Navigating EPS 1995 Pension: How to Ensure Accurate Calculations and Timely Payments?

I worked in a State PSU from April 1984 to January 2003. When I retired upon attaining the superannuation age of 60 years, I received my CPF amount in full, subtracting only the amount of FPF as per FPS 1971 at the prevailing rate at that time, without any contribution towards EPS 1995.

After a prolonged period, I decided to apply for the EPS 1995 scheme. My Claim Form 10D has been received and processed by the Regional Provident Fund Commissioner, West Bengal.

The Regional PF Commissioner has now informed me in a letter that I have to deposit a sum of Rs. 95,030.00 as a Differential Amount along with interest by August 2014 to be eligible for pension payment.

Details of Service Periods and Calculations

I am detailing below various periods like the pensionable service period, past service periods, salary during 1995, etc.

1. Total Past Service: 10 years 7 months 13 days
2. Date of attaining 58 years: 29.01.2001
3. Pensionable Service Period: 5 years 2 months 14 days
4. Category "Y"
5. Basic Salary during Nov 1995: More than Rs. 6500.00
6. Pensionable Service Pension (As per my calculation): Rs. 510.00
7. Past Service Pension (As per my calculation): Rs. 143.00
8. Total Pension: Rs. 653.00 + Pension Relief as applicable.
9. Date of Entitlement: 01.04.1986

Queries Regarding Pension Calculation and Payment

I would like to know the following:

1. Whether the calculation I have made is correct.
2. If not, what amount can I expect as a monthly pension?
3. Whether arrears of my pension would be paid promptly at one go, and what time will be required to process the pension payment?
4. Whether there would be undue delay and what one can do to expedite payment.

Regards

The above calculation is not correct. Past Service (round figure) - 12 years. Slab amount for 12 years - Rs. 105. Multiplying factor as per Table B - 1.526. 105 x 1.526 = Rs. 160 - (1). Pensionable Service (round figure) - 5 years. Pensionable amount - 5 x 6500 / 70 = Rs. 464 - (2). Total Pension - (1) + (2) = 160 + 464 = Rs. 624. By remitting Rs. 95030, you will only get Rs. 624 per month (below 8% interest). Not only is the interest rate below the market/reasonable rate, but you are not going to get back the capital investment. Hence kindly deposit in some other worthy institutions which will yield you more than this, along with the return of your capital at the end.

Regards, Abbas.P.S

Do you mean to say that I will not get the arrear pension immediately? If I get back the arrears for 162 months at ₹624.00, the arrears will amount to ₹101,088.00, and I will continue to receive a monthly pension.

Kindly provide me with your valuable opinion.

Thank you very much for your prompt response.

Regards,
Anonymous

Yes, you will get a pension from the date of eligibility in one instance.

Yes, you are eligible to get the arrears. Sorry, that part did not come to my mind.

Regards, Abbas.P.S

Thank you very much for your messages confirming pension payment from the start date of eligibility, i.e., from the date of attaining the age of 58 years. It seems that opting for EPS1995 will be beneficial, even if it causes inconvenience and hardship in the short term.

Regards,
Anonymous

As I retired (attaining the age of 58 years) on 31/01/2001, and as there is a provision for the calculation of pension for those retiring between 16/11/2000 and 16/11/2005, can I take that pension? In my case, it will be calculated as per sub-paragraph 4 of Paragraph 12:

Pension Calculation for Retirees Between 16/11/2000 and 16/11/2005

(4) In the case of an existing member and in respect of whom the date of commencement of the pension is between 16th November 2000 and 16th November 2005:

(i) The superannuation/early pension shall be equal to the aggregate of:

(a) Pension as determined under sub-paragraph (2) for the period of service rendered from 16th November 1995 or Rs. 438/- per month, whichever is more;

(b) Past service pension as provided in sub-paragraph (3).

(ii) The aggregate of (a) and (b) calculated as above shall be subject to a minimum of Rs. 600/- per month provided the eligible service is 24 years. Furthermore, if it is less than 24 years, the pension shall be proportionately less, subject to a minimum of Rs. 325/- per month.

Can anybody shed light on this? I would be very thankful for this, as my effort to obtain the pension amount from the concerned authority has failed.

Regards,
SKD

As per the above clause, the maximum pension for pensionable service is Rs. 438, and the total pension is Rs. 600. However, upon actual calculation, the amounts have already exceeded this, coming to Rs. 464 and Rs. 624, respectively. Therefore, quoting the above clause in this case is irrelevant. If you are unable to prove the length of service, you may avail of the minimum pension stipulated in the clause.

Upon reaching the age of 58, all individuals are eligible for a pension, regardless of the continuity or discontinuation of service.

Regards,
Abbas.P.S

Further to the above, I had submitted Form 10D along with an amount of Rs. 95,030.00 (differential amount with interest), and the same had been received at the office of the Provident Fund Commissioner. I received messages to this effect on 28/08/2014. It can also be seen in the Claim Status of the EPF site.

Subsequently, I received a letter from this office transferring my Application for Pension for the issuance of PPO and disbursement of the Pension amount, as I had sought withdrawal of Pension from the Bank falling in the jurisdiction of this latter office of EPFO on 05/09/2014.

I had received no information from this EPFO regarding PPO or disbursement.

I understand that it is mandatory for PFC to disburse Pension within a month, failing which they have to pay a penalty.

I may write to EPFIGMS in this matter, but earlier inquiries have brought sharp reactions and advice to visit their office physically, which is far away and may even result in verbal reprimand and further delay in the process.

As in earlier cases, I bank on your good advice and guidance in the matter as my own fund of Rs. 95,030.00 is locked in.