SHORT NOTES ON COAL MINES PENSION SCHEME, 1998
COAL MINES PENSION SCHEME 1998 (WITH AMENDMENTS)
It shall apply to the employees of the coal mines to which the Coal Mines Provident Fund Scheme, 1948, the Andhra Pradesh Coal Mines Provident
Fund Scheme, 1956 and the Rajas than Coal Mines Provident Fund Scheme, 1958 framed under section 3 of Coal Mines Provident fund and Miscellaneous Provisions Act, 1948, apply.
Key Definitions from the Scheme
1. Act: Refers to the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 (46 of 1948).
2. Authorised Officer: Includes the Regional Commissioner, Assistant Commissioner, or any other designated officer under Section 3C(2).
3. Average Emoluments: The average notional salary paid to an employee during the last ten months before retirement.
4. Board: Refers to the Board of Trustees formed under Section 3A.
5. Commissioner: The Coal Mines Provident Fund Commissioner appointed under Section 3C(1).
6. Date of Retirement: The retirement date on or after April 1, 1994.
7. Employee: A coal mine worker covered by the Coal Mines Provident Fund Schemes.
8. Family: Includes:
Spouse (wife/husband) of the employee.
Judicially separated spouse (not guilty of adultery).
Unmarried children (below 25 years) or adopted children.
9. Form: The form annexed to the scheme.
10. Fund: The Coal Mines Provident Fund.
11. Notional Salary: Monthly pay, including basic pay and dearness allowance, regardless of the actual salary drawn.
12. Pension: Includes superannuation, retiring, disablement, widow, widower, children, and orphan pensions.
13. Pensionable Age: means the age of sixty.
14. Pensionable Service:
Before March 31, 1989: Two-thirds of actual service, excluding unpaid contribution periods.
After April 1, 1989: Entire service period until retirement or death.
15. Provident Fund Scheme: Includes the Coal Mines Provident Fund Scheme (1948), Andhra Pradesh Coal Mines Provident Fund Scheme (1956), and Rajasthan Coal Mines Provident Fund Scheme (1958).
16. Retirement (for Pension Scheme members): The exit of an employee after completing 10 years of pensionable service.
17. Salary: Monthly emoluments from which contributions to the fund are deducted.
18. Superannuation: Superannuation" in relation to an employee who is a
member of the Pension Scheme refers to:
The attainment of sixty (60) years of age by the employee,
On which their employment is vacated.
19. Year: A period from April 1 to March 31 of the following year.
3. Establishment of the Pension Fund:
From the appointed day, the Pension Fund was established for pension payments to employees or their families. It consists of:
1. Net Assets: Transferred from the Coal Mines Family Pension Scheme, 1971 on the appointed day.
2. Employee and Employer Contributions:
2.33% of the employee's salary (combined share of employee and employer) transferred from the appointed day.
3. Basic and Dearness Allowance Contribution:
2% of the basic and dearness allowance paid from April 1, 1989
or date of joining (whichever is later) to March 31, 1996.
2% of notional salary for service from April 1, 1996, transferred from the employee's salary.
4. Incremental Contribution:
Equivalent to one increment based on the employee's salary on July 1, 1995, or the date of joining (whichever is later), transferred from their salary.
5. Government Contribution:
1.16% of the salary of the employee, contributed by the Central Government from the appointed day.
4. Eligibility for Pension
1. General Eligibility:
Existing Members:
Employees who were part of the Coal Mines Family Pension Scheme, 1971 before the appointed day and haven't reached the age of superannuation are automatically eligible for pension under this scheme.
2. Employees Covered by Provident Fund (Not CMFPS Members):
These employees can opt for pension under the scheme by submitting
Form PS-1 within:
Fund either:
In cash or through installments from their monthly salary or by transferring funds from their Provident Fund account.
Arrears consist of contributions listed in paragraph 3 clauses:
(b): At the prevailing interest rate of the Coal Mines Provident Fund.
(c) and (d): At 12% per annum interest.
(e): At the Central Government's interest rate credited in the CMFPS contributions.
Eligibility for Ex-Employees (2B):
Ex-employees (who did not opt for the Coal Mines Family Pension Scheme, 1971 but were part of the Coal Mines Provident Fund Scheme) and:
Had superannuated or died (including while in service) between
April 1, 1994 and March 31, 1998.
These individuals can opt for pension within 9 months from the date of the notification in the Official Gazette by submitting Form PS-1.
They are considered scheme members from the date of exercising the option.
Deposit of Arrears:
Contributions for the arrears are based on:
Clause (b): Interest rate of the Coal Mines Provident Fund.
Clauses (c) & (d): 12% annual interest.
Clause (e): Central Government's prevailing interest rate
credited to the CMFPS, 1971 contributions.
2. Confirmation of Membership (2C):
If a member mistakenly submits Form PS-1 instead of PS-2 (or vice versa), or fills out Form PS-3 or PS-4, it will be presumed that they
3. Option for Pension by 1971 Scheme Members (Post-1994 Retirees):
Employees under the 1971 scheme, who retired on or after April 1, 1994, can opt for pension under this scheme:
Within 365 days of their superannuation or retirement date.
They become scheme members from the date of exercising the option through Form PS-2.
In case of death before exercising the option:
The nominee/legal heir can opt for pension within 365 days from the appointed day.
Deposit Requirements:
Employees (or nominees) exercising the option must deposit arrears in the Pension Fund from:
Retirement-cum-withdrawal benefits received under the
1971 scheme.
2% of the salary (from April 1, 1989, until retirement).
(5)Eligibility for Pension:
Employees from the following funds are eligible for pension:
Central Coalfields Limited Staff Provident Fund (CCLSPF)
Coal Mines Authority Limited Staff Provident Fund (CMALSPF)
Those who retired or superannuated on or after April 1, 1994,
Will be deemed members of this scheme and eligible for a pension
from October 8, 2002.
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