Retired and Confused: How Do Non-Contributing Days Affect My Pension Calculation?

I am Selva Kumar retired from service on 14/03/2017. My date of birth is 14/03/1959, and the date of joining is 01/08/1981. My past pension salary was Rs. 2499/-. My pension contribution up to 2014 was Rs. 6500/-, and later was Rs. 15000/-. Can you please calculate my pension? Is it correct that the non-contributing period of 216 days is deducted from my pensionable service?

Selva Kumar

Dear Mr. Selva Kumar, I wish you a happy retired life. For the purpose of EPS 1995, EPS SALARY from 1995 to 14/03/2017 will be taken into consideration. This includes the average Pensionable Salary and the number of years of membership. Furthermore, from 1995 to 2017, you have contributed 22 years of membership, for which 2 bonus years will be added to your Pensionable Service. Additionally, from the date of joining until November 1995, you were covered under the Family Pension Fund 1971. Contributions made therein will also be considered in determining the Pensionable Salary by assigning appropriate weightage.

You retired on 14/03/2017. It has been almost 3.5 months, and your Pension Claim has not yet been settled. For retiring employees, EPF and EPS will be settled in the month of retirement. You will receive a PPO (Pension Payment Order) containing all the necessary details.

Thank you.

Thank you for your detailed reply and your concern. I have received my pension and PPO already, and I would like to cross-verify the same. I have two basic doubts regarding this.

Pensionable Salary Discrepancy

Even after my salary was deducted by Rs. 6,500/- up to 1st September 2014, and later by Rs. 15,000/- until my retirement, the pensionable salary is indicated as Rs. 10,738/- only, whereas my basic + DA amount exceeds this.

Non-Contributory Period

The second concern is a non-contributory period, mentioned as 216 days, which is also deducted from my pensionable service. My pensionable service is indicated as 22 years, 8 months, and 26 days. The pensionable salary is Rs. 10,938/-. My past service is 13 years. Could you please calculate my pension?

Regards,
Selvakumar

Non-Contributory Period

Non-Contributory Period means a period when you were on Loss of Pay/No Contribution to EPF & EPS. You have contributed to EPS at Rs. 15,000 EPS wages from September 2014 to March 2017.

Verification of Bonus Service

You need to verify from the EPF Department whether 2 years of Bonus Service is added for being an EPS Member for more than 20 years. I think they have added it. Consequently, your Pensionable Service is 23 years (22 years, 8 months, 26 days).

EPS Pension Details

Are you receiving an EPS Pension of Rs. 3,594 per month?

The Pensionable Salary is determined based on the average EPS Wages from 1995 to 2017 and the weightage from FPF Salary from the date of joining to November 1995.

Thank you for your concern regarding my issue. According to your calculations, 10938 * 23 / 70, my pension should be Rs. 3594. However, I am actually receiving Rs. 2973 in my bank account as pension. Is it mentioned in the EPS that the NCP should be deducted from service? I have attached my PPO for your reference.

Regards,
SELVAKUMAR

Dear Mr. Selva Kumar,

Please visit the PF Office and check the correctness of your Pension Amount of Rs 2,973/- per month and the formula used for calculation.

Pensionable Service: 20 years, 8 months, 23 days with a weightage of 2 years. The total pensionable service amounts to 22 years, 8 months, 23 days, rounded off to 23 years after deducting NCP days.

Pensionable Salary: Rs 10,738/-

Kindly provide me with the necessary information.

Thank you.