Can we get exemption from eps'95?
DKTAZILANOM9909
(Querist) 14 March 2014
This query is : Resolved
Dear Sir,
We are the permanent employees of a PSU and an exempted establishment from The Employees' Provident Fund & MP Act, 1952 under requisite provisions of the Act. So our Corporation maintains PF details by its own Trustee Board. We have our self generated pension scheme which is far better than the Govt. Pension Scheme i.e. EPS’95 Scheme. Our query is that can we get exemption from EPS’95 ? If yes/no, then why?
Note : Our contract labour employees have no pension scheme of their own & so they are covered by EPS’95.
regards,
Swapan
T. Kalaiselvan, Advocate
(Expert) 15 March 2014
Section 22 of EPS 95 states thus:22. Duties of contractors
Every contractor shall, within seven days of the close of every
month, submit to the principal employer a statement showing the
particulars in respect of employees employed by or through him
in respect of whom contributions to the Employees' Pension
Fund are payable and shall also furnish to him such information
as the principal employer is
required to furnish under the
provisions of this Scheme to the Commissioner.
Therefore the contract labor employees, if they fulfill the other conditions, they are eligible to become a member of the scheme.
DKTAZILANOM9909
(Querist) 15 March 2014
We are the permanent employees of a PSU and an exempted establishment from The Employees' Provident Fund & MP Act, 1952 under requisite provisions of the Act. So our Corporation maintains PF details by its own Trustee Board. We have our self generated pension scheme which is far better than the Govt. Pension Scheme i.e. EPS’95 Scheme.
Our query is that can we, the permanent employees get exemption from EPS’95 as we have our own pension scheme which is better than EPS'95? If yes/no, then why?
Note: Presently our corporation has forced us to go to EPS'95 along with our own pension scheme.
T. Kalaiselvan, Advocate
(Expert) 15 March 2014
What it the opinion of all the Trade Unions in this aspect? Hope the trade unions have talked to the management in this regard? Are you an Office bearer of any trade union of your PSU?
T. Kalaiselvan, Advocate
(Expert) 15 March 2014
This is an issue involving entire employees of this PSU, so the employees representatives i.e., the Trade unions/associations, after discussing with their members/brothers/comrades, will convey their decision to the management, the management cannot force or thrust this thing on the employees on their own until a consensus has been arrived between the management and the trade unions.So please let me know the decision of the trade unions in this regard, let us see what can be done legally further.
Rajendra K Goyal
(Expert) 17 March 2014
If the PSU is having a better duly approved pension scheme, no need of PF Pension scheme.
DKTAZILANOM9909
(Querist) 27 March 2014
Employees' Pension Scheme 1995
6. Membership of the Employees' Pension Scheme
Subject to sub-paragraph (3) of paragraph 1, the Scheme shall apply to every employee --
(a)who on or after the 16th November, 1995, becomes a member of the Employees' Provident Fund Scheme, 1952, or of the Provident Funds of the factories and other establishments exempted by the appropriate Government under section 17 of the Act, or in whose case exemption has been granted under paragraph 27 or 27-A of the Employees' Provident Fund Scheme, 1952, from the date of such membership;
(b) who has been a member of the ceased Employees' Family Pension Scheme, 1971 before the commencement of this Scheme from 16th November, 1995;
(c) Who ceased to be a member of the Employees' Family Pension Scheme, 1971 between 1st April, 1993 and 15th November, 1995 and opts to exercise his option under Paragraph7;
(d) who has been a member of the Employees' Provident fund or of Provident Funds of factories and other establishments exempted by the appropriate Government under section 17 of the Act or in whose case exemption has been granted under Paragraph 27 or 27A of the Employees' Provident Fund Scheme, 1952, on 15 th November, 1995 but not being a member of the ceased Employees' Family Pension Scheme, 1971 opts to exercise his option under paragraph 7.
39. Exemption from the operation of the Pension Scheme.
The appropriate Government may grant exemption to any establishment or class of establishments from the operation of this Scheme, if the employees of the establishments are either members of any other pension scheme or proposed to be members of a pension scheme wherein the pensionary benefits are at par or more favourable than the benefits provided under this Scheme. Where exemption is granted to any establishment or class of establishments under this paragraph, withdrawal benefits available to the credit of the employees of such establishment(s) under the ceased Family Pension Scheme, 1971, shall be paid, subject to the consent of the employees, to the pension fund of the establishment(s) so exempted. An application for exemption under this paragraph shall be presented to the Regional Provident Fund Commissioner having jurisdiction by the establishment or class of establishments, together with a copy of the pension scheme of the establishment (s) and other relevant documents, as may be called for by him. On receipt of such an application, the Regional Provident Fund Commissioner shall scrutinize it, obtain the recommendations of the Central Provident Fund Commissioner and submit the same to the appropriate Government for decision, pending disposal of application for exemption under this paragraph employers' share of the contribution shall not be remitted to the pension fund as envisaged in sub-paragraph (1) of paragraph 3. An application for exemption presented under this paragraph shall be disposed of within a period of six months from the date of its receipt or such further time as may be extended for reasons to be recorded in writing. If the application for exemption is not disposed of within the period so specified, the exemption applied for shall be deemed to have been granted.
MY QUERY :
As per Sec-6 of EPS 1995, this Pension Scheme is applicable to our establishment though we are exempted from EPF&MP Act 1952 and as per Sec-39 of EPS 1995, if the employees of the establishments are either members of any other pension scheme or proposed to be members of a pension scheme wherein the pensionary benefits are at par or more favourable than the benefits provided under this Scheme.
Does definition of ‘employee’ covers contract employees for an exempted establishment who has better pension scheme than EPS 1995/ If yes/no why?
