Confused About EPF Pension Calculation? Help Us Understand the Discrepancy in Our Numbers

PPO Enquiry Sheet Details

As per the details of the "PPO Enquiry Sheet" received by my colleague upon attaining the age of 58 (Superannuation) on 15th March 2018, the pension details are as follows:

- Pension amount: Rs. 2967/-
- Past Service Up to 15-11-1995: 5 Years, 7 Months, and 15 Days
- Date of Joining: 01-04-1990
- Date of Exit: 15-03-2018
- Reason for Exit: Superannuation
- Eligible Service: 28 Years
- Wage on 15-11-1995: Rs. 1200/-
- Wage on Date of Exit: Rs. 15000/-
- Actual Service After 15-11-1995: 22 Years, 3 Months, and 27 Days
- Pensionable Service: 22 Years, 1 Month, and 27 Days
- NCP Days: 61 Days
- Pensionable Salary: Rs. 12144/-
- Weightage Service: 2 Years

PF Pension Calculation

As per our understanding, the PF Pension will be calculated based on the following formula:
EPF Pension = Pensionable Salary * Number of Years of Service / 70

If we calculate the pension based on the above formula, he should receive Rs. 4163/- (12144 * 24 / 70). There is a difference of Rs. 1196/- in the pension amount as per our calculations and the PPO sheet.

Request members to enlighten us on the PF Pension calculation.

The calculation appears alright. Please verify from the local RPFC how the pension amount was fixed.

Dear Kalaparam, you worked prior to 15.12.1995 and also after 15.12.1995. For you, the pension calculation formula is different.

Applicable Pension Calculation Formula

The following formula is applicable to you: Past Service Benefit plus Pensionable Service Benefit minus Proportionate Reduction, subject to the minimum pension specified for each group.

Steps to Calculate Your Pension

1. For past service benefit, you have to calculate the pension amount for the period before 16/11/1995.
2. For pensionable service benefit, you have to calculate the pension for the period after 16/11/1995 as per the formula mentioned by you.
3. You need to check the proportionate reduction subject to the minimum period, depending on when the pension started or the date of commencement of pension.

Calculation of the pension amount for the period before 16/11/1995 is a very complex subject that one needs to study. I had given presentations on this calculation, but right now, I have forgotten it. Until last year, I had the presentation material, which I discarded during a 5S carried out by me.

I started working under PF Act from 16.04.2013. When should I be applicable for pension and how much?

How is the pensionable salary calculated?