Am I Eligible for Full Pension Despite Early Retirement at 54? Seeking Clarity on EPS-1995 Rules

I joined Usha Martin Limited on 01.02.1974 as a Stenographer. I started contributing to the Employees' Family Pension Scheme from 01.07.1977. I continued my services until 25.12.2002, when I took voluntary retirement at the age of 54 years (My Date of birth is 01.11.1948) due to the recession in Usha Martin Limited. I was granted a pension from 04.02.2003 at the rate of Rs. 900/- per month.

Service Duration and Pension Details

My total service with the employer is from 01.02.1974 to 25.12.2002, totaling 28 years and 11 months, which rounds to 29 years. The PF Authorities state that I had not attained the age of superannuation, i.e., 58 years. Therefore, I was not eligible for a full pension, and the pension was fixed at a reduced rate of 3% per annum, amounting to Rs. 900/- per month.

Eligibility for Full Pension

I understand that after attaining the age of 50 years, and if the period of service is computed from the date of membership of the Employees' Family Pension Scheme and exceeds 20 years, then one is eligible for a full pension. Can you examine the issue? I am uploading the documents for immediate reference.

Thanks

Understanding Pension Fixation

To understand the fixation of your pension, clarity is needed on the Scheme provisions, which are reproduced below.

(xv) "pensionable service" means the service rendered by the member for which contributions have been received or are receivable.

(xii) "past service" means the period of service rendered by an existing member from the date of joining the Employees' Family Pension Fund till the 15th of November 1995.

Determination of Eligible Service

The eligible service shall be determined as follows:

(a) In the case of a "new entrant," the "actual service" shall be treated as eligible service. The total actual service shall be rounded off to the nearest year. The fraction of service for six months or more shall be treated as one year, and the service less than six months shall be ignored.

Explanation: In the case of employees employed seasonally in any establishment, the period of "actual service" in any year, notwithstanding that such service is less than a year, shall be treated as a full year.

(b) In the case of the "existing member," the aggregate of actual service and the "past service" shall be treated as eligible service.

Provided that if there is any period in the "past service" for which the contributions towards the Family Pension Scheme, 1971 have not been received, the said period shall count as eligible service only if the contributions thereof have been received in the Employees' Pension Fund.

Explanation: For the purpose of this sub-paragraph, the total past service for less than six months shall be ignored, and the total past service for six months and above shall be rounded to a year.

Determination of Pensionable Service

(1) The pensionable service of the member shall be determined with reference to the contributions received or receivable on his behalf in the Employees' Pension Fund.

(2) In the case of a member who superannuates on attaining the age of 58 years and/or who has rendered 20 years of pensionable service or more, his pensionable service shall be increased by adding a weightage of 2 years.

(7) A member, if he so desires, may be allowed to draw an early pension from a date earlier than 58 years of age but not earlier than 50 years of age. In such cases, the amount of pension shall be reduced at the rate of four percent for every year the age falls short of 58 years.

From the above, it is clear that the pension calculation depends on the service rendered after 1995, and as this is a case of early pension, there is a deduction provided in the rules. You may visit the respective RPFC Office and seek clarity on the exact calculation made.

Dear TM Rao,

Please collect your "Pension Payment Order" from your bank and peruse the same to get details about the quantification of your pension. Furthermore, you have not clarified your present pension amount. The minimum pension has been enhanced to Rs 1,000 per month for quite some time. As confirmed by KKIHR, your EPS membership is counted from the date of the introduction of the scheme, i.e., September 1995.

For your past membership in the erstwhile "Family Pension Fund, 1971," due weightage should have been given.

Thank you very much for your support. I am hopeful of receiving my full pension after reaching the age of 58 years, which is clarified in the following clause:

Clause 14 (7)

A member, if he so desires, may be allowed to draw an early pension from a date earlier than 58 years of age but not earlier than 50 years of age. In such cases, the amount of pension shall be reduced at the rate of four percent for every year the age falls short of 58 years. From the above, it is clear that the period falling short of 58 years is over, i.e., after attaining the age of 58 years, one is eligible for full pension. Am I correct? Kindly examine the issue.

Thank you both once again for your support. I also understand that some well-wishers have formed an All India EPS-95 Sangharsh Samiti for the redressal of such problems. I need the contact details like email address, telephone number, etc.

Thanks once again.

Regards.

Dear Rao sir,

I regret to inform you that:

1. You have applied for premature retirement under VRS.
2. You have been receiving EPS since 04/02/2003.
3. Your PPO copy is currently at PNB (0303151) Ashiana Complex, Adityapur. Please collect it.
4. Kindly visit EPFO-SRO-Jamshedpur/Jharkhand and inform them that you have not been receiving the minimum pension of Rs1,000/- per month.

Thank you.