Hi Everybody and Seniors in HR, I'm working as an EDP Manager. My doubt is, if anyone has worked for more than 10 years, are they eligible for a pension? So, my question is, suppose he has ₹300,000/- in pension amount. Can he get a pension for that amount? What about the ₹300,000/- amount? EPF Co. only gives an interest amount for the pension; they do not provide any principal amount. So, if the employee passes away after 2 or 3 years, will his family receive a pension? What happens to the ₹300,000/- amount if he has no wife, son, or daughter?
This is my question.
From India, Sivakasi
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1This is my question.
From India, Sivakasi
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Dear Smkarthik,
Your question is very genuine. Monthly pension means it is the interest on our deposits. Then what about our deposit? Because of this reason, section 13 has been introduced to give 'Return on Capital.' According to this clause, either after the death of the member, the nominee will receive 100 times the original pension amount, or after the death of the member and widow/widower, the nominee will receive 90 times the original pension amount, or after 20 years, the member/nominee will receive 100 times the original pension (3 options). However, as per GSR No. 688 (E) dated September 26, 2008, this provision along with commutation has been deleted. None of the Trade Unions in India have raised any objections but continue to demand a hike in pension.
If the member has no dependents, he can nominate another person to receive subsequent benefits.
Regards,
Abbas.P.S
From India, Bangalore
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Your question is very genuine. Monthly pension means it is the interest on our deposits. Then what about our deposit? Because of this reason, section 13 has been introduced to give 'Return on Capital.' According to this clause, either after the death of the member, the nominee will receive 100 times the original pension amount, or after the death of the member and widow/widower, the nominee will receive 90 times the original pension amount, or after 20 years, the member/nominee will receive 100 times the original pension (3 options). However, as per GSR No. 688 (E) dated September 26, 2008, this provision along with commutation has been deleted. None of the Trade Unions in India have raised any objections but continue to demand a hike in pension.
If the member has no dependents, he can nominate another person to receive subsequent benefits.
Regards,
Abbas.P.S
From India, Bangalore
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Dear Abbas.P.S, thanks for your information. but i need some clarification about that. is it possible to get 100 times of pension after member died. karthik
From India, Sivakasi
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From India, Sivakasi
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I have clearly stated that the provision of 'Return of Capital' is already deleted. But in the case of those already entertained the option can avail the benefit. Abbas.P.S
From India, Bangalore
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From India, Bangalore
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Sir I need some information regarding PF, When an employee is eligible for pension scheme?
From India
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From India
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To qualify for a pension, the conditions are:
1. The member should have a service (past + pensionable) of 10 years in EPS.
2. If the member continues in service, completion of 58 years is required.
3. If not in service, a pension (with a reduction of 4% for each year below 58 years) can be availed after reaching 50 years.
Abbas.P.S
From India, Bangalore
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1. The member should have a service (past + pensionable) of 10 years in EPS.
2. If the member continues in service, completion of 58 years is required.
3. If not in service, a pension (with a reduction of 4% for each year below 58 years) can be availed after reaching 50 years.
Abbas.P.S
From India, Bangalore
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@ Vasanth,
Contribution to the PF account should be continuous for 10+ years. If you have changed your employer, please don't withdraw PF; transfer it to the new employer by filling out Form - 13. To avail of the mentioned benefit, you should have an active PF account for at least 10 years with uninterrupted contributions.
Regards,
[Username]
From India, Ahmedabad
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Contribution to the PF account should be continuous for 10+ years. If you have changed your employer, please don't withdraw PF; transfer it to the new employer by filling out Form - 13. To avail of the mentioned benefit, you should have an active PF account for at least 10 years with uninterrupted contributions.
Regards,
[Username]
From India, Ahmedabad
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PF & Pension Amdmt Scheme 2010 for IW.pdf
Employee Pension Scheme, 1995.doc