PRESENTATION ON

EMPLOYEE PROVIDENT FUNDAct - 1952

A STATUTORY BODY UNDER MISTRY OF LABOUR & EMPLOYEMENT

Web site: www.epfindia.org

BENEFITS TO MEMBERS UNDER EPF SCHEMES

Provident Fund Benefits

Pension Benefits

Death Benefits

There are 3 major benefits

Employer also contributes to Members PF @ 12%.

EPFO guarantees the Employer contribution andcredits interest at such rates as determined by theCentral Government. (Present Interest Rate is9.5%)

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

1. Provident Fund benefits

Pension to Member

Pension to Family (on death of member).

Scheme Certificate

Withdrawal Benefit

2. Pension benefits

Member has to attained the age of 50 years ormore.

Member has to complete a total service of 10years or more.

Member should not get any other EPF Pension.

Member has to apply in Form-10D at the EPFOffice where Member has last worked throughlast Employer.

How to get Pension

If the member wants to draw pensionfrom a different place, The member haveto furnish appropriate Bank / Post Officeaddress in the application form.

Pension is distributed through Post Officesor through some designated banks only(eg: Indian Bank, SBI, Indian OverseasBank, HDFC Bank, ICICI and UTI Bank)

There Four situations when pension can be applied for:

1. On superannuation

(Age 58 years or more and atleast 10years of service)

The member can continue in service while receiving

this pension

On attaining 58 Years of age, a EPF member cease to

be a member of EPS automatically

2. Before superannuation

(Age between 50 and 58 years and at least ten years of service)

The member should not be in service

3. Death of the member Death while in service or Death while not in service

4. Permanent disability Permanently and totally unfit for the employment which

the member was doing at the time of such disablement

Scheme Certificate

This Certificate shows the service & family details of a member

This is issued if the member has not attained the ageof 58 while leaving an establishment and he applies for thiscertificate

Member can surrender this certificate while joining anotherestablishment and the service stated in the certificate isadded with the service he is gaining from the newestablishment.

After attaining the age of 50 or above, the member can applyfor Pension by surrendering this scheme certificate (if totalservice is at-least 10 years)

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

Withdrawal Benefit

If not eligible for pension, member may withdrawthe amount accumulated in his pension account.

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

No amount is taken from Member to give Pension tothe Member. Employer and Govt. contributes toPension fund @8.33% and @1.61% respectively

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

How to settle EPF account

The Member has to resign or retire from the establishment andapply for settlement of PF in Form-19. If the exit is before 55years of age, the member should not work in any coveredestablishment for a period of 2 months from the exit date.

If the member dies, Family members/Nominee have to apply inForm-20 for settlement of PF (In case of death, apply in From-10D and Form-5IF for Pension and EDLI also)

How to transfer the account / What to doif joined in another establishment

The Member has to apply in From-13(R) through the NEWEmployer at the EPF Office from which transfer is sought clearlystating New and Old EPF Numbers. Member has to obtain newEPF Number from the New Employer. New EPF Number will beallotted by New Employer, not by EPFO.

Employees' Deposit Linked Insurance (EDLI) Scheme

On death of a member, the Family Members or Nominee(whoever has the entitlement to claim Provident Fundamount) can claim for EDLI Benefit. Maximum amountpayable is Rs. 60,000/-.

The nominee(s) have to apply in From-5IF through theEmployer.

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

Average PF Balance, salary and service are the factorsconsidered for the calculation of this amount

Advance/ Withdrawals may be availed for the following purposes:

•Marriage / EducationPurpose : For the marriage/education of Self & FamilyEligibility : Should Complete atleast 7years of service.Max Amount : 50% of Emp’e ShareDocument : Apply in Form 31 thorough the Employer

•TreatmentPurpose : Treatment of Self, Family (Dependents)Eligibility : No minimum service requiredMax : 6 times of Wages or Full of Emp’e ShareDocuments : Apply in Form 31 through the Employer

•Purchase or construction of Dwelling housePurpose : Purchase or Construction House/FlatEligibility : Should complete 5years only in one service.Max Amount : 36 times of Wages.Documents : Apply in Form 31 through Employer

•Repayment of Housing LoanPurpose : Payment of House LoanEligibility : Should complete 10years only in one service.Max Amount : 36 times of WagesDocuments : Apply in Form 31 through the Employer

•Purchase of PlotPurpose : Purchase of Site/PlotEligibility : Should complete 5years only in one serviceMax Amount : 24 times of WagesDocuments : Apply in Form 31 through the Employer

•Addition/Alteration of HousePurpose : Repair of houseEligibility : Should complete 5years only in one service /

Construction of House.Max Amount : 24 times of WagesDocuments : Apply in Form 31 through the Employer

•LockoutPurpose : Lockout of Closure of the EstablishmentEligibility : Should be closed for 15days / No wages for 2months.Max Amount : Total of wages multiplied by no.of months closedDocuments : Apply in Form 31 through the Employer

•Withdrawal Prior to RetirementPurpose : Withdrawal prior to RetirementEligibility : No min service, atleast 54 years of age /

1year before retirement.Max Amount : 90% of total of both sharesDocuments : Certificate from the Emp’r showing the date of

retirement / Apply in Form 31•Other Advances

Purpose : Advance in Abnormal ConditionsEligibility : Certificate of damage from appropriate authorityMax Amount : Rs. 5000/- or 50% of member’s own share of

contribution.Documents : Certificate from Appropriate authority / Form 31.

IMPORTANT:

• The amount of advance/withdrawal is not required to be refundedunder normal circumstances. If the amount is not utilised, the sameshould be refunded with penal interest.

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