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REGISTERED NO. D. 221

The Gazette of India

EXTRAORDINARY

PART II—Section 3—Sub-section (i)

PUBLISHED BY AUTHORITY

No. 74] NEW DELHI, SATURDAY, MARCH 31, I973/CHAITRA 10, 1895

Separate pacing is given to this Part in order that it may be filed

as a separate compilation

MINISTRY OF LABOUR AND REHABILITATION

(Department of Labour and Employment)

NOTIFICATION

New Delhi., the 31st.March, 1973

G.S.R. 185(E)—In exercise of the powers conferred by section 6A read with sub-section (i) of section 7 of the Employed Providers Funds and Family Pension Fund Act, 1952of 1952), the Central Government hereby makes the following Scheme further to amend the Employees' Family Pension Scheme, 1971, namely :—

1. (1) This Scheme may be called the Employees' Family Pension (Second Amendment')

Scheme, 1973

(2) It shall be deemed to have come into force on the 1st day of March, 1971,

2. In the Employees' Family Pension Scheme, 1971—

(i) to paragraph 6, the following provisos shall be added namely :—

"Provided that where there has been a break in the membership of the Family Pension F u ll on account of closure of an establishment, stricken lock-out, leave without pay ecrei:rm:nl., resignation, termination, discharge or for any other such reason and the period of such break between two spells of reckon able service either under the same establishment or under different establishments covered under the Act does not exceed one year, such member, if he has not withdrawn the benefit to which he is entitled under this Scheme and his provident fund accumul- tions under the Employees' Provident Fands Scheme, 1952, or the Provident Fund Scheme of an exempted establishment, as the case may be, shall continue to be a member of the Family Pension Fund :

( 497 )

Provided further that such breaks during which no contributions to the Family Pension Fujp are payable shall be excluded from the total reckonable service in the manner specified in sub- paragraph (2) of paragraph 34A"

(ii) in sub-paragraph (2) of paragraph 23, for the words "the members of the Family Pension Fund or persons belonging to his family", the words "a member of the Family Pension Fund or persons belonging to his family or persons entitled to receive his provident fund accumulations" shall be substituted;

(Hi) In paragraph 28, after sub-paragraph (2), the following sub-paragraph shall be inserted, namely :—

"(3) Where a member who continues to retain his membership of the Family Pension Fund by virtue of the proviso to paragraph 6 dies during the period of reckonable- service, the Family Pension payable shall be calculated by treating the notional age of entry arrived at in the manner specified in sub-paragraph (21 of paragraph 34A as the age of entry."; (iv) in Paragraph 31,

(a) after the words and figures "in the order indicated in paragraph 29", the following shall be inserted, nsmely ;—

"and where the member has not left a family, the life assurance benefit shall be payable to the pcurn or pciFons entitled to receive his provident fund accumulations, in the proportion in which the said accumulations may be payable under the provisions of the Employees' Provident Funds Scheme, 1952, or the provident fund rules appli- cable to the exempted establishment, as the case may be";

(b) for the existing proviso, the following provisos shall be substituted, namely :—

"Provided that life .assurance benefit as stated above shall be payable in respect of such

entrants who h.td entered this Schtme at the age of 25 or below :

Provided further that where a member who continues to retain his membership of the Family Pension Fund by virtue of the proviso to paragraph (i dies during the period of reckonable service., the life assurance benefit payable shall be calculated by treating the notional aee of entry arrived at in the manner specified in sub-paragraph (2) of paiagiaph34A as the age of entry.";

(v) in paragraph 31A, after the words and figures "to receive Family Pension under paragraph 29", the following shall be inserted, namely :—

"and where the member has not left a family, the amount shall be payable to the person or persons entitled to receive his provident fund accumulations, in the proportion in which the said accumulations may be payable under the provisions of the Employees* Provident Funds Scheme, 1952 or the provident fund rules applicable to the exemp- ted establishment, as the case may be.";

(vi) in sub-paragraph (2) of paragraph 32, after the words and figures "to receive Family rer.tion ur.der paragraph 29'', the following shall be inserted, namely :—

"and where the member has not left a family, the retirement benefit shall be payable to the person or persons entitled to receive his provident fund accumulations, in the proportion in which the said accumulations may be payable under the provisions of the Employees' Provident Funds Scheme, 1952 or the provident fund rules appli- cable to the exempted establishments, as the case may be.";

(vii) after sub-paragraph (2) of paragraph 32, the following sub-paragraph shall be inserted, namely :—

"(3) Where a member continues to retain hk membership of the Family Pension Fund by virtue of the proviso to paragraph 6 attains the age of 60 years during the period of reckonable service, the retirement benefit payable shall be calculated by treating the notional age of entry arrived at in the manner specified in sub-paragraph (2) of aragraph 34A as the age of entry.";

(viii) paragraph 33 shall be renumbered as sub-paragraph (T ) thereof and after the para- graph as BO renumbered, the following sub-paragraphs shall be inserted namely :—

"(2) Where a member of the Family Pension Fimd to whom any amount has become payable under sub-paragraph (1; dies before the amount has been actually paid to him} the amount payable under sub-paragreph (1) shall be payable to a member of his family who would have been entitled to receive Family Pension under paragraph 29 and where the member has not left a family the amount shall be payable to the person or persons entitled to receive his provident fund accumulations, in the proportion in which the said accumulations may be payable under the provisions of the Employees' Provident Funds Scheme, 1952 or the provident fund rules applicable to the exempted establishments, as the case may be."

(3) Where a member who continues to retain his membership of the Family Pension Fund by virtue of the proviso to paragraph fi dies or applies for withdrawal benefit during the period of any break in the membership of the Family Pension Fund, the withdrawal benefit payable shall be calculated in the manner specified in sub-paragraph (1) by treating the notional age of entry arrived at in the manner specified in sub-para graph (2) of paragraph 34A as the age of entry".;!

(ix) paragraph 34 shall be renumbered as sub-paragTaph (1) thereof and after the paragraph as so renumbered, the following sub-paragraph shall be Inserted, namely :—

"(2) For the purpose of applying the factor given in Table II to the cases governed by sub- paragraph ("3) of paragraph 28, the second proviso to paragraph 31, sub-paragraph (3) of paragraph 32 and sub-paragraph (3) of paragraph 33, the notional age of entry determined in the manner specified in sub-paragraph (2) of para 34A shall be deemed to be the age at encry given in Table II of the Schedule to this Scheme.";

(%) paragraph 34A, shall he renumbered as paragraph 34C, and before the paragraph as so renumbered, the following paragraphs shall be inserted, namely :—

"34A : Payment of Family Pension and other benefits In certain cases t

(1) Where a member of the Family Pension Fund whoBe membership has been retained under proviso to paragraph 6, dies after the cessation of reckonablc service, family pension and life assurance benefit shall not be payable in respect of such member; but only the withdrawal benefit shall be payable to his iamily who would have been entitled to receive family pension under paragraph 29 and where the member has not left a family, the benefit shall be payable to the person or persons entitled lo receive his provident fund accumulations, in the proportion in which the said accumulations may be payable under (.he provisions of the Employees'Provident Funds Scheme, 1952, or the provident fund rules applicable to the exempted establishments as the case may be.

(2) For the purpose of calculating the withdrawal benefit payable under sub-paragraph (1), and the other benefits payable under sub-paragraph (3J of paragraph 28, the second proviso to paragraph 31, sub-paragruph (3) uf paragraph 32, and sub-paragraph (3) of paragraph 33, the notional age of enrry shull be arrived at by deducting the aggregate reckonable service from the flge of cessation of membership and the benefit shall be determined by assuming this notional age as the age at entry.

34B : Simultaneous payment of benefits :

The retirement benefit and the withdrawal benefit payable under paragraphs 32 and 33 respectively shall be paid simultaneously with the payment of the provident fund accumulations of the member under the Employees' Provident Funds Scheme, T952, or the provident fund rules applicable to an exempted establishment as the case may be.";

(xi) in Table I of the Schedule, the following entries shall be inserted in the beginning, namely :—

"rS 0-20

19 0 2 2"

[No. S. 7oot2(3V7i-PF. II]

Explanatory Memorandum to the Notification

The Employees' Family Pension Scheme, i97r came into force wuh effect from 1st Mirch, 197T. The Scheme as it stands, provides for cessation of membership of the Family Pension Fund when u member retires or quits service and withdraws or becomes entitled to withdraw the benefits under the Scheme. A member becomes entitled to withdraw the benefits when his contribution ceases even under circumstances like closure of establishment, strike, cessation of employment for any reason whatsoever etc. This position purs the member to hardship and deprives him ot the full benefits under the Family Pension Scheme as the benefits are linked with the age at entry und the period of membership. It is proposed to amend paragraph 6 of the Scheme and make consequential changes in paragraphs 28, 3r, 32, 33, 34 of the Scheme to give benefit of continuity of membership of the Family Pension Fund and other benefits there- under notwithstanding the breaks in membership upto one year occasioned due to reasons specified above, It is necessary to give retrospective effect to the provision as also the con- sequential provisions from 1st March, 1971, the date from which the Scheme came into force 60 that the subscril ers may get the advantage of ihe revised provision for retention of member- ship under this Scheme. Similarly, the Scheme is silent as to whom the Life Assurance

Benefits payable should be disbursed in case a member does not leave a 'family' as denned in paragraph 2(b) of the Scheme. Cases may also arise when a member of the Fund dies before the amount payable as Retirement Benefit/Withdrawal Benefit ia actually paid and leaves no 'family'. The notification seeks to make a provision that In such a contingency the amount shall be payable to person/persons entitled to recrive his provident fund accumulations. The retrospective operation of the amendment will not adversely effect the interests of any member of the Family Pension Fund.

DALJIT SINGH, Under Secy.

PRINTED BY THE MANAGER, GOVERNMENT Or INDIA PRESS, MINTO ROAD, MEW DELHI AND PUBLISHED BY THE MANAGER OF PUBLICATIONS, DELHI, 1978