Twenty Four
Frequently Asked Questions On Employees Provident Fund (EPFO ) Answers For You!
These are
the twenty four answers on FAQs given on EPFO site.
1) Who will
be covered by the Pension Scheme?
Every member of
the ceased Family Pension Scheme 1971 and anyone who joins any covered
establishment on or after 16-11-95 is compulsorily to join this scheme,
provided his/her salary/wage is less than Rs. 6500/- per month at the date of
appointment.
2) What is a
covered establishment?
Covered
establishment is an establishment belonging to the class of industries / other
establishments, which has been listed in the schedule appended to the
Employees' Provident Fund and Miscellaneous Provisions Act 1952 and where 20 or
more persons are employed.
3) If
employee was a Family Pension Scheme member. He/She has left on 13-12-93 and
he/she is 54 years old. He/She has taken his withdrawal benefit. Can he/she
join the new scheme?
Yes, by
refunding withdrawal benefit together with interest. Thereafter, he/she will be
entitled to receive pension from age 58, if he/she completes at least 10 years
of contributory service by then.
4) If
employee is a Family Pension Scheme Member and he/she has retired after 58
years of age on 15-01-94. Can he/she join the new scheme?
Yes, anyone who
has retired by reaching age 58 between 01-04-93 and 15-11-95 may join the
scheme by returning the withdrawal benefit along with interest. He will be paid
pension with immediate effect, from date of exit provided he has rendered 10
years of contributory service.
5) If
employee is not a Family Pension Scheme member and he/she is 56 years of age,
Can he/she join Family Pension?
Yes, by
diverting from his/her Provident Fund balance, Family Pension Scheme
contribution from date of his/her joining or 01-03-71, whichever is later.
6)
Whether the Family Pension Scheme member who has attended the age of 58 years
before 01-04-93 and has left employment after 01-04-93 will be admitted to the
scheme as member of Family Pension Scheme, 1971?
Yes, he will be
deemed to have retired after 01-04-93. On repayment of that withdrawal benefit
which was paid, Pension will be paid from same date, provided he has rendered
10 years of contributory service.
7) In
case Family Pension member has attained the age of 58 years between 01-04-93
and 16-11-95 then in that case whether arrears of monthly Member Pension become
payable for the period earlier than 16-11-95 i.e. from the date of his/her
attaining the age of 58 years which is prior to 16-11-95?
No, he/she will
be deemed to have retired from 16-11-95 and pension paid accordingly.
8) Is
employee the only beneficiary of Fund?
Benefit will be
paid to him/her and in his/her absence to his/her family.
9) What
is meant by Family?
Family means
employees' spouse and children below 25 years of age.
10)
Suppose an employee does not have a Family and he/she dies before receiving
benefit. Does his/her pension get lost?
No, if he/she
does not have a family, benefits will be paid to his/her nominee, who will
receive the benefit in his/her absence.
11)
Suppose member has not nominated anyone.
The pension /
ROC will be paid to the dependent parents.
12) Can
member change his/her nomination?
He/She can change
his/her nomination whenever he/she decides within the framework of rules for
such nomination. In other words if he/she has a family, nomination should be in
favour of a member(s) of the family. If he/she has no family he/she can
nominate anyone he/she wishes.
13) How
many years service is required to be eligible to receive member pension?
Minimum 10
years eligible service will entitle for member pension.
14)
Employee is a member of Employees' Pension Scheme. He/She has left employment
at 48 yrs. of age and 8 yrs. of service. When shall he/she receive his/her
pension?
He/She can take
either withdrawal benefit or can take scheme certificate so that the 8 years
service can be added to any future service that he / she may put in, in any
other covered establishment. By virtue of being a holder of a scheme
certificate, if the member dies before 58 years widow / widower and children
shall be entitled for pension.
15)
What is past service pension?
This pension is for the period of membership of the Employees' Family Pension
Scheme, 1971.
16)
When does an employee become eligible to become a member of Employees'
Provident Fund Scheme, 1952 and Employees' Deposit Linked Insurance Scheme,
1976?
An employee
becomes a member of Employees Provident Fund (Employees' Provident Fund)
Scheme, 1952 / Employees Deposit Linked Insurance (Employees' Deposit Linked
Insurance) Scheme, 1976 immediately on joining an establishment covered under
the Employees Provident Funds & Miscellaneous Provision Act, 1952.
17) What is
nomination?
Every member
has to give the details of himself & details of the nominee for Employees'
Provident Fund & Employees' Deposit Linked Insurance Schemes and details of
family for Employees Pension Scheme, 1995 in form no. 2.
A member if, is having a family can nominate any one or more persons to receive
the Provident Fund on his death. In case of him having no family he can
nominate any other person.
Family for the purpose of Employee Provident Fund Scheme'52 means wife/husband,
children, whether married or unmarried, including adopted children, if adoption
is recognized and dependant parents of member.
Employees Deposit Linked Insurance Scheme benefit will be paid to the nominee
under Employees Provident Fund Scheme, 1952.
For the purpose of Employees Pension Scheme,1995 the member has to furnish the
details, such as name, relationship & age of all the family members in the
form no. 2. Family for the purpose of Employees Pension Scheme, 1995 means
wife/husband & children. Whenever member wants to make a change in the
nomination already made for Provident Fund, or to update the details of family
for Employees Pension Scheme,1995, he has to send a revised form no. 2. The
form no.2 is routed through the employer.
18) What are
the periodical returns to be sent by an employer to the Provident Fund Office?
The employer of
an un-exempted establishment has to forward the following returns. These
returns will include details required under the three schemes namely, Employees
Provident Fund Scheme, 1952, Employee Deposit Linked Insurance Scheme,1976 and
Employee Pension Scheme, 1995.
a) Form-9(Revised):
The details of employees enrolled as members of Employees' Provident FundS'52,
Employees' Deposit Linked Insurance'76 & Employees' Pension Scheme'95 on
coverage of the establishment- This is to be submitted immediately after
coverage, within 15 days of coverage.
b) Form-12A:
The details of the contributions recovered form the members & paid along
with details of employers' contribution & administrative charges- This is
to be submitted monthly by 25th of following month.
c) Form-5:
The details of the employees enrolled newly to the Provident Fund- To be
submitted along with Form-12A every month within 15 days of the following
month.
d) Form-10:
The details of the employees leaving service during the month- To be submitted
along with form-12A.
e) Challans:
The triplicate copy of challans in token of having remitted the Provident Fund
dues in the bank- to be submitted along with form-12A every month.
f) Form-2(Revised):
Nomination form- To be submitted along with form-5/9.
g) Form-3A:
The details of wages & contributions in respect of each member, to be
prepared financial year wise- To be submitted to the Provident Fund office by
30th of April every year.
h) Form-6A:
Yearly consolidated statement of contributions- To be forwarded yearly along
with form-3A. It should be ensured that all the form-3A are entered in form-6A,
irrespective of whether the form-3A was forwarded for the broken period and the
total dues as per the form-12A for the whole year agrees with the total of
form-6A within 30th April.
i) Form-5A:
Return of ownership of the establishment- To be forwarded immediately after
coverage & whenever there is a change in the ownership, it has to be
intimated with in 15 days of change.
j) Specimen signature:
Specimen signature of the officer/officers who are authorized to sign the
returns/documents relating to Provident Fund forwarded immediately after
coverage & whenever there is a change in
authorized officer.
19) What is
the procedure to be followed by the member if the employer is not attesting his
claim forms?
It is the duty
of the employer under the Act & Scheme to help Employees' Provident Fund
organisation to settle the Provident Fund dues of his employees. He has to
complete the prescribed application within 5 days of receipt [para72(5)] forms
& hand over it to the member when he leaves the service. When a member
finds difficult to get the form attested by the employer, he can get the attestation
of any of the following officer & send to the Provident Fund office
20) What is
the mode of payment of Provident Fund and Employees' Deposit Linked Insurance
dues?
Provident Fund
& Employees' Deposit Linked Insurance dues is paid by money order/ by
deposit in payees' bank a/c/ through employer/ by depositing the cheque in
payees' name or part of amount in annuity scheme in any nationalised bank.
Payment by money order is allowed where the amount is not more than Rs. 2000/-.
21) What are
the modalities to be followed for payment through cheque?
The member has
to open an account in the nationalised bank, scheduled bank, urban bank or post
office savings bank. He has to furnish the details of bank a/c no. with the
full address of the bank in application form. An advance stamped receipt has
also to be annexed in the form.For receipt of pension member/claimant has to
open an account only in State Bank of
22) In case
of returning of cheque what is the procedure to be followed?
Generally the
cheques are returned by the bankers when the a/c number is furnished incorrect
or a/c has been closed. On receipt of the cheque from the bankers the Provident
Fund office will write to the member & employer about the fact &
request them to intimate the bank, a/c number & detailed address. In case,
the member comes to know about returning of the cheque before this, he can
write to the Provident Fund office through his former employer regarding his
present address & bank a/c number.
23) 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.
24) What is
the voluntary rate of Provident Fund contribution by the member?
As per the Act, the member has to contribute at the rate of 10% or 12% of his
basic pay, D.A. & retaining allowance if any. In case the member wants to
contribute more than this, voluntarily he can do so at any rate he desires.
i.e. upto 100% of basic and D.A. But the employer is not bound to contribute at
the enhanced rate.