As per details of "PPO Enquiry Sheet" received by my colleague on attaining the age of 58 (Superannuation) on 15th March 2018, pension details are as below:
- Pension amount: Rs. 2967/-
- Past Service Up to 15-11-1995: 5 Years, 7 Months, and 15 Days
- Date of Joining: 01-04-1990
- Date of Exit: 15-03-2018
- Reason for Exit: Superannuation
- Eligible Service: 28 Years
- Wage on 15-11-1995: Rs. 1200/-
- Wage on Date of Exit: Rs. 15000/-
- Actual Service After 15-11-1995: 22 Years, 3 Months, and 27 Days
- Pensionable Service: 22 Years, 1 Month, and 27 Days
- NCP Days: 61 Days
- Pensionable Salary: Rs. 12144/-
- Weightage Service: 2 Years
As per our understanding, PF Pension will be calculated based on the following formula:
EPF Pension = Pensionable Salary * Number of Years of Service / 70
If we calculate the pension based on the above formula, he should get Rs. 4163/- (12144 * 24 / 70). There is a difference of Rs. 1196/- in the pension amount as per our workings and the PPO sheet.
Request members to enlighten us on the PF Pension calculation.
From India, Thiruvananthapuram
Acknowledge(0)
Amend(0)
1- Pension amount: Rs. 2967/-
- Past Service Up to 15-11-1995: 5 Years, 7 Months, and 15 Days
- Date of Joining: 01-04-1990
- Date of Exit: 15-03-2018
- Reason for Exit: Superannuation
- Eligible Service: 28 Years
- Wage on 15-11-1995: Rs. 1200/-
- Wage on Date of Exit: Rs. 15000/-
- Actual Service After 15-11-1995: 22 Years, 3 Months, and 27 Days
- Pensionable Service: 22 Years, 1 Month, and 27 Days
- NCP Days: 61 Days
- Pensionable Salary: Rs. 12144/-
- Weightage Service: 2 Years
As per our understanding, PF Pension will be calculated based on the following formula:
EPF Pension = Pensionable Salary * Number of Years of Service / 70
If we calculate the pension based on the above formula, he should get Rs. 4163/- (12144 * 24 / 70). There is a difference of Rs. 1196/- in the pension amount as per our workings and the PPO sheet.
Request members to enlighten us on the PF Pension calculation.
From India, Thiruvananthapuram
Acknowledge(0)Amend(0)
The calculation appears all right. Pl verify from the local RPFC how pension amount was fixed.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Kalaparam,
You worked prior to 15.12.1995. Also you worked after 15.12.1995. To you the pension calculation formula is different.
Following formula is applicable to you:
Past Service benefit (plus) Pensionable service benefit (less) Proportionate reduction subject to minimum pension specified for each group.
What you need to do is as under:
1. For past service benefit you have to calculate pension amount for the period before the 16/11/1995.
2. For pensionable service benefit you have to calculate the pension for the period after 16/11/1995 as per the formula mentioned by you.
3. You need to check the proportionate reduction subject to minimum period depending on when the pension started or date of commencement of pension.
Calculation of pension amount for the period before the 16/11/1995 is very complex subject which one need to study. I had given presentations on this calculation but right now I have forgotten it. Till last year I had the presentation material which I discarded it in 5S carried out by me.
From India, Mumbai
Acknowledge(0)Amend(0)
0
0
You worked prior to 15.12.1995. Also you worked after 15.12.1995. To you the pension calculation formula is different.
Following formula is applicable to you:
Past Service benefit (plus) Pensionable service benefit (less) Proportionate reduction subject to minimum pension specified for each group.
What you need to do is as under:
1. For past service benefit you have to calculate pension amount for the period before the 16/11/1995.
2. For pensionable service benefit you have to calculate the pension for the period after 16/11/1995 as per the formula mentioned by you.
3. You need to check the proportionate reduction subject to minimum period depending on when the pension started or date of commencement of pension.
Calculation of pension amount for the period before the 16/11/1995 is very complex subject which one need to study. I had given presentations on this calculation but right now I have forgotten it. Till last year I had the presentation material which I discarded it in 5S carried out by me.
From India, Mumbai
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Check Failed/Partial)-The user's reply contains inaccuracies. The correct calculation involves considering both past service benefits and pensionable service benefits, but the formula provided is incorrect. The correct calculation should be based on specific pension rules and not a generic formula.
0
0
I started working under pf act from 16.04.2013 when should i applicable for pension and how much
From India, Anand
Acknowledge(0)Amend(0)
0
0
From India, Anand
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Check Failed/Partial)-[The user reply is inaccurate. Under the Employees' Pension Scheme (EPS), an employee becomes eligible for pension after completing 10 years of pensionable service. The pension amount is calculated based on a specific formula considering the average monthly pensionable salary and years of service. It's important to check the latest EPS rules for accurate information.]
0
0
how is the pensionable salary calculated ?
From India, Agartala
Acknowledge(0)Amend(0)
0
0
From India, Agartala
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-The pensionable salary is calculated based on the average monthly salary of the last 12 months preceding the date of exit. It includes basic wages, dearness allowance, and retaining allowance, if any. This calculation is crucial for determining the EPF pension accurately. (1 Acknowledge point)
0
0
Engage with peers to discuss and resolve work and business challenges collaboratively. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Register and Log In.
EPF PENSION CALCULATION.zip
EPF Pension xls new calculation.xls
CiteHR.AI
(Fact Checked)-The user's reply is correct. Thank you for your input and suggestion. (1 Acknowledge point)