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Union of India - Section

Section 12 in The Employees' Pension Scheme, 1995

12. [ Monthly member's pension. [Substituted by G.S.R. 431(E), dated 15.6.2007 (w.r.e.f. 16.11.1995) ]

(1)A member shall be entitled to
(a)superannuation pension, if he has rendered eligible service of 10 years or more and retires on attaining the age of 58 years;
(b)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:
    Pensionable salary x Pensionable service
Monthly member's pension =
    70
(3)In the case of an existing member in respect of whom the date of commencement of pension is after the 16th November, 2005,
(i)Superannuation or early pension shall be equal to the aggregate of:
(a)pension as determined under sub-paragraph 42) for the period of pensionable service rendered from the 16th November, 1995 or Rs. 635 per month, whichever is more;
(b)past service pension shall be as given below:
The past service pension payable on completion of 58 years of age on 16th November, 1995.
Sl.No. Years of past service Salary upto Rs.2,500 per month Salary more than Rs 2,500 per month
  (1) (2) (3)
(i) Upto 11 years 80 85
(ii) More than 11 years but upto 15 years 95 105
(iii) More than 15 years but less than 20 years 120 135
(iv) Beyond 20 years 150 170
The amount udder 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 the 16th November, 1995 and the date of exit to arrive at past service pension payable.
(ii)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.
(4)In the case of an existing member and in respect of whom the date of commencement of pension is between the 16th November, 2000 and the 16th November, 2005,
(i)Superannuation or early pension shall be equal to the aggregate of-
(a)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;
(b)past service pension as provided in sub-paragraph (3).
(ii)The aggregate of (a) and (b) calculated as above shall bye 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.
(5)In the case of an existing member and in respect of whom the date of commencement of pension is before the 16th November, 2000,
(i)The superannuation or early pension shall be equal to the aggregate of:
(a)pension as determined under sub-paragraph (2) for the period of service rendered from the 16th November, 1995 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, if it is less than 24 years the pension shall be proportionately lesser but subject to a minimum of Rs. 265 per month.
(6)Except as otherwise expressly provided hereinafter, the monthly member's pension under sub-paragraphs (2) to (5) mentioned hereinabove, 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 [four per cent.][, for every year the age falls short of 58 years.] [Substituted by G.S.R. 431(E), dated 15.6.2007 (w.r.e.f. 16.11.1995) ]
(7A)[ The monthly member's pension including any relief payable to any existing or future member under this paragraph shall not be less than one thousand rupees [* * *] [Inserted by Notification No. G.S.R. 593 (E) dated 19.8.2014 (w.e.f. 1.9.2014)].][Provided that, on and from the 1st day of September, 2014, the minimum pension of one thousand rupees payable under this sub-paragraph shall be subject to- [Inserted by Notification No. G.S.R. 603(E), dated 16.6.2016 (w.e.f. 16.11.1995).]
(i)deductions on account of benefits of commutation and return of capital taken by members under the extant provisions of this scheme prior to 26th September, 2008; and
(ii)deductions on account of early pension under sub-paragraph (7).]
(7B)[ (a) A member who has attained the age of fifty-eight years and is otherwise eligible for pension under clause (a) of sub-paragraph (1) of this paragraph, if he so desires, may be allowed to defer the age of drawing pension later than fifty-eight years but not beyond sixty years of age.
(b)In such cases as is referred to in clause (a),-
(i)the amount of pension shall be increased at the rate of four per cent. for every completed year after the age of fifty-eight years which shall be restricted to the wage ceiling given under the proviso to sub-paragraph (2) of paragraph 3;
(ii)the member, at his or her option, may also be allowed to continue contributions under paragraph 3 to the Employees' Pension Fund for the period for which the drawal of pension has been deferred, if the member is continuing in employment after the age of fifty-eight years, and the pensionable service and pensionable salary for the purpose of determination of pension under sub-paragraph (2) will be reckoned taking into account the period for which contributions were made after the age of fifty-eight years but not beyond the age of sixty years;
(iii)in the event of death of the member, who has opted for deferring the age of drawing pension under this sub-paragraph, after attaining the age of fifty-eight years and before the commencement of the pension so deferred, the family of the member will be entitled to pension under clause (c) of sub-paragraph (1) of paragraph 16 from the date following the date of death of the member as if the member monthly pension had commenced on the date of death of the member.]
(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 alongwith the fresh spell of pensionable service. The member postponing the commencement of payment of pension under this paragraph shall also be 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 and has rendered less than ten years eligible service on the date of exit, but dies before attaining the age of fifty-eight years and before a continuous period of thirty-six months has elapsed during which contributions have not been received in respect of the member in the Pension Fund, the amount of contributions received in his case shall be converted into a monthly widow pension or children pension and 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):Provided further that 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.Provided also that if the member does not take up an employment coverable under this Scheme and has rendered less than ten years eligible service on the date of exit, but dies before attaining the age of fifty-eight years after a continuous period of thirty-six months has elapsed during which contributions have not been received in respect of the member in the Pension Fund, the family shall be entitled to benefits under paragraph 14.] [Substituted by Notification No. G.S.R. 533 (E), dated 19.5.2016 (w.e.f. 16.11.1995).]