Family Pension Scheme - Need to know when my pension will start and how much I will get

Dear All,

I am presently 56 years of age. I worked in the public sector for 19 years and was part of the Family Pension Scheme. I then joined the private sector in the year 1997, and all my PF and contributions to the Family pension were transferred to a new account in the company which I joined. Currently, my company is contributing Rs. 541/- to the pension fund. I would like to inquire about when my pension will commence and the amount I will receive.

Thanks,
Sunil

Dear Sunil,

Generally, on completion of 58 years of age, you are eligible to receive a pension. To calculate the pension amount, kindly provide the following information:
1) Your Date of Birth
2) Service details (Date of joining, date of receiving, etc.) of the previous company
3) Date of joining in the present company, etc.

Abbas.P.S

Hi Abbas Sir,

DOB: December 1956. Date of joining first company: October 1977; Date of relieving: January 1997. Date of joining next company: January 1997 and continuing. Hope this helps.

Sunil

Dear Sunil,

Your pension amount for the family pension period (till 16.11.1995) will be Rs. 605, and for the pensionable service (w.e.f. 16.11.1995) will be Rs. 1764. Hence, the total will be Rs. 2369. The ceiling of the salary for PF will be increased from Rs. 6500 to Rs. 15000 soon. Accordingly, that will reflect in your pension amount as well.

Abbas.P.S

Dear Abbas Ji,

Thank you very much for your prompt and clear response. If possible, could you please share the calculation for the figure of Rs. 605 for my own understanding?

Thanks in advance.

Regards,
Sunil

Dear Abbas Sir,

Please share or send me the formula for calculating the pension. Kindly share.

Dear Sunil,

The calculation of pension prior to the scheme i.e. 16.11.1995 seems to be wrong. In my opinion, the maximum benefit for the prior period was a fixed lump sum at a maximum of Rs. 200/- if you contributed up to the ceiling limits.

Secondly, if you remain a member for 20 years with EPF, you will get 2 grace years when compiling the number of years of contributions.

P. K. Sharma

Dear All,

As per the Employee's Pension Scheme 1995, the calculation formula for monthly pension is as follows:

= Latest PF Basic (i.e., max Rs. 6500) * Number of years of service / 70.

In the case mentioned:

= 6500 * 19 years of service / 70

Rs. 1764/-

There is no need to wait until you reach 58 years to receive the monthly pension amount. If you are no longer an employee, you can apply for monthly pension once you reach the age of 50 years. The authority will deduct 3% during the pension calculation for each year if the individual is less than 58 years old.

Seniors, please correct me if I am mistaken. I want to ensure that I do not provide incorrect information here.

Regards,

Praveen Kumar Shetty

Dear Mr. Sunil,

It seems that you are still in service and contributing Rs 541/-. After completing age 58, you will be eligible for Pension. Presently, the PF office is calculating on the last 12 months' average salary subject to a maximum of Rs. 6500.00 - 6500/70 * Number of years of service after November 1995. For service before November 1995, there is a separate table for Pension calculation available on the PF site. You can calculate the monthly pension as mentioned above.

Now EPF is proposed to consider the average salary for the last 5 years of contribution for EPS pension calculation. Accordingly, the member can benefit from a higher contribution.

Thanks & Regards,

Bhat

Dear friends,

I was away from CiteHR due to Eid ul Fitr (Ramzan). Consequently, I am unable to respond to your queries in a timely manner.

The maximum slab amount for the period up to 16.11.1995 is Rs. 170 (not 200), i.e., for a service of 20 years and above. In this case, the service up to 16.11.1995 is only 18 years. Hence, the slab amount is Rs. 135 (if the salary on 16.11.95 is above 2500. If it is less, it will be 120). The slab amount is stipulated for those receiving the benefit on 16.11.95. If we attain the age of 58 years after 16.11.95, there is an interest factor as per Table B. There are less than 20 years (from 16.11.1995 to December 2014) before attaining 58 years. For less than 20 years, the multiple factor as per Table B is 4.485. Hence, the calculation is 135 x 4.485 = 605.

Abbas.P.S

Dear All,

Please find attached the EPS 1995 Handbook published with a demonstration of the calculation of pension. It is very easy to understand the calculations.

Thanks,
Bhat

Dear Seniors,

Please let me know that one of our employees is going to complete his 58th year of age in December 2014. Now, what should I do regarding PF deductions? Should I stop his PF contribution or continue it? Also, please provide information on the retirement processing.

Kindly revert.

Dear Anuj,

Upon reaching the age of 58, if he is still in service, please refrain from deducting EPS contributions after December 14. Medical coverage will remain equivalent to dental coverage until retirement. If a member's service exceeds 10 years, kindly submit Form 10 D to the PF office for monthly pension consideration, even while still in service.

Thanks,
Vidyadhar Bhat

Dear Sir,

He joined here on 10 January 2012, so he has not completed 10 years of service in this organization. I think he is not eligible for a pension. I have two questions about reaching the age of 58. First, can I put him on the payroll, and will he work as a regular employee as he does now? Second, what are the basic formalities of retirement?

Kindly reply.

Dear Anuj Saini,

The employee's service in EPS will be rounded to three years (2012 January to 2014 December). For 3 years, the factor as per Table D is 2.98, which will be multiplied by the salary. The amount arrived at will be paid as a one-time withdrawal benefit towards EPS contribution.

After completion of 58 years, whether the employee can continue or not depends on your company's terms and conditions, standing order, etc.

Abbas P.S

Dear Anju Saini,

Please send form 10C duly filled to RPFC for the withdrawal of EPS. The member can continue on Payroll. Only their EPS contribution will not be deducted and will be added to the Company Contribution.

About retirement, follow the guidelines of the Company. If nothing is mentioned, you can continue as a regular employee. After retirement, you can withdraw your PF and other benefits if any.

Thanks,
Vidyadhar Bhat

Dear Sunil,

Now, I have noticed your query. The past service benefit is on a slab basis. For those with a salary of Rs. 2500 and above on 15.11.1995, the slab amounts are as follows:
- up to 11 years - Rs. 85
- 12 to 15 - 105
- 16 to 19 - 135
- 20 & above - 170

As your service between October 1977 and 15.11.95 is 18 years, the slab amount is 135/-. However, this amount is for those who completed 58 years on 16.11.1995. If the 58 years completion is after 16.11.1995, the amount will be multiplied by a factor stipulated in Table B based on the difference between 16.11.1995 and the date of completion of 58 years. In this case, the difference between 16.11.1995 and Dec 2014 is less than 20 years, and the factor for less than 20 is 4.485. Therefore, the pension for past service is 135 x 4.485 = Rs. 605.

Abbas
P.S.