MY LETTERS TO THE EDITOR

To
The Editor,
The New Indian Express,
Chennai.

Sir,

This refers to the editorial “This is the right juncture for pension reform” (TNIE, Oct.29). The institution of Pension Fund Regulatory and Development Authority (PFRDA) by itself cannot solve all the problems related to pension reform. Rather, a professional approach to administration of the pension scheme and in managing investment portfolio is required. The Employees Provident Fund Organisation that administers the Employees Pension Scheme is usually headed by ‘bureaucrats’ hailing from IAS, IRS or even from IPS. The prowess of such bureaucrats is so generalised that it makes them incapable of administering efficiently schemes such as Provident Fund and Pension Fund which require technical expertise. It is essential that the proposed PFRDA should not again become a ‘comfortable avenue’ for retiring bureaucrats to continue to secure power and income.


Yours truly,

C.Ramesh,

INTRODUCTION

Providing social security is a constitutional obligation of the government. Employees Provident Funds and Miscellaneous Provisions Act, 1952 (Act 19 of 1952) is a piece of social welfare legislation, intended to provide social security to the working class, mainly in the organised sector, by establishing three Schemes, viz., the Employees Provident Fund Scheme, 1952, Employees Pension Scheme, 1995 and Employees Deposit Linked Insurance Scheme, 1976.

I created this weblog mainly to aid the employees, employers and other interested persons to know about the three schemes, benefits thereunder, legal provisions and so on.

I earnestly believe that the information contained in this weblog will be helpful to the public. I invite suggestions.


WITH WARM RAGARDS

C.RAMESH
KEERAMANGALAM
TAMILNADU

BENEFITS

BENEFITS UNDER THE EPF SCHEME:

1. Employer also contributes to Members PF @ 12% ( 10% in case of sick industrial co., any establishment having accumulated loss equal to its entire paid up capital and any establishment in Jute Industry, Beedi Industry, Brick Industry, Coir Industry and Gaur Gum Factories. )

2. EPFO guarantees the Employer contribution and credits interest at such rates as determined by the Central Government.

3. Member can withdraw from this accumulations to cater to financial exigencies in life - No need to refund unless misused

4. On resignation, the member can settle the account. i.e., the member gets his PF contribution, Employer Contribution and Interest.




BENEFITS UNDER THE PENSION SCHEME



1. Pension to Member

2. Pension to Family (on of member)

3. Scheme Certificate

This Certificate shows the service & family details of a member

This is issued if the member has not attained the age of 58 while leaving an establishment and he applies for this certificate

Member can surrender this certificate while joining another establishment and the service stated in the certificate is added with the service he is gaining from the new establishment.

After attaining the age of 50 or above, the member can apply for Pension by surrendering this scheme certificate (if total service is atleast 10 years)

This is a better choice than Withdrawal Benefit, as a member dies holding a valid scheme certificate, his family will get pension (Death when NOT in service)

4. Withdrawal Benefit

If not eligible for pension, member may withdraw the amount accumulated in his pension account

The calculation of this amount is based only on (i) Last average salary and (ii) Service (Not based on actual amount available in Pension Fund Account)

5. No amount is taken from Member to give Pension to the Member. Employer and Govt. contributes to Pension fund @8.33% and @1.16% respectively

6. EPFO guarantees pension to members, even if the Employer has not contributed to Pension Fund.





BENEFITS IN CASE OF OF THE MEMBER:



1. Provident Fund Amount to Family (or to Nominee)

2. Pension to Family (or to Parent / Nominee)

3. Capital Return of Pension

4. Insurance (EDLI) amount to Family (or to Nominee)

No amount is taken from Member for this facility. Employer contributes for this.

5. Nominee is basically determined as per the information submitted by the member at this office through FORM-2