Page 107 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes 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 15.6.1995 was given option to become member of the Employees’
Pension Scheme 1995 up to 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.
6.3.2 Option Requirement

1. Members who have died during 1.4.1993 and 15.6.1995 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.

6.3.3 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.

6.3.4 Service for Pension

Actual service rendered after 16.6.1995 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.

6.3.5 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.

6.3.6 Benefits

1. Monthly Member Pension: Superannuation Pension/retirement on attaining the age of 58
years.
2. Pension Scheme Certificate: Document indicating pension able 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.

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