Confused About Pension Fund Withdrawal? Need Help Calculating My Full Entitlement!

Pension Fund Withdrawal Query

I worked for a company for 5 years and then for another company for 3 years. I got my PF and Pension fund transferred from my previous company to the second company. Now, I applied for withdrawal of both PF and EPF amounts. The EPFO office has paid me my Pension fund amount by considering only 3 years of service. My total service was 8 years, 6 months, and 15 days. The service period was from May 01, 2000, to Dec 14, 2005, and Dec 15, 2005, to Dec 15, 2008.

Kindly let me know:

1. The procedure for calculating the pension fund amount if we apply for withdrawal.
2. Whether it would be taxable or not.
3. How much amount I should have received if my last basic salary was Rs. 4208/-

Waiting eagerly for your responses!

Thanks,

Kishor Satyawali

Pension Calculation (Form 10C)

The calculation of pension (Form 10C) is as follows: Basic x 8.33%. In your case, 4208 x 8.33% = 351 x (Total no. of months i.e., 60) = 351 * 60 = Rs. 21,060/- (Excluding Interest).

Provident Fund Calculation (Form 19)

From the employee side: 4208 x 12% = 30,300/-
From the employer side: 4208 x 3.67% = 9,240
Total = Rs. 30,300 + 9,240 = 39,540 (Excluding Interest).

The calculation is done considering 5 years = 5 * 12 = 60 months. It is not taxable.

Regards,
Sandhya

Many thanks for your responses. I have sent my grievance to the EPFO online and am now waiting for their reply. I believe if the employer's contribution of 3.67% was transferred to my second PF account, then the remaining 8.33% must have been credited into the new account.

Thanks,

Kishor Satyawali

If you contributed 8 years, 6 months, and 15 days to the pension fund, your service will be rounded up to 9 years. As per Table D, the multiplying factor for 9 years will be 9.33 and will be multiplied by the salary on which the pension fund payment was made.

For example, if the salary is 6500, the one-time withdrawal benefit is 6500 x 9.33 = 60645.

Regards,
Abbas P.S.

As per the provisions of the Employees' Pension Scheme 1995 (amended up to date), the amount of the Pension Fund (i.e., Return of contribution on exit from employment) is calculated as provided in Table D of the scheme.

Calculation of Return of Contribution

In your case, the Return of contribution on exit from employment for working 8 years, 6 months, and 15 days would be as follows:

- Years of service: 9 years (rounded off to the nearest six months)
- Factor - Proportion of wages at exit: 9.33

Hence, you may be entitled to an amount = (Last 12 months average Basic rate * 9.33). For example, if your average pay is Rs. 4208, then the Return of contribution on exit from employment would be 4208 X 9.33 = Rs. 39,260.64.

Regards

Excellent answer from Advocate Mr. Gupta. Please follow up with that answer.

All PF Pension withdrawals are based on Table D only for up to 10 years.

Thanks,
Satyaa K
Human Resource

Many thanks for your timely inputs. I have been regularly following up with this issue. I have come to know that I have received only my second company's pension fund amount. When asked why I didn't get my first company's pension fund amount, they are saying that the PF office is asking for fresh attestation of Annexure K form from the Vapi, Gujarat PF office. Accordingly, I have sent the K form copies for attestation to the Vapi office by registered post in February 2013 but have not received any reply from their office.

Thanks,
Kishor

I worked for 7 years for a company. Now, I am planning to withdraw my PF amount. Am I eligible to withdraw my pension as well?

If I am not eligible to withdraw the pension, can I withdraw the same pension after 10 years, i.e., irrespective of the PF withdrawal?