A very relieving news has come to light for lakhs of employees covered under the Employees Provident Fund Organization (EPFO). Now, under the rules of EPFO, the social security of the employees’ families has been further strengthened. Even if an employee has deposited only one day’s contribution in his PF account and he dies while on the job, his family will still get the full right to family pension. This facility is being provided under EPS-95 (Employee Pension Scheme 1995), the objective of which is to provide financial support to the dependents of the employee in his absence.
Despite short service period, wife and children will get full financial security cover
As per EPFO rules, there is no longer any requirement of long service period to avail the benefit of family pension. In case of death of the nominated employee, his wife, children or dependent parents will be entitled to pension. Even if the employee has contributed to PF for a very short period, EPFO will not leave his family empty handed. This rule is like a big security guarantee for working class families amidst uncertainties.
Wife will continue to receive fixed pension amount for life and children till the age of 25 years.
The rules regarding distribution of family pension are also completely clear. The wife of the deceased employee will be given pension for life or till her remarriage. Along with this, maximum two children of the family will get the benefit of pension till they complete 25 years of age. This amount given to children is 25 percent of the main pension (per child). If unfortunately the employee does not have a wife or children, the pension rights will be given to the surviving parents. Pension is calculated on the basis of the last salary of the employee and his service period. At present, under the rules, the minimum amount of family pension is fixed at Rs 1,000 per month, which can be a maximum of Rs 6,000 to Rs 7,000 per month depending on the salary and service conditions.
To get uninterrupted pension benefits, it is mandatory to update Form-10D and Nominee.
To avail the benefits of this scheme at the right time, EPFO has declared some paper processes as mandatory. To claim pension, it is necessary to fill Form-10D. The most important thing is that the nominee information in the employee’s PF records should be absolutely correct and updated. It is necessary to enter the details of the family in the EPFO records. If the name of the nominee is not there or the KYC is incomplete, the family may face unnecessary delay or hassle in getting the pension in times of crisis.
Special camps being organized in industrial areas, advice to correct documents by April
To extend the benefits of the scheme to as many people as possible, special awareness camps are being organized by EPFO in industrial areas. In these camps, employees are being given information about pension, e-nomination and other benefits. Employees have been specifically advised to get their enrollment and KYC updated by April. This deadline is important so that in future the family does not have to wander due to any technical glitch and they can easily get their rights.
