What is meaning/significance of "70" in the EPS formula. The formula is pensionable salary * pensionable service / 70?

Dear All, The query I am going to ask is already been asked way back in 2008 by one of our fellow member (with 0 replies till date).
I am interested in knowing what is meaning/significance of "70" in the EPS formula. The formula is pensionable salary * pensionable service / 70.
What is this 70? From were has it come/derived?
Senior / Consultants plz..........
Regards
KT

Dear KT,

This is the factor decided by the actuary of the fund at the time of introduction of the scheme. Actuary is a business professional who deals with the financial impact of risk and uncertainty. Actuary has his own method to arrive the factor scientifically. You and I can not question him.

This is my specific answer to your query.

Further I would like to draw the attention of HR Fraternity as under:

The Factor 70 was decided in 1995.

According to this factor if an employee puts his pensionable service of 35 years, he contribute to pension Rs. 541 x 12 x 35 = Rs. 2,27,220.

This employee will get pension 6500 x 35 / 70 = Rs. 3250 per month.

Suppose, this employee invest Rs. 541 per month for 35 years in a recurring deposit (compounded on monthly basis) at 8% interest, he would get more than Rs. 12,00,000 on maturity. If this employee purchase annuity plan offering 7% return out of maturity amount, according to me he will get pension more that Rs. 7000 per month.

This factor need to be revised. HR Fraternity should take up this matter to NAMO Government.

As an indian pvt industrial employee I worked for 19+years
To my knowledge and experience it's looks as Day light service to hard working class from our Great Greedy system
Just like fly on wound it looks like cleaning up but it's not
Great Greedy System towards poor HARD Labour's

70 is based on 35x2.Where 35 years service is the norm for pensionable service(assuming 23 years as age of joining and 58 as retirement age although a person can joun at 18 years) is the denominator for the pensionable service and 2 is the denominator for the average salary(pension amount is half of average salary)

70 is the Indian citizen average life expectancy