THE KARNATAKA STATE CONSUMER DISPUTES
REDRESSAL COMMISSION, BANGALORE. (ADDL. BENCH)
DATED THIS THE 10th DAY OF NOVEMBER, 2022
APPEAL NO.1545/2013
PRESENT
SRI RAVI SHANKAR, JUDICIAL MEMBER
SMT. SUNITA C.BAGEWADI, MEMBER
The Regional Provident Fund
Commissioner,
Employees Provident Fund … Appellant/s
Organization, Sub-Regional office,
Aland Road, No.97,
Behind Remand Home,
Gulbarga
(By Sri.K.S.Venkataramana, Advocate)
V/s
Dawood Ali,
S/o Osman Ali, Major,
R/o H.No.7-771/3A, …Respondent/s Masjid-e-Saleheen,
Muslim Chowk,
Mominpura,
Gulbarga-585 105
(By Sri/Smt.SNB, Adv.,)
O R D E R
BY SRI.RAVISHANKAR, JUDICIAL MEMBER
The Opposite Party in complaint No.04/2013 has preferred this appeal against the order passed by the District Consumer Commission at Gulbarga which directed them to refix the pension of the complainant to Rs.895-00 per month and also directed to pay arrears along with @ 9% interest per annum and compensation of Rs.2,000/- and submits that, the respondent/complainant is an Ex-employer of Gulbarga Central Co-operative wholesale Stores Ltd and he became a member of Employees Pension Scheme, 1995 with effect from 1-12-1971 and he superannuated on 15-8-1999, there afterwards the respondent made an application in Form-10D claiming pension, accordingly pension order was issued to the respondent by fixing the pension. Further he made requisition for re-fixation of pension as per a new Employees Pension Scheme, 1995 and complaint filed a complaint before the District Consumer Commission. The District Consumer Commission after trial calculated the fixation of the pension and directed this Opposite Party to pay Rs.895/- per month. After refixing the pension of the complainant and also directed to pay arrears. The said refixation of the pension by District Consumer Commission is not in accordance with law and not in terms of scheme, 1995. As per the Employee Pension Scheme, 1995, it requires the following interpretation;
“2 (ii) “actual aggregate of period of service rendered from the 16th November, 1995 or from the date of joining any establishment whichever is later to the date of exit from the employment of the establishment covered under the Act.
2(iv) "Contributory Service" means the period of actual service rendered by a member for which contributions to the fund have been (received or are receivable).
2(xii) "Past service" means the period of service rendered by existing member from date of joining Employees' Family Pension Fund till the 15th November, 1995”.
2(xv) "Pensionable Service" means the service rendered by a member for which contributions have been (received or are receivable).
Employees Pension Fund: This fund has been established under the Employees’ Pension Scheme, 1995. From & out of the contribution payable by the employer in each month under Section 6 of the Act, a part of contribution representing 8.33% of the employee’s pay shall be remitted by the employer to this fund. Under the ceased Employees Family Pension Scheme, 1971, there was a fund called Family Pension Fund, 1971.
8. Under the ceased Employees Family Pension Scheme, 1971, only the family member of the member who has died while in service was entitled to Family Pension.
Under the New Pension Scheme, i.e., Employees; Pension Scheme, 1995 member,
Who superannuates on attaining the age of 58 years has rendered minimum eligible service of 10 years on more are entitle to members pension.
However, a member who has rendered minimum 10 years of eligible service and retires or otherwise ceases to be in the employment before attaining the age of 58 years may opt for early pension.
9. Under Para 10(2) of the Employees Pension Scheme, 1995, there is a provision to add 2 years of weightage to pensionable service. A member, who superannuates on attaining the age of 58 years, and /or who has rendered 20 years of pensionable service or more is entitled to the benefit of 2 years of weightage. The benefit is introduced only in the New Pension Scheme was no such benefit under the ceased Employees Family Pension Scheme, 1971. The word “Pensionable Service” and “Employees Pension Fund” are to be interpreted properly. The word “Pensionable Service” is defined under Para 2 (xv) of the Scheme as “the service rendered by the member for which contributions have been received or are receivable”. Again para 10 (1) of the Employees’ Pension Scheme, 1995 reads that, the pensionable service of the member shall be determined with reference to the contribution received or receivable on his behalf in the Employees’ Pension Fund. The word “Employees Pension Fund” is set up under New Pension Scheme, 1995. Under the ceased Employees Family Pension Scheme, 1971 the name and style of the Fund was employees Family Pension Scheme, 1971.
Hence, the pensionable service means service rendered from 16-11-1995. The manual of accounting provides for the clarification to the meaning of “Pensionable Service” where it is specifically explained that weightage is to be given only for November, 2015 as per para 10 (2)”.
and further submits that pensionable service means a service rendered from 16-11-1995. The manual of accounting provides for the clarifications to the meaning of “pensionable service”, it is specifically explained that weightage is to be given only for November, 2015 as per para 10(2). The District Consumer Commission without considering the above said clauses have calculated at own and arrived wrongly to the tune of Rs.895/- per month payable to the complainant. Hence submits to set aside the order passed by the District Consumer Commission. During the course of trial, the advocate for appellant filed a memo along with table to show, the complainant is whether entitled for refixation of the pension;
Sri.Dawood Ali - PPO No.5113 – Date of Birth – 01.07.1939
Sl. No. | Details of Service Particulars | Pension calculation as approved PPO |
1 | Past service (01.12.1971 to 15.11.1995) | 25 years |
2 | Pensionable Service (16.11.1995 to 30.06.1997) | 2 years (till 58 years i.e., 30.06.1997) |
3 | Age as on 16/11/1995 | 56 years |
4 | Wages as on 15/11/1995 | Less than Rs.2499/- |
5 | Pensionable Salary | Rs.2112/- |
a) | Past service benefit as per table under Para 12 (3) (b) service is beyond 20 years and salary is up to Rs.2500/- | Fixed amount of Rs.150/- |
| Factor (Age as on 15/11/1995) Less: Years to complete 58 years | 58 years – 56 years =02 years (Less than 02 years) |
| Table B Factor = As per Para 12 (3)(b) i.e. 150x1.154= | Rs.173/- |
b) | Pensionable service 02 years Pensionable salary Rs.2112/- Monthly member pension = Pensionable salary x Pen.Service 70 | 2112*02 70 = 60/- (Minimum pension of Rs.335/- is fixed) |
c) | Pensionable Service 02 years Pensionable salary Rs.2112/- (After adding two year weightage) Monthly member pension = Pensionable salary x Pen. Service 70 | 2112*(02+02) 70 =121/- (Minimum pension of Rs.335/- is fixed) |
The pension amount does not change even after adding two years weightage benefit as the pension is already fixed as per the para 12 (5) of EPS – 1995 i.e. minimum of Rs.335/- |
d) Actual pension payable =a+c Rs.173+Rs.335=Rs.508/- + Pension Relief of Rs.68= Rs.576/- p.m. Further, on implementation of minimum pension, the pension of Rs.1000/- has been fixed and released w.e.f. 01-9-2014. |
2. On perusal of the above said table, we consider the question of refixation of the pension does not arise in particular case, in spite of that, the District Consumer Commission had made an error in calculating the pension by its own without considering the Employee Pension Scheme, 1995. Hence, it requires to be dismissed. Accordingly the appeal is allowed and the complaint is dismissed. Hence, we proceed to pass the following:-
O R D E R
The appeal is hereby allowed. No order as to costs.
The impugned order 30.07.2013 passed by the District Consumer Disputes Redressal Commission. Gulbarga in CC.No.04/2013 is set-aside. Consequently, the complaint filed by the complainant is dismissed.
The amount in deposit shall be transmitted to the concerned District Commission to pay the same to the appellant/Opposite Party.
Send a copy of this order to both parties as well as concerned District Consumer Commission.
Member Judicial Member
Jrk/-
