Provident Fund benefits
Purpose: To provide a lump
sum amount to the employee at the time of retirement or permanent disability.
• The
contribution which shall be paid by the employer to the Fund shall be 12% of
the basic wages and dearness allowance.
• The
employee’s contribution shall be equal to the contribution payable by the
employer in respect of him and may, if any employee so desires, be an amount
exceeding 12% of his basic wages and
dearness allowance
• The
employer shall not be under an obligation to pay any contribution over and
above his contribution payable.
Ø EPFO
guarantees the Employer contribution and credits interest at such rates as
determined by the Central Government. (Present Interest Rate is 9.5%)
Ø On
resignation, the member can settle the account. i.e., the member gets his PF
contribution, Employer Contribution and Interest.
Pension benefits
Purpose:
Ø The
purpose of the scheme is to provide for –
Ø (a) superannuating
pension, retiring pension or permanent total disablement pension to the
employees of any establishment, and
Ø (b) Widow
or widower’s pension, children pension or orphan pension payable to the
beneficiaries of such employees.
Ø Pension
to Member
Ø Pension
to Family (on death of member).
Ø Scheme
Certificate
Ø Withdrawal
Benefit
Ø 8.33%
of (12% of employers contribution towards Provident Fund) or Rs.540/- which
ever is less, will be transferred to Employees’ pension scheme and the balance
amount will go towards Employee Provident Fund.
How to get Pension
Ø Member
has to attained the age of 50 years or more.
Ø Member
has to complete a total service of 10 years or more.
Ø Member
should not get any other EPF Pension.
Ø Member
has to apply in Form-10D at the EPF Office where Member has last worked through
last Employer.
Ø If
the member wants to draw pension from a different place, The member have to
furnish appropriate Bank / Post Office address in the application form.
Ø Pension
is distributed through Post Offices or through some designated banks only (eg:
Indian Bank, SBI, Indian Overseas Bank, HDFC Bank, ICICI and UTI Bank)
There Four situations when
pension can be applied for:
Ø On
superannuation (Age 58 years or more and atleast 10 years of service) :The
member can continue in service while receiving this pension On attaining 58
Years of age, a EPF member cease to be a member of EPS automatically
Ø Before
superannuation (Age between 50 and 58 years and at least ten years of
service): The member should not be in service
Ø Death
of the member: Death while in service or Death while not in service
Ø Permanent
disability : Permanently and totally
unfit for the employment which the member was doing at the time of such
disablement
Scheme Certificate
Ø This
Certificate shows the service & family details of a member
Ø This is
issued if the
member has not
attained the age of 58
while leaving an establishment and he applies for this
certificate
Ø Member
can surrender this certificate while joining another establishment and the
service stated in the certificate
is added with the service he
is gaining from
the new establishment.
Ø After
attaining the age of 50 or above, the member can apply for Pension by
surrendering this scheme certificate (if total service is at-least 10 years)
Ø This
is a better choice than Withdrawal Benefit, as a member dies holding a valid
scheme certificate, his family will get pension (Death when NOT in service)
Withdrawal Benefit
Ø If
not eligible for pension, member may withdraw the amount accumulated in his
pension account.
Ø The
calculation of this amount is based only on (i) Last average salary and (ii)
Service (Not based on actual amount available in Pension Fund Account)
Ø No
amount is taken from Member to give Pension to the Member. Employer and Govt.
contributes to Pension fund @8.33% and @1.61% respectively .EPFO guarantees
pension to members, even if the Employer has not contributed to Pension Fund.
How to settle EPF account
Ø The
Member has to resign or retire from the establishment and apply for settlement
of PF in Form-19. If the exit is before 55 years of age, the member should not
work in any covered establishment for a period of 2 months from the exit date.
Ø If
the member dies, Family members/Nominee have to apply in Form-20 for settlement
of PF (In case of death, apply in From-10D and Form-5IF for Pension and EDLI
also)
How to transfer the account /
What to do if joined in another establishment
Ø The
Member has to apply in From-13(R) through the NEW Employer at the EPF Office
from which transfer is sought clearly stating New and Old EPF Numbers. Member
has to obtain new EPF Number from the New Employer. New EPF Number will be
allotted by New Employer, not by EPFO.
Employees' Deposit Linked
Insurance (EDLI) Scheme
Employees’ Deposit-linked
Insurance Scheme
Purpose:
The Purpose of Employees’
Deposit-linked Insurance Scheme is for providing life insurance benefits to the
employees of establishment.
Contribution: (only by employer) 1% of (Basic Salary + Dearness
allowance)
Ø On
death of a member, the Family Members or Nominee (whoever has the entitlement
to claim Provident Fund amount) can claim for EDLI Benefit. Maximum amount
payable is Rs. 60,000/-.
Ø The
nominee(s) have to apply in From-5IF through the Employer.
Ø No
amount is taken from the Member for this facility. Employer contributes for
this.
Ø Average
PF Balance, salary and service are the factors considered for the calculation
of this amount
Advance/ Withdrawals may be
availed for the following purposes:
•Marriage / Education
Purpose : For the marriage/education of
Self & Family
Eligibility : Should Complete atleast 7years
of service.
Max
Amount : 50% of Emp’e Share
Document : Apply in Form 31 thorough the
Employer
•Treatment
Purpose : Treatment of Self, Family
(Dependents)
Eligibility : No minimum service required
Max
Amount : 6 times of Wages or Full of
Emp’e Share
Documents : Apply in Form 31 through the Employer
•Purchase or construction of
Dwelling house
Purpose : Purchase or Construction
House/Flat
Eligibility : Should complete 5years only in
one service.
Max
Amount : 36 times of Wages.
Documents : Apply in Form 31 through Employer
Repayment of Housing Loan
Purpose : Payment of House Loan
Eligibility : Should complete 10years only in
one service.
Max
Amount : 36 times of Wages
Documents : Apply in Form 31 through the Employer
•Purchase of Plot
Purpose : Purchase of Site/Plot
Eligibility : Should complete 5years only in
one service
Max
Amount : 24 times of Wages
Documents : Apply in Form 31 through the Employer
•Addition/Alteration of House
Purpose : Repair of house
Eligibility : Should complete 5years only in
one service / Construction of House.
Max
Amount : 24 times of Wages
Documents : Apply in Form 31 through the Employer
•Lockout
Purpose : Lockout of Closure of the Establishment
Eligibility : Should be closed for 15days / No wages for
2months.
Max
Amount : Total of wages multiplied by
no.of months closed
Documents : Apply in Form 31 through the Employer
•Withdrawal Prior to Retirement
Purpose : Withdrawal prior to Retirement
Eligibility : No min service, atleast 54
years of age /
1year before retirement.
Max
Amount : 90% of total of both shares
Documents : Certificate from the Emp’r showing
the date of
retirement / Apply in Form 31
•Other Advances
Purpose : Advance in Abnormal Conditions
Eligibility : Certificate of damage from
appropriate authority
Max
Amount : Rs. 5000/- or 50% of member’s
own share of contribution.
Documents : Certificate from Appropriate authority / Form 31.
IMPORTANT:
• The amount of advance/withdrawal is not required
to be refunded under normal circumstances. If the amount is not utilised, the
same should be refunded with penal interest.
FORMS RELATED TO Provident Fund,
Employee Pension and Employee Deposit Linked Insurance Scheme
•
Form-19 : To claim final settlement of
Provident Fund by a member.
•
Form-20 : To claim Provident Fund by
nominee/legal heir on death of the member.
•
Form-10-D : To claim pension. (In
duplicate : If within state, In triplicate : If outside state.)
• Form-10-C : To claim withdrawal
benefit/scheme certificate under Employees' Pension Scheme '95
• Form-5IF : To claim assurance benefit
under Employees' Deposit Linked Insurance '76 by nominee/legal heir of a
member.
• Form-31 : To claim temporary
withdrawal/advance under Employees' Provident Fund scheme
'52.
'52.
•
Form-13 : To effect transfer of Provident
Fund/Pension from one A/C to another.
Procedure to be followed in case of Provident Fund,
Pension Scheme and Employee Deposit Linked Scheme
q Use
the appropriate form for claiming Provident Fund Pension, withdrawal
benefit/scheme certificate, Employees' Deposit Linked Insurance benefit,
etc.Application should be signed by the member/claimant.
q Application
for final settlement can be sent by a member on completion of 2 months from the
date of leaving service, if the reason for leaving service is other than
superannuating, medical ground, retrenchment and V.R.S./ Female members getting
married etc.
q Desired
mode of payment can be given legibly, if the amount involved is more than Rs.
2000/-. The amount will sent by deposit in payees' bank a/c. To facilitate
this, Bank a/c no., name and address of the bank should be furnished. An
advance stamped receipt should also accompany this application.
q Application
may be supported by the return Form-10, showing the details of leaving service
and details of contribution for the year in Form-3A, if not sent earlier by the
employer.
Procedure in case of Pension
q Joint
photograph of member/spouse or the claimant should accompany the
application.
q Option
for return of capital/commutation should be specified clearly.
q Details
of non-contributory period during the service, wages/salary for last 12 months
should also accompany, if not already sent.
q Details
of the branch of the specified bank may be given legibly.
q Date
of birth certificates of children
q In
case of death away from service, an undertaking by the claimant to the effect
that the member was not working / had not worked in any other covered
establishment after exit from the establishment on the basis of which pension
is being claimed.
PROCEDURE IN CASE OF DEATH
q Nominee/legal
heir should apply in Form-20 /Form-10-D /Form-5IF.
q If
the member has not executed any nomination, application should be supported by
certificate of family members issued by employer/revenue official/sworn in an
affidavit by the family/ member/legal certificate from a court of law.
q Death
certificate of the member.
q What
is the time taken for disposal of the application in the Provident Fund office?
The claims received complete in all respects are disposed
off within a maximum period of 30 days from the date of receipt of claims in
the office. In case the member is not hearing anything about his application
within 30 days, he can approach the Public Relation Officer.
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