Features
1. Members:
It is compulsory for members of family pension scheme, 1971 and for those who become subscribers of PF Scheme from 16th November 1995.
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2. Contribution:
Up to 15th November 1995, employer’s contribution to PF shall remain in PF. Thereafter 8.33% of the wages out of employer’s share shall move to Pension Fund and remaining 1.67% to Provident Fund.
ADVERTISEMENTS:
The contribution of Central Government is 1.16% of the pay of the member.
3. Administration:
The Central Board of Trustee shall administer the Pension Scheme.
4. Qualifying Condition:
(i) Service duration – 10 years,
(ii) Age – 58 years.
ADVERTISEMENTS:
(iii) Service required for voluntary retirement – 20 years.
5. Benefits:
(i) Minimum Pension:
For age between 48 + 53 years – Rs. 600 p.m. (for 24 years of service). For age 53 and above – Rs. 500 p.m. which shall be reduced to a maximum of Rs. 325 and Rs. 265 p.m. if past service is less than 24 years. For service beyond 16.11.95 pension shall be calculated according to formula.
(ii) On super annuation:
If the service tenure is 33 years – 50% of average salary. If the service tenure is more than 33 years between 50% to 60% of average salary.
(iii) Reduced Pension:
If age is less than 50 years – No pension.
ADVERTISEMENTS:
Thereafter, for every year falling short of 58 years, 3% is the reduction factor.
(iv) Communication of Pension:
From 16.11.1998, up to 1/3rd of the pension may be commuted.