hi, I am krishna, I want to know what is eligibility of pension fund under pf fund ?
From India, Mumbai
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5From India, Mumbai
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Dear Krishna, Your question is not clear. Please make it clear that whether your question is regarding contribution to Pension Fund or the return / pension from the above fund. Abbas.P.S
From India, Bangalore
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From India, Bangalore
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For pension calculation, the service will be divided into two parts: service before 16.11.95 and service from 16.11.95 onwards. The first is referred to as past service and the latter as pensionable service. Past service is categorized into four slabs: service up to 11 years, 12 to 15 years, 16 to 19 years, and 20 years and above. If the salary on 16.11.95 is below Rs. 2500, the monthly compensation will be Rs. 80, 95, 120, and 150 respectively. For salaries of Rs. 2500 and above, the compensation will be Rs. 85, 105, 135, and 170. These amounts apply to those who turn 58 years old on 16.11.95. For individuals who turn 58 years old after 16.11.95, the compensation will be multiplied by a factor specified in Table B, based on the time difference between 16.11.95 and the date they reach 58 years.
Pensionable Service Calculation
Regarding pensionable service, there is a formula to calculate the pension: Pensionable Salary x Pensionable Service / 70. Pensionable salary falls into three categories: 1) Below Rs. 6500, 2) Rs. 6500 and above but contributions capped at Rs. 6500, and 3) Above Rs. 6500 and opted for contributions based on actual salary. In the second category, the pensionable salary is Rs. 6500. In the other two cases, the pensionable salary is the average of the last twelve months. Additionally, a two-year bonus will be given for pensionable service of 20 years and above.
For further details, please visit the website: EPFO
Illustrative Example
- Date of Birth: 2.1.1961
- Date of Joining: 23.2.1987
- Salary on 16.11.95: Rs. 2500 and above
- Salary on reaching 58 years on 1.1.2019: Rs. 6500 (Statutory Ceiling)
- Past Service: 8 years 9 months (approximated to 9 years)
- Compensation: Rs. 85
- Factor according to Table B (for less than 24 years between 16.11.95 and 1.1.2019): 6.102
- (The factor can be calculated as 1.08 to the power of 24 - 0.5, rounded to three decimals)
- Past Service Benefit: 85 x 6.102 = Rs. 519 - (A)
- Pensionable Service: 23 years
- Bonus (Service of 20 years and above): 2
- Pensionable Salary: Rs. 6500
- Pensionable Benefit: 6500 x 25 / 70 = 2321 - (B)
- Total Pension: (A) + (B) = Rs. 2840
Minimum Pensionable Benefit
In addition to the above calculation method, there is a minimum benefit for those with service before 16.11.95, classified into three categories in EPS-95:
1. Date of commencement of Pension before 16.11.2000
2. Date of commencement of Pension between 16.11.2000 and 16.11.2005
3. Date of commencement of Pension after 16.11.2005
As the first two categories have already lapsed, a brief overview of the third category is provided. The minimum pensionable benefit is Rs. 635, along with the past service benefit mentioned earlier, subject to a minimum of Rs. 800 for 24 years or more of service. If the service is less than 24 years, the benefit will be reduced proportionately (amount x actual service / 24), with a minimum of Rs. 450.
I will include an Excel worksheet for pension calculations. Please enter the Date of Birth, Date of Joining, Date of Separation from Service, Salary on 16.11.95, Salary on Separation from Service (as per pension fund contribution), and any breaks in service before and after 16.11.95 in the green-colored columns. The results will be displayed in the yellow-colored columns, while the red color indicates static information.
If you notice any errors or have suggestions, kindly inform me.
Regards, Abbas.P.S. ITI Ltd, PALAKKAD - 678 623 Ph. [Phone Number Removed For Privacy Reasons]
From India, Bangalore
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Pensionable Service Calculation
Regarding pensionable service, there is a formula to calculate the pension: Pensionable Salary x Pensionable Service / 70. Pensionable salary falls into three categories: 1) Below Rs. 6500, 2) Rs. 6500 and above but contributions capped at Rs. 6500, and 3) Above Rs. 6500 and opted for contributions based on actual salary. In the second category, the pensionable salary is Rs. 6500. In the other two cases, the pensionable salary is the average of the last twelve months. Additionally, a two-year bonus will be given for pensionable service of 20 years and above.
For further details, please visit the website: EPFO
Illustrative Example
- Date of Birth: 2.1.1961
- Date of Joining: 23.2.1987
- Salary on 16.11.95: Rs. 2500 and above
- Salary on reaching 58 years on 1.1.2019: Rs. 6500 (Statutory Ceiling)
- Past Service: 8 years 9 months (approximated to 9 years)
- Compensation: Rs. 85
- Factor according to Table B (for less than 24 years between 16.11.95 and 1.1.2019): 6.102
- (The factor can be calculated as 1.08 to the power of 24 - 0.5, rounded to three decimals)
- Past Service Benefit: 85 x 6.102 = Rs. 519 - (A)
- Pensionable Service: 23 years
- Bonus (Service of 20 years and above): 2
- Pensionable Salary: Rs. 6500
- Pensionable Benefit: 6500 x 25 / 70 = 2321 - (B)
- Total Pension: (A) + (B) = Rs. 2840
Minimum Pensionable Benefit
In addition to the above calculation method, there is a minimum benefit for those with service before 16.11.95, classified into three categories in EPS-95:
1. Date of commencement of Pension before 16.11.2000
2. Date of commencement of Pension between 16.11.2000 and 16.11.2005
3. Date of commencement of Pension after 16.11.2005
As the first two categories have already lapsed, a brief overview of the third category is provided. The minimum pensionable benefit is Rs. 635, along with the past service benefit mentioned earlier, subject to a minimum of Rs. 800 for 24 years or more of service. If the service is less than 24 years, the benefit will be reduced proportionately (amount x actual service / 24), with a minimum of Rs. 450.
I will include an Excel worksheet for pension calculations. Please enter the Date of Birth, Date of Joining, Date of Separation from Service, Salary on 16.11.95, Salary on Separation from Service (as per pension fund contribution), and any breaks in service before and after 16.11.95 in the green-colored columns. The results will be displayed in the yellow-colored columns, while the red color indicates static information.
If you notice any errors or have suggestions, kindly inform me.
Regards, Abbas.P.S. ITI Ltd, PALAKKAD - 678 623 Ph. [Phone Number Removed For Privacy Reasons]
From India, Bangalore
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PF guidleines for Pension fund.pdf
PENSION CALCULATION.xls