family_pension_scheme

1. EMPLOYEES’ FAMILY PENSION
SCHEME-1995
Effective from :-
16th November, 1995
Presented by Abhay

2. Purpose of the Family Pension
Scheme
• To provide pension to Employee
• On death of employee provide Pension to his
family including children
Thus Scheme makes provision for :
* Old age after retirement
* Family after untimely death of employee

3. PENSION FUND
Employer’s contribution - 8.33 % of basic
Central Govt.’s contribution – 1.16 % of basic
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There is no Employee’s contribution
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(Maximum contribution is made on basic Rs.6500/-)

4. Eligibility for monthly Pension
• Minimum service – 10 Years
(Except in case of permanent and total
disablement)
• Minimum contribution – 1 month

5. Monthly Pension for member
Type of Pension Condition
1 Superannuation Pension 20 Yrs Service + Age 58 Yrs
2 Retirement Pension 21 Yrs Service + Age below 58 Yrs
3 Short Service Pension 10 Yrs but less than 20 yrs Service
4 Permanent & Total
Disablement Pension
One month's contribution to Pension Fund,
(irrespective of Pensionable service)
Withdrawal benefit Less than 10 years service

6. Pension amount
Pensionable salary x Pensionable service
Monthly Pension = ---------------------------------------------
70
OPTIONS :-
• Option for commutation
• Option for Return on Capital
*Minimum pension – Rs 928/- pm
*Permanent & Total Disablement- Min. Pension Rs.250/-pm

7. Option for Commutation
In lieu of monthly pension Members can opt to
commute maximum upto 1/3rd of his pension so
as to receive 100 times the monthy Pension so
commuted as commuted value of pension.
Balance pension will be paid on monthly basis.
Example :
Normal Pension is say Rs. 600/-. The pensioner
opts to commute 1/3rd of this pension. The
commuted value will be equal to 1/3 x 600 x 100=
Rs.20,000/- .This will be paid when option for
commutation is exercised.
The balance of pension will be paid on monthly
basis @ Rs. 400/- PM (Rs.600-200=400)

8. PENSION ON DEATH OF
MEMBER
1. Monthly Widow Pension
+
Monthly Children Pension
2. Monthly Orphan Pension
3. Monthly Nominee Pension

9. Widow pension
1 If employee died in
service
Equal to monthly pension of Member as if he
retired on dt. of death OR Rs.450/- p.m. OR
Amount in Table C whichever is more
2 If employee died after
Service and before
attaining age of 58 Years
Equal to monthly pension of Member as if he
retired on dt. of exit OR Rs.450/- p.m. OR
amount in Table C whichever is more
3 If employee died after
commencement of
monthly Pension
50 % of Member's Pension
(Minimum Rs. 450/p pm)

10. CHILDREN PENSION
Applicable Surviving children of the deceased
member
Pension 25 % of Widow Pension
( Minimum Rs. 150/- pm)
* Maximum - 2 children
* Till age of 25 years
* Permanent & Total disabled children
will get pension irrespective of age and
no. of children.
Eligibility

11. ORPHAN PENSION
Applicable If widow pension is not payable
(i.e.no widow or widow remarried and
only children are there)
Pension 75 % of Widow Pension
( Minimum Rs. 250/- pm)
* Maximum - 2 Orphan Children
* Permanent & Total disabled children
will get pension irrespective of age and
no. of children(Para 16(3)(e).
Eligibility

12. NOMINEE PENSION
Applicable If no living spouse or children
Pension Equal to Widow Pension

13. Option for Return on Capital
Sr.No. ALTERNATIVES REVISED PENSION RETURN ON CAPITAL
1 a) Revised Pension during lifetime
. of Member +
b) Return on Capital on death of
member
90 % of original
Monthly pension
100 times of original
monthly pension on
death of Member to
nominee
2 a) Revised Pension during lifetime
of Member And lifetime of Widow
90 % of original
Monthly pension to
Member And on his
death 80 % of original
monthly Pension to
Widow
90 times of original
monthly pension on
death of widow/
remarriage to nominee
3 Pension for fixed period of 20 yrs
(Whether member lives or dies
during the said period)
87.5 % of monthly
pension for 20 yrs
( After 20 yrs pension
will cease)
100 times of original
monthly pension at he
end of 20 years to
Member if he is alive,
otherwise to Nominee
This is in addition to Widow/ Children/ Orphan normal pension on death of Member
Members can opt for reduce pension to avail Return on capital.

14. Remember ……..
Types of monthly pension
1. Monthly pension to member on his :
* Superannuation Pensions( 20yrs service + 58 yrs age)
* Retirement Pension ( 20 yrs service + Age below 58 yrs).
* Short service pension (10yrs but less than 20 yrs service)
Options :
Option for commutation
Option for Return on Capital
2. Monthly pension to Member on Permanent & total
disablement.(Minimum Rs.250/- p.m.)
3. Monthly pension to family upon death of member :
a) Widow Pension
b) Children Pension
c) Orphan Pension
4. Pension to nominee – If no family or unmarried

15. Thank you
I welcome your question, if any.
For further details you can contact me on
abhaythale@rediffmail.com