On March 20, 2012, the Employee Provident Fund Organization, which falls under the Ministry of Labour and Employment, issued an important notification on the Family Pension.
The Family Pension Scheme is compulsory for every member of the ceased Family Pension Scheme 1971 and anyone who joins any covered establishment on or after November 16, 1995, provided his or her salary or wage is less than INR 6500/- per month at the date of appointment. A covered establishment is an establishment where 20 or more persons are employed and belongs to the class of industries or other establishments, which have been listed in the schedule appended to the EPF Act. A minimum of 10 years eligible service is required to entitle a member for pension.
The benefits are paid to the employee and in his or her absence to his or her family, where family is defined as the employees’ spouse and children below the age of 25 years. If an employee does not have a family and he or she dies before receiving the benefit, the benefits will be paid to his or her nominee. In the absence of a nomination, the benefits will be paid to the dependent parents.
According to the latest notification, the Family Pension can now be granted to the next eligible member in the family in the case of missing family pensioners.
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