Struggling with 1995 Pension Calculation? Need Help After PF Office Refusal?

Dear all,

Can anyone share the calculation for the 1995 pension with details? The PF office has refused to provide this information.

Thank you.

Dear Mr. Mohanasundaram Subramani,

If you are a pensioner of EPS-95, you have the right to know the details of your pension through the Right to Information Act. Otherwise, please provide your Date of Birth (DOB), Date of Joining (DOJ), Date of Relieving, and salary details.

Best regards,
Abbas P. S

Thanks Abbas. Please find my information as follows:

Date of birth: 10.07.1958

Date of joining: 02.11.1981

Date of relieving: 31.07.2016

Salary on 16.11.1995: 4500 (basic + DA)

Salary on 31.07.2016: 42000 (basic)

I hope this information is sufficient for you to calculate my pension amount. Kindly let me know my pension amount.

Note: According to my calculation, my monthly pension will be Rs. 3715. However, based on the PF calculation, my monthly pension will be Rs. 2694. I have also attached an Excel file with my pension calculation.

Pension Calculation Details

Your past service benefit is 509.

Pensionable Service Benefit Breakdown

The pensionable service benefit is divided into two periods: from 16.11.95 to 31.08.2014 and from 01.09.2014 to 09.07.2016.

For the first part, the average salary is 6500, with approximately 18.8 years of service, resulting in a pension amount of 1744.

In the second part, the average salary for the preceding 60 months is 9616, with approximately 1.85 years of service, leading to a pension amount of 256.

The total pension combining both parts amounts to 2703. Further details can be obtained by writing to EPFO under the RTI act.

Regards, Abbas.P.S

Dear Sir, as per your calculation, the past service benefits calculation seems to be correct. However, I have these two queries:

1. What about the 2 years additional service benefit eligible for an employee whose service is 20 years or more after 15.11.1995? How is this benefit calculated?

2. According to the EPS Rules, under Para 12, it is stated that the average salary of the past 60 months should be considered for an existing member from the date of his superannuation.

In the above situation, please inform me how much the pension should be in the following case:

Date of Birth: 20.12.1959
Date of Joining: 01.12.1989
Date of Leaving: 20.12.2017
Maximum wages on respective dates: Rs. 5,000, Rs. 6,500, and Rs. 15,000/-

Kindly guide me on how the pension in the above case is calculated.

Thank you.

Dear Swetley,

Kindly go through my above post thoroughly. You will get the answers to your 2 doubts. The pension for the above particulars is Rs. 3001, which is calculated as follows:

1) Past service benefit, 85x5.649 = 480 - (A)
2) Pension till 31.8.2014, 6500x18.786/70 = 1744 - (B)
3) Pension w.e.f 1.9.2014 to 19.12.2017, 12025x3.304/70 = 568 - (C)

(B) + (C) = 1744 + 568 = 2312 - (D)
With 2 years bonus, 2312x24.09/22.09 = 2521 - (E)

Total Pension (A) + (E) = 480 + 2521 = 3001 - (F)

Abbas.P.S

Thank you for your prompt and clear calculations. However, can you enlighten on the following:

a) How is the Rs. 12,025/- arrived at under Point No. 2?

b) You have calculated separately for the period from 15.11.95 to 31.8.2014 and from 01.09.2014 to 19.12.2017. But under Paragraph 11 of the EPS Scheme, the Pensionable Salary is the past 60 months' average salary preceding the date of exit. Therefore, my understanding is that as per the above Paragraph, only the average salary of the past 60 months is to be considered for the entire service from 15.11.1995 to 19.12.2017. Is this understanding correct? Or does it specify anywhere to separately calculate for two periods? If that is the case, then the salary from 16.11.95 to 31.05.2001 was Rs. 5,000/-, and why is it taken as 6,500/- for that period?

Hope you will shed some light on the above for better clarity and understanding of this complicated scheme.

Thank you

Dear Swetley,

Regarding Rs. 12025/-, this is the average salary of the 60 months preceding December 2017. That is, (15000x39 + 6500x21)/60 = (585000+136500)/60 = 721500/60. My calculation is in accordance with EPFO circular no. Actuarial/18(2)2008/Vol.III/7738. I shall reproduce the circular as follows. If you have any disputes, kindly take them up with EPFO.

Abbas.P.S

Dear Mr. Abbas,

Thank you so much for clearly informing me about the Pension Calculation. You made this complicated method very simple to understand. Thank you once again.

In the notification that was attached by us, can you please explain point 8 which says, "As EPS will henceforth apply only to EPF members whose pay at the time of becoming PF member is not more than Rs 15,000/- per month on or after 01.09.2014, the entire employer and employee contribution shall remain in the Provident Fund, and no diversion to EPS shall be made to all new PF members on or after 01.09.2014 having a salary more than Rs 15,000/- at the time of joining."

What I want to know is if I have hired employees after September 1, 2014, and if their pay is more than Rs 15,000, then I don't have to input anything for these new hires in EPS. The entire employer share and employee share will go to EPF. Is this correct?

Thank you for sharing the calculation sheet considering the average salary as the past 60 months' salary. However, in reality, this is not how it is calculated by the RPFC. They consider the salary from November '95 to September '14 as 6,500/- and from October '14 onwards as 15,000/- per month, calculating a weighted average to derive the pensionable salary. The last 60 months' average is not taken into account.

As a result, the actual pension calculated is significantly reduced, as a major part of the calculation is based on the period from November '95 to October '14. I would appreciate clarification on whether this method is uniformly followed across all RPFCs and if they do not adhere to the rule of considering the past 60 months' salary.

In my experience calculating cases within my company, I have noticed that the 60 months' average is not considered. Consequently, the pension amount never exceeds 3,100/- per month. Your prompt response is awaited as we need to address the issue of inconsistent guideline application.

Sincerely,
S. K. Mahapatro
[Phone Number Removed For Privacy-Reasons]

Pension Calculation Query

Birth date: 7-4-1964
Date of joining: 3/6/2011
Date of leaving service: 30/6/2022
Salary at leaving: $15,000

I want to know the pension amount. It should be $2,357.14, but it's $1,928.