AIRPORTS AUTHORITY OF INDIA 

 

RPFC‐I  (Delhi)‐North  had  issued  a  summon  to  AAI  under Section‐14B  of  EPF& MP  Act,  1952  directing  us  to  produce  the copies  of  Challans,  Acknowledgement  of  Bankers/PF  Offices  of payment  made  towards  pension  contributions  and  EDLI contributions  alongwith  Administration  and  Inspection  charges  inorder  to  quantify  the  interest  and  damages  broadly  for  the period from 01.04.95(i.e date of coverage) to 22.08.2007(i.e date of  granting    coverage).  Accordingly  Asstt.  Provident  Fund Commissioner  (Damages)  vide  his  letter  dated  30/05/2012 demanded  Interest  and Damages  under  Section  7Q  and  14B  of EPF  &  MP  Act  for  Rs.  132,60,29,632  and  Rs.227,16,79,272/‐ respectively.  (It  is  mentioned  that  the  interest/damages  is calculated on the basis of option exercised by the employees).  

It is also informed that so far 11 hearings have already been taken place and the last hearing was held on 24/08/2012 and the next hearing is scheduled on 24/09/2012. 

In  the  meantime  PF  authorities  vide  their  letter  dated 13/08/2012  issued a communication stating  that  the option was not  given  or  no  communication  was  made  by  the  concerned offices  in  terms of  their  internal Circular dated  22/11/2006  and the  excess  contribution  will  be  considered  as  erroneous contributions and the pensionable salary will be restricted to the statutory ceiling. They have further informed that their office has decided to settle all the pension claims of AAI by restricting at the pensionable salary limit of Rs.6500/‐ per month and also directed 

to submit the revised annual returns upto the maximum statutory rate  of  wages  ceiling  i.e.  Rs.6500/‐  per month.  The  same  was reminded  vide  their notices dated  22/08/2012,  27/08/2012  and 05/09/2012 to furnish the returns in the ceiling salary (and not as per the option exercised by the employees). A copy of the  letter dated 13/08.2012 is enclosed.  

It  is evident  that before conclusion of  the proceedings,  the RPFC has now taking a U turn and restricting the contribution and benefits on the ceiling salary. Hence AAI management is exploring all  the possibilities  including  legal  recourse against  the action of PF authorities.  

 

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sb4licrl /Ref. No...14.3411a*Pm-.PA/Prrenckat Otrrni To,

Mr. Vilas Bhulang Airport Authority of India Rajiv Gandhi Bhawan Safdarjung Enclave New Delhi- 110003

Sub:- Qpble...11to contribute on seta exceedin ethe statuto limit under EPS'95 in res • -ct of M/s AA! beam code no- DL/3 regarding

cto4-cii&I c4ftsr Employees' Provident Provident Fund Organisation

.A.IT 74 '17ATITT 1TZr, lifT9' Trzzrm (Ministry of Labour & Employment, Govt. of India)

("txt 11ci, ft—At-7Ft /Regional Office Delhi-North)

ff T. 28, 'flit-ZiftT atidifIT at5, 1-110 052 Bhavishya Nidhi Bhawan, 28, Community Centro, Wazirpur Industrial Area, Delhi-110052

'Raw/ Dated.,ISPEMIA.

FROM :H R M RAI CHEMMA I

F1=1: : Ni'.: i n44 SET.. 11 2012 12:A7PM P1

•1-0114 /Telephone : 27376775 27378776

gram / Fax

• 27376777

Sir. Please refer to the Head Office Circular No- Pension/Misc./2005/65836

dated 22/11/2006 (copy enclosed) on the above cited subject. As per the circular

dated 22/11/2006, the establishment falls under category no-3 which says," In the cases where no option was given or no commitment was made by the concerned office, but the contribution on higher was deposited by the establishment i employee on their own, such excess contribution will be considered as erroneous

contributions and the pensionable salary will be restricted to the statutory ceiling ,

existing from time to time". The establishment, Mis Mt as well as the members never applied to allow to contribute on more than the statutory limit of pay as provided under Para 26(6) of EPF Scheme 1952. Therefore this office has decided to settle alt the pension claims of this establishment by restricting at the pensionable salary limit of Rs. 6500/- per month.

Hence the establishment htlis Ml is directed to submit the revised Annual Returns upto the maximum statutory rate of wages ceiling i.e. Rs. 6500/- per month latest by 24/08/2012.

Your fai

(Vik. 1-odai) Regional PE commissioher(Pension)

Delhi North

Telegram: ."10ENDRIYA NIDar New Delhi.: *-atar/E-Mail:epfe@alpha de in •

.tair,A :mar `451% (flu ibi1i' (P- lignsir IT el ephone: (011)261'72677 • 4i-rrzr/FAX : (011)26168431 '

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Tet. No-,Pc4sioril.Mis•c../200$1-:

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.... • .4.: m . lo . ces':'•PioVident FmicFOr anisationiet(471707--/-

1. uilstiy of.taboui,':Goirt. Of India) -:"•:-.:::.$2 .::..grrc.`:-.i.401e-4.--t,i----,-- -.. • • .• .' •:; • • ...... _ ... - .. ,, . .. ' .. • i ellil.'JLIN*C.■

• . 41,1ead.Office . . :.y,. - .:-:.4;„,.....,.:','-.-.-: ;491:4003.6.-iit c . ,̀,45:RIT-itirp:git arMt-29..oegate,.,.. 114*41$4,igigapiallaceilX4Y6PS1h144..1006. -r7e,T.:-4..zizt*.f., .,....,44.4.4iiiiii;,--.... t...,..„. f. „...1,...,.„70,.., ..,,....,,,-', --,...,..,,, . .:,•A.....4:,:;-:., .1.,: - .., .- • • • -. •. :; .. Dated:..

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... ,- . . . ^.• ,...,., ,., -,•:A.,',.-;•..:.1,1.:...r.)..,•0: : ',./ .''',',.: •-• ,'" ' ''' ''' , . . .

All Regional Provident Fund Commissioner .. . Regionai Offices! Sub RegionaLOffiCes. 1:4-5 -''-... ' ' --"-T '''"'...':

- . :-, .-...i , .:1-:- ": ,. ,",-..-,: .-- ••,:. r ,,,, ,,S1.14,ject:-:-,r;gCou tribution -ppsql4ry.,:cxco.edin.e.tlie Statutory iimii.(Para11(3))of ,vO14: .Aiii-MPS?,95,tiiii,•.;::!#'=i4:-.;;;;C::J.,"'--; ,,itt,:14:4-,v,,,,...11%, ..„..,;••••• . , ,•,.,, p-,..-: .:. ,1,. , .,..et. f.:.!: .. : ..e. . .

t'AttentiOn:isinvitedo:thg.ifollowingcircUlars:- . • -;.-;: ' '- i t ...: -•-,---

1-;.;:'.1.;( 1. Circular No:Pen/4(2)96/SLP/Vo1 V/16598 dated 26.6.2004.• '-', "--;si,?::'.•.,..... --:-..q,,,,,,, 2. Letter No. Pen.4 (38),96/WB/59867 dated 1.12.2004,

r.,3,.; Circular.-No.PenThsliso/.;0.96/Y0,1414ted..2S,4,2006.- , _-..-,---,.-;-. -, ,:.....---...-:.."..

W..' ; % .' .. "1 , ;:! ?: `-4.7.rf -!' rf!.....!Et:: r;''.'1",:t:' ..f..

on/InStrUCtiOnSI:baY;-

::+414.qad.Y; /29eg :issyedby,this. office,on the issue 940qtribtniPg,:::.,. pay: exce.eding,.,he :stat

,uPotyaim

.ithgig4411.:11(3) of the :Em.plo• yeesN.. 'p5j0 S9feme, 1995 However, he. feld;ofces:arefnding it difficult to take decisiOnsK7.na.,:'i-,-. - -:•::.'

• :. result this office has been receiving a number of references from field officeiiOt:to : -:' :. • ' speak, of the volley ,ofgrievanee's, being aired ,by,the:,inern bors .tlgough..

:YarP1.14b.#,P404.....-:. Thetefore,itihiS,tecorne.necessary,forihi office to issue guidelines in a more,eliar4erm.

i ;.:,:', -• - . - : ': , •-•iitt54, : ,-4,-;-:e.it ... ,--,-: .::.:, .. - -: • --.: , : - F:Arkf..4-..!:::::L.,E1.-...:. • ....,.

7 ' -. While deciding the issue the following provisions may be kept in.min&i.-.2....--s...... • '.- :, , ,. ,

.. ::: ‘,---'7::"■-:,:r!::11.':,' j'r ::::1; .1.': - " .. t ' . 1:-. '. ''''' .1i.t..4..":eqt:'':'4'.!".;'''.1 .''','?:1.-....

7 -:-..., - '- - - -7-'. '‘" - - '---- - L'".7t.''''.'":::', :----r' 7, -"H --,-ilift-tn',,--;':'-'7.;,•,:-.ti--:.:•^^,t'' f . f ' 1) Under EPS there is no contribution payable separately, Under Para' 3.lrafthe:•;v'f''' )

EPS, from and out of the contributions payable by the employer in each month,$!'....*:...,?,:,y, under Section - 6 of the Act, the employer shall remit a part of contribution .

.: . representing 8.33 Percent of the Employees pay • to the EPS. Therefore,...it,is . • 1 : .,., only :the efriployer's share of contribution payable under Employees PrOvident . .

i - • f' Fund-Schenie 1952 that is being diverted to EPS to the extent as aforesaid. - : • . ,

.... 2) Accordingly, the option to contribute on a pay exceeding statutory.liinit is ..

„....:available to a, member only under Para 26(6) of' the 1-7.inployees Provident . r• '

- Fund here 1952 and not under Para 11(3) of the EPS,

c-py aIs

2. .

3) In fact Para ! 1(3) clarifies the methodology of determination of, pensiona, 4 salary only.

Since opting to contribute on higher pay to EPS means a contribution....'ork,

higher pay to Provident Fund as well, para;11(3):provision will applOc .Oil,

_such of those emploYeesF:wholAY.e:.beenj,contributing on d.. Iiigher,payp d Para 26(6) of the Employees Provident;EUid'iScheme,:l.952;

--7-AOcordingly the •grievances inAy be*.ielt4Sifieti.:into,-..the..Sqllowing categoriesia

the issues bedecided. .. '. :.:,: •.•,:' r.,: . -.........,:!,...k,-,:.V2:`(.tiira461.0. : , .; . 4e ...I; c.. .. ,

In all such. cases wher,e; the:emplo ei .has ..contributed,, over and:,;.# cim:e.--:".the, • „

:=statutory limit. either from or4,.fi-ornIthe;.mont : mlAv cn ii,D,041ary .... ..•.. . .. . 1 i. , . exceeded the limit after ha mg exercised his..option,..and the saine,:yia4ngteery' ,-,.., tx

:aecepted by the Office, the pensionable Saiariwiltbe based:pn.;itic r_s '- 1411;tfrk N., 1:,..lgh,

. . . • . : -..: ;; :.:1: ':::::,. - . . * . ::.--, • - - '-''' -NI-

if the epti 011 was i101 exercised at the time of salary.crossing the:statutOrY _Una m

or on 16.3.1996, as the case ay , be and the contribution was de ositedS-on salary exceedina the limit after reeeiVin - instruction! r•m!the:,Offi. Ce:before.•*

.. , . . ..;;.. . t,,

the ate of issue of circular 22:6-2°°4e c ,the hasAthe,Vicanous7.5r./.7`:::

liabilit , . . - a 1 y) of honouring such:a. cominittkeiii"4- `

and hence the pensionable salary.ShalPfbebni-the actualisalarylon-theisAla.4 7 (exceeding the statutory limit) on which the contribution'VVis7paid:--1-**ev.0%t:T. this is subject to' i) a satisfactory explanation to be obtained and takenon' record from the officer who made such a:commitment:4i) the ernployer,haying:i. remitted the administration charges and other contributions on such higher.'

, . .... :. -.. • ':'; :.,-, • .:.:: .:!„...:.k:4.,,..i.:,......!...•:•,:. :..,: ,..•:.:tt,4, satary. . . . 146-.. ..

. .. • , • `?4'"'",.t5'

---: 3 .. 7 Iii-t lie leaSeS- :,zillere-Trib-dptibri7Was', gi'Ven''Orno,cOrnmitMerity■resiiiiadetbr concerned Office, but the contribution On higher pay :Was'.depOsite4b cstablishiuent/ employee, on' their'.6Wn• i.ich'''eXcess.7-ContribOionilWi.,,

• considered as erroneous* contributions.! and 'the4pensionatilevsalarilibe...

restricted to the statutory celling.existing'froMtime to timei,;tVI.P.!;.,V. , .: • ..:.:. ...:.g..0341::.1:•-.;.1.07k..TS. :.,.: t..;?.51".! :'..tttialtk:.-.: . 4-0;

So all field offices are requested to Conaidehhe>grielianCes vOicedkincler4pgi .=.

tl (3y-in accordance with the above' clafitatiod'and 'decide t the*.zissiles':ati eii) -ye

without referring them to the Head Office unnecessarily. —

I: 2 t1 ."7:.■ i : p:r.:;■allit. tyr : .

(This issues with the approval of CPFC). . : . - . ., •. ,.,.;:. -'. ,.....!..ift."7fitirrA;

NR

ours:faithfull - • . Fgt1:1,.:4 1;r,z1" .

.-- ' 7. '.:.' ';?4 .'5...4.;1, 1'... '. ' &: : :- (R*jESil. BA: NS4I;);

. . ADDL.-CENTRAVT,F..1COMIYLISSIONER.(PENSIO.1■1

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