How and when the establishments are covered?
Answer: 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 the Central Government in the Official Gazette, and employing 20 or more persons.
The Act does not apply to Co-operative Societies / Establishments, employing less than 50 persons and working without the aid of power. An establishment which is not otherwise coverable under the Act can be covered voluntarily with the mutual consent of the employer and the majority of its employees under section 1(4) of the Act.
What are the benefits under the provisions of EPS’95, to the members and their families?
Answer: Benefits under EPS’95 are listed as below:
- Member Pension upon retirement /superannuation.
- Member Pension upon disablement while in service.
- Withdrawal Benefit upon leaving service after putting in less than 10 years but more than six months of service.
- Spouse Pension upon death of member.
- Spouse Pension upon death of member as pensioner.
- Children Pension along with spouse pension (up to age 25) for two children at a time.
- Orphan Pension upon death or remarriage of spouse (up to age 25).
- Disabled Child Pension to children/orphan (life-long).
- Nominee Pension to the Nominee when no family exists.
- Dependent Parent's Pension when no family and nominee exists.
What is the process involved in the pension revision?
Answer: The Employees’ Pension Scheme 1995 is both a “defined contribution” scheme as well as a “defined benefit” scheme. As both contributions and benefits have been defined, the assets and liabilities are to be managed appropriately. The factors like interest rate, mortality rate, rate of wage increase, life expectancy are dynamic in nature and have impact on the Scheme. The Scheme design calls for continuous monitoring and careful calibration of both benefits and contributions so that the Scheme is sustainable and meets the aspiration of the members.
To ensure the above, the scheme provides for annual valuation of the Scheme to find out whether the Scheme is actuarially adequate, actuarial surplus, which can be distributed to cohorts, or in the event the Scheme discloses deficit in the intervention to address such deficit. Further, in order to have further assurances on the sustainability, whether the scheme is actuarially fair etc.
What is the formula for determining pension under the EPS, 95 ?
Answer: Formula for calculating member pension under EPS, 95 is as follows:-
Pensionable Service X Pensionable Salary
The amount of member pension is directly proportional to Pensionable Service and Pensionable Salary.
What is the rate of interest declared by the Central Board of Trustees, EPF for the financial year 2013-14?
Answer: The Central Board of Trustees, EPF in its 202nd Meeting held on 13.01.2014 recommended 8.75% rate of interest for the financial year 2013-14 to its subscribers. The Central Government vide MOL&E letter no. R-11018/1/2014 dated 06.03.2014 has approved the rate of interest on EPF @ 8.75% for the financial year 2013-14.
What are the reasons of return of claims?
Answer: The reasons of return of claims are:
- Incomplete claims (no bank account no, incomplete employment details)
- Incorrect claims (wrong account no, incorrect personal details, etc.)
- Unattested claims
- Unsigned claims
- Default by employer in terms of remittance/returns
What is the grievance handling mechanism in the EPFO?
Answer: There is two-tier organizational structure of customer Service Division for handling and redressal of public grievances. At the Head Office level, this division is headed by Additional Central Provident Fund Commissioner and assisted by Regional Provident Fund Commissioner, Assistant Provident Fund Commissioner and Public Relation Officer. The Regional Provident Fund Commissioner of the regions and Officer-inCharge of Sub-Regional Offices head the Customer Service Division in their respective offices and they are available for redressal of the grievance of the members on all working days. Each field office has a full-fledged facilitation centre and is manned by a Public Relation Officer. Apart from this all Zonal Additional central Provident Fund Commissioners in the country monitor the grievance handling system and attend grievances.
Who is an international workers (IW)?
An International Worker is
- (a) an Indian employee having worked or going to work in a foreign country with which India has entered into social security agreement and being eligible to avail benefits under a social security programme of that country, by virtue of the eligibility gained or going to gain, under the said agreement;
- (b) an employee other than an Indian employee, holding other than an Indian passport, working for an establishment in India to which the EPF & MP Act applies.