Maximum Pension On Salary Of Rs 125000 Under Eps 95

I have been a member of FPF since my date of joining, i.e., 1/12/1973. Effective 16/11/1995, I have been contributing at 8.33% of my salary (Basic plus DA), which was beyond the Rs 6500 and Rs 15000 limit of PF. My date of retirement is 31-10-1953. Please advise me on the pension receivable by me based on my last drawn salary for the last 3 years before retirement, which was Rs 125,000 (Basic + DA).

Is there a maximum limit to the pension under EPS 95 and what is the impact of the Kerala High Court judgment?

EPS salary is $15,000 only (previously $6,500). The date of retirement is in 1953. Are you sure?

Sorry, the date of retirement is 31-10-2011. I have been contributing to EPS more than the statutory ceiling so as to draw a higher pension.

In 2011, I completed 16 years of EPS membership.
The formula to calculate P is as follows:
P = (16/70) x average of the pensionable salary over 36 months.

From 1995 to 2011, your pension will be roughly the years of pensionable service (excluding the years you have contributed to EPS) multiplied by the pensionable salary (the EPF wage on which EPF contribution is deducted - an average of the 12 months preceding retirement - from September 2014, it is an average of 60 months EPF wage), all divided by seventy. For the period up to November 1995, you will receive a lump sum payment as per a chart. For exact calculations, please search on this site for an Excel sheet posted by IIT Abbas, possibly three years ago.

From 1995 till your retirement (58 years), your contribution towards EPS was restricted to Rs. 6500/= per month. Any excess contribution paid over Rs. 6500/= in the EPS account would have been transferred to your EPF account and reflected in your annual statement each year. Even if someone continues working after reaching the retirement age of 58 years, no contributions would be credited to the EPS account. Instead, the entire contribution, including that of EPS, would be credited to the EPF account, with interest paid at prevailing rates.

In your case, you can review your old EPF annual slips. If you find that interest has not been credited to your EPF account for the difference between your actual EPS wages and Rs. 6500/= in any year, you can appeal to your local EPFO for a reconsideration of your pension amount.

M Venkatraghavan

Dear Mr. MKS,

As you were contributing more than wages Rs. 6500/- for EPS, you are entitled to receive higher benefits towards EPS, i.e. average 12 months' wages as on the retirement date / 70 * Number of years of service after Nov 1995. Also, as per the formula, service for past service should be considered.

In 1995, you should have declared that you were paying a higher contribution.

The average 60 months' wages have been effective from September 2014 onwards. Previously, it was for 12 months only.

You have completed 58 years in 2011, and to this date, you have not claimed for the EPS 1995 Pension?

Thanks,
Vidyadhar Bhat