Approaching Retirement: How Much Pension Can I Expect After 34 Years of Service?

I have been working in a private firm since 1981 and will be reaching superannuation in June 2015 after completing 34 years of service. From the time of joining until now, both my employer and I have been contributing based on my full salary, and the pension contribution has also been calculated on the full salary without considering the Rs. 6500 ceiling. My average salary for the past twelve months is around Rs. 51,000. As of 16th November 1995, my salary was Rs. 2750. Could you please let me know how much pension I will receive? My date of birth is the 5th of June 1957.

Your past service benefit is 105 x 4.485 = 471. However, the average of the last twelve months' salary has no role in pension calculation. From 01.09.2014 onwards, the pensionable salary is the average of the last 60 months. Therefore, please provide the average of the last 60 months.

Regards,
Abbas.P.S

My average salary for the last 60 months is Rs. 42,000/-. Now, please tell me the pension amount I may receive upon completion of 58 years.

Dear Eyetexmohan, your pension for pensionable service (w.e.f. 16.11.1995) may be around Rs. 11,700, and the total pension may be Rs. 12,200. However, I need to provide some additional details.

Pension Calculation Details

Initially, the pensionable service was rounded up for a fraction of 6 months and above. Based on this calculation, the pensionable service has been rounded up to 20 years. For 20 years of service, the pension is calculated as 20 x 42,000 / 70 = 12,000. Those who complete 20 years (entitling them to superannuation pension) will receive a two-year bonus, making the total pension for 22 years of service 13,200. However, in practice, the likelihood of receiving these additional benefits is minimal.

Regards,
Abbas. P. S

Thank you very much for the information. However, I have been informed by my office that, unfortunately, the online system automatically accepts pension contributions on par with the ceiling wages, and this cannot be changed. Therefore, it seems I may not receive the pension as previously stated. Nevertheless, I appreciate your assistance once again.

Thank you.