Monday, October 22, 2007

Provident Fund Act

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.
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 atleast 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) 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 inauthorized officer.

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