Deciding Between Pension Certificate or Reduced Pension: What’s the Best Choice for My Future?

I request some clarity and suggestions backed by logic for making a decision on my case. I joined a private limited company in December 1993 (a member of PF and FPS), changed jobs in December 1987, and continued to remain a member of PF, FPS, and then EPS. I quit my job in December 2013 at the age of 51 years. My last drawn pay is INR 69,000.

Questions

1) How will my pension amount be calculated?
2) What is the pension amount I am eligible for?
3) Should I opt for a pension certificate or immediate reduced pension (considering I am likely to enter into business or pursue other work)? Which option will work out in my favor?

Thankful for all helpful suggestions.

Regards,
Sanjay W.

I joined a private limited company in December 1983 (a member of PF and FPS), changed jobs in December 1987, and continued to remain a member of PF, FPS, and then EPS. I quit my job in December 2013 at the age of 51 years, with my last drawn pay being INR 69,000.

Questions attribution https://www.citehr.com/485638-pensio...#ixzz2u3AtjYIW

1993 should be read as 1983 - apologies for the mistake.

You may please see this link https://www.citehr.com/340383-employ...lculation.html for a model calculation. If you want to know more precisely the amount you are likely to receive, please provide complete dates with the day, month, and year for all events, including the date of birth.

General Rule for Pension Entitlement

The general rule is that you are entitled to a pension in two parts: one for the past service rendered under the old family pension scheme and the second for the portion of service rendered after the introduction of the EPS on 16/05/1995.

You will get a pension when you attain 58 years. For the amount, use the XL sheet attached (originally posted by Abbas IIT on this forum). I have no idea about reduced pension; my understanding is that this provision is officially or unofficially withdrawn or discouraged.

Regards.

To calculate your pension, the Date of Birth and Date of Joining are required. By assuming some dates, I have entered them into the Excel sheet. It seems that your pension at 58 years is 1673. If you apply for a pension at 51 years, this will be reduced to 1257, i.e., you will get 416 more if you lose 7 years of pension. Now you have to decide/opt.

Regards,
Abbas.P.S

I joined one company on 30.12.1980. From the first day of joining, the company has been depositing EPF/FPF as per rules. Since November 1995, EPF introduced a Pension scheme, and the company contributed to the same. After attaining the age of 58 years, I retired on 31.08.2016. I receive a pension of Rs. 2522/- per month from EPFO. I am unsure whether this amount is correct. Can anyone help me check the amount of pension?

I am Rajesh Kumar. My DOB is 27.07.1978, and the date of joining is 01.09.2009. At the time of joining, my salary was 12000.00. Currently, my salary is 35000.00. As of 01.10.2018, I have completed 10 years as an EPF member. Can anybody suggest whether I should withdraw my whole EPF amount or continue with the pension scheme after 10 years?

Dear Keshawrao,

You can opt for EPS Pension after attaining 58 years. Consequently, the employer's share of EPF at 12% will be remitted to EPF. This is beneficial from an individual perspective. The amount of pension will be quantified after taking into consideration your EPS salary during membership and past service prior to 1995. The quantum of pension will be reflected in the Pension Payment Order issued by the department.

Hi,

I submitted an application for revised pension. There were 4 months of a non-contributory period while I was on ex-India leave. Additionally, the last two payments were split payments, i.e., August for 20 days and 11 days in September.

How should this period be calculated? Could you please elaborate on it? Will the non-contributory days be calculated based on the average pay? Please shed some light on it and also cite the relevant provisions.

Thanks,
Davinder Randhawa