Is This Employee Eligible for EPF Pension? Seeking Guidance on a Complex Case

Hello seniors, I am working as a consultant in Jodhpur and seeking help with a pension case. There is an employee whose date of birth is 19/06/1945. His date of joining the firm is 11/06/1990. He joined the EPF on 01/05/1993, while he joined the Pension fund on 01/04/1994. His date of retirement is 31/01/2012.

My question is, is he eligible for a pension from the PF?

Pension Eligibility Analysis

Born in 1945, he must be around 67 years of age now. He would have attained 58 years in 2003. His actual pensionable service accounts for around eight years (i.e., from Nov 1995 to June 2003), and he has around one and a half years of past service as well. An analysis of these reveals that he is eligible for a pension as he has more than 10 years of pensionable service, combining both 'past service' (service before 16th Nov. 1995) and actual service (service after 16th Nov 1995).

Since 2003, his pension contributions would have been redirected to the Provident Fund, and that accumulation will also be available to him.

Regards,
Madhu.T.K

Employment of Elderly Persons: Legal Considerations

If he is physically fit to work, a person over 58 years of age can be employed. If already working, he can continue after his superannuation age. However, giving employment to an elderly person should not be seen as a way to avoid statutory contributions like ESI. It is acceptable to stop contributing to his PF since, at the age of superannuation, he would withdraw his PF accumulations and begin receiving a PF pension. Therefore, there is no legal obligation on the employer's part to contribute to his Provident Fund, but the ESI contribution should be continued.

Moreover, the elderly employee should receive other benefits such as bonuses (if covered), leave benefits, and gratuity. If the gratuity is paid upon reaching the superannuation age, only the extended term will qualify for gratuity. For this extended period to qualify for gratuity, it must be 5 years or more.

Regards,
Madhu.T.K

Thank you very much for your valuable reply. Could you please inform me about the superannuation age? If an employee completes 58 years of age, what are the basic formalities required?

Formalities for Superannuation at Age 58

1. Do we need a medical certificate to confirm fitness for work?
2. Do we need to comply with any regulations in the EPF Department?

Your assistance in resolving this matter would be greatly appreciated.

Regards,

There are no legal formalities connected with it, but it is always good if you re-employ after getting a medical certificate. You need not seek any permission from the EPFO either. If you continue to provide PF to the employee, you can do so, and whatever contribution is payable by the employer may be deposited in the PF account only without bifurcating it into PF and Pension Fund.

Regards,
Madhu.T.K

Hi, any employee who has an EPF account automatically becomes eligible for the EDLI scheme, irrespective of whether a pension contribution is made or not.