BSNL Clarification regarding Employees Pension Scheme
BHARAT SANCHAR NIGAM LIMITED
(A Govt. of India Enterprise)
NO.500-85/CA-II/BSNL/EPF/2011/Vol.VI
Dated 19.01.2016
To,
The IFAs,
All Circles
BSNL
Sub.:
Various Gazette Notifications issued by EPFO from Time to Time
This office has been receiving queries regarding Employees Pension Scheme.
In this regard, it is informed that EPFO vide its letter no.
Actuarial / 18(2)2008/ Vol.III/7738 dated 29.08.2014 (copy enclosed) has
already clarified that henceforth, EPS will apply only to EPF members
whose pay at the time of becoming PF member is not more than Rs.15000/-
per month on or after 01.09.2014. The entire employer and employee
contribution shall remain in the Provident Fund and no diversion to EPS
shall be made for all new PF members on or after 01.09.2014 having
salary more than Rs. 15000/- at the time of joining.
In this connection, it is mentioned that this office has already
issued instructions to act in accordance with the Gazette Notifications
issued by EPFO, from time to time, without waiting for endorsement from
the Corporate Office as the non compliance of the EPF guidelines attract
penal provisions.
It is further mentioned that suitable action may be taken by the
circles for rectification of any erroneous deduction made and deposited
with EPFO under the EPS head for the employees covered under the above
mentioned letter of EPFO dated 29.08.2014.
All BSNL units are hereby requested to kindly take necessary action in accordance with the instructions issued by EPFO.
Encl: As above
(V.M.Gupta)
Dy. General Manager (CA-III)
EMPLOYEES PROVIDENT FUND ORGANISATION
(Ministry of Labour & Employment, Govt. of India)
Head Office
Bhavishya Nidhi Bhawan, 14, Bhikaiji Came Place, New Delhi – 110 066.
No. Actuarial/18(2)2008/Vol.III/7738
Dated: 29.08.2014
To
All Addl. Central P.F. Commissioners (Zones)
All Regional P.F.Commissioners (In-Charge of Region)
Sub:
Gazette Notification providing for increase in wage
ceiling under EPS 1995 from Rs. 6500 to Rs.10000/- which shall come into
force on and from the 1st day of Sept 2014.
Sir.
This is in continuation of this office circular No Actuary/l
8(2)2008/ Vol.111/5905 dated 23.07.2014 wherein it was informed that the
Employees’ Pension Scheme 1995 is being amended to increase the wage
ceiling from Rs.6500/- per month to Rs. 15,000/- per month in the
Employees’ Pension Scheme, 1995.
2. The proposed amendments have since been noti red vide Gazette
Notification No. GSR 609 (E) which shall come into force on and from the
1st day of September, 2014 (Copy of notification enclosed).
3. Accordingly, with effect from the 1st day of September, 2014, the
pensionable salary for all cases of exit/death on or after 01.09.2014,
for calculating pension shall be the average monthly pay drawn during
the contributory period of service in the span of 60 months preceding
the date of death/exit from the membership of the Employees” Pension
Fund. The pensionable salary shall be calculated on pro-rata basis
separately for the period up to 31.08.2014 up to wage ceiling of
R.6,500/- per month and for the subsequent period upto the wage ceiling
of Rs.15,000 per month. Similarly. the Withdrawal Benefit shall be based
on the weighted wages at different wage ceilings. As already informed
necessary amendments in the applicable on software are being carried out
and the necessary software shall be released by I.S. Division at the
earliest.
4. Accordingly, requisite steps may be taken so hat full details of
wages for 60 months are available to settle the pension claims in
accordance with the proposed modification. In this regard, Form 10-C
& Form 10 D are also being redesigned to incorporate the above
changes and shall be circulated soon. However in the meantime wage
details be obtained by attaching additional sheet or giving details of
60 months of wages along with Form 10-D in respect of all members having
date of exit from EPS 1995.
5. The members having date of exit from EPS, 1995 on account of
superannuation/option date for commencement of early pension etc. prior
to 01.09.2014 shall get Pensionary benefits on the basis of the existing
pensionable salary calculations ie by taking 12 months average.
6. Further, with effect from 01.09.2014, wherever employer &
employees have opted to contribute on salary exceeding Rs.6,500/- per
month such employer & employees will have to exercise a fresh option
to contribute on salary exceeding Rs.15,000/- per month subject to the
condition that such member would have to contribute the Government’s
share of contribution @ 1.16% on the salary exceeding Rs.15,000/- per
month from his/her share of contribution. The fresh Option is to be
exercised within a period of 6 months. It is essential to know with
certainty the employee who are currently permitted to contribute to EPS
on higher wages, so that fresh options can be called for. Accordingly,
you may immediately flag all such cases of contribution on salary
exceeding Rs.6,500/- per month and obtain fresh options in a time bound
manner. It may be made known to the existing optees that if the fresh
option is not exercised it shall be deemed that the employee has not
Opted in allowing contribution over age ceiling and the contributions to
Employees Pension Fund made above the wage ceiling in respect of the
member shall be diverted to the Provident Fund account of the memer
along with interest as declared under the Employees’ Provident Fund
Scheme from time to time.
7. Furthermore, with effect from 01.09.2014 the provisions for
contribution on higher salary has been deleted and as such no new
options can be allowed to any member of EPS, 1995 on and after
01.09.2014.
8. As EPS will henceforth apply only to EPF members whose pay at the
time of becoming PF member is not more than Rs. l5,000/- per month on or
after 01.09.2014 the entire employer and employee contribution shall
remain in the Provident Fund and no diversion to EPS shall be made for
all new PF members on or after 01.09.2014 having salary more than
15,000/- at the time of joining. This must be ensured as any negligence
on this issue may lead to unwarranted litigations.
9. The above actions may be taken without any deviation and officer
in charge shall be responsible for compliance of above directions under
his jurisdiction.
(This issues with the approval of CPFC)
Yours faithfully,
sd/-
(CHANDRAMAULI CHAKRABORTY)
REGIONAL E.F.COMMISSIONER-I (Pensions)
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