Dear Amitshash,
I don't know at what age your retirement will take place.
I shall categorize it into two:
1) After completing 58 years of age.
2) Before 58 years.
In the first case, the date of completion of 58 years is the pension entitlement date. In the case of the second, the first day after retirement or 50 years' completion (whichever is later) is the nearest date. In the second case, the pensioner will lose 4% for every year below the age of 58 years. Now, I shall give you some details to calculate the pensionable amount.
There is no upper limit for Eps-95 pension. For pension calculation, the service will be divided into 2 parts: service before 16.11.95 and service w.e.f 16.11.95. The first one is called past service, and the latter one is pensionable service. Past service is divided into 4 slabs: service up to 11 years, 12 to 15 years, 16 to 19 years, and 20 & above. If the salary on 16.11.95 is below Rs. 2500, the monthly compensation will be Rs. 80, 95, 120 & 150, respectively. For Rs. 2500 & above, this will be Rs. 85, 105, 135 & 170. This amount is for those who attain 58 years on 16.11.95. In the case of those attaining 58 years after 16.11.95, the above compensation will be multiplied by a factor stipulated in table B, according to the difference between 16.11.95 and the date of completion of 58 years.
For pensionable service, there is a formula to calculate the pension: Pensionable Salary x Pensionable Service / 70. Pensionable salary can be categorized into 3:
1) Below Rs. 6500.
2) Rs. 6500 & above, but contribution on the statutory ceiling of Rs. 6500.
3) Above Rs. 6500 & opted to contribute on the actual salary.
In the case of the 2nd, the pensionable salary is Rs. 6500. In the other two cases, the pensionable salary will be the average of the last twelve months. Also, if pensionable service is 20 years & above, a 2-year bonus will be given.
For details, please see the website: [EPFO](http://epfindia.com) *[link updated to site home]*
One example I shall quote:
Date of Birth - 2.1.1961
Date of join - 23.2.1987
Salary on 16.11.95 - Rs. 2500 & above
Salary on completion of 58 years on 1.1.2019 - Rs. 6500 (Statutory Ceiling)
Past Service - 8 yr 9 m (approx) rounded to 9 years
Compensation - Rs. 85
Factor as per Table B (for less than 24 years, i.e., the difference between 16.11.95 & 1.1.2019) - 6.102
(This can be calculated as 1.08 to the power of 24 - 0.5, correct to 3 decimals)
Past Service Benefit - 85 x 6.102 = Rs. 519 - (A)
Pensionable Service - 23 years
Bonus (Service is 20 & above) - 2
Pensionable Salary - Rs. 6500
Pensionable Benefit - 6500 x 25 / 70 = 2321 - (B)
Total Pension - (A) + (B) = Rs. 2840
Besides the above method calculation, there will be a minimum for those who have service before 16.11.95. In the EPS-95, they are categorized into three:
1. Date of commencement of Pension before 16.11.2000
2. Date of commencement of Pension between 16.11.2000 & 16.11.2005
3. Date of commencement of Pension after 16.11.2005
As the first two categories are already over, I shall give a brief on the third.
Pensionable benefit (minimum) of Rs. 635 and Past service benefit as mentioned above, subject to a minimum of Rs. 800. This amount is for 24 yrs or more service. If it is less than 24 yrs, this will be reduced proportionately (amount x actual service / 24). However, this amount will be subject to a minimum of Rs. 450.
I shall insert an Excel worksheet to calculate pension. Enter Date of Birth, Date of Join, Date of Separation from Service, Salary on 16.11.95, Salary on Separation from Service (in compliance with the contribution to the pension fund), and break in service before and after 16.11.95, if any in the green-colored column. The results will appear in the yellow-colored column. The red color is for static information.
In case of any error or suggestion, please notice me.
Abbas.P.S,
Secretary,
ITI Employees' Association,
ITI Ltd, Palakkad - 678 623
Ph. +91 9447 467 667.