EMPLOYEES’ FAMILY PENSION

SCHEME-1995

Effective from :-

16th November, 1995

 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
 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/-)
Eligibility for monthly Pension
• Minimum service – 10 Years
(Except in case of permanent and total
disablement)

• Minimum contribution – 1 month

 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 One month's contribution to Pension Fund,
Disablement Pension (irrespective of Pensionable service)

Withdrawal benefit Less than 10 years service

 Pension amount
Pensionable salary x Pensionable service
Monthly Pension = ---------------------------------------------
70

*Minimum pension – Rs 928/- pm

*Permanent & Total Disablement- Min. Pension Rs.250/-pm

OPTIONS :-

• Option for commutation

• Option for Return on Capital
 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)
 PENSION ON DEATH OF
MEMBER

1. Monthly Widow Pension

+
Monthly Children Pension

2. Monthly Orphan Pension

3. Monthly Nominee Pension

 Widow pension
1 If employee died in Equal to monthly pension of Member as if he
service retired on dt. of death OR Rs.450/- p.m. OR
Amount in Table C whichever is more

2 If employee died after Equal to monthly pension of Member as if he

Service and before retired on dt. of exit OR Rs.450/- p.m. OR
attaining age of 58 Years amount in Table C whichever is more
3 If employee died after 50 % of Member's Pension
commencement of (Minimum Rs. 450/p pm)
monthly Pension
 CHILDREN PENSION
Applicable Surviving children of the deceased
member
Pension 25 % of W idow Pension
( M inimum Rs. 150/- pm)
Eligibility * Maximum - 2 children
* Till age of 25 years
* Permanent & Total disabled children
will get pension irrespective of age and
no. of children.
 ORPHAN PENSION
Applicable If widow pension is not payable
(i.e.no widow or widow remarried and
only children are there)
Pension 75 % of W idow Pension
( M inimum Rs. 250/- pm)
Eligibility * Maximum - 2 Orphan Children

* Permanent & Total disabled children

will get pension irrespective of age and
no. of children(Para 16(3)(e).
 NOMINEE PENSION

Applicable If no living spouse or children

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

11. 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