Wednesday, November 13, 2013

Pension Act and Cabinet boost for Promoter Raj Implementation of Pension Fund Regulatory & Development Authority Act major task,Chidambaram sets the agenda for the parliament! Vegetable prices push Oct retail inflation to double-digit zone CPI-based inflation at 10.09%; rising onion and tomato prices add to pressure Pension Schemes Under The Provident Fund Act (Or How India Robs Its Industrial Workers In The Name Of Social Security)

Pension Act and Cabinet boost for Promoter Raj

Implementation of Pension Fund Regulatory & Development Authority Act major task,Chidambaram sets the agenda  for the parliament!

Vegetable prices push Oct retail inflation to double-digit zone

CPI-based inflation at 10.09%; rising onion and tomato prices add to pressure















Pension Schemes Under The Provident Fund Act (Or How India Robs Its Industrial Workers In The Name Of Social Security)



Palash Biswas


Implementation of Pension Fund Regulatory & Development Authority Act major task,Chidambaram sets the agenda  for the parliament!


The sluggish industrial growth may continue its run till the next year as the government expect more than 5% growth in the sector by 2014-15.


Meanwhile,the Cabinet will meet today in the evening to take a call on relaxing riders for foreign direct investments (FDI) in the construction development sector. The move comes as FDI in the realty sector declined by 57% in 2012-13 year-on-year.

At present, 100% FDI is permitted thorugh automatic route in thereal estate sector which includes townships, housing, commercial premises, hotels, resorts, hospitals, educational institutions, recreational facilities, city and regional level built-up infrastructure.

Now, the proposal is to relax conditions attached to the FDI in this sector.


The proposal, moved by the Department of Industrial Policy and Promotion, sought easing conditions for exit for foreign players before the three-year lock-in period. They can exit on receipt of occupancy and or completion certificate issued by the competent local authority or by way of sale to another non-resident investor subject to a lock-in period of three years from the date of the purchase by the other foreign investor, the proposal said. However, the transfer from foreigner to another will be permissible only once, with no possibility of waiver of the fresh lock-in period.  

The proposal also sought to reduce a minimum carpet area of 20,000 square metre in all class-1 cities that has a population of more than one lakh, against the requirement of 50,000 square metre built up area at present. As such, the built-up area is sought to be replaced with carpet area as the latter can be objectively measured.

DIPP asked for reducing the minimum requirement for land for a serviced housing project from 10 hectares to just 5 hectares as there is shortage of land in urban areas and cost of land is too high.

Besides, the DIPP proposed that the minimum paid-up capital in wholly owned subsidiary of foreign parterns be reduced to $5 million, from $10 million at present. In case of joint ventures, $5 million minimum capital is required even now. Companies would, however, need to bring the entire amount within six months of commencement of the project. The commencement of the project will be the date of building plan approval by the statutory authority. There is no clarity at present as to when the commencement of the project be counted from.



Pension Fund Regulatory and Development Authority Act 2013

Ministry of Finance




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Detailed information about the Pension Fund Regulatory and Development Authority Act, 2013 is given. Users can get details related to the Act, its short title, extent, definitions and commencement. Information on the Pension Fund Regulatory and Development Authority and sections of the act is also available.



Please see:

http://www.egazette.nic.in/WriteReadData/2013/E_33_2013_374.pdf


पेंशन बिल क्या है?

इकनॉमिक टाइम्स | Jun 11, 2012, 03.07PM IST

सरकार ने यूपीए के सहयोगी दलों के विरोध की वजह से गुरुवार को पेंशन बिल पर फैसला टाल दिया। इस बिल में क्या है, यहां हम आपको उसकी जानकारी दे रहे हैं


पेंशन बिल क्या है?

पेंशन फंड रेग्युलेटरी एंड डिवेलपमेंट अथॉरिटी (पीएफआरडीए) बिल 2011 को पेंशन बिल कहा जाता है। इसे पिछले साल 24 मार्च को लोकसभा में पेश किया गया था। इसके बाद इसे वित्तीय मामलों पर बनी स्थाई समिति को भेजा गया। सरकार ने 2005 में भी इसी तरह का बिल पेश किया था, लेकिन इससे पहले कि वह पास होता, 14वीं लोकसभा खत्म हो गई।


एनपीएस को बढ़ावा


डिफाइंड बेनिफिट सिस्टम की वजह से सरकार पर पेंशन लायबिलिटी बहुत ज्यादा है। इस सिस्टम के तहत कर्मचारियों को उनकी आखिरी सैलरी के आधार पर पेंशन भुगतान किया जाता है। 2004 में यह डिफाइंड कॉन्ट्रिब्यूशन सिस्टम के मुताबिक हो गया, जिसके मुताबिक कर्मचारियों को उनकी अर्निंग से ही रिटारयमेंट के लिए बचत करनी पड़ती है। इसके खत्म होने के बाद न्यू पेंशन सिस्टम (एनपीएस) शुरू किया गया। यह जनवरी 2004 के बाद से सरकारी नौकरी जॉइन करने वालों के लिए था। इसके साथ ही पेंशन फंड रेग्युलेटरी एंड डिवलपमेंट अथॉरिटी का गठन किया गया, ताकि वह इस स्कीम की निगरानी कर सके। यह पहले से ही राज्य और केंद्र सरकार के कर्मचारियों की रिटायरमंेट सेविंग्स मैनेज करता था। सरकार अब एनपीएस को प्रीमियर रिटायरमेंट सेविंग्स स्कीम के तौर पर स्थापित करना चाहती है।


फिलहाल इसका स्टेटस क्या है?

स्थाई समिति ने पिछले साल अगस्त में इस बिल पर अपनी रिपोर्ट सौंपी थी। सरकार सिफारिशों को लागू करके एक नया बिल लाना चाहती है। हालांकि, सहयोगी दलों के विरोध की वजह से ऐसा नहीं हो पा रहा।


इस बिल के प्रमुख प्रावधान क्या हैं?

पीएफआरडीए को ताकतवर बनाना, ताकि वह इस सेक्टर को डिवेलप और इसकी निगरानी कर सके। इस सेक्टर में विदेशी निवेश होता है, लेकिन उसकी कोई सीमा तय नहीं है। एनपीएस के मैनेजमेंट के लिए डिटेल फ्रेम वर्क तैयार किया जाए। इसके दो तरह के अकाउंट हैं- टियर 1 और टियर 2। इसमें टियर 1 अकाउंट से रकम रिटायरमेंट के बाद ही निकाली जा सकती है। एनपीएस में इनवेस्टमेंट के तीन ऑप्शन हैं। इसमें इक्विटी, सरकारी बॉन्ड और कॉरपोरेट बॉन्ड शामिल हैं।


कमेटी की मुख्य सिफारिशें क्या हैं?

इस सेक्टर में एफडीआई की लिमिट 26 फीसदी हो, जैसा बीमा सेक्टर में है। इमरजेंसी पड़ने पर टियर-1 अकाउंट से पैसा निकालने की इजाजत मिले। मिनिमम गारंटीड रिटर्न के साथ 100 फीसदी पैसा सरकारी सिक्योरिटीज में लगाया जाए।यूपीए के सहयोगी दल बिल का विरोध क्यों कर रहे हैं?वे इस सेक्टर में विदेशी निवेश के खिलाफ हैं। वे नहीं चाहते कि प्राइवेट कंपनियां पेंशन स्कीम को मैनेज करें।


Rules / Regulations / Acts administered by the

Department of Pension and Pensioners' Welfare

* The provision under these rules relating to preparation of pension papers, sanction, authorization and disbursement of pension can be seen at 'Pension Procedure'


Archives

http://pensionersportal.gov.in/PensionRules3.asp


Parliament passes key Pension Bill after 10-year delay

PTI New Delhi, September 6, 2013 | U


After a delay of nearly a decade, Parliament on Friday passed a key economic reforms legislation, thePension Bill, that aims to create a regulator for the sector and allows at least 26 per cent FDI.


The Pension Fund Regulatory and Development Authority (PFRDA) Bill, 2011, was passed in the Rajya Sabha with 115 MPs voting in favour and 25 against including members form Left parties and TMC. The Bill was passed in the Lok Sabha on September 4.


Replying to the debate in Rajya Sabha, Finance Minister P Chidambaram said, "Some of them have legitimate concerns, which we have to address. The Bill has travelled for nine years. Let us give the Bill the honour that it deserves and pass it."


The Bill would make the Pension Fund Regulatory and Development Authority a statutory authority, unlike its present non-statutory status, he said.


The Bill provides subscribers a wide choice to invest their funds including for assured returns by opting for Government Bonds as well as in other funds depending on their capacity to take risk, a provision that came from opponents of the legislation.


It pegs the FDI in pension sector at 26 per cent or such percentage as may be approved for the insurance sector, which ever is higher.


Presently, saving for retirement by people is very low in the country. The New Pension System (NPS) aims to promote "saving while you earn" especially for retirement and is mainly for those who have a regular income, Chidambaram said.


He said government had accepted all but one of the recommendations of the Standing Committee on the subject.


On security of funds and returns, he said, "There is enough structure in place in NPS that funds will be managed well and safely. NPS gives better returns than EPS. The returns are more than government bonds. Returns are quite adequate."


The Pension Bill has been hanging fire since 2005 when it was first introduced in Parliament. It was reintroduced in 2011.


Chidambaram said the current system is unsecured. Hence, it was necessary to make the Pension Fund Regulatory and Development Authority (PFRDA) a statutory authority as it is managing the corpus ofRs.35,000 crore belonging to 52.83 lakh subscribers including those of 26 state governments.


"...Rs.35,000 crore should not be used by unstatutory authority...All this bill does is to make non-statutory authority a statutory authority," he said, adding the authority will have powers to penalise.


PFRDA was established by the government in August, 2003.


On members' suggestion to bring down the employee's annual contribution fromRs.6,000, he said, "This is not a large amount. Given the current salary and possibility 7th pay commission in two years, saving ofRs.500 per month is feasible."


He also clarified that if a government employee dies prematurely, his family would get the pension benefits that prevailed prior to 2004.


On a member's suggestion to allow investment of funds in long term 30-40 years bonds, Chidambaram said, "Bond market in India is not well developed. We have bonds for 10 years and 20 years and not beyond this. We will develop the market. I sincerely hope the day will come soon."


On giving tax exemption, he said he will not encourage any law dealing with tax other than the Income Tax Act. He asked the member to wait till Direct Tax Code comes into effect.


According to the Bill, there is an incentive for subscribers to join the New Pension Scheme (NPS) as there is provision for withdrawals for limited purposes from Tier-I pension account.


The subscriber seeking minimum assured returns would be allowed to opt for investing funds in such scheme providing minimum assured returns as may be notified by the Authority.


The Bill was referred to the Standing Committee twice -- in 2005 and 2011.


The NPS has been made mandatory for all the central government employees (except armed forces) entering service with effect from January 1, 2004. It has been launched for all citizens including unorganised sector workers, on voluntary basis, from May, 2009.



Read more at:http://indiatoday.intoday.in/story/pension-bill-passed-parliament-fdi-government/1/305907.html



Finance Minister P Chidambaram today said the implementation of the Pension Fund Regulatory and Development Authority (PFRDA) Act 2013 in letter and spirit is a major task before the government.


"...With the PFRDA Bill having been passed by Parliament, the major task before us was to implement it in letter and spirit," he said at the 4th meeting of the Consultative Committee attached to the Ministry of Finance here.


The PFRDA Act would give statutory status to the pensions sector regulator, and in addition to other objectives, aims to address apprehensions regarding safety and yield under the National Pension System (NPS).


Chidambaram mentioned that most countries are moving from a 'defined benefit' pension system to a 'defined contribution' system to enable pension-related commitments to be sustainably discharged.


He stated that the salient provisions of the Act related to subscriber interest include choice of pension fund manager and investment schemes to the subscriber, availability of minimum assured return schemes to be notified by the PFRDA and the option of investment only in government securities.


The Minister replied to the various suggestions and queries of the members and explained how the Act and efforts of the Government since 2003-04 had tried to address these concerns.


He mentioned that these initiatives are relatively recent in origin. "Hence, work on the NPS was still a work in progress that would, however, achieve these various objectives over time," he said.


At present the total pension funds under NPS were to the tune of Rs 37,000 crore.


The Finance Minister further stated that there was a need to extend the reach of the NPS.


Observations related to the need to keep inflation in check to ensure good real returns, focusing on the unorganised sector, ensuring that pension fund managers were of the highest ability and standing and the need for suitable publicity to create awareness about NPS, were made by members.


Members of the Committee who attended the meeting include, Arvind Kumar Chaudhary, Narahari Mahato, Partap Singh Bajwa, Prabhatsinh Chauhan, S P Y Reddy, Saugata Roy, Suresh C Angadi and W Bhausaheb Rajaram, Ajay Sancheti, Amar Singh, Rajani Patil, Rajeev Chandrasekhar, Sabir Ali, Ashok Sekhar Ganguly and Murli S Deora.


The sluggish industrial growth may continue its run till the next year as the government expect more than 5% growth in the sector by 2014-15.


"Once a pickup in industrial growth happens, moving ahead next year we should find the growth rate going back to 5-6 per cent", C Rangarajan, Chairmain of Prime Minister's Economic Advisory Council said on the sidelines of CII's 3rd Finance and Investment Summit here.


He said that he expect the industrial growth in the second half higher than that in the first half and could be more than 3%. "The impact of the various measures taken by the government will be felt in the second half", he said.


On inflation, he said he expect the rate to come down. "This has been caused mainly from food articles which will ease as a result of impact of good monsoon", Rangarajan added.


He said he sticks to the 6% target estimate of wholesale price inflation by year-end.


The factory output expanded by mere 2% in September despite hopes of a bounce back, according to data released yesterday. Data on inflation showed that Consumer Price Index based inflation went up to 10.09% in October.


Getting pension funds to invest in infra a challenge: Report

September 5, 2013 20:16 IST  

Channelling pension funds to the infrastructure sector will be a challenge given the high risk associated with the key segment, a State Bank of India research report said on Thursday.

"Convincing pension funds to invest in infrastructure as an asset class will be a challenge. There is need for a separate policy to address this aspect of risk perception," it said.

The long-pending Pension Bill was passed by the Lok Sabha on Wednesday.

The total investment in the infrastructure sector in the 12th Plan (2012-17) is estimated at $1 trillion or Rs. 66 trillion with contribution from both the debt and equity segments. Of this, the pension funds are expected to contribute at least Rs. 1.5 trillion in debt component.

"This estimated contribution by pension funds towards infrastructure is on the lower side given the potential for developing pension market in the country," the report said.

As on August 14, 2013, the number of subscribers under New Pension System (NPS) was 52.83 lakh with a corpus of only Rs. 34,965 crore.

The total investment in infrastructure sector in the 12th Plan from the debt segment is projected at Rs. 22.65 trillion.

Apart from pension funds, other financial sources from the debt segment for the sector include commercial banks – Rs. 11.65 trillion; NBFCs – Rs. 6.19 trillion and external commercial borrowing at Rs. 3.31 trillion, the SBI report said.

With the Bill's passage, the Pension Fund Regulatory and Development Authority will receive statutory status and also regulate NPS, a defined contribution scheme.

The main objective of the Bill, which paves way for 26 per cent foreign investment in pension sector, is to provide a structure to plan for old age income security through NPS.

The legislation provides subscribers a wide choice to invest their funds, including for assured returns, by opting for the Government bonds as well as in other funds depending on their risk-taking capacity.

  1. *
  2. Business Standard

  3. FM flays probe agencies, CAG for overstepping limits

  4. Moneycontrol.com-21 hours ago

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  17. Business Standard

  18. Implementation of Pension Fund Regulatory & Development ...

  19. Economic Times-12 hours ago

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  29. Times of India-02-Nov-2013

  30. FM cautioned against "excessive exuberance" while at the same time pointing to the good monsoon, rising exports & a lower-than-expected ...

  31. CBI not helpless, calling it caged parrot demeaning, says ...

  32. Hindustan Times-11-Nov-2013

  33. Finance minister P Chidambaram on Tuesday urged the CBI not to question government policies and said that the investigative agency should ...

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  37. Business Today-11-Nov-2013

  38. Finance Minister P. Chidambaram has said if corporates spend 2 per cent of ... out much greater inclusiveness," Chidambaram said at an event.

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  49. India Today-12-Nov-2013

  50. The current volley of veiled caution from the PM and FM for the CBI is more ... stance of Singh and Chidambaram might cost the Congress dear.


Vegetable prices push Oct retail inflation to double-digit zone

CPI-based inflation at 10.09%; rising onion and tomato prices add to pressure



Both urban and rural areas witnessed double-digit inflation at 10.20 per cent and 10.11 per cent, respectively, in October.


Overall food and beverages inflation soared to 12.56 per cent against 11.44 per cent in September.


With food items having a weight of more than 45 per cent in the CPI, this inflation surges whenever food prices rise. On the other hand, food items have 24 per cent weight in the Wholesale Price Index (WPI) because of which the WPI inflation stood at just 6.46 per cent in September. WPI inflation for October is slated to come later this week.


"The link between good agriculture production and low food prices have been broken from 2009-10. You require efficient logistics to supply these items as well," State Bank of India Chief Economic Adviser Soumya Kanti Ghosh told Business Standard.


Besides, local problems in onion and tomatoes also added to the food inflation pressure, he said. Cyclone Phailin had affected paddy crop last month. Cereal inflation remained elevated, despite some moderation at 12.01 per cent in October from 12.77 per cent in September.


FinMin mulls measures to attract FIIs to stabilise rupee, boost stock markets

Chidambaram interacted with FIIs who expressed their concerns on taxation issues, high fiscal deficit and current account deficit

As the rupee continued to slide and stock markets persisted with heavy selling pressure, the finance ministry swung into action to assure foreign  institutional  investors (FIIs) of a slew of measures to increase their participation in currency derivatives and debt markets.


Finance Minister P Chidambaram on Tuesday interacted with FIIs. They expressed concern on taxation issues, the high fiscal and current account deficits, and sought removal of capital gains tax.


"Everyone was here, everyone was bullish, there were no concerns (over exchange rate)," said Chidambaram, after the meeting the FIIs.


The minister told the investors the government would stick to its target of 4.8 per cent of the gross domestic product (GDP) for the fiscal deficit and $60 billion for the current account deficit (CAD) for 2013-14. Even independent analysts expected the government  to meet  the new CAD target, against $70 billion pegged earlier.


However, only the government seemed to be confident  of reining in the Centre's fiscal deficit at 4.8 per cent of GDP, since it constituted 76 per cent  of the entire year's budget estimate in the first six months of the current financial year.   


Officials said the measures, which could be announced in a month as they don't need any changes in the law, would include greater participation for FIIs in currency derivatives market, deepening the bond markets, liberal conditions for use of collateral on a par with domestic investors, clarity on permanent establishment rules and taxation issues.


In August, the Reserve Bank of India had put controls on institutional participation in the currency derivative market. So, the finance ministry is going to consider some leeway on those.


Meanwhile, Economic Affairs Secretary Arvind Mayaram said the government would soon come out with clarifications on the definitions of FII and foreign direct investment (FDI) in a couple  of weeks.


As the rupee on Tuesday declined for a fifth day in row and closed at 63.71 against the dollar, down 47 paise over the previous day's close, Mayaram said the currency would stabilise soon, amid inflows of up to $25-30 billion through the forex swap windows. He exuded confidence that as the US Federal Reserve started tapering its monetary stimulus, it would not have an impact on Indian markets.


"I think a crazy, irrational kind of a sentiment is (prevailing in the forex market)... Whoever is punting on the rupee will lose very heavily. I feel very sorry for their families," he told reporters.


The finance ministry will have a host of meetings with FIIs, as part of its efforts to engage with debt funds from the Nordic countries, West Asia and Australia and make them invest in India.


The ministry hopes the impact of QE tapering would be less under Janet Yellen, likely to take over as the US Fed chairman in January 2014.


India is planning to get its debt included in global indices including the ones run by JP Morgan and Barclays. RBI Governor Raghuram Rajan had also said the central bank would have conversations with international index agencies and some of the investment banks that create these indices.


Namrata Acharya  |  Kolkata  

November 13, 2013 Last Updated at 00:38 IST

Mamata's potato politics sends prices crashing

Open market price cools down as chief minister orders cold storages to empty stock by December 15


The first big task in hand at the new address is a success.


Sitting in the plush office at the 14th floor of the newly-inaugurated secretariat, by default facing one of the infrastructure marvels created in the predecessor regime, the Vivekananda Setu, Chief Minister Mamata Banerjee has finally reined in the intractable potatoprices.


On Tuesday, when some cold-store owners urged the chief minister to lift the ban on potato export to neighbouring states, in a headmistress-like tone she instructed them to empty all the cold storages by December 15. Never before had the state given such a diktat.


Cold storages in West Bengal generally close by the last week of December, when farm potatoes take charge of the market supply. Between March and December, stored potatoes feed the markets.


West Bengal produces about 10 million tonnes of potatoes every year. Of this, only 5.5 million tonnes are domestically consumed. At present, close to 1.4 million tonnes of potatoes and potato seeds are in cold storage.


In the next two months, the total consumption of both would not be more than 1.2 million tonnes. Possibly, by December, nearly 0.2 million tonnes have to be dumped in open fields, which otherwise would have been exported to Odisha, Andhra Pradesh, Bihar and Jharkhand, according to Patit Paban De, member, West Bengal Cold Storage Association.


"Medinipur, Bankura and Burdwan are areas which generally export potatoes. The existing chain of marketing infrastructure do not provide for the same potatoes to be transported to local areas," said a trader.


Steps taken by West Bengal to reduce prices include direct procurement and sale at Rs 13 a kg, ban on exports and the deadline to vacate cold storages. The result: prices of potato in the open market are now Rs 15-20 a kg in West Bengal from nearly Rs 40 a kg sometime earlier.


In neighbouring states, prices have shot up to as high as Rs 50 a kg. A section of traders in Odisha had tried to stop truckloads of fish, eggs and onions coming to Bengal.  


In September, farmers in Bengal had sold potato at Rs 4 a kg, a loss of Re 1 a kg.  After floods and rain in October, potato prices started moving up.


Possibly, with large quantities of vegetables getting destroyed during floods in Bengal, consumption of potato went up significantly, causing a sudden rise in prices, according to Pranab Chatterjee, professor at Bidhan Chandra Krishi Viswavidyalaya.


Potato cultivation is a risky bet for farmers. Suicides and distress sale are nothing new in the growing season. The cause of the problem is poor infrastructure and poor marketing. With 10 million tonne of production, the storage capacity in West Bengal is only close to five million tonne.


While a handful of rich farmers in the districts of Paschim Medinipur, Bardhaman and Hooghly can afford to pay for transportation and rent of cold storages, a large number of farmers  depend on middlemen to sell their produce.


With the cost of production at Rs 5 a kg, the rent for keeping a kg of potato in cold storage is nearly a third of the total cost at Rs 2 a kg.


Once the potatoes are sold to middlemen, it is a sophisticated trade of potato bonds. Potato bonds are simply paper slips marking the potatoes in the storages. These bonds change multiple hands, often sold at a premium. Thus, potato bonds sold at Rs 120-200 per 50 kg, normally at this time, are now selling at Rs 400-500, according to Chatterjee.


"The problem is we do not have any agency to procure potatoes, neither any maximum support price for potato procurement. Even with potato prices so high, farmers sold the crop at a loss," according to Ramprasad Ghosal, a farmer in Hooghly.

http://www.business-standard.com/article/economy-policy/mamata-s-potato-politics-sends-prices-crashing-113111200754_1.html


Nayanima Basu  |  New Delhi  

November 13, 2013 Last Updated at 00:30 IST

Biz to be Cameron's only focus on whirlwind visit

To meet prime minister, Mamata Banerjee

As the country celebrates Children's Day on the 124th birth  anniversary of Jawaharlal Nehru, British Prime Minister (PM) David Cameron will make a "hurricane" visit to India to strengthen business ties between the countries.


The visit, his third in two years, would focus only on business, even as he meets PM Manmohan Singh in Delhi followed by a luncheon with West Bengal Chief Minister Mamata Banerjee, sources told Business Standard.


During the one-day visit, Cameron is expected to raise issues concerning British business and strategic affairs with the PM. Issues concerning flagship British companies like Vodafone and Tesco are going to be high on agenda.


Vodafone has been entangled in a row with Indian tax authorities, since it acquired Hutchison Whampoa's Indian mobile telephony business in 2007 for $10.7 billion. According to the Indian government, Vodafone has a tax liability of Rs 14,000 crore related to the acquisition. With elections looming, it seems a new government will take the final call.


While the government wants to fight the case under the Indian Arbitration and Conciliation Act, the telecom firm has asked for the case to be considered under the United Nations Commission on International Trade Law.


However, Vodafone recently sought approval to raise stake in its India unit from 64.38 per cent to 100 per cent for Rs 10,141 crore.


India, on the other hand, is going to make the case for more British investments in the country. With Walmart exiting the Indian retail market, the government is pinning its hopes on British retailer Tesco. In 2008, the company entered into a separate franchise pact with Trent, the retail arm of the Tata group. Both sides are expected to discuss a possible civil nuclear cooperation deal based on the joint declaration signed in 2010. India has inked pacts with the US, France, South Korea, Canada, Australia and others, as it aims to achieve a nuclear power capacity of 63,000 Mw by 2032 from the current 4,780 Mw.


Cameron, who will be coming with more than 20 businessmen, is likely to explore investment opportunities in West Bengal, as he meets Banerjee there. This will be the second such visit by any British PM to Kolkata in the last 16 years after former British PM John Major visited the city.


In Kolkata, Cameron will also be addressing the Indian Institute of Management to invite premium students there to choose the UK as a destination for higher studies.


During his last visit here in February, India and the UK vowed to fight tax evasion and avoidance through the implementation of Amending Protocol of their Double Taxation Avoidance Convention (DTAC) signed by both sides in October last year.


Both sides are on track to double trade in merchandise by 2015 from $15 billion last fiscal.

http://www.business-standard.com/article/economy-policy/biz-to-be-cameron-s-only-focus-on-whirlwind-visit-113111201121_1.html


Issues in Pension Reform Bill 2013

NOVEMBER 6, 2013 BY JIDE OJO

  


Jide Ojo

| credits: File copy

Pension matters are dear to my heart. My father taught for 40 years and retired as a school headmaster. The unfortunate thing is that he neither got his pension nor his gratuity till he died three years into retirement. He was not alone. Many senior citizens of this country suffered a similar fate as they languished in pains, ailments and died miserably while waiting to be paid their retirement benefits. My office is at present enrolled in the contributory pension scheme and over the years, I have been able to accrue some reasonable pension savings under this scheme. I hope not to suffer the same upshot as my dad when my retirement comes.

It is for these reasons that I have taken more than a cursory interest in pension matters. The administration of ex-president Olusegun Obasanjo, in a bid to reform pension management in the country in 2004, got the National Assembly to pass the Pension Reform bill through which the National Pension Commission was established. Giving historical background to some of the issues necessitating the establishment of PenCom, the Commission on its website stated as follows:

"Prior to the enactment of the Pension Reform Act 2004, pension schemes in Nigeria had been bedevilled by many problems. The Public Service operated an unfunded Defined Benefits Scheme and the payment of retirement benefits were budgeted annually. The annual budgetary allocation for pension was often one of the most vulnerable items in budget implementation in the light of resource constraints. In many cases, even where budgetary provisions were made, inadequate and untimely release of funds resulted in delays and accumulation of arrears of payment of pension rights. It was obvious therefore that the Defined Benefits Scheme could not be sustained.

"In the private sector on the other hand, many employees were not covered by the pension schemes put in place by their employers and many of these schemes were not funded. Besides, where the schemes were funded, the management of the pension funds was full of malpractices between the fund managers and the Trustees of the pension funds".

There are five cardinal objectives and features of the Pension Reform Act 2004. Namely: to ensure that every person who worked in either the public service of the Federation, the Federal Capital Territory or the private sector receives his retirement benefits as and when due; to assist individuals by ensuring that they save to cater for their livelihood during old age and thereby reducing old age poverty; to ensure that pensioners are not subjected to untold suffering due to inefficient and cumbersome process of pension payment; to establish a uniform set of rules, regulations and standards for the administration and payments of retirement benefits for the Public Service of the Federation, Federal Capital Territory and the Private Sector; and to stem the growth of outstanding pension liabilities.

Almost a decade after the establishment of PenCom and licensing of scores of Pension Fund Administrators, Pension Fund Custodians and Closed Pension Fund Administrators, the woes of Nigerian workers have yet to be over. There are still issues with the management of pension fund. For instance, the state and local governments' employees are not covered by the PRA 2004.   Even the federal workers and the private sector that are compelled to operate contributory pension scheme are still having challenges. Just last January 28, an Assistant Director in the Police Pension Office,  John Yakubu Yusuf was  sentenced  to two years' imprisonment with an option of N750,000 fine for conniving with others to defraud  the Police Pension Office and pensioners of N27.2bn. Several other persons have been arrested and currently being prosecuted for diverting, embezzling or misappropriating the pension funds of workers.

According to a report in The Nation, Monday, November 4, 2013, titled, 'Can Pension Reform Bill end pensioners' agony', "The action and inaction of some pension administrators laid the unfortunate foundation for the scandalous deeds trailing the country pension sector. Barefaced lies and confounding falsehood, ever blossoming thievery of pension funds and activities of rapacious pension administrators more than anything made the repeal and re-enactment of the Pension Act 2004 more urgent than ever". Senate President David Mark described those prowling pension funds as stealing blood money.

In response to the general outcry for further reform of Nigeria's Pension industry, President Goodluck Jonathan in April 2013 forwarded an executive bill to the National Assembly to tighten the nuts and bolts of the PRA 2004. Highlights of the Pension Reform Amendment Bill 2013 are as follows:  To enhance the powers of the Pension Commission in its regulatory and enforcement activities as well as to enhance the protection of pension fund assets; to unlock the opportunities for the deployment of pension assets for national development; to review the sanctions regime to reflect current realities; and to provide for the participation of the Informal Sector.

The PRAB 2013 also seeks to provide the framework for the adoption of the Contributory Pension Scheme by States and Local Governments. This is long overdue.  The bill also aims to create new offences and provide for stiffer penalties that will serve as a deterrent against mismanagement or diversion of pension funds assets under any guise, as well as other infractions of the provisions of the Act. The bill equally seeks an upward review of minimum rate of pension contribution from the current 15 per cent. The proposed minimum rate is 20 per cent of the monthly emolument payable as 12 per cent by the employer and 8 per cent by the employee.

The PRAB 2013 scrutinised the provision of the 2004 Act with respect to qualifying years of experience for the Director-General such that the requirement is graduated in descending order from that of the Chairman at 20 years to that of the Director-General at 15 years. This particular clause in the bill has been most contentious. Opinions are divided on the justification for the reduction in the number of years of experience the DG of PenCom needs to have from 20 years to 15 years. A section of the media believes that the request is self serving and uncalled for.  This alteration being proposed by the President is supposedly meant to pave the way for the acting Director General of National Pension Commission, Chinelo Anohu-Amazu, to be confirmed as substantive chief executive. She was appointed acting DG in December 2012 at a time she was allegedly due to retire having served for eight years as Company Secretary on the level of director and possessing only 15 years experience in the industry.

The Joint National Assembly Committees on Pension and Establishment Matters led by Senator Aloysius Etok and Rep. Ibrahim Bawa Kamba has recommended that a person to be appointed to the office of DG PenCom does not even need to have the 15 years being recommended by the executive bill but  should only be a 'fit and proper person with adequate cognate experience in pension matters'.

The Committee while submitting its report on October 29 said it recommended the removal of 20 years of experience and replaced it with competency just as is the case with other financial regulatory agencies such as the Central Bank of Nigeria Act, Nigeria Deposit Insurance Corporation Act 2006, Securities and Exchange Commission, National Insurance Commission and Corporate Affairs Commission Acts. I do hope the intention of the committee in making this recommendation is altruistic and not in order to satisfy the whim and caprice of the president. As observed by The PUNCH in its editorial of August 22, 2013, "Appointing a pension fund chief regulator should not be reduced to contemptible patronage or despicable cronyism". I couldn't agree more.

http://www.punchng.com/opinion/issues-in-pension-reform-bill-2013/

Pension Schemes Under The Provident Fund Act (Or How India Robs Its Industrial Workers In The Name Of Social Security)

Tens of thousands of crores of Rupees are lying unutilized in the pension fund with the Provident Fund Commissioners. Any day, the government may come out with a bill to divert this fund, which belongs to Indian working class, to some other area from where the politicians are entitled to draw the money. Let us see how:


Pension Schemes under the Provident Fund Act

Most industrial employees in India are covered by the pension schemes under the Provident Fund Act but very few of them know the stipulations of these schemes. Many do not even have any idea of how much pension they are going to get when they retire. They are simply contributing to the pension fund because the schemes are compulsory and they have nothing to choose. These pension schemes, therefore, have been described in this article in brief.

The Employees' Provident Fund and Miscellaneous Provisions Act 1952 provides for a compulsory contributory fund for the future of an employee after his retirement or for his dependents in case of his early death. Every factory engaged in any industry and every other establishment employing 20 or more persons is covered under this act. Both, the employee and the employer, contribute to the fund at the rate of 12 per cent of the basic wages and dearness allowance payable to an employee. The total of these contributions with interest is paid to the employee at the time of his or her retirement. This fund is called Provident Fund.

Family Pension Fund 1971 (FPF-71)

It was felt that in case of premature death of a worker, the Provident Fund was too less an amount to support his family. This led to the introduction of another social security benefit, i.e., Family Pension Fund or FPF-71 by amending the Provident Fund Act in 1971.

Under FPF-71, 1.67 per cent of the pay of an employee out of both member's and employer's contributions to the provident fund was transferred to the pension fund. No separate contribution needed to be paid towards FPF-71 either by the employee or the employer. If member retires, no pension is paid to him. If the member dies while in service, a pension is paid to the spouse:

FPF-71 ceased on 16.11.1995 when the EPS-95 came into existence.


Employees Pension Scheme 1995 (EPS-95)

This scheme came into force w. e. f. 16.11.1995. The assets and liabilities of FPF-71 were transferred and merged with EPS-95. The benefits to the members under the old scheme remain protected under EPS-95. Salient features of EPS-95 are as under:

Membership

All the members of the ceased Family Pension Fund 1971 and anyone who joins a covered establishment (having 20 or more people working) on or after 16-11-95 has to compulsorily join this scheme.

Contribution

EPS-95 derives its financial resource by partial diversion from the employer's contribution to the Provident Fund at the rate of  8.33% of the member's pay. For the purpose of computing EPS-95 contribution, a maximum pay of Rs. 6,500 is assumed. Unlike FPF-71, no money is diverted from the employee's contribution in this scheme.

Benefits

  1. Pension to the member for life on attaining an age of 58 years (called superannuation/retirement pension)

  2. Pension to the members of the family upon death of the member:

a) Pension to Widow/Widower for life or till re-marriage (called widow/widower pension)

b) Pension to two children/orphans of up to 25 years of age simultaneously with widow/widower pension (called children/orphan pension).

Superannuation/retirement pension

Superannuation/retirement pension is payable to a member provided the member has a minimum of 10 years of membership in EPS-95. The amount of superannuation/retirement pension is calculated as given below:

Pensionable salary * Pensionable service

-------------------------------------------------

70

Where:

Pensionable salary = Last pay of the employee or Rs. 6,500 whichever is less

Pensionable service = No. of years for which the employee has been a member of EPS-95

The formula has been designed so that an employee who has a working life of 35 years will get half of his last pay as pension. Since the scheme has come into effect in 1995, the first employee to get a pension equal to half of his pay will be one who retires in 2030. Maximum pension admissible to him will be Rs. 3,250 p.m. at that time..................

more at  http://www.geocities.com/jka49/pension.html  


Social Protection



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*Considerations of risk and vulnerability are key to understanding the dynamics leading to perpetuating poverty. Poverty is more than inadequate consumption or inadequate education and health — It is also fear for the future. Vulnerability affects everyone but is greater for the poor who face large risks from shocks to their income-earning capacity due to natural and man-made disasters, crime and violence, unemployment, old age, exclusion and discrimination, gender inequality etc. In short, the poor need to feel empowered with skills and voices to overcome their fear of isolation. And governments need to be able to respond to risks through a series of market and non-market mechanisms that do not adversely affect long-term development. More

Highlights

Recent Events:

Jobs for a Globalizing World: Labor Market Policy Core Course, Washington, DC March 29 – April 9, 2010   

For Protection and Promotion: The Design and Implementation of Effective Social Safety Nets, Washington, DC, USA, February 1-12, 2010

Social Protection Responses to the Three Waves of Crisis: Finance, Food & Fuel, Cairo, Egypt, June 15-18, 2009

Designing and Implementing Conditional Cash Transfers in Nigeria, Washington, DC, USA, April 16-24, 2009

Jobs for a Globalizing World: Labor Market Policy - Washington, DC, USA, March 30-April 10, 2009

For Protection and Promotion: the Design and Implementation of Effective Safety Nets - Washington, DC, USA, February 2-13, 2009

World Bank Core Course on Pensions, Washington, DC, USA, November 10-21, 2008


Publication:

For Protection & Promotion The Design and Implementation of Effective Safety Nets. Written by Margaret E. Grosh , Carlo Del Ninno , Emil Tesliuc , and Azedine Ouerghi

More



http://web.worldbank.org/WBSITE/EXTERNAL/WBI/WBIPROGRAMS/SPLP/0,,menuPK:461694~pagePK:64156143~piPK:64154155~theSitePK:461654,00.html



Employees' Provident Fund and Miscellaneous Provisions Act, 1952

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The umbrella legislation relating to provident fund is the Employees' Provident Funds & Miscellaneous Provisions Act, 1952 (EPF & MP Act). The Act was enacted with the main objective of making some provisions for the future of industrial workers after their retirement and for their dependents in case of death. It provides insurance to workers and their dependents against risks of old age, retirement, discharge, retrenchment or death of the workers. It is applicable to every establishment which is engaged in any one or more of the industries specified in Schedule I of the Act or any activity notified by Central Government in the Official Gazette and employing 20 or more persons.

However, the Act shall not apply to any establishment:-

  • Registered under the Co-operative Societies Act 1912 or under any other law for the time being in force in any State relating to co-operative societies employing less than fifty persons and working without the aid of power; or

  • Belonging to or under the control of the Central Government or a State Government and whose employees are entitled to the benefits of contributory provident fund or old age person in accordance with any scheme or rule framed by the Central Government or the State Government governing such benefits; or

  • Set up under any Central Provincial or State Act and whose employees are entitled to the benefits of contributory provident fund or old age person in accordance with any scheme or rule framed under that Act governing such benefits; or

  • Newly set up until the expiry of a period of three years from the date on which such establishment has been set up.

The Act is administered by the Government of India through the Employees' Provident Fund Organisation (EPFO). EPFO is one of the largest provident fund institutions in the world in terms of members and volume of financial transactions that it has been carrying on. It is an autonomous tripartite body under the control of Ministry of Labour with its head office in New Delhi. It aims to extend the reach and quality of publicly managed old-age income security programs through its consistent efforts and ever-improving standards of compliance and benefit delivery system to its members. This way it seeks to contribute to the economic and social well-being of the country.

EPFO functions under the overall superintendence of the policies framed by the Central Board of Trustees, headed by Union Minister for Labour as Chairman. The main functions of the Board are :-

  • Administering the funds created and vested in the Board and performing other works incidental thereto.

  • Maintaining accounts of income and expenditure in prescribed form and manner.

  • Delegation of powers for administration of the schemes.

  • Submitting audited accounts with comments and annual report on performance of the Organisation to Government.

The main provisions of the Act are:-

  • The Act aims to provide for institution of provident funds, family pension funds and deposit linked insurance funds for the employees in the factories and other establishments. Accordingly, three schemes are in operation under the Act. These schemes taken together provide to the employees an old age and survivorship benefits, a long term protection and security to the employee and after his death to his family members, and timely advances including advances during sickness and for the purchase/ construction of a dwelling house during the period of membership. These three schemes are as follows:-

  • The Central Government may by notification in the Official Gazette constitute a Central Board of Trustees for the territories to which this Act extends. Also, the Government may constitute an Executive Committee to assist the Board in the performance of its functions.

  • The contribution which shall be paid by the employer to the fund shall be eight and one-third per cent of the basic wages, dearness allowances and retaining allowance (if any) for the time being payable to each of the employees. While, the employees' contribution shall be equal to the contribution payable by the employer in respect of him and may if any employee so desires and if the Scheme makes provision therefore be an amount not exceeding eight and one-third per cent of his basic wages, dearness allowances and retaining allowance (if any), subject to the condition that the employer shall not be under an obligation to pay any contribution over and above his contribution payable under the Act.

  • The Central Government may by notification in the Official Gazette constitute one or more Employees' Provident Funds Appellate Tribunal to exercise the powers and discharge the functions conferred on such Tribunal by this Act and every such Tribunal shall have jurisdiction in respect of establishments situated in such area as may be specified in the notification constituting the Tribunal.

  • No employer in relation to an establishment to which any scheme applies, shall by reason only of his liability for the payment of any contribution to the fund, or any charges under this Act or the scheme, reduce whether directly or indirectly, the wages of any employee to whom the scheme applies or the total quantum of benefits in the nature of old age pension gratuity provident fund or life insurance to which the employee is entitled.

  • Whoever for the purpose of avoiding any payment to be made by himself under this Act or of enabling any other person to avoid such payment, knowingly makes or causes to be made any false statement or false representation, shall be punishable with imprisonment or with fine or with both.


What's New

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25-Oct-2013 : Circular on acceptance of e-KYC as a valid process for KYC VerificationNEW

23-Oct-2013 :Circular on Modification of Exit Guidelines under National Pension System NEW

17-Oct-2013 : Circular on Changes in Investment Guidleines for Government SectorNEW

14-Oct-2013 : PFRDA (Identification, Income Recognition and Provisioning of NPA) Guidance Note 2013 NEW

09-Oct-2013 : PFRDA Act 2013 NEW

07-Oct-2013 : Offer Document for NPS-All Citizen Model-Revised NEW

03-Oct-2013 : List of Registered Aggregators as on 25-09-2013 NEW

03-Oct-2013 : List of Cancelled Aggregators as on 25-09-2013 NEW

17-Sept- 2013 : Circular on Option to defer Annuity Purchase under NPS at the time of exit NEW

17-Sept- 2013 : Circular on Swavalamban Subscriber Registration through Aggregators Only NEW

27-Aug-2013 : PFRDA (Appointment of Internal Auditor) Guidance Note - 2013

22-Aug-2013 : Circular on Portability of  NPS Lite/Swavalamban  Accounts to NPS-All Citizen Model(UOS) and other Sectors

12-July-2013  : Investment in Infrastructure Debt Funds NEW

15-May-2013 : Press Release regarding Returns on NPS Scheme for  F.Y 2012-13

15-May-2013 : NPS Status as on 7th May 2013

Revised Investment Guidelines applicable for Private Sector NPS

NPS Status as on 2nd March 2013

NPS Corporate Sector Model-Discontinuation of corporate-CG Scheme for new corporates joining NPS

Link to Website of POPs for opening of NPS Account  

Location for opening NPS Account

Corrigendum to Circular for Corporate-Change in Central Government Investment Model

Circular for Corporate-Change in Central Govrnment Investment Model

Guidelines for Appointment of Auditors of PFMs and Schemes under NPS

Revision of Investment Management Fee for Pension Fund Managers for Private Sector NPS

Extension of time for submission of Comments-National Strategy for Financial Education

Guidelines for preparation of Financial Statements and Auditors Report of Schemes under NPS

Addendum to Guidelines for Registration of Pension Funds for Private Sector

Comments on National Strategy for Financial Education

National Strategy for Financial Education

Guidelines for Registration of Pension Funds for Private Sector

Empanelment of Annuity Service Provider

Application for Empanelment of Annuity Service Providers

Press release regarding revised charge structure for Points of Presence

Subscribers Registered under the National Pension System (NPS)

Report of the Committee to Review Implementation of Informal Sector Pension

Circular regarding evidence of the Date of Birth

Submission of Declaration Form for the Swavalamban Benefit

Swavalamban declaration form for old subscribers

Notice regarding Swavalamban benefit for NPS Account Holders

ECS -Auto Debit Mandate Form

ECS Guidelines for Subscribers and Points of Presence

RFP for Registration of New PoPs on Ongoing Basis

Registration of New PoPs on Ongoing Basis

Swavalamban/NPS-Lite Flyer

Incentive Scheme for Aggregators

Revised Subscriber Registration Form under NPS Lite to be used for availing Swavalamban Benefit

Revised Subscriber Registration Form under NPS Lite

Standard Operating Procedure for Contribution processing under NPS Lite

Standard Operating Procedure for Subscriber Registration under NPS Lite

Operating Guidelines for Aggregators under NPS Lite

Payment of NPS contribution in a single installment

Operational Guidelines on Swavalamban Scheme issued by Deptt of Financial Services, Government of India

Revised Composite Application Form for Subscriber Registration for opening NPS account and allotment of Permanent Retirement Account Number (PRAN)

Detailed investment guidelines for all Citizens under the National Pension System

http://pfrda.org.in/indexmain.asp?linkid=180


Welcome to the PFRDA's website

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PFRDA was established by Government of India on 23rd August, 2003.  The Government has, through an executive order dated 10th October 2003, mandated PFRDA to act as a regulator for the pension sector. The mandate of PFRDA is development and regulation of pension sector in India.

The National Pension System reflects Government's effort to find sustainable solutions to the problem of providing adequate retirement income.  As a first step towards instituting pensionary reforms, Government of India moved from a defined benefit pension to a defined contribution based pension system by making it mandatory  for its new  recruits (except armed forces) with effect from 1st January, 2004. Since 1st April, 2008, the pension contributions of Central Government employees covered by the National Pension System (NPS) are being invested by professional Pension Fund Managers in line with investment guidelines of Government applicable to non-Government Provident Funds.

Twenty eight (28) State/UT Governments have also notified the National Pension System for their new employees. Of these,  24 states have already signed agreements with the intermediaries of the NPS architecture appointed by PFRDA for carrying forward the implementation of the National Pension System.   The other States are in the process of finalisation of documentation.

NPS has been made available to every citizen from 1st May, 2009 on a voluntary basis.  The NPS architecture is transparent and will be web-enabled.  It would allow a subscriber to monitor his/her investments and returns under NPS, the choice of Pension Fund Manager and the investment option would also rest with the subscriber. The design allows the subscriber to switch his/her investment options as well as pension funds. The facility for seamless portability and switch between PFMs is designed to enable subscribers to maintain a single pension account throughout their saving period.

PFRDA has set up a Trust under the Indian Trusts Act, 1882 to oversee the functions of the PFMs.  The NPS Trust is composed of members representing diverse fields and brings wide range of talent to the regulatory framework.

The National Pension System has been designed to enable the subscriber to make optimum decisions regarding his/her future and provide for his/her old-age through systemic savings from the day he/she starts his/her employment.  It seeks to inculcate the habit of saving for retirement amongst the citizens.

PFRDA also intends to intensify its effort towards financial education and awareness as a part of its strategy to protect the interest of the subscribers. PFRDA's efforts are an important milestone in the development of a sustainable and efficient voluntary defined contribution based pension system in India.

http://pfrda.org.in/indexmain.asp?linkid=100

National Pension Scheme

From Wikipedia, the free encyclopedia

File:06 copy

C:\Users\HP\Desktop\nps\npsdetail\jjss pic n video

For the generic concept, see National pension.

PFRDA Logo with original colours

The National Pension System (NPS) is an Indian Government defined contribution based pensionsystem that was launched as on 01.01.2004.[1] Like most other developing countries, India does not have a universal social security system to protect the elderly against economic deprivation. As a first step towards instituting pension reforms, the Government of India moved from adefined benefit pension to a defined contribution based pension system. Apart from offering wide gamut of investment options to employees, this scheme also helps government of India to reduce its pension liabilities.The problem of Annual Pension Liability was so serious that,it was growing @Compound Rate,where as India's Annual Income is growing @Simple Rate.This would have certainly resulted in the entire collapse of Indian Economic System in the Long Run,making India a defaulter in Defined benefit pension payments to its Retired Employees.There was a threat of Pension Expenses being Greater Than,the Annual Income itself. Now, with the introduction of Defined Contribution Plan,threat is reducing slowly & steadily,turning India in to An Economic Super Power of the Future,by increasing the value of Indian Rupee.Unlike existing pension funds of Government of India that offered assured benefits, NPS has defined contribution and individuals can decide where to invest their money. The scheme is structured into two tiers:

  • Tier-I account: This NPS account does not allow premature withdrawal and was available from 1 May 2009

  • Tier-II account: The tier-II NPS account permits withdrawal prior to retirement age.

Since 1 April 2008, the pension contributions of Central Government employees covered by the National Pension System (NPS) are being invested by professional Pension Fund Managers in line with investment guidelines of Government applicable to non-Government Provident Funds. A majority of State Governments have also shifted to the defined contribution based National Pension System from varying dates. 28 State/UT Governments have notified the NPS for their new employees. Of these, 5 states have already signed agreements with the intermediaries of the NPS architecture appointed by Pension Fund Regulatory and Development Authority (PFRDA) for carrying forward the implementation of the National Pension System. The other States are in the process of finalization of documentation.

Contents

 [hide]

Regulation[edit]

The Pension Fund Regulatory and Development Authority (PFRDA) is the prudential regulator for the NPS.PFRDA was established by the Government of India on 23 August 2003 to promote old age income security by establishing, developing and regulating pension funds. PFRDA has set up a Trust under the Indian Trusts Act, 1882 to oversee the functions of the Pension Fund Managers (PFMs). The NPS Trust is composed of members representing diverse fields and brings wide range of talent to the regulatory framework. On 18 September 2013 President Pranab Mukherjee gave his assent to PFRDA Bill of 2013, which was passed in the Monsoon Session of Parliament as on 4th in LS & 6th in RS of September 2013.It has now been published in the Gazette of India, Extraordinary, Part-II, Section-1, dated 19 September (Thursday) 2013 as Act No. 23 of 2013. Details are given in www.egazzette.nic.in with respective dates and Acts,under the category of Recent Extra Ordinary Gazettes,having serial no.82 for Ministry of Law and Justice as The Pension Fund Regulatory and Development Authority Act, 2013 & serial no.10 for the Month of September 2013 as the Year. It has been Fortifying India's Financial Future for more than 10 Years & the Total AUMs are Rs.55,000 Crores only, including that of all Central Govt,State Govt & Private Industry Employees of Organised & Unorganised Sectors. Totally there are 55 Lakh Subscribers to NPS on a PAN-India basis.[As per the recent Press Release of www.pfrda.org.in] The PFRDA is the Foundation Stone of Indian Banking & Financial System. The President of India is the Guardian of PFRDA of India, subject to his Financial Emergency Powers, as per the Articles of Indian Constitution.

Coverage and eligibility[edit]

NPS was made available to all citizens of India on voluntary basis and is mandatory for employees of central government (except armed forces) appointed on or after 1 January 2004. All Indian citizens between the age of 18 and 55 can join the NPS.

Tier-I is mandatory for all Govt. servants joining Govt. service on or after 01.01.2004. In Tier I, Govt. servants will have to make a contribution of 10% of his Basic Pay, DP and DA which will be deducted from his salary bill every month. The Govt. will make an equal matching contribution. Since 1 April 2008, the pension contributions of Central Government employees covered by the NPS are being invested by professional Pension Fund Managers in line with investment guidelines of Government. However, there will be no contribution from the Government in respect of individuals who are not Government employees. The contributions and returns thereon would be deposited in a non-withdrawable pension account.

In addition to the above pension account, each individual can have a voluntary tier-II withdrawable account at his option. Government will make no contribution into this account. These assets would be managed in the same manner as the pension. The accumulations in this account can be withdrawn anytime without assigning any reason. It's estimated that 8 crore citizens of India are eligible to join the NPS.

Operational structure[edit]

NPS is designed to leverage network of bank branches and post offices to collect contributions and ensure that there is seamless transfer of accumulations in case of change of employment and/or location of the subscriber. It offers a basket of investment choices and Fund managers. Dhirendra Swarup is one of the founders.

There will be one or more Central Recordkeeping Agency (CRA), several Pension Fund Managers (PFMs) to choose from which will offer different categories of schemes. The participating entities (PFMs, CRA etc.) would give out easily understood information about past performance and regular Net asset values, so that the individual would be able to make informed choices about which scheme to choose. PFMs would share a common CRA infrastructure. The PFMs would invest the savings people put into their PRAs, investing them in three asset classes, equity (E), government securities (G) and debt instruments that entail credit risk (C), including corporate bonds and fixed deposits.

Contribution guidelines[edit]

The following contribution guidelines have been set by the PFRDA:

  • Minimum amount per contribution: Rs. 500 per month

  • Minimum number of contributions: 1 in a year

  • Minimum annual contribution: Rs 6,000 in each subscriber account.

If the subscriber is unable to contribute the minimum annual contribution, a default penalty of Rs.100 per year of default would be levied and the account would become dormant. In order to re-activate the account, subscriber will have to pay the minimum contributions, along with penalty due. A dormant account will be closed when the account value falls

Investment options[edit]

Under the investment guidelines finalized for the NPS, pension fund managers will manage three separate schemes, each investing in different asset class. The three asset classes are equity, government securities and credit risk-bearing fixed income instruments. The subscriber will have the option to actively decide as to how the NPS pension wealth is to be invested in three asset classes:

  1. E Class: Investment would primarily be in Equity market instruments. It would invest in Index funds that replicate the portfolio of either BSE Sensitive index or NSE Nifty 50 index.

  2. G Class: Investment would be in Government securities like GOI bonds and State Govt. bonds

  3. C Class: Investment would be in fixed income securities other than Government Securities

* Liquid Funds of AMCs regulated by SEBI with filters suggested by the Expert Group

* Fixed Deposits of scheduled commercial banks with filters

* Debt securities with maturity of not less than three years tenure issued by bodies Corporate including scheduled commercial banks and public financial institutions

Credit Rated Public Financial Institutions/PSU Bonds

Credit Rated Municipal Bonds/Infrastructure Bonds

In case the subscriber does not exercise any choice as regards asset allocation, the contribution will be invested in accordance with the 'Auto choice' option. In this option the investment will be determined by a predefined portfolio. At the lowest age of entry (18 years) the auto choice will entail investment of 50% of pension wealth in "E" Class, 30% in "C" Class and 20% in "G" Class. These ratios of investment will remain fixed for all contributions until the participant reaches the age of 36. From age 36 onwards, the weight in "E" and "C" asset class will decrease annually and the weight in "G" class will increase annually till it reaches 10% in " E", 10% in "C" and 80% in " G" class at age 55. The following table will illustrates this auto choice more clearly-

Class

Till the of age 35 years

At age 55 Years

E

50%

10%

C

30%

10%

G

20%

80%

Investment charges[edit]

NPS levies extremely low Investment management charge of 0.00010% on net AUM (Asset Under Management). This is extremely low as compared to charges levied by mutual funds or other investment products. Initial charge of opening the account would be Rs. 470. From second year onwards the minimum charge would be Rs. 350 a year, as per the offer document of NPS.

Withdrawal norms[edit]

If subscriber exits before 60 years of age, he/she has to invest 80% of accumulated saving to purchase a life annuity from IRDA regulate life insurer. The remaining 20% may be withdrawn as lump sum. On exit after age 60 years from the pension system, the subscriber would be required to invest at least 40% of pension wealth to purchase an annuity. In case of Government employees, the annuity should provide for pension for the lifetime of the employee and his dependent parents and his spouse at the time of retirement. If subscriber does not exit the system at or before 70 years, account would be closed with the benefits transferred to subscriber in lump sum. If a subscriber dies, the nominee has the option to receive the entire pension wealth as a lump sum. Recent changes permit subscriber to continue to remain invested after 60 and up to 70 but subscriber can no longer add further investments. Subscriber to intimate the period of deferment and can not withdraw during the deferment period. If the subscriber does not exit by 70, the lumpsum will be monetised and transferred to subscriber's bank account.

Tax treatment[edit]

The offer document of NPS does not specify the tax benefits in elaborate manner. It specifies "Tax benefits would be applicable as per Income Tax Act, 1961 as amended from time to time." As per current provisions, withdrawals under the NPS attract tax under the EET (exempt-exempt-taxable) system, which means that while contributions and returns to the NPS are exempt up to a limit, withdrawals would be taxed as normal income (EET).

While the NPS subscribers are directly benefited from one of these Income tax concessions, the second one is beneficial to the employers who contribute for NPS each month equivalent to employees contribution in Tier I.

Income tax concession to Employees under NPS:

So far, the contribution made by a National Pension System subscriber in Tier I scheme is deductible from the total income under Section 80CCD of the Income Tax Act. Like wise, the contribution made by the employer for the employee in Tier I of National Pension System is also deductible under Section 80CCD. However, the aggregate deduction under Section 80C, 80CCC and 80CCD is fixed at Rs.1 lakh.

So, if the NPS subscriber already has other eligible deductions such as LIC premium, PPF, bank or NSC deposits, ELSS etc., under Section 80C, 80CCC and Section 80CCD., deduction allowed under Section 80CCD in respect of National Pension System may not be of much use as the overall limit of savings eligible for deduction is pegged at Rs. 1 lakh.

Further, contribution made by the National Pension System should also be included in the Total income of NPS subscriber as far as calculation of income tax is concerned, while full deduction of the same from income under Section 80CCD may not be possible as other savings made by the subscriber covers the overall limit of Rs.1 lakh under Section 80CCD. Hence, for a NPS subscriber contribution for NPS by the Government is taxable in most of the cases.

For example, if an employee receives a salary of Rs.40,000 (pay+da), 10% of the same (Rs.4000) is paid by him as contribution towards NPS. The Government will also be paying Rs.4000 in this case in NPS fund of the said employee. Until now, an amount of Rs.96,000 (Rs.48,000+Rs.48000) could be deductible from the total income as far as this employee is concerned under Section 80CCD.

However, if the said employee has been paying LIC premium of Rs.20,000 per year, he will be allowed to deduct only Rs.4000 in respect of the same under Section 80CC as total ceiling of Rs.1,00,000 under Section 80CCE will apply in this case. So, an eligible deduction of Rs.16,000 could not be availed under Section 80CCD. In other words, employer contribution to NPS to an extent of Rs.16,000, which is already included in the income is taxable in this case.

However, the Finance Act, 2011 amended section 80CCE so as to provide that the contribution made by the Central Government or any other employer to the pension scheme under section 80CCD shall be excluded from the limit of one lakh rupees provided under section 80CCE. This proposal is effective from the assessment year 2012-13 (financial year 2011-12) and would totally exempt employer's contribution in NPS from levying income tax on the employee.

Income tax concession to Employers under NPS:

The Finance Act, 2011 amended section 36 so as to provide that any sum paid by the assessee as an employer by way of contribution towards a pension National Pension System(NPS) to the extent it does not exceed ten per cent of the salary of the employee, shall be allowed as deduction in computing the income under the head "Profits and gains of business or profession".

This amendment will be effective from 1 April 2012 and will be applicable to the assessment year 2012-13 (for the income earned in the financial year 2011-12) and subsequent years.

Past investment returns[edit]

The NPS architecture has been managing money since April 2008. Rs.2100 crore is invested as corpus of Central Government employees. In 2008-09, as per unaudited results of the Pension Funds, the average weighted return on the corpus have been over 14.5% with the individual returns of three Pension Funds varying from 12% to 16% on the NPS corpus during the year 2008-09, weighted average return being over 14.5 per cent. According to the latest data released by the government in Parliament on 23 August 2011, return on investment is as low as 1.8% in case of those private sector employees, who opted for investments in government securities, the safest of the categories. The performance of the three pension fund managers for the central government employees indicate that the returns on subscribers' contributions under NPS ranged between 8% and 16% during 2008-09 and 2010-11.[2]

Swavalamban Yojana As mentioned in the operating guidelines issued by MoF, "Government will contribute Rs. 1000 per year to each NPS account opened in the year 2010-11 and for the next four years, that is, 2011-12, 2012-13, 2013-14 & 2014-15. As a special case and in recognition of their faith in the NPS, all NPS accounts opened in 2009-10 will be entitled to the benefit of Government contribution under this scheme as if they were opened as new accounts in 2010-11 subject to the condition that they fulfill all the eligibility criteria prescribed under these guidelines."

Accordingly, the basic eligibility criteria for joining the Swavalamban Yojana for a subscriber is given below: Permanent Retirement Account should be opened in the year 2009-10 or 2010-11 and Minimum contribution should be Rs. 1,000 per annum (Financial year) in Tier I account and maximum contribution should be Rs. 12,000 per annum (Financial year) in both Tier I as well as Tier II account together.

References[edit]

External links[edit]



Employees' Pension Scheme, 1995 :.

ARRANGEMENT OF PARAGRAPHS

1. Short title, commencement and application

2. Definitions

3. Employees' Pension Fund

4. Payment of contribution

5. Recovery of damages for default in payment of any contributions

6. Membership of the Employees' Pension Scheme

6A Retention of membership

7. Option for joining the scheme

8. Resolution of doubts

9. Determination of eligible service

10. Determination of Pensionable Service

11. Determination of Pensionable Salary

12. Monthly Member's Pension 12A. ***

13. ***

14. Benefits on leaving service before being eligible for monthly member's pension

15. Benefits on permanent and total disablement during the service

16. Benefits to the family on the death of a member

16A. Guarantee of Pensionary Benefits

17. Payments on exercise of option. 17A. Payment of Pension

18. Particulars to be supplied by the employees already employed at the time of commencement of the Employees' Pension Scheme

19. Preparation of contribution cards

20. Duties of employers

21. Employer to furnish particulars of ownership

22. Duties of contractors

23. Allotment of Account Numbers

24. Declaration by persons taking up employment after the Fund has been established

25. Employees' Pension Fund Account

26. Investment of the Employees' Pension Fund

27. Disposal of the Fund

28. Administration Account

29. Forms of Accounts

30. Audit

31. Rounding up of the Benefits

32. Valuation of the Employees' Pension Fund and review of the rates of contributions and quantum of the pension and other benefits

33. Disbursement of Pension and other benefits

34. Registers, Records etc.

35. Power to issue directions

36. Regional Committee

37. Annual Report

38. Application of the provisions of the Employees' Provident Fund Scheme, 1952

39. Exemption from the operation of the Pension Scheme

39A Submission of return

39B Transfer Value

40. Information to the Central Governmen

41. Interpretation

42. Punishment for failure to submit return, etc.

43. Payment of pension in the case of a person charged with the offence of murder

43A  Special provisions in respect of International Workers

44. Repeal and savings SCHEDULE

THE EMPLOYEES' PENSION SCHEME, 1995

In exercise of the powers conferred by Section 6A of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government hereby makes the following Scheme, namely:-

1. Short title, commencement and application

(1) This Scheme may be called the Employees' Pension Scheme, 1995;

  1. (a) This Scheme shall come into force on 16th day of November, 1995;

    1. Subject to the provisions of this Scheme the employees have an option to become the members of the Scheme with effect from the 1st April, 1993 ;

  1. Subject to the provisions of Section 16 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, this Scheme shall apply to the employees of all factories and other establishments to which the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 applies or is applied under sub-section (3) or sub-section (4) of Section 1 or Section 3 thereof.

2. Definitions

(1) In this Scheme unless the context otherwise requires :--

(i) "Act" means the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952) ;

  1. "actual service" means the aggregate of periods of service rendered from the 16th November, 1995 or from the date of joining any establishment whichever is later to the date of exit from the employment of the establishment covered under the Act;

  2. "Commissioner" means a Commissioner for Employees' Provident Funds appointed under Section 5D of the Act ;

  3. "contributory service" means the period of 'actual service' rendered by a member for which the contributions to the fund

have been 1[received or are receivable] ; 1. Subs. by G.S.R 134 dated 28th

February 1996, for the word "received" (w.e.f 16th March 1996)

(v) "eligible member" means an employee who is eligible to join the "Employees' Pension Scheme";

  1. "Existing Member" means an existing employee who is a "Member of the Employees' Family Pension Scheme, 1971";

  2. "Family" means

  3. husband in the case of a female member of the Employees' Pension Fund ; and

  4. sons and 2[***] daughters of a member of the Employees'

Pension Fund ; 2. The word "unmarried" omitted, ibid (w.e.f. 16 th March, 1996)

Explanation. The expression "sons" and "daughters" shall

include children 3[legally adopted by the member] 3. Subs. Ibid., for

"adopted by the member legally before death in service" (w.e.f. 16th March, 1996)

(viii) "Pension" means the pension payable under the Employees' Pension Scheme and also includes the family pension admissible and payable under the Employees' Family Pension Scheme, 1971 immediately preceding the



5. Subs. by G.S.R. 134 dated the 28th February, 1996, for the word "received" (w.e.f.



4. Inserted. by G.S.R. dated the 22nd February,

commencement of the Employees' Pension Scheme, 1995 with effect from the 16th November, 1995.

(ix) "Member" means an employee who becomes a member of the Employees' Pension Fund in accordance with the provisions of this Scheme.

4.["EXPLANATION - - An employee shall cease to be the member of Pension Fund from the date of attaining 58 years of age or from the date of vesting admissible benefits under the

Scheme, whichever is earlier,"]

1999 (w.e.f 6.3.99)

(x) "Non-Contributory Service" is the period of "actual service" rendered by a member for which no contribution to the "Employees' Pension Fund" has been 5[received or are

receivable]

16th March,1996)

(xi) "orphan" means a person, none of whose parents is alive

6[***].6. Certain words omitted, ibid. (w.e.f. 16th March, 1996).

  1. "past service" means the period of service rendered by an existing member from the date of joining Employees' Family Pension Fund till the 15th November, 1995.

  1. "Pay" means basic wages, with dearness allowance, retaining allowance and cash value of food concessions admissible, if any.

  1. "Pension Fund" means the Employees' Pension Fund set up under sub-section (2) of Section 6A of the Act.

  1. "pensionable service" means the service rendered by the member for which contributions have been 7[received or are

receivable] 7. Subs. By G.S.R. 134 dated the 28th February 1996, (w.e.f. 16th March,1996).



8. Subs. By G.S.R. 134 dated the

8[(xvi)"permanent total disablement" means such disablement of permanent nature as incapacitates an employee for all work which he/she was capable of performing at the time of disablement, regardless whether such disablement is sustained

in the course of employment or otherwise;]

28th February 1996, (w.e.f. 16th March,1996)

  1. "Table" means Table appended to this Scheme.

  1. The words and expressions defined in the Act but not defined in this Scheme shall have the same meaning as assigned to them in the Act.

3. Employees' Pension Fund.

  1. From and out of the contributions payable by the employer in each month under Section 6 of the Act or under the rules of the Provident Fund of the establishment which is exempted either under clauses (a) and (b) of sub-section (1) of Section 17 of the Act or whose employees are exempted under either paragraph 27 or paragraph 27-A of the Employees' Provident Fund Scheme, 1952, a part of contribution representing 8.33 per cent of the Employee's pay shall be remitted by the employer to the Employees' Pension fund within 15 days of the close of every month by a separate bank draft or cheque on account of the Employees' Pension Fund contribution in such manner as may be specified in this behalf by the Commissioner. The cost of the remittance, if any, shall be borne by the employer.

  1. The Central Government shall also contribute at the rate of 1.16 per cent of the pay of the members of the Employees' Pension Scheme and credit the contribution to the Employees' Pension Fund:



10. Subs. by G.S.R.134 dated the 28th February, 96, for "the



9. Subs. by G.S.R.383 (E) dated the 24.5.2001 (w.e.f. 1.6.2001).

Provided that where the pay of the member exceeds 1[rupees six thousand and five hundred] per month the contribution payable by the employer and the Central Government be limited to the amount payable on his pay of 9[rupees six thousand and

five hundred] only

  1. Each contribution payable under sub-paragraphs (1) and (2) shall be calculated to the nearest rupee, fifty paise or more to be counted as the next higher rupee and fraction of a rupee less than fifty paise to be ignored.

  1. The net assets of the Family Pension Scheme, 1971 shall vest in and stand transferred to the Employees' Pension Fund.

4. Payment of contribution

(1) The employer shall pay the contribution payable to the Employees' Pension Fund in respect of 10[each member] of the Employees' Pension Fund employed by him directly or by or

through a contractor.

member" (w.e.f. 16th March, 1996)

(2) It shall be the responsibility of the principal employer to pay the contributions payable to the Employees' Pension Fund by himself in respect of the employees directly employed by him and also in respect of the employees employed by or through a contractor.

11[ Provided that the Central Government shall pay the contribution payable to the Employees' Pension Fund in respect of an employee who is a person with disability under the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) and under the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999) respectively, up to a maximum period of three years


from the date of commencement of membership of the Fund.] 11.

Inserted by GSR No. 252(E) dated 31-3-2008(w.e.f. 1-4-2008)

5. Recovery of damages for default in payment of any contributions

12[(1) Where an employer makes default in the payment of any contribution to the Employees' Pension Fund, or in the payment of any charges payable under any other provisions of the Act or the Scheme, the Central Provident Fund Commissioner or such officer as may be authorised by the Central Government, by notification in the Official Gazette, in this behalf, may recover from the employer by way of penalty, damages at the rates given below :- -

TABLE

S.No.

Period of default

Rates of

damages

(Percentage

of arrears per

annum)

(1)

(2)

(3)

(a)

Less than two months

Five

(b)

Two months and above but

Ten

less than four months

(c )

Four months and above but

Fifteen

less than six months

(d)

Six months and above

Twenty Five


] 12. Substituted by GSR No. 688(E) dated 26-09-2008(w.e.f. 26-9-2008)


(2) The damages shall be calculated to the nearest rupee, 50 paise or more to be counted as the nearest higher rupee and fraction of a rupee less than 50 paise to be ignored.

13[6. Membership of the Employees' Pension Scheme

Subject to sub-paragraph (3) of paragraph 1, the Scheme shall apply to every employee --

(a) who on or after the 16th November, 1995, becomes a member of the Employees' Provident Fund Scheme, 1952, or of the Provident Funds of the factories and other establishments exempted by the appropriate Government under section 17 of the Act, or in whose case exemption has been granted under paragraph 27 or 27-A of the Employees' Provident Fund Scheme, 1952, from the date of such membership;

(b) who has been a member of the ceased Employees' Family Pension Scheme, 1971 before the commencement of this Scheme from 16th November, 1995;

  1. Who ceased to be a member of the Employees' Family Pension Scheme, 1971 between 1st April, 1993 and 15th November, 1995 and opts to exercise his option under Paragraph7;

  1. who has been a member of the Employees' Provident fund or of Provident Funds of factories and other establishments exempted by the appropriate Government under section 17 of the Act or in whose case exemption has been granted under Paragraph 27 or 27A of the Employees' Provident Fund

Scheme, 1952, on 15 th November, 1995 but not being a member of the ceased Employees' Family Pension Scheme, 1971 opts to exercise his option under

paragraph 7]. 13.  Subs.  by  G.S.R.134  dated  28th  February,  1996  (w.e.f.  16th  March,  1996)

Explanation – An employee shall cease to be the member of Pension Fund from the date of attaining 58 years of age or from



14. Inserted by G.S.R. dated 22nd

the date of vesting admissible benefits under the Scheme, whichever is earlier.

14.["6 A Retention of membership

A member of the Employees' Pension Fund shall continue to be such member till he attains the age of 58 years or he avails the withdrawal benefit to which he is entitled under para 14 of the Scheme, or dies, or the pension is vested in him in terms of para

12 of the Scheme, whichever is earlier." ]

February 1999 (w.e.f. 6.3.99)

15[ 7. Option for joining the Scheme--

  1. Members referred to under sub-para (c ) of Paragraph 6 who have died between 1st April, 1993 and 15th November, 1995 shall be deemed to have exercised the option of joining the Scheme on the date his death.

  1. Members referred to in sub-paragraph (c ) of paragraph 6 who are alive shall have the option to join the Scheme as per the provisions of paragraph 17 from the date of exit from the employment.

  1. Members referred to in sub-paragraph (d) of paragraph 6 shall have the option to join the Scheme as per the provisions of

Paragraph 17 from 16th November, 1995.] 15. Subs. by G.S.R.134 dated the

28th February, 1996 (w.e.f 16th March, 1996)

8. Resolution of doubts.

If any doubt arises whether an employee is entitled to become a member of the Employees' Pension Fund, the same shall be referred to the Regional Provident Fund Commissioner who shall decide the same:


Provided that both the employer and the employee shall be heard before passing final order in the matter.

9. Determination of eligible service.

The eligible service shall be determined as follows:

(a) In the case of "new entrant" the "actual service" shall be treated as eligible service. The total actual service shall be rounded off to the nearest year. The fraction of service for six months or more shall be treated as one year and the service less than six months shall be ignored.

Explanation.

In the case of employees employed seasonally in any establishment the period of "actual service" in any year, notwithstanding that such service is less than a year shall be treated as a full year.

(b) In the case of the "existing member" the aggregate of actual service and the 'past service' shall be treated as eligible service. Provided that if there is any period in the "past service" for which the contributions towards the Family Pension Scheme, 1971 has not been received, the said period shall count as eligible service only if the contributions thereof have been received in the Employees' Pension Fund.

Explanation: For the purpose of this sub-paragraph the total past service for less than six months shall be ignored and the total past service for six months and above shall be rounded to a year.

10. Determination of Pensionable Service



17. Ins. ibid (w.e.f. 16th March, 1996).



16. Subs. by G.S.R. 134 dated

(1) The pensionable service of the member shall be determined with reference to the contributions 16[received or receivable] on

his behalf in the Employees' Pension Fund.

the 28th February, 1996 for "received" (w.e.f. 16th March, 1996)

(2) In the case of the member who superannuates on attaining the age of 58 years, and/or who has rendered 20 years pensionable service or more, his pensionable service shall be increased by adding a weightage of 2 years.

11. Determination of Pensionable Salary.

(1) Pensionable salary shall be average monthly pay drawn 17[in any manner including on piece-rate basis] during the contributory period of service in the span of 12 months preceding the date of exit from the membership of the

Employees' Pension Fund.

18 [" Provided that if a member was not in receipt of full pay during the period of twelve months preceding the day he ceased to be the member of Pension Fund, the average of previous 12 months full pay drawn by him during the period for which contribution to the pension fund was recovered, shall be taken into account as pensionable salary for calculating pension. ] 18.

Inserted by G.S.R. 66 dated 22nd February, 1999 (w.e.f. 6.3.1999)

  1. If during the said span of 12 months there are non-contributory periods of service including cases where the member has drawn salary for a part of the month, the total wages during the 12 months span shall be divided by the actual number of days for which salary has been drawn and the amount so derived shall be multiplied by 30 to work out the average monthly pay.

  2. The maximum pensionable salary shall be limited to


19[Rupees six thousand and five hundred /Rs.6500/-] per month.



20. Inserted ibid w.e.f 16.3.96. 19 & 21 & 22 . Subs. By

20[Provided that if at the option of the employer and employee, contribution paid on salary exceeding 21 [Rupees six thousand and five hundred /Rs.6500/-] per month from the date of commencement of this Scheme or from the date salary exceeds 22[Rupees six thousand and five hundred /Rs.6500/-] whichever is later, and 8.33 per cent share of the employers thereof is remitted into the Pension Fund, pensionable salary shall be

based on such higher salary.]

GSR 774 (E) dated the 8.10.2001 (w.e.f. 1.6.2001)

23[12.                    Monthly Member's Pension.

  1. A member shall be entitled to: -

  1. superannuation pension if he has rendered eligible service of 10 years or more and retires on attaining the age of 58 years;

  1. early pension, if he has rendered eligible service of 10 years or more and retires or otherwise ceases to be in the employment before attaining the age of 58 years;

(2) In the case of a new entrant the amount of monthly superannuation pension or early pension, as the case may be, shall be computed in accordance with the following factors, namely: -

Monthly member's pension = Pensionable salary X Pensionable service

--------------------------------------------------

70

(3) In the case of an existing member in respect of whom the date of commencement of pension is after 16th November, 2005:


(i) Superannuation/early pension shall be equal to the aggregate of: -

  1. Pension as determined under sub-paragraph (2) for the period of Pensionable service rendered from the 16th November, 1995 or Rs 635/- per month whichever is more;

  1. Past service pension shall be as given below: -

The past service pension payable on completion of 58 years of age on 16.11.95

S.No.

Years of Past


Salary

upto

Salary

more

Service


Rs.2500/-

per

than Rs.2500/-


month

per month


(1)


(2)

(3)

(i)

Upto 11 years



80

85

(ii)

More  than  11  years




95

105

but upto 15 years



(iii)

More  than  15  years




120

135

but

less

than

20

years


(iv)

Beyond 20 years



150

170

The amount under column (2) or column (3) above, as the case may be shall be multiplied by the factor given in Table B corresponding to the period between 16-11-95 and the date of exit to arrive at past service pension payable.


  1. The aggregate of (a) and (b) calculated as above shall be subject to a minimum of Rs. 800/- per month provided the eligible service is 24 years. Provided further if it is less than 24 years, the pension as computed above shall be reduced proportionately subject to a minimum of Rs. 450/- per month

  1. In the case of an existing member and in respect of whom the date of commencement of pension is between 16th November, 2000 and 16th November, 2005

  1. the superannuation/early pension shall be equal to the aggregate of : -

  1. pension as determined under sub-paragraph (2) for the period of service rendered from the 16th November, 1995 or Rs. 438/- per month whichever is more ;

  1. past service pension as provided in sub-paragraph (3)

  1. The aggregate of (a) and (b) calculated as above shall be subject to a minimum of Rs. 600/- per month provided the eligible service is 24 years. Provided further that if it is less than 24 years the pension shall be proportionately less subject to the minimum of Rs. 325/- per month.

  1. In the case of an existing member and in respect of whom the date of commencement of pension is before 16th November 2000

  1. the superannuation/early pension shall be equal to the aggregate of :

  1. pension as determined under sub-paragraph (2) for the period of service rendered from the 16th


November, 1995 per month or Rs.335/- per month whichever is more.

(b) past service pension as provided in sub-paragraph

(3)

(ii) The aggregate of (a) and (b) calculated as above shall be subject to the minimum of Rs. 500/- per month, provided the eligible service is 24 years. Provided further that if it is less than 24 years the pension shall be proportionately lesser but subject to the minimum of Rs. 265/- per month.

(6) Except as otherwise expressly provided hereinafter the monthly members pension under sub-paragraphs (2) to (5) mentioned herein above, as the case may be, shall be payable from a date immediately following the date of completion of 58 years of age notwithstanding that the member has retired or ceased to be in the employment before that date.

(7) A member, if he so desires, may be allowed to draw an early pension from a date earlier than 58 years of age but not earlier than 50 years of age. In such cases, the amount of pension shall be reduced at the rate of 24[four per cent] for every year the age

falls short of 58 years] . 23. Subs. by G.S.R. 431(E), dated the 15.6.2007 (w.e.f. 16.11.1995), 24. Substituted instead of three percent vide GSR 688(E), dated 26.9.2008 (w.e.f. 26.9.2008)

(8) If a member ceases to be in the employment by way of retirement or otherwise earlier than the date of superannuation from which pension can be drawn, the member may, on his option, either be paid pension as admissible under this Scheme on attaining the age exceeding 50 years or he may be issued a scheme certificate by the Commissioner indicating the pensionable service, the pensionable salary and the amount of


pension due on the date of exit from the employment. If he/she is subsequently employed in an establishment coverable under this Scheme, his/her earlier service as per the scheme certificate shall be reckoned for pension along with the fresh spell of pensionable service. The member postponing the commencement of payment of pension under this paragraph shall also entitled to additional relief sanctioned under this Scheme from time to time:

Provided that if the member does not take up an employment coverable under this Scheme, but dies before attaining the age of 58 years, the amount of contributions received in his case shall be converted into a monthly widow pension/children pension. The widow pension in such cases shall be calculated at the scale laid down in Table 'C' and the children pension at 25 per cent thereof for each child (upto two). If there is no widow then the orphan pension shall be payable at the rate of 75 per cent of the amount which would have been payable as a widow pension subject to the provisions of the paragraph 16.

25[12A. * * *]  25. Deleted vide GSR 688(E), dated 26.9.2008 (w.e.f. 26.9.2008)

26[13. * * *]  26. Deleted vide GSR 688(E), dated 26.9.2008 (w.e.f. 26.9.2008)

14. Benefits on leaving service before being eligible for monthly members pension.

(1) If a member has not rendered the eligible service prescribed in paragraph 27 [9] on the date of exit, or on attaining 58 years of age whichever is earlier, he/she shall be entitled to a withdrawal benefit as laid down in Table 'D' or may opt to receive the scheme certificate provided on the date he/she has not attained

the 58 years of age: 27. Subs. by G.S.R. 134, dated the 28th February, 1996 (w.e.f 16th March 1996).


Provided that an existing member shall receive additional return of contributions for his/her past service under the Employees'


Family Pension Scheme, 1971 computed as withdrawal-cum-retirement benefits as per Table 'A' multiplied by the factor given in Table 'B'.

15. Benefits on permanent and total disablement during the service

  1. A member, who is permanently and totally disabled during the employment shall be entitled to pension as admissible under sub-paragraph (2) to (5) of paragraph 12 as the case may be subject to a minimum of Rs. 250/- per month notwithstanding the fact that he/she has not rendered the pensionable service entitling him/her to pension under paragraph 12 provided that she/he has made at least one month's contribution to the Pension Fund.

  1. The monthly member's pension in such cases shall be payable from the date following the date of permanent total disablement and shall be tenable for the life-time of the member.

  1. A member applying for benefits under this paragraph shall be required to undergo such medical examination as may be prescribed by the Central Board to determine whether or not he or she is permanently and totally unfit for the employment which he or she was doing at the time of such disablement.

16. Benefits to the family on the death of a member

(1) 28[Pension to the family] shall be admissible from the date following the date of death of the member if the member dies ..

  1. while in service, provided that at least one month's contribution has been paid into the Employees' Pension Fund, or

  1. after the date of exit but before attaining the age of 58, from the employment having rendered service entitling him/her to



28. Subs. by G.S.R. 134 dated the 28th February, 1996 (w.e.f. 16th March

monthly member's pension but 1[before the commencement of pension payment or]

(c) after commencement of payment of the monthly member's pension

Note:- The cases where a member has rendered less than 10 years eligible service on the date of exit but has retained the membership of the Pension Fund, and dies before attaining the ge of 58 years, shall be regulated under sub-paragraph (8) of

paragraph 12.

1996).

(2) (a) The monthly widow pension shall be :--

  1. in the cases covered by clause (a) of sub-paragraph (1), equal to the monthly members pension which would have been admissible as if the member had retired on the date of death or Rs 450/- or the amount indicated in Table 'C' whichever is more.

  1. in the cases covered by clause (b) of sub-paragraph (1), equal to the monthly members pension which would have been

admissible as if the member had retired on the date of exit or 29[Rs. 450/- per month] or the amount indicated in Table 'C' whichever is more.

(iii) in the cases covered by clause (c ) of sub-paragraph (1), equal to 50 per cent of the monthly members pension payable to the member on the date of his death subject to a minimum of

29[Rs. 450/- per month.] 29. Subs. by G.S.R. dated 12th January, 2000

30[(iv) in all the cases, where the amount of family pension sanctioned under the Ceased Family Pension Scheme, 1971 and is paid/payable under this scheme is less than Rs. 450/- per month, the amount of family pension in such cases shall be

enhanced to Rs. 450/- per month.]30. Ins. Ibid. (w.e.f. 29.1.2000)



33. Inserted by G.S.R. 66 dated 22nd



32. Subs. by G.S.R. 134, dated the 28th February, 1996

(b) the monthly widow pension shall be payable upto the date of death of the widow or remarriage whichever is earlier.

Note:- In cases where there are 2 or more widows, family pension shall be payable to the eldest surviving widow. On her death it shall be payable to the next surviving widow, if any. The term "eldest" would mean seniority with reference to the date of marriage.

(3) Monthly children pension : - -

  1. If there are any surviving children of the deceased member, falling within a definition of family, they shall be entitled to a monthly children pension in addition to the monthly widow/widower pension.

  1. Monthly children pension for each child shall be equal to 25 per cent of the amount admissible to the widow/widower of the deceased member as monthly widow pension payable under sub-paragraph (2) (a) (i) provided that minimum monthly children pension for each child of the deceased member shall not be less

than 31[Rs. 150/- per month.] 31. Subs. by G.S.R dated 12th January 2000

32[(c ) Monthly children pension shall be payable until the child

attains the age of 25 years.]

(w.e.f. 16th March, 1996).

(d ) The monthly children pension shall be admissible to maximum of two children at a time and will run from the oldest to the youngest child in that order.

33 [ "(e) If a member dies leaving behind a family having son or daughter who is permanently and totally disabled such son or daughter shall be entitled to payment of monthly children pension or orphan pension, as the case may be, irrespective of age and number of children in the family in addition to the

pension provided under clause (d)".]



35. Ins. by G.S.R. 134, dated the 28th February,

February, 1999 (w.e.f.  6.3.99)

(4) (a) If the deceased member is not survived by any widow but is survived by children falling within the definition of family or if the widow pension is not payable, the children shall be entitled to a monthly orphan pension equal to 75 per cent of the amount of the monthly widow pension as payable under sub-paragraph (2) (a) (i) provided that minimum monthly orphan pension for each orphan shall not be less than 34[Rs. 250/- per

month.] 34. Subs. by G.S.R 41 dated 12th January 2000 (w.e.f.29.1.2000)

(b) In the event of death or remarriage of the widow/widower after sanctioning of widow/widower pension the children shall be entitled in lieu of the monthly children pension, to a monthly orphan pension from the date following the date of death/remarriage of the widow/widower.

35](c ) The monthly orphan pension shall be admissible to a maximum of 2 orphans at a time and shall run in order from the

oldest to the youngest orphan.]

1996 (w.e.f 16th March 1996).

(5) (a) A member who is not married or who does not have any living spouse and/or an eligible child may nominate a person to receive benefits as laid down hereinafter provided that in the event of his/her acquiring a family subsequently, the nomination so made shall become void. In the event of death of the member such a nominee shall be entitled to receive a monthly pension equal to the monthly widow pension, as admissible under sub-clauses (I) and (ii) of clause (a) of sub-paragraph (2).

36[ (aa) If a member dies leaving behind no spouse and/or an eligible child falling within the definition of family and no nomination by such deceased member exists, the widow pension shall be paid under sub-clauses (I) and (ii) of clause (a) of sub-paragraph 2 either to dependent father or dependent mother as the case may be. On grant of Pension to such



38. Inserted by G.S.R. 134



37. Sub. by G.S.R dated

dependant father and in the event of death of the father pensioner, the admissible pension shall be extended to the

surviving mother life long]36. Inserted by G.S.R.66 dated 22nd February, 1999. (w.e.f 6.3.99)

(b) If the deceased member had not rendered pensionable service on the date of exit from the employment which would have made him entitled to a monthly members pension under paragraph 12, but had opted to retain the membership of this Scheme under sub-paragraph (8) of paragraph 12, the 37[nominee or the dependant father or the dependant mother as the case may be ] shall be entitled to return of capital as

provided in sub-paragraph (1) of paragraph 13.

22nd February, 1999 (w.e.f 6.3.99)

38[16A. Guarantee of pensionary benefits

None of the pensionary benefits under the Scheme shall be denied to any member or beneficiary for want of compliance of the requirement by the employer under sub-paragraph (1) of paragraph 3 provided, however, that the employer shall not be

absolved of his liabilities under the Scheme.]

dated the 28th February 96 (w.e.f. 16th March 1996)

39[17. Payments on exercise of option

  1. Beneficiaries of the deceased members of Employees' Family Pension Scheme, referred to in sub-para (1) of paragraph 7, shall receive higher of the benefits available under the Employees' Family Pension Scheme, 1971 and under this Scheme.

  1. Members referred to in sub-paragraph (2) of paragraph 7 shall have the option to join the Scheme by returning the amount of withdrawal benefit received, if any, together with interest at the rate of 8.5% per annum from the date of payment of such withdrawal benefit and date of exercise of the option, to receive monthly pension as per the provisions of this Scheme.



40. Ins. by GSR 376 dated



39. Subs. by G.S.R. 134,

(3) Members referred to in sub-paragraph (3) of paragraph 7 shall be deemed to have joined the ceased Employees' Family Pension Scheme, 1971, with effect from 1.3.1971 on remittance

of past period contribution with interest thereon.]

dated the 28th February, 1996 (w.e.f 16th March, 1996)

40[17A. Payment of Pension

The claims, complete in all respects submitted along with the requisite documents shall be settled and benefit amount paid to the beneficiaries within thirty days from the date of its receipt by the Commissioner. If there is any deficiency in the claim, the same shall be recorded in writing and communicated to the applicant within thirty days from the date of receipt of such application. In case the Commissioner fails without sufficient cause to settle a claim complete in all respects within thirty days, the Commissioner shall be liable for the delay beyond the said period and penal interest at the rate of 12 per cent per annum may be charged on the benefit amount and the same may be

deducted from the salary of the Commissioner.]

the 27th October, 1997 (w.e.f. 8th  November 1997)

18. Particulars to be supplied by the employees already employed at the time of commencement of the Employees' Pension Scheme

Every person who is entitled to become a member of the Employees' Pension Fund shall be asked forthwith by his employer to furnish and that person shall, on such demand, furnish to him for communication to the Commissioner particulars concerning himself and his family in the form prescribed by the Central Provident Fund Commissioner.


19. Preparation of Contribution Cards


The employer shall prepare an Employees' Pension Fund Contribution Card in respect of each employee who has become a member of the Employees' Pension Fund.

20. Duties of Employers.

(1) Every employer shall send to the Commissioner within three months of the commencement of this Scheme, a consolidated return of the employees entitled to become members of the Employees' Pension Fund showing the basic wage, retaining allowance, if any, and dearness allowance including the cash value of any food concession paid to each of such employees;

Provided that if there is no employee who is entitled to become a member of the Employees' Pension Fund, the employer shall send a "Nil" return.

(2) Every employer shall send to the Commissioner within fifteen days of the close of each month a return in respect of the employees leaving service of the employer during the preceding month.

  1. Every employer shall maintain such accounts in relation to the amounts contributed by him to the Employees' Pension Fund as the Central Board may, from time to time, direct and it shall be the duty of every employer to assist the Central Board in making such payments from the Employees' Pension Fund to his employees as are sanctioned by or under the authority of the Central Board.

  1. Notwithstanding anything contained in this paragraph, the Central Board may issue such directions to the employers


generally, s it may consider necessary or expedient, for the purpose of implementing the Scheme, and it shall be the duty of every employer to carry out such directions.

21. Employer to furnish particulars of ownership.

Every employer in relation to a factory or other establishment to which the Act applies or is applied hereafter shall furnish to the Commissioner particulars of all the branches and departments, owners, occupiers, directors, partners, managers or any other person or persons who have the ultimate control over the affairs of such factory or establishment and also send intimation of any change in such particulars, within fifteen days of such change, to the Commissioner by registered post.

22. Duties of contractors

Every contractor shall, within seven days of the close of every month, submit to the principal employer a statement showing the particulars in respect of employees employed by or through him in respect of whom contributions to the Employees' Pension Fund are payable and shall also furnish to him such information as the principal employer is required to furnish under the provisions of this Scheme to the Commissioner.

23. Allotment of Account 41[Numbers] 41. Subs. by G.S.R 134, dated the

28th February, 1996 (w.e.f 16th March, 1996)


(1) For purposes of this Scheme, where the member has already been allotted or is allotted hereafter an account number under


the Employees' Provident Fund Scheme, 1952, he shall retain the same account number.

  1. In the case of employees of the establishments exempted from the Employees' Provident Fund Scheme, 1952, under Section 17 of the Act, who are members of the Employees' Family Pension Fund the account number already allotted shall be retained by them.

  1. In the case of employees of the establishments exempted from the Employees' Provident Fund Scheme, 1952, under Section 17 of the Act, who are not members of the Employees' Family Pension Fund but opt to become members of the Employees' Pension Fund and in case of new employees of such establishments, fresh account numbers shall be allotted by the Commissioner.

24. Declaration by persons taking up employment after the Fund has been established

The employer shall before taking any person into employment, ask him, her to state in writing whether or not he is a member of the Employees' Pension Fund and, if he/she is, also ask him/her to furnish a copy of the Scheme Certificate issued by the Commissioner to him/her in respect of the past employment in terms of paragraph 12 as the case may be. If the person concerned was not in employment previously or had availed of return of contribution in respect of his/her previous employment, he/she shall, on demand by the employer, furnish to him, for communication to the Commissioner particulars concerning him/herself and his/her family in the Form prescribed by the Central Provident Fund Commissioner.

42[Provided that if such person is a person with disability, the aforesaid Form shall further contain such particulars as are


necessary for such person.] 42. Inserted by GSR No. 252(E) dated 31-3-2008(w.e.f. 1-4-2008)

25. Employees' Pension Fund Account

The account called the "Employees' Pension Fund Account" shall be opened by the Commissioner in such manner as may be specified by the Central Board with the approval of Central Government.

26. Investment of the Employees' Pension Fund

  1. All moneys accruing to Employees' Pension Fund Account except the contributions of the Central Government shall be invested in accordance with the provisions of paragraph 52 of the Employees' Provident Funds Scheme, 1952.

  1. Net assets of the Family Pension Fund as on the 16.11.95 shall merge in the Pension Fund and remain invested in the Public Account of the Government of India. The future Central Government's contribution accruing to the Pension fund from 17th November, 1995 onwards shall also be invested in the Public Account of the Government of India.

27. Disposal of the Fund

(1) Subject to the provisions of the Act and this Scheme, the Fund shall not, except with the prior sanction of the Central Government be expended for any purpose other than the payments envisaged in this Scheme, for continued payment of Family Pension, life assurance benefit and retirement-cum-withdrawal benefits sanctioned under the Employees' Family Pension Scheme, 1971, prior to the date of introduction of this Scheme or which may be sanctioned under that Scheme after


the 16th November, 1995 in respect of cases arising before that date.

43[(2) All administrative expenses shall be met from the 'Central Administration Account' as specified in paragraph 49 of the Employees' Provident Funds Scheme, 1952. However, the cost of remittance of Pension shall be charged on the Pension Fund]

  1. substituted by GSR 3 dated 29.12.2006

  1. 44  [Omitted] 44. substituted by GSR 3 dated 29.12.2006

  1. Forms of Accounts

The accounts of the Employees' Pension Fund, as also the Employees' Pension Administration Account shall be maintained by the Commissioner in such form and in such manner as may be specified by the Central Board with the approval of the Central Government.

30. Audit

The accounts of the Employees' Pension Fund including the administrative expenses incurred in running this Scheme shall be audited in accordance with the instructions issued by the Central Government in consultation with Comptroller and Auditor-General of India.

31. Rounding up of the Benefits

All items of benefits shall be calculated to the nearest rupee, 50 paise or more to be counted as the next higher rupee and fraction of a rupee less than 50 paise shall be ignored.



46. Modified by GSR 746(E), dated



45. Subs. by G.S.R. 134, dated the 28th February, 1996 (w.e.f 16th March 1996)

32. Valuation of the Employees' Pension Fund and review of the rates of contributions and quantum of the pension and other benefits

45[(1) The Central Government shall have an annual valuation of the Employees' Pension Fund made by a Valuer appointed by

it.]

(2) At any time, when the Employees' Pension Fund so permits the Central Government may alter the rate of contributions payable under this Scheme or the scale of any benefit admissible under this Scheme or the period for which such benefit may be given.

33. Disbursement of Pension and other benefits.

46[The Commissioner shall with the approval of the Central Board enter into arrangement for the disbursement of pension and other benefits under this Scheme with disbursing agencies like Post Offices or Nationalised Banks or Treasuries or Scheduled Commercial banks including Regional Rural banks or Co-operative Banks. The commission payable to the disbursing agencies and other charges incidental thereto shall be met as

provided in paragraph 27 of this Scheme.]

the 27.9.2001 (w.e.f. 28.9.2001)

34. Registers, Records, etc.

The Commissioner shall, with the approval of the Central Board, prescribe the registers and records to be maintained in respect of the employees, the form or design of any identity card, token


or disc for the purpose of identifying any employee or his nominee or a member of a family entitled to receive the pension and such other forms/formalities as have to be completed in connection with the grant of pension and other benefits or for the continuance thereof subject to such periodical verification as may be considered necessary.

35. Power to issue directions.

The Central Government may issue, such directions as may be deemed just and proper by it for resolving any difficulty in the disbursement of pension and other benefits or for resolving any difficulty in implementation of this Scheme.

36. Regional Committee.

The Regional Committee set up under paragraph 4 of the Employees' Provident Fund Scheme, 1952, shall advise the Central Board, on such matters, in relation to the administration of this Scheme as the Central Board may refer to it from time to time and in particular, on - -

  1. progress of recovery of contributions under this Scheme both from factories and establishment exempted under Section 17 of the Act and other factories and establishments covered under the Act.

  1. expeditious disposal of prosecutions.

  1. Speedy settlement of claims relating to pension and other benefits under this Scheme.

37. Annual Report.

The Central Board shall cause to be included in the Annual Report on the working of the Scheme prepared under paragraph


74 of the Employees' Provident Fund Scheme, 1952, a report on the working of this Scheme during the previous financial year.

38. Application of the provisions of the Employees' Provident Fund Scheme, 1952.

In regard to matters for which either there is no provision or there is inadequate provisions in this Scheme the corresponding provisions in the Employees' Provident Fund Scheme, 1952, shall apply.

47[39. Exemption from the operation of the Pension Scheme.

The appropriate Government may grant exemption to any establishment or class of establishments from the operation of this Scheme, if the employees of the establishments are either members of any other pension scheme or proposed to be members of a pension scheme wherein the pensionary benefits are at par or more favourable than the benefits provided under this Scheme. Where exemption is granted to any establishment or class of establishments under this paragraph, withdrawal benefits available to the credit of the employees of such establishment(s) under the ceased Family Pension Scheme, 1971, shall be paid, subject to the consent of the employees, to the pension fund of the establishment(s) so exempted. An application for exemption under this paragraph shall be presented to the Regional Provident Fund Commissioner having jurisdiction by the establishment or class of establishments, together with a copy of the pension scheme of the establishment

(s) and other relevant documents, as may be called for by him. On receipt of such an application, the Regional Provident Fund Commissioner shall scrutinise it, obtain the recommendations of the Central Provident Fund Commissioner and submit the same to the appropriate Government for decision, pending disposal of application for exemption under this paragraph employers' share of the contribution shall not be remitted to the pension fund as



47. Subs. by G.S.R. 134, dated the

envisaged in sub-paragraph (1) of paragraph 3. An application for exemption presented under this paragraph shall be disposed of within a period of six months from the date of its receipt or such further time as may be extended for reasons to be recorded in writing. If the application for exemption is not disposed of within the period so specified, the exemption applied for shall be deemed to have been granted.

Explanation. - - For the purpose of this paragraph, the period of six months will count from the date on which the application for exemption is given in compete form to the satisfaction of the

Regional Provident Fund Commissioner.]

28th February, 1996 (w.e.f 16th March 1996)

48[39-A. Submission of Return.—The employer of the exempted establishment or class of establishments and/or the Board of Trustees of the exempted establishment or class of establishments shall submit a monthly return to the Commissioner in Form –1

FORM 1

(See paragraph 39 A)

Monthly Return to be submitted by the exempted establishments/class of establishments/Board of Trustees.

1.

DETAILS OF ESTABLISHMENT


:

(a)

Name of the establishment with the

:

full address

(b)

Code No. allotted by the

:

Employees Provident Fund

Organization

2.

DETAILS OF EMPLOYEES (INCLUDE


:

ALL BRANCHES/UNITS ETC.)


(a)

No. of employees as at the end of

:


previous month


(b)

No. of employees who joined


:

during the month


(c)

No. of employees who left service


:

during the month


(d)

No. of employees as at the end of


:

the month


[(a) +(b) –(c)]


(e)

Out of (d) above no. of excluded


:

employees


(f)

No. of Pension Fund members as


:

at the end of the month [Please


furnish the above mentioned details


unitwise situated as different


places. Attach separate sheet, if


necessary]


3

CONSTITUTION OF BOARD OF



:

TRUSTEES



(a)

Date on which the present Board


:

DD MM YYYY

was constituted


(b)

Its term


:

YEARS

(c)

Total number of Trustees


:

(i)

Employees' Representatives

:

(ii)

Employer's  Representatives

:

4

WAGES, CONTRIBUTIONS ETC.



(a)

Amount of gross wages liable to


:

Rs.

Pension Contribution


(b)

Rate of contribution to Pension


:

%

Fund

(c)

Amount of Pension contribution to


:

Rs.

be transferred for the current month


(d)

Amount of arrears due, if any, for


:

Rs.

transfer to the Board of Trustees at



the end of the previous month


(e)

Total of (c) & (d)


:

Rs.

(f)

Amount actually transferred to the


:

Rs.

Board of Trustees


(g)

Balance due, if any, for transfer to


:

Rs.

the Board of Trustees [(e)-(f)]


(h)

Whether the interest payable under


:

YES

NO

Section 7Q of the Act for the


belated transfer of Funds, if any,


has been paid?


(i)

Amount of interest still payable at


:

Rs.

the end of the month


5

DETAILS OF PENSIONERS



:

(a)

No. of Pensioners at the end of the


:

month


(i)

Member (Self) Pensioners

:

--Superannuation Pension

:

--Early Pension

:

--Disablement Pension

:

(ii)

Spouse Pensioners

:

--Death in service

:

--Death away from service

:

--Death as pensioner

:

(iii)

Children Pensioner

:

--Normal Children

:

--Disabled Children

:

(Life-long pension)

(iv)

Orphan Pensioner

:

(v)

Nominee Pensioner

:

(vi)

Dependent Parents Pensioner

:

(b)

Total amount of Pension paid

:

Rs.

during the month

6

DETAILS OF EXIT CASES




(a)

No. of Persons who have taken


:

Withdrawal benefit during the


month.


(b)

Amount paid during the month No.


:

Rs.

of exit cases where Scheme


certificate has been issued.


7

DETAILS OF INVESTMENT



(a)

Amount lying invested in the


:

Pension Fund in the beginning of


the month


(b)

Amount received during the month


:

(i)

By away of Contribution from

:

Rs.

the employer

Current month

Rs.


Arrears, if any

Rs.


(ii)

Encashment of matured

:

Rs.

securities/deposits

(iii)

Interest/dividend on

:

Rs.

investments

(iv)

Other transfer-in-cases

:

Rs.

(v)

Damages, if any

:

Rs.

(vi)

Interest on belated payments,

:

Rs.

if any

(vii)

Miscellaneous, if any

:

Rs.

(Please  specify)

(C)

Payments made during the month


:

Rs.

(d)

Amount invested during the month


:

Rs.

Securities

--Central Government

:

Rs.

--State Governments

:

Rs.

--Others, if any

:

Rs.

Deposits


--Public Financial

Institutions Banks

:

Rs.

(e)

Whether pattern of investment


:

YES

NO

followed?


(f)

If so, classify the percentage


(i)

Securities

--Central Government

:

%

--State Government

:

%

--Others

:

%

(ii)

Deposits

--Public Financial

Institutions/Banks

:

Rs.

(iii)

Annuity purchased from Life

:

Rs.

Insurance Corporation

(g)

Amount lying un-invested in

:

Rs.

Cash/Bank

8 MODE OF DISBURSEMENT (Tick one)



--Through Bank


:

--Through Post Offices


:

--Through LIC by purchase of


:

Annuity


--Others, if any, (please specify)


*RULES OF ESTABLISHMENT'S PENSION FUND

Details of amendment, if any carried out during the month to make the Rules at par with the Statutory Pension Scheme (Employees' Pension Scheme, 1995)

Date

Signature with official seal of


the Employer/Trustees of the Board]

48.Ins. by G.S.R,. 747 (E) dated the 27th  September 2001 (w.e.f. 28th  September, 2001)

49[39-B. Transfer Value. –In case exemption is granted to any establishment or in the case of a member being transferred from pension fund of one exempted establishment to another pension fund of exempted establishment or statutory pension fund or vice-versa, a transfer value payment will be made which willconsist of the following:-

  1. Withdrawal benefit relating to past service period upto 15-11995 as per Table-A multiplied by Table-B factor for the period between 16-11-1995 to the date of exemption/transfer, and

  1. Transfer value for pensionable service as per Table-E for the service rendered from 16-11-1995 or from the date of joining the establishment to the date of exemption/transfer as the case may be.

  1. In the event of cancellation of exemption granted under Para 39, transfer of fund will be made as per the conditions mentioned in the exemption notification.]

  1. Ins. by  G.S.R. 430(E) dated the 19th  May, 2003 (w.e.f. 23rd  May, 2003)

40. Information to the Central Government.

The Central Board shall furnish such information to the Central Government from time to time in respect of the income and expenditure from the Employees' Pension fund account in such manner as may be directed by the Central Government.

41. Interpretation.

Where any doubt arises with regard to the interpretation of the provisions of this Scheme, it shall be referred to the Central Government who shall decided the same.


42. Punishment for failure to submit return, etc.

If any person,

  1. deducts or attempts to deduct from the wages or other remuneration of the member, the whole or any part of the employer's contribution, or

  1. fails or refuses to submit any return, statement or other documents required by this Scheme or submits a false returns, statement or other documents, or makes a false declaration, or

  1. obstructs any Inspector or other official appointed under the Act or this Scheme in the discharge of his duties or fails to produce any record for inspection by such inspector or other officials, or

  1. is guilty of contravention of or non-compliance with any other requirement of this Scheme, he shall be punishable with imprisonment which may extend to one year or with fine which may extend to five thousand rupees or with both.

43. Payment of pension in the case of a person charged with the offence of murder

(1) If a person, who in the event of the death of a member of the Pension Fund is eligible to receive pension of the deceased under paragraph 12 or paragraph 16, is charged with the offence of murdering the member or for abetting the commission of such an offence, his claims to receive pension shall remain suspended till the conclusion of the criminal proceedings instituted against him for such offence.


(2) If on the conclusion of the criminal proceedings referred to in sub-paragraph (1), the person concerned is:

  1. convicted for the murder or abetting in the murder of the member, he shall be debarred from receiving pension which shall be payable to other eligible members if any, of the family of the member; or

  1. acquitted of the charge of murder or abetting the murder of the member, pension benefit shall be payable to him.

50[43A. Special provisions in respect of International Workers:- The Scheme shall, in its application to InternationalWorkers as defined in paragraph 83 of the Employees' Provident Fund Scheme, 1952 be subject to the following modifications, namely:-

(1) For clause (xv) of paragraph 2, the following clause shall be substituted, namely:-

(xv) "pensionable service" means the service rendered by the member covered by an international social security agreement for which contributions have been received or are receivable, the period of service rendered and considered as eligible under such agreement.

(2) For sub-para (1) of paragraph 10, the following sub-paragraph shall be substituted, namely:-

10. Determination of pensionable service:-

(1) The pensionable service of the member covered by an international social security agreement shall be determined with reference to the contributions received or are receivable on his behalf in the Employees' Pension Fund, the period of service rendered under a relevant social security programme and


considered as eligible for benefits shall be added only for the purpose mentioned under such agreement.

(3) For paragraph 11, the following paragraph shall be substituted, namely:-

11. Determination of pensionable salary:-

The pensionable salary shall be the average monthly pay drawn in any manner including on piece-rate basis during the contributory period of service of the membership of the Employees' Pension Fund.

(4) For paragraph 14, the following paragraph shall be substituted, namely:-

14. Benefits on leaving service before being eligible for monthly members' pension:-

  1. If a member not being an Indian employee, hailing from a country with which India has entered into a social security agreement, has not rendered the eligible service prescribed in paragraph 9 of the date of exit, or on attaining the 58 years of age, whichever is earlier, he/she shall be entitled to a benefit as may be prescribed in the said Agreement on reciprocal basis.

  1. If a member not being an Indian employee hailing from a country with which India has not entered into a social security agreement, has not rendered the eligible service specified in paragraph 9 on the date of exit, or on attaining the 58 years of age, whichever is earlier, his/her entitlement to the withdrawal benefit under paragraph 14 shall be, on the principle of reciprocity, as may be available to Indian employees in that

country.] 50. Inserted vide GSR 705(E) dt.1.10.2008 (w.e.f. 1.10.2008)


44. Repeal and savings.

  1. On commencement of this Scheme, the Employees' Family Pension Scheme, 1971, in force immediately before such commencement shall cease to operate with effect from the 16th November, 1995.

  1. Notwithstanding anything contained in sub-paragraph (1) every nomination made under the Employees' Family Pension Scheme, 1971, and every form regarding the details of Family of an employee for the purposes of the Employees' Family Pension Scheme, 1971, shall be deemed to have been made under the provisions of this Scheme.

  1. All orders/authorisations/Pension Payment Orders issued under the Family Pension Scheme, 1971, shall be deemed to have been made under this Scheme.

TABLE A

(See Paragraph 14)

(WITHDRAWAL BENEFIT)

No. of full years' contribution

Proportion of pay payable at

paid

cessation of membership

(1)

(2)

1

0.20

2

0.41

3

0.62

4

0.84

5

1.06

6

1.29

7

1.51


8

1.75

9

1.98

10

2.23

11

2.47

12

2.72

13

2.98

14

3.24

15

3.51

16

3.78

17

4.05

18

4.34

19

4.62

20

4.92

21

5.21

22

5.52

23

5.83

24

6.14

25

6.46

26

6.79

27

7.12

28

7.46

29

7.81

30

8.16

31

8.52

32

8.89

33

9.26

34

9.64


35

10.03

36

10.43

37

10.83

38

11.24

39

11.66

40

12.08

51[TABLE B

(See Paragraphs 12 and 14)

FACTOR FOR COMPUTATION OF PAST SERVICE

BENEFIT UNDER THE CEASED FAMILY PENSION

SCHEME FOR EXISTING MEMBERS ON EXIT FROM

THE EMPLOYMENT

YEARS

FACTOR

(1)

(2)

Less than 1

1.039

Less than 2

1.122

Less than 3

1.212

Less than 4

1.309

Less than 5

1.413

Less than 6

1.526

Less than 7

1.649

Less than 8

1.781

Less than 9

1.923

Less than 10

2.077

Less than 11

2.243

Less than 12

2.423

Less than 13

2.616

Less than 14

2.826

Less than 15

3.052

Less than 16

3.296

Less than 17

3.560

Less than 18

3.845

Less than 19

4.152


Less than 20

4.485

Less than 21

4.843

Less than 22

5.231

Less than 23

5.649

Less than 24

6.101

Less than 25

6.589

Less than 26

7.117

Less than 27

7.686

Less than 28

8.301

Less than 29

8.965

Less than 30

9.682

Less than 31

10.457

Less than 32

11.294

Less than 33

12.197

Less than 34

13.173]

51. Subs. by G.S.R. 438(E), dated the 10th  June, 2008


*

TABLE C

(See Paragraph 16)

EQUIVALENT WIDOW PENSION

Salary at day of Equivalent

Equivalent widow pension

widow pension

death not more

than

(1)

(2)

(Rupees)

(Rupees)

Upto 300

250

350

327

400

343

450

359

500

375

550

391

600

408

650

425

700

442

750

459

800

476

850

493

900

510

950

527

1000

544

1050

561

1100

578

1150

595

1200

612

1250

629

1300

646

1350

664

1400

682

1450

700

1500

718

1550

736

1600

754

1650

772


1700

797

1750

808

1800

826

1850

844

1900

862

1950

880

2000

898

2050

916

2100

935

2150

954

2200

973

2250

992

2300

1011

2350

1030

2400

1049

2450

1068

2500

1087

2550

1106

2600

1125

2650

1144

2700

1163

2750

1182

2800

1201

2850

1221

2900

1241

2950

1261

3000

1281

3050

1301

3100

1321

3150

1341

3200

1361

3250

1381

3300

1401

3350

1421

3400

1441

3450

1461

3500

1481

52 [3550

1501

3600

1521


3650

1541

3700

1561

3750

1581

3800

1601

3850

1621

3900

1641

3950

1661

4000

1681

4050

1701

4100

1721

4150

1741

4200

1751

4250

1761

4300

1771

4350

1781

4400

1791

4450

1801

4500

1811

4550

1821

4600

1831

4650

1841

4700

1851

4750

1861

4800

1871

4850

1881

4900

1891

4950

1896

5000

1901

5050

1906

5100

1911

5150

1916

5200

1921

5250

1926

5300

1931

5350

1936

5400

1941

5450

1946

5500

1951

5550

1956


5600

1961

5650

1966

5700

1971

5750

1976

5800

1981

5850

1986

5900

1991

5950

1996

6000

2001

6050

2006

6100

2011

6150

2016

6200

2021

6250

2026

6300

2031

6350

2036

6400

2041

6450

2046

6500

2051.]

52 Ins. by G.S.R. 747 (E), dated the 27th  September, 2001 (w.e.f. 28th  September, 2001).

53[***] 53. "Note" omitted by G.S.R. 747 (E), dated the 27th September, 2001 (w.e.f. 28th September, 2001).


54[TABLE D

(See Paragraph 14)

Return of contribution on exit from the employment

Year of Service

Proportion of wages at exit

1

1.02

2

1.99

3

2.98

4

3.99

5

5.02

6

6.07

7

7.13

8

8.22

9

9.33

Note :    The above table is based on a flat addition in benefit.]


54. Subs. by G.S.R. 438(E), dated the 10th  June, 2008



55[TABLE –E

(See Paragraph 39-B)

(TRANSFER OF CONTRIBUTION FROM EMPLOYEES' PENSION SCHEME, 1995 TO EXEMPTED OR OTHER PENSION FUND OR VICE –VERSA)

Number of full year's

Proportion of pay

contribution period

payable on last

contribution month

1

0.978

2

1.979

3

3.003

4

4.051

5

5.124

6

6.221

7

7.345

8

8.494

9

9.671]

*55. Ins. by G.S.R. 430 (E) dated the 19th  May, 2003 (w.e.f. 23rd  May, 2003)

Provided that if there is no employee leaving service of the employer during the preceding month the employer shall send a "NIL" return.

  1. Every employer shall maintain such accounts in relation to the amounts contributed by him to the Employees' Pension Fund as the Central Board may, from time to time, direct and it shall be the duty of every employer to assist the Central Board in making such payments from the Employees' Pension Fund to his employees as are sanctioned by or under the authority of the Central Board.

  1. Notwithstanding anything contained in this paragraph, the Central Board may issue such directions to the employers


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