Understanding the Family Pension Scheme: When and How Do Employees Receive Their Benefits?

Hi all,

I have some doubts regarding FPS, which is 8.33% of the basic towards the employer's contribution in PF.

1. When will FPS be given to the employee, i.e., after how many years of service?
2. How will FPS be paid, i.e., monthly/lump sum? If monthly, for how many months? If lump sum, what amount (calculation)? If both, can the employee choose the mode (monthly/lump sum)?

Seniors, please illustrate with an example.

Regards,
Veerendra

Dear,
Benefits: FRom PF
Provident Fund Scheme (PFS): Withdrawal of certain amount for paying premium of his
insurance policies, illness, daughter's marriage, education etc..
Family Provident Fund Scheme (FPFS): Paid at the time of retirement or if member dies
during his employment  
Pension Fund Scheme (PFS): Pension after retirement at the age of 58 years.   In case of death the nominee is eligible for widow pension, children pension or orphan pension
as applicable.
Deposit Linked Insurance Fund Scheme (DLIFS):
The employee nominee will get max. Rs. 62,000/-.
i Hope its the sufficent ans.
if Any query then tell m
Vineet Mittal

Hi Vineeth,

Thank you very much for your response. I still have some doubts. I heard that FPS is applicable only if an employee completes 10 years of service. Is there any specific period mentioned in the EPF Act? Can an employee who has taken VRS get a pension? Will the pension be paid monthly? And many more doubts...

Can anybody refer links or e-books regarding this? Please help me. 😕 😢 😕

I am also a little bit confused at this point, and there is one more confusion, whether an employee can withdraw his pension fund before the superannuation period or can it be drawn within 5 years. Please clear all these doubts. Shafiqe...

[Login to view]

First of all, FPS is no longer in operation. FPS was replaced by EPS (Employee Pension Scheme) in 1995, and FPS is now known as the Ceased Pension Scheme.

Point by Point:

1. Continuous service of 10 years is required to be eligible for EPS.
2. Option for reduced pension upon ceasing employment after the age of 50.
3. One-third of the pension amount can be commuted and taken as a lump sum. The rest is paid as a monthly amount.

EPS amount cannot be withdrawn before the age of 50 (as discussed in point number 2).

For any other specific queries, please write.

Regards,
Nilendra

Dear Nilendra,

Thank you for your reply. However, what happens when an employee resigns before completing five years of service? What about the EPS fund - can the employee avail of this amount? Please provide clarification.

Thank you,
Shafiqe

Dear,

PF fund can be transferred by filling Form 13. Regarding EPS, you can obtain a Scheme Certificate from your employer. You can obtain this from every employer you work with, and then finally you can submit it to RPFC to receive the consolidated amount as a one-time payment.

Regards,
Nilendra

Yes, you will remain eligible to get a pension as the pension will not be provided by the previous employer but from the PF office. You will only be eligible to receive this pension after reaching the age of 50.

Yes, you will get the pension. However, the pension will be provided by the EPF office and not by the employer. You will receive this pension only after reaching the age of 50 years.

I heard that the central government has changed the rules for family pension. Now, after the death of a pensioner, their spouse will receive the full pension (last pension drawn by the deceased) for 10 years. Previously, the spouse would only receive around 50% of the last pension drawn by the deceased. I read this news in the Times of India a few months ago.

Recently, one of my relatives, whose husband was a pensioner, passed away. She wants to know if she will be eligible for the full pension.

Thanks,
Surojeet

Dear friends,

I am a retired state government pensioner, and my husband was also a central government pensioner. Unfortunately, he passed away on the 25th of January 2010. I am already receiving a pension. Can I also claim family pension in this situation?

Thank you.

Dear Nilendrachand,

For pension, 10 years of service in EPF is required. Continuous service is not necessary. Breaks in service, short service in various organizations, etc., are also accepted. The only condition is that a total of 10 years of service should be completed.

Abbas. P. S

Pension Fund Continuity After Employment Break

I previously worked with an organization and then had a break of 2 years. After the break, I joined another organization. However, I did not withdraw my PF from the previous organization. Now, I have transferred it to my current PF account. My services will be considered as continuous for the pension fund.

Please explain.

Regards,
Pavan

Dear All,

Please provide me with the following information regarding PF and Pension schemes. When an employee leaves a company, what ratio of PF and Pension will they receive under the following conditions?

1. If service is less than 10 years and age is less than 58 years.
2. If service is more than 10 years and age is less than 58 years.
3. If service is less than 10 years and age is more than 58 years.
4. If service is more than 10 years and age is more than 58 years.

Also, please specify:
- How much pension per month?
- What will happen after the accumulated pension amount is exhausted?

Thanks and Regards,
Madhurima

Dear Madhurima, Whatever the length of service and age, the accumulated amount with interest can be withdrawn from PF.

Regarding Pensions

I shall address your questions one by one:

1. If the service is less than 10 years and the age is less than 58 years:
- Answer: The individual is not eligible for a pension but can avail of withdrawal benefits. If they wish to avail of a pension, they can transfer the service to combine with future services.

2. If the service is more than 10 years and the age is less than 58 years:
- Answer:
a) The individual can avail of a reduced pension immediately.
b) They may wait until the age of 58 to avail of the pension.
c) They may combine the service with future services to avail of the pension.

3. If the service is less than 10 years and the age is more than 58 years:
- Answer: The only option is to avail of withdrawal benefits.

4. If the service is more than 10 years and the age is more than 58 years:
- Answer: The only option is to avail of a pension.

Additional Questions

a. How much pension per month?
- Answer: For service starting on 16.11.95, the pension amount is calculated as salary multiplied by service years divided by 70.

b. What will happen after the accumulated pension amount is exhausted?
- Reply: The question is not clear.

Regards, Abbas.P.S