Assistant Engineer, Indian Telephone Industries,
Satpreet Kaur
Human Resource
+3 Others

Hi, Came across an article on Provident Fund and found it informative. May be helpful for new comers. Regards, SanjogK
From India, Mumbai

Attached Files
File Type: pdf 6 Secrets of PF.pdf (2.37 MB, 2157 views)

When will we get the P F registration . From Join the Employee strength. we are Planing to take PF registration. please Reply As early as possible.
From India, Visakhapatnam
Dear Sanjok,

It may be informative, but with a lot of wrong informations.

1. "If you don't want a pension from EPF,you can get the EPS money as a lumpsum alongwith your PF balance."

One time withdrawal benefit is for those have a pensionable service of 6 months and above upto below 9 years and 6months only. If the pensionable service is more than 9 years and 6 months, there is no provision to get withdrawal benefit.

2. "Pension amount will be reduced by 2% for every year (below the age of 58 years) .. ..... ....... ...............your pension will be reduced by 16% (for 8 years)"

Rate of reduction on pension for below the age of 58 years is 4%, not 2%. Also it is not flat rate viz. 8x2=16 or 8x4=32. But the calculation of pension for the age of 50 years is (0.96) to the power of 8 = 0.7214 or 72.14%. That is reduction is 100-72.14=27.86, but not 32.

3. "If you die while you are employed .................., your legal heirs will be entitled to a pension, which is a maximum of Rs. 1,000 per month (Rs. 750 for spouse and Rs. 250 for two children ........). However, you should have put in a minimum of one month service ........."

w.e.f 28.9.2001, the maximum widow pension as per Table C is Rs. 2051 and children pension 513x2= 1,026 (if there are 2, below the age 25 years) which will be added to 2051+1026= Rs. 3077. Also even though the scheme stipulates that one month contribution is required to get widow pension, practically one day attendance will do, after got registered with EPF.

4. "According to new rule, your cover amount (EDLI) is higher of the two : 20 times the average wages of past 12 months (upto Rs. 6500 per month), that is Rs. 1,30,000 or full amount in your PF account upto Rs. 50,000 and 40% of the balance amount."

Determination of amount : whichever is less of the following two : a) average of PF accumulation in the last twelve months b) average of PF accumulation in the total service.

After determining the above amount, upto 50,000 will be actual and above 40% subject to a ceiling of Rs. 1,00,000. .............(A)

20 times of of the salary subject to a salary celing of Rs. 6500. ...........(B).

Whichever is higher of the above (A) & (B) will be taken as EDLI compensation.

Abbas.P.S, ITI Ltd, PALAKKD - 678 623.

Ph. +91 9447 467 667

From India, Bangalore
Hi Abbasiti and SanjogK for sharing the valuable information. I request Abbasiti to pls explain point-4 with an example to make it more easier to understand....thanks. Regards, Satpreet Kaur
From India
The PF accumulations will start with low investments at the begining and end with high amounts, provided no non refundable loan taken. If loan is applied the figures will again change.

Suppose a member has 5 lakh rupees in his account at the end of service. Let his average accumulation for the total service is Rs. 2 lakhs and Rs. 3 lakhs for the last 12 months. Out of the above two, whichever is less i.e Rs. 2 lakhs will be taken for calculation.

Out of the Rs. 2,00,000, for the first 50,000; EDLI is actual i.e 50,000 -(1)
For the balance 1,50,00, EDLI will be 40%; i.e 60,000 - (2)
(1)+(2) = 1,10,000.
But cieling for the above calculation is Rs. 1,00,000 -(A)
Let his salary as
i) Rs. 4000
ii) Rs. 5000
iii) Rs. 6500
iv) Rs. 8000

20 times of the salary will be -(B)
i) 80,000
ii) 1,00,000
iii) 1,30,000
iV) 1,60,000

As there is ceiling limit as 1,30,000 serial (iv) will be treated also as 1,30,000.

Hence whichever is high will be as
i) 1,00,000
ii) 1,00,000
iii) 1,30,000
iv) 1,30,000

According to the above 'Times of India' calculation it will be 50000+ (450000x40%)=50000+180000=2,30,000!


From India, Bangalore
Dear Mr. Abbas,
This is regarding reduced pension at the age of 50. There is also a advertisement in the newspaper regarding reduction of 2% every year. Kindly go through it and suggest that it is 2% or 4%.
Rakesh Mongia

From India, New Delhi

Attached Images
File Type: jpg reduced pension.jpg (561.9 KB, 181 views)

As per 12(7) of the Employees Pension Scheme-1995, rate of reduction of pension for every year the age falls short of 58 years is revised from 3% to 4% vide GSR No. 688(E) dated 26.9.2008, w.e.f 26.9.2008. Accordingly the information provided in the above article of the Times of India in this regard is not correct.
Kindly clarify with the provisions of the Scheme, not with the paper cuttings.

From India, Bangalore
Good Morning Abbas ji
Very much illustrative information on PF.
As regards Pension scheme, I seek further clarification on the following situation:
1) An employee from Textile Industry resigns after a service of say 20 years ( Age 40 years ) who receives a Pension Certificate of Rs 450/- from PF Office which will start at the end of 58 years. PF amt. is also withdrawn .
2) The said employee joins another industry. At th age of 58 years, he will also get a pension certificate.
Now, I need your advise on , how to get benefits of the two pension certficates. Earlier certificate is not produced to the present employer.
Can the said employee avail both the pensions. Is it allowed by PF Authority.
Pl. guide on the above issue.
Thank you,
with warm regards

From India, Mumbai
The said employee has to submit the previous scheme certificate to EPFO through the present employer. EPFO will club the two pensionable services. Based on the total service and average of last twelve month's salary, EPFO will calculate the consolidated pension amount. Kindly not that EPFO will not grant two member pension to an individual.

From India, Bangalore
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