Pension
1. With the serious efforts of all the Trade Unions, the Government of India (GOI) has approved a contributory “Coal Mines Pension Scheme1998” (CMPS 1998) exercising the powers conferred by section 3E.of the CMPF and Misc. Provisions Act 1948.
This was in supersession of the Coal Mines Family Pension Scheme1971 and was implemented retrospectively from 1994.
2. Important Provisions of CMPS 1998
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2.1 PENSION FUND (Clause 3)
- In case the Employee opts for 100% Pension Payment at the time of retirement the widow gets 60% after the Pensioners death- -Clause 12(3)
- If the Employee at the time of superannuation opts for 90% of Pension Clause 15(1) (b):
On death of the Pensioner, the Widow gets onetime payment of 100 times the Monthly Pension drawn by the Pensioner– Clause15(1)(b)
In addition widow gets 60% Pension of the amount drawn by the deceased Pensioner–Clause 12(3).
If the employee opts for 90% Pension at the time of superannuation, and on his death,
a.The widow gets 90 times of the Pension drawn as onetime payment. 15(3) plus
b. The widow Pension at 80% of the amount drawn by Employee-15(I) (C)
c. The option at 90 % or 100% once exercised by the Employee under the above provision shall be final-Clause-15(4).
Net Assets of Coal Mines Family Pension Scheme (FPS) 1971. Employees share of 11/6 % plus equivalent share from Employer transferred from CMPF to CMPS 1998. 2 % of salary contribution from the employees from 01.04.1989.upto Superannuation. Fixed amount equivalent to one increment of salary as on 01.07.1995 notionally paid by the Employer and transferred to Employees CMPS account from 01.04.1996. An amount equivalent to 1 2/3 % of salary to be contributed by GOI from 05.03.1998 (Based on Max Rs 1600/- basic Salary the contribution was Rs.26.56 per employee per Month.)
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2.2 ELIGIBILTY for Pension (Clause 4).
All employees who are on rolls as on 31.03.1998 and FPS 1971 members including those appointed from 01.04.1998 The employees on rolls as on 31.03.1998 who have not opted earlier for FPS 1971 may now opt for CMPS 1998 Scheme submitting the option in Form PS-I.
Fixed amount equivalent to one increment of salary as on 01.07.1995 notionally paid by the Employer and transferred to Employees CMPS account from 01.04.1996. An amount equivalent to 12/3 % of salary to be contributed by GOI from 05.03.1998 (Based on Max Rs 1600/- basic Salary the contribution was Rs.26.56 per employee per Month.)
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2.3) Quantum of Monthly Pension – Clause 10.
The maximum monthly Pension on superannuation to the Employee for 30 years of Pensionable Service is payable at 25% of Monthly average of last ten (10) Months Pay (Basic+D.A.) from the date of Superannuation till his death. The minimum monthly Pension payable is fixed at Rs.350/-.
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2.4 Pensionable Service
10.2
Where an Employee has not completed 30 Years Pensionable Service the Pension is payable at Length of Pensionable Service** X 25 % of the average monthly salary 30** Pensionable Service: Two third the No. of Years of service from 1971(Or Year of entering service) to 1989+Years of service from 1989 till Superannuation.
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2.5. Different Types of Pension OPTIONS
i) In case the Employee dies while in service .The widow/widower gets Pension at 66 2/3% of Pension eligible to the Employee, but not less than a minimum of Rs.250/-Clause I2 (4)
ii) OPTIONS
These Clauses 15(1)(b) and 15(1)(c) were unilaterally withdrawn by the competent authority without proper approval of the GOI compelling the Pensioners Association to knock on the doors of the Hon’ble High Court of A.P.
The CPMPF commissioner (Dhanbad) is the appointed competent Authority empowered to implement the scheme-Clause (2c)
The commissioner is responsible for the valuation and review of the Pension Fund
Note: The life certificate of pensioners is to be submitted to the pension-paying bank in November of every year.
The life certificate is to be certified by the authorized officer of the colliery/Gazetted Officer/Officer of a PSU/RBI/National Bank.