

Unit 13: Industrial Law

7. A monthly widow pension ranging from 450 p.m. to an amount equal to monthly Notes
member's pension is payable from the date of member's death to the date of death of
widow or her remarriage.
8. A monthly children pension, equal to 25% of monthly widow pension, subject to a
minimum of 150 p.m. per child (for two children) is allowed.
9. Where widow pension is not payable, the children shall be entitled to a monthly orphan
pension, equal to 75% of monthly widow pension, subject to a minimum of 250 per child.

10. 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. 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.

Did u know? 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.

Caselet EPF Members can opt for New Pension Scheme
A LL members of the Employees Provident Fund (EPF) can also participate in the
new pension scheme announced by the Government.

Though the scheme is primarily for Central Government employees who have joined the
public services after January 1, 2004, the ordinance says that any person governed under
the EPF may also opt to join the scheme. Under the new pension scheme, the monthly
contribution of employees would be 10 percent of the salary and dearness allowance and
this would be matched by the Central Government. However, it has been clarified that
there will be no contribution from the Government in respect of individuals who are not
Government employees.
Moreover, State Government employees are also eligible to join the new scheme, if the
State, by a notification, extends it to its employees. States that are making quick progress
in their pension fund reforms are Tamil Nadu, Andhra Pradesh, Rajasthan, Madhya Pradesh,
Gujarat, Kerala, Orissa, Himachal Pradesh and Chhattisgarh.
Others who are eligible to opt for the new pension scheme are those who are members of
the Coal Mines Provident Fund, Assam Tea Plantations PF, Jammu and Kashmir Employees
PF and Seaman's PF.
However, the Ordinance caveats that subscribers cannot exit from the scheme except as
specified by a Central Government notification. This notification is yet to be issued.
The five-member Pension Fund Regulatory and Development Authority (PFRDA) will
permit one or more pension funds to receive contributions, accumulate them and make
payments to subscribers.

Contd...

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