Need Help Understanding My Pension Calculation Before Retirement in Goa?

Sir,

Happy Diwali everyone,

Can anyone help me with pension calculation? I am working in Coop Bank in Goa. My date of birth is 28-11-1958, and my date of joining is 28-08-1977. In November 1995, my basic salary was 3100, and the total was Rs. 8232/- including DA.

Currently, my present basic salary is 32400, and the total is Rs. 74,000 including DA.

I am set to retire on 30-11-2016. According to the calculator provided, the maximum pension amount is Rs. 2842. Is this correct?

Thanks,
Naresh Karmali

Dear Naresh Karmali, Your past service up to 15.11.95 is 18 years, and the slab amount is 135. The multiplying factor as per Table B is 5.231. Therefore, the past service benefit is calculated as 135 x 5.231, which equals 706.

Pensionable Service Benefit

The pensionable service benefit is divided into two periods: up to 31.8.2014 and from 1.9.2014. For the period up to 31.8.2014, the calculation is Salary (6500) x service (18.78) = 1744. For the period from 1.9.2014, the calculation is Salary (10183) x service (2.24) = 327.

The aggregate pension for 21 years is 2071. With the 2 years of bonus, the pension amount becomes 2268 (calculated as 2071 x 23/21).

Therefore, the total pension, which includes the past service benefit and the pensionable benefit, is 2974 (706 + 2268).

Regards, Abbas.P.S

Sir, thank you for the reply.

Why is it calculated until 31.08.2014? Also, since the minimum pension is Rs.1000/-, has the Rs.706/- formula not changed? I feel a lot of amendments are required urgently in this Act because under this Act, even DA rise is not provided.

The ceiling salary for EPS contribution until 31.08.2014 was Rs. 6500 and was enhanced to Rs. 15000 with effect from 01.09.2014. EPFO has changed the calculation of pensionable benefits into a two-tier system accordingly. Logically, this is not correct because the pensionable salary is the average of the last 12 months (before the amendment) or 60 months (after the amendment). There is no indication of such a change in the principal scheme. When the ceiling salary was increased from Rs. 5000 to Rs. 6500 (effective 1.6.2001), no changes were implemented. If someone were to approach the court, we may receive justice.

The minimum pension consists of the aggregate of past service and pensionable service. Here, 706 represents the past service benefit. Therefore, the minimum cannot be applied part by part.

Regards, Abbas.P.S