Is My Pension Calculation Correct for 34 Years of Service with Rs. 3384 Amount?

Dear Seniors,

Attached is a PPO received from the PF office. Can anyone tell me if the calculation is correct or not? The service period is 34 years, and the pension amount is Rs. 3384/-

Thank you!

Your date of joining is 01.01.1988, i.e., prior to 1995.

Service Division

Your total service of 31 years will be divided into:

1. Past Service, i.e., between 01.01.1988 and 15.11.1995 - 7 years 11 months (less than 10 years).

2. Pensionable Service, i.e., between 15.11.1995 and 30.05.2019 - 23 years 7 months, i.e., 24 years.

Pension Entitlement

Your salary was equal to or more than Rs. 2500/- per month as of 15.11.1995. So, you are entitled to a Pension for Past Service of Rs. 85 per month.

In your pensionable service of 24 years, you need to add 2 years of weightage service since you worked for more than 20 years. So, your pensionable service is 24 + 2 = 26 years. Your pensionable salary is Rs. 14,231/-.

Monthly Pension Calculation

Your entitlement to monthly pension is calculated as follows:

(Pensionable Salary x Pensionable Service) / 70

= 14,231 x 26 / 70

= 5286

Therefore, your total pension would be:

For past service: Rs. 85

For pensionable service: Rs. 5286

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Total: Rs. 5371

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The above calculation is based on my current understanding of the law. The inputs are correct, but there may be a discrepancy between my understanding and the EPFO calculation.

I kindly request you to forward this to someone else for review so that I can correct any errors in my calculations.

Thank you.

Dear Mr. Akhil,

Please peruse the Specimen Pension Worksheet - Part A and Computation of Pension - Part B.

Pension is calculated proportionately based on the last 5 years of EPS wages, not on the last drawn EPS wages.

Thanks @akhil & Srinath, I calculated the same way as Akhil did. However, as per EPFO, the amount comes to Rs. 3,384/- only. Due to Corona, I am not able to approach them personally to clear my doubts and have sent several emails regarding this, but have received no reply. Can I go legally against them?

Dear Srinath Sai Ram,

Thank you very much for helping me to correct my understanding. I was mistaken in some places. When I tried the calculations using the available Google format in Excel, a different figure emerged. Another Excel format is also accessible on this forum, yielding yet another figure. I was a bit confused.

The calculations provided by you gave me some insight, but I am unable to arrive at the figure of Rs. 3,384. The inquirer mentioned that she was able to obtain the figure.

May I request you, the inquirer, or anyone else to assist with this calculation in Excel or even in text?

Dear Mr. Akhil,

EPS wages from 1995 until the date of retirement have to be factored. Each year, EPS wages are taken into consideration for determining pension. A computerized EPS Pension Calculation Sheet will be issued to the member.

Thank you.