Page 258 - DMGT516_LABOUR_LEGISLATIONS

Unit 10: Provident Fund and Gratuity Payment Acts

10.6 Benefits under Pension Fund Scheme, 1995 Notes

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.
7. A monthly widow pension ranging from 450 p.m. to an amount equal to monthly
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.

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