This Scheme has been implemented to provide substantial and adequate protection to the families of a worker dying prematurely in service.
Membership:
The Scheme is compulsory for those who become members of Provident Fund (Government Provident Fund or exempted Provident Fund) on or other 1.3.1971.
ADVERTISEMENTS:
But it has been made optional to those who have been members of Provident Fund (Government Provident Fund or exempted Provident Fund) as on 28.2.1971.
Retention of Membership:
A member of the Family
Fund shall continue to be a member of the Fund till he attains the age of 60 years or till he retires or quits service and withdraws or becomes entitled to withdraw the benefit to which he is entitled under this Scheme or dies during the period of reckonable service, whichever is earliest.
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ADVERTISEMENTS:
Special Grant by Central Government:
The Central Government is to meet the entire cost of administration of the Scheme.
Family Pension Fund-The fund consists of:
ADVERTISEMENTS:
(i) 1-1/6 per cent of employees’ pay out of employees’ contribution to provident fund ;
(ii) 1-1/6 per cent of employees’ pay out of employers’ contribution to provident fund ; and
(iii) 1-1/6 percent of employees’ pay to be contributed by the Central Government.
In this way the total contribution to the Family Pension Fund will amount to 3 per cent of the employees’ pay. Such contributions are to be remitted by the employer to the Family Pension Fund.
Prohibition on the Employer to Reduce Wages of Employees:
For the benefit of the employees, prohibition has been imposed upon the employer for restraining them from indulging in unfair labour practices.
Under the provision it will be clear violation if any employer reduces wages of the employees whether directly or indirectly or reduces the quantum of benefits in the nature of old age pension, gratuity or provident fund, which an employee is entitled to get under the terms of employment expressed or implied.
Any such act by the employer shall be deemed to have been done only to minimise liability for the payment of any contribution to the Fund or the Insurance Fund or any charge under the Scheme or the Insurance Scheme or the Act.
Recognition of Fund for the Purposes of Income Tax:
The Fund established under the provision of Employees’ Provident Fund and Family Pension Act and Deposit-linked Fund, 1952 shall be deemed to be a recognised Provident Fund within the meaning of Income Tax Act, 1922 (Chapter IX-A).
Therefore, all the concessions which are available to a recognised provident fund are applicable to the Fund established under the present Act also.
Authorities under the Act have been specified and Act also contains provision for penalties and offences.