Wednesday, 16 July 2014

Twenty Four Frequently Asked Questions On Employees Provident Fund (EPFO ) Answers For You!


These are the twenty four answers on FAQs given on EPFO site. Read and enrich yourself
1) Who will be covered by the Pension Scheme?
Every member of the ceased Family Pension Scheme 1971 and anyone who joins any covered establishment on or after 16-11-95 is compulsorily to join this scheme, provided his/her salary/wage is less than Rs. 6500/- per month at the date of appointment. ( now Rs. 15000).

2) What is a covered establishment?
Covered establishment is an establishment belonging to the class of industries / other establishments, which has been listed in the schedule appended to the Employees’ Provident Fund and Miscellaneous Provisions Act 1952 and where 20 or more persons are employed.
3) If employee was a Family Pension Scheme member. He/She has left on 13-12-93 and he/she is 54 years old. He/She has taken his withdrawal benefit. Can he/she join the new scheme?
Yes, by refunding withdrawal benefit together with interest. Thereafter, he/she will be entitled to receive pension from age 58, if he/she completes at least 10 years of contributory service by then.
4) If employee is a Family Pension Scheme Member and he/she has retired after 58 years of age on 15-01-94. Can he/she join the new scheme?
Yes, anyone who has retired by reaching age 58 between 01-04-93 and 15-11-95 may join the scheme by returning the withdrawal benefit along with interest. He will be paid pension with immediate effect, from date of exit provided he has rendered 10 years of contributory service.
5) If employee is not a Family Pension Scheme member and he/she is 56 years of age, Can he/she join Family Pension?
Yes, by diverting from his/her Provident Fund balance, Family Pension Scheme contribution from date of his/her joining or 01-03-71, whichever is later.
6) Whether the Family Pension Scheme member who has attended the age of 58 years before 01-04-93 and has left employment after 01-04-93 will be admitted to the scheme as member of Family Pension Scheme, 1971?
Yes, he will be deemed to have retired after 01-04-93. On repayment of that withdrawal benefit which was paid, Pension will be paid from same date, provided he has rendered 10 years of contributory service.
7) In case Family Pension member has attained the age of 58 years between 01-04-93 and 16-11-95 then in that case whether arrears of monthly Member Pension become payable for the period earlier than 16-11-95 i.e. from the date of his/her attaining the age of 58 years which is prior to 16-11-95?
No, he/she will be deemed to have retired from 16-11-95 and pension paid accordingly.
8) Is employee the only beneficiary of Fund?
Benefit will be paid to him/her and in his/her absence to his/her family.
9) What is meant by Family?
Family means employees’ spouse and children below 25 years of age.
10) Suppose an employee does not have a Family and he/she dies before receiving benefit. Does his/her pension get lost?
No, if he/she does not have a family, benefits will be paid to his/her nominee, who will receive the benefit in his/her absence.
11) Suppose member has not nominated anyone.
The pension / ROC will be paid to the dependent parents.
12) Can member change his/her nomination?
He/She can change his/her nomination whenever he/she decides within the framework of rules for such nomination. In other words if he/she has a family, nomination should be in favour of a member(s) of the family. If he/she has no family he/she can nominate anyone he/she wishes.
13) How many years service is required to be eligible to receive member pension?
Minimum 10 years eligible service will entitle for member pension.
14) Employee is a member of Employees’ Pension Scheme. He/She has left employment at 48 yrs. of age and 8 yrs. of service. When shall he/she receive his/her pension?
He/She can take either withdrawal benefit or can take scheme certificate so that the 8 years service can be added to any future service that he / she may put in, in any other covered establishment. By virtue of being a holder of a scheme certificate, if the member dies before 58 years widow / widower and children shall be entitled for pension.
15) What is past service pension?
This pension is for the period of membership of the Employees’ Family Pension Scheme, 1971.
16) When does an employee become eligible to become a member of Employees’ Provident Fund Scheme, 1952 and Employees’ Deposit Linked Insurance Scheme, 1976?
An employee becomes a member of Employees Provident Fund (Employees’ Provident Fund) Scheme, 1952 / Employees Deposit Linked Insurance (Employees’ Deposit Linked Insurance) Scheme, 1976 immediately on joining an establishment covered under the Employees Provident Funds & Miscellaneous Provision Act, 1952.
17) What is nomination?
Every member has to give the details of himself & details of the nominee for Employees’ Provident Fund & Employees’ Deposit Linked Insurance Schemes and details of family for Employees Pension Scheme, 1995 in form no. 2.
A member if, is having a family can nominate any one or more persons to receive the Provident Fund on his death. In case of him having no family he can nominate any other person.
Family for the purpose of Employee Provident Fund Scheme’52 means wife/husband, children, whether married or unmarried, including adopted children, if adoption is recognized and dependant parents of member.
Employees Deposit Linked Insurance Scheme benefit will be paid to the nominee under Employees Provident Fund Scheme, 1952.
For the purpose of Employees Pension Scheme,1995 the member has to furnish the details, such as name, relationship & age of all the family members in the form no. 2. Family for the purpose of Employees Pension Scheme, 1995 means wife/husband & children. Whenever member wants to make a change in the nomination already made for Provident Fund, or to update the details of family for Employees Pension Scheme,1995, he has to send a revised form no. 2. The form no.2 is routed through the employer.
18) What are the periodical returns to be sent by an employer to the Provident Fund Office?
The employer of an un-exempted establishment has to forward the following returns. These returns will include details required under the three schemes namely, Employees Provident Fund Scheme, 1952, Employee Deposit Linked Insurance Scheme,1976 and Employee Pension Scheme, 1995.
a) Form-9(Revised):
The details of employees enrolled as members of Employees’ Provident FundS’52, Employees’ Deposit Linked Insurance’76 & Employees’ Pension Scheme’95 on coverage of the establishment- This is to be submitted immediately after coverage, within 15 days of coverage.
b) Form-12A:
The details of the contributions recovered form the members & paid along with details of employers’ contribution & administrative charges- This is to be submitted monthly by 25th of following month.
c) Form-5: 
The details of the employees enrolled newly to the Provident Fund- To be submitted along with Form-12A every month within 15 days of the following month.
d) Form-10:
The details of the employees leaving service during the month- To be submitted along with form-12A.
e) Challans:
The triplicate copy of challans in token of having remitted the Provident Fund dues in the bank- to be submitted along with form-12A every month.
f) Form-2(Revised):
Nomination form- To be submitted along with form-5/9.
g) Form-3A:
The details of wages & contributions in respect of each member, to be prepared financial year wise- To be submitted to the Provident Fund office by 30th of April every year.
h) Form-6A:
Yearly consolidated statement of contributions- To be forwarded yearly along with form-3A. It should be ensured that all the form-3A are entered in form-6A, irrespective of whether the form-3A was forwarded for the broken period and the total dues as per the form-12A for the whole year agrees with the total of form-6A within 30th April.
i) Form-5A:
Return of ownership of the establishment- To be forwarded immediately after coverage & whenever there is a change in the ownership, it has to be intimated with in 15 days of change.
j) Specimen signature:
Specimen signature of the officer/officers who are authorized to sign the returns/documents relating to Provident Fund forwarded immediately after coverage & whenever there is a change in
authorized officer.
19) What is the procedure to be followed by the member if the employer is not attesting his claim forms?
It is the duty of the employer under the Act & Scheme to help Employees’ Provident Fund organisation to settle the Provident Fund dues of his employees. He has to complete the prescribed application within 5 days of receipt [para72(5)] forms & hand over it to the member when he leaves the service. When a member finds difficult to get the form attested by the employer, he can get the attestation of any of the following officer & send to the Provident Fund office
  1. Manager of a bank.
  2. By any gazetted officer. 
  3. Member of the Central Board of Trustees./ committee/ Regional Committee (Employees’
    Provident Fund Organization).
  4. Magistrate/ Post/ Sub Post Master/ President of Village Panchayat/ Notary Public. 
20) What is the mode of payment of Provident Fund and Employees’ Deposit Linked Insurance dues?
Provident Fund & Employees’ Deposit Linked Insurance dues is paid by money order/ by deposit in payees’ bank a/c/ through employer/ by depositing the cheque in payees’ name or part of amount in annuity scheme in any nationalised bank. Payment by money order is allowed where the amount is not more than Rs. 2000/-.
21) What are the modalities to be followed for payment through cheque?
The member has to open an account in the nationalised bank, scheduled bank, urban bank or post office savings bank. He has to furnish the details of bank a/c no. with the full address of the bank in application form. An advance stamped receipt has also to be annexed in the form.For receipt of pension member/claimant has to open an account only in State Bank of India or Punjab National Bank.
22) In case of returning of cheque what is the procedure to be followed?
Generally the cheques are returned by the bankers when the a/c number is furnished incorrect or a/c has been closed. On receipt of the cheque from the bankers the Provident Fund office will write to the member & employer about the fact & request them to intimate the bank, a/c number & detailed address. In case, the member comes to know about returning of the cheque before this, he can write to the Provident Fund office through his former employer regarding his present address & bank a/c number.

23) What is the time taken for disposal of the application in the Provident Fund office?
The claims received complete in all respects are disposed off within a maximum period of 30 days from the date of receipt of claims in the office. In case the member is not hearing anything about his application within 30 days, he can approach the Public Relation Officer.
24) What is the voluntary rate of Provident Fund contribution by the member? 
As per the Act, the member has to contribute at the rate of 10% or 12% of his basic pay, D.A. & retaining allowance if any. In case the member wants to contribute more than this, voluntarily he can do so at any rate he desires. i.e. upto 100% of basic and D.A. But the employer is not bound to contribute at the enhanced rate

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