Can I Start Receiving My Pension While Still Working at Philips India?

Pension Inquiry While in Service

My name is Sanjay Patki. I am working at Philips India Ltd, Vadodara. In July last year, I completed 58 years on 10.07.2014. According to the government circular, I would like to inquire about taking a pension while still in service. Could you please provide information on the formula for this?

My total service is 32 years. If needed, what other information is required?

My mobile number is [Phone Number Removed For Privacy Reasons].

Thank you.

Regards,
Sanjay Patki

Referring to the above matter, my name is Sanjay Patki. I am working at Philips India Ltd., Vadodara. In July 2014, I completed 58 years (still in service until 60 years are completed). As per government rules, I want to claim a pension. Please let me know how the pension is calculated or help me calculate it. Also, please confirm the details you require for calculating the pension.

Pension Details

My total service is 32 years. The pension scheme starting from 1995 amounts to 19 years. My basic salary is Rs 10,550 per month.

Regards,
Sanjay Patki

You have not provided the Date of Birth or the joining date. However, based on other details, I will offer an approximate calculation.

For service up to November 15, 1995, the pension will be 105 x 4.152 = 436 - (A)

From November 16, 1995, to July 15, 2014, the pension will be 18.66 x 6500/70 = 1733 - (B)

Total pension (A) + (B) = 436 + 1733 = 2169

Note: Even though your basic salary is 10550, the ceiling limit in July is 6500, and the calculation is adjusted accordingly.

Regards, Abbas.P.S

Dear Sir,

As you described above about pension calculation, I have some queries:

Pension Calculation Details

(A) For service up to 15.11.1995, the pension will be 105 x 4.152 = 436 - (A)

(B) From 16.11.1995 to 15.7.2014, the pension will be 18.66 x 6500/70 = 1733 - (B)

Queries

1. I understand point B but do not understand point A.
2. In point B, 18.66 represents the service period, but considering the limit is 15000, should it be calculated as 18.66 x 15000/70 = 3998?

Kindly guide.

Regards,
Ashutosh Jain

For the period up to 15.11.1995, compensation is Rs. 105 for 12 to 15 years, provided the salary is above Rs. 2500. This amount is for those who attain 58 years on 16.11.1995. After this, interest will be paid in the form of Table B. This factor is 4.152.

Pensionable Salary Calculation

Pensionable salary is the average of the last 60 months. For those who attain 58 years now, the average salary will be ((6500 x 54) + (15000 x 6)) / 60 = 7350. However, the current salary is only 10550. Accordingly, the pensionable salary will also be reduced.

Regards, Abbas.P.S

Dear Sir, I retired on 1st July under the superannuation scheme. When my pension was calculated, the pensionable salary considered was Rs. 6500 per month. As you are aware, the ceiling limit increased to Rs. 15000 on 1st September. Now, my final pension amount has been fixed at Rs. 2266.

I would like to clarify that when the ceiling limit increased on September 1st (with my basic salary being Rs. 10510 per month), they continued to consider my pensionable salary as Rs. 6500. I request your advice on whether this is correct.

For July and August, I received a pension based on the pensionable salary of Rs. 6500. From September onwards, it should be calculated based on the pensionable salary of Rs. 10510.

I believe the calculation should be as mentioned above. Please assist me as the PF authority is not cooperative in resolving this issue.

With regards,
Sanjay Patki

Dear Sanjay Patki,

To calculate the pension, the following details are also required:

1) Date of birth
2) Date of joining
3) Salary on 16.11.1995 (Whether it is below or above Rs. 2500)

Abbas.P.S

Dear Abbas Sir,

As per your email, my date of birth is 10.07.1956. I joined in January 1978, and my salary on 16.11.95 was Rs. 3300 per month. If any further details are required, please feel free to email me.

With Best Regards,

Sanjay Patki

Dear Sanjay Patki,

Past Service Calculation

Your past service, i.e., service up to 16.11.1995, is 18 years. The past service benefit is 135 multiplied by the factor stipulated in Table B, which is 4.152 (This is the interest for the period between 16.11.95 to 10.7.2014, less than 19 years).

135 x 4.152 = 561 - (1)

Pensionable Service Benefit

Pensionable service benefit = 18.65 x 6500/70 = 1732 - (2)

Total Pension Calculation

Total pension (1) + (2) = 2293. If EPFO gives Rs. 2266 as a pension, there is a shortage of Rs. 27. You may kindly contact the Information Officer of the concerned Regional Commissioner's office under the RTI Act regarding the calculation of your pension.

Ceiling hike of 15000 will come into force w.e.f. 01.09.2014 only. As you cross 58 years on 10.7.2014, it will not be applicable to you.

Regards,
Abbas. P. S