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CS Executive · Setting Up of Business, Industrial and Labour Laws · The Code on Social Security, 2020

Kalyani Textiles Ltd. asks whether the Employees' Pension Scheme can cover a deceased employee's children and nominee. Under section 15 of the Code, which statement is correct?

The Employees' Pension Scheme may provide widow or widower's pension, children or orphan pension and nominee pension, besides superannuation, retiring and permanent total disablement pension. Nominee pension is not confined to the insurance scheme, which gives life insurance benefits.

  1. APension is limited to superannuation pension only
  2. BOnly widow or widower's pension may be provided, not children's pension
  3. CThe scheme may provide widow or widower's, children or orphan, and nominee pensionCorrect
  4. DNominee pension can be provided only under the Deposit Linked Insurance Scheme

Explanation

Section 15(1)(b) lists superannuation, retiring or permanent total disablement pension, widow or widower's, children or orphan pension, and nominee pension. So the pension scheme covers beneficiaries including children and nominees. The insurance scheme provides life insurance benefits, not nominee pension.

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