Contributory Provident Fund:
Industrial employees on their retirement from service are not entitled to any pension. They are normally entitled to CPF benefits unless and until they opt for pensionary benefits. CPF benefits means Contributory Provident fund in which a monthly contribution is made by an industrial employee and a matching contribution or such percentage of the subscriber emoluments as may be prescribed by the Govt. is also made by the Govt. into the fund of that employee. On his retirement, the industrial employee is paid the accumulated amount of fund standing to his credit with the amount of interest accrued thereon as prescribed.
The Central Govt. employee who had retired on CPF benefits prior to 18.11.60 after completing 20 years continuous service and, therefore, had no chance to elect the pensionary benefits have been granted ex.gratia pension w.e.f. 01.01.67 in accordance with the provisions contained in Ministry of finance, Department of Expenditure (Defence Division), NEW DELHI O.M. NO. 18(2) EV/68 dated 29.11.69 at the rates as revised vide Ministry of PPG and Pensions, Department of Pension and Pensioners Welfare O.M. NO. 5(1)/88-P&PW (E), dated 27.09.88 and No.45/52/97-P&PW(E), dated 16.12.97
The CPF beneficiaries who retired between the period 18.11.60 to 31.12.85 have been granted ex.gratia payment @ Rs.600/- p.m. w.e.f. 01.11.97, subject to the condition that such persons should have rendered at least 20 years continuous service prior to their superannuation
All CPF beneficiaries who were in service on 1.1.86 will be deemed to have come over to the pension scheme unless and until they specifically opt to retain CPF benefits. In the case of those who specifically opt to continue with CPF benefits w.e.f. 1.1.86 will be entitled to retirement gratuity and death gratuity at the same rate as is admissible to those who are borne on pension establishment.
Ex-gratia Payment to Families:
However, the widow and dependant children of the deceased CPF beneficiaries who had retired from service prior to 1.1.86, are entitled to ex.gratia payment of Rs. 150 p.m. w.e.f. 1.1.86 or from the date following the date of death of deceased employee whichever is later. Ex.gratia payment is also admissible from 1.1.86 to the widow and dependant children of CPF beneficiaries who died while in service before 1.1.86.
The ex.gratia payment of Rs.150/-p.m. has been revised to Rs. 605 p.m. w.e.f. 1.11.1997.
Dearness relief as sanctioned by the Govt. from time to time is also admissible with the ex.gratia payment.