How Does Pension Deferment Affect My Monthly Amount at Ages 59 and 60?

Namaskar, I worked in a private unit and am 58 years old, entitled to receive a pension of Rs. 6428/- per month as per EPFO order no. 1/L&D/17(4)2016/pt dated 10/06/2016 and gazette no. 440(E) dated 25/04/2016. The order describes a deferment of pension for 2 years to receive an additional 4% pension per annum starting from the age of 59 and a further 4%, i.e., 108% starting at the age of 60.

For April 2020, the pension is Rs. 6428. Please confirm my pension calculation.

For April 2021, the pension would be Rs. 6685.12 per month, starting from the age of 59. Subsequently, at the age of 60, it would increase to Rs. 6952.40 per month.

To calculate your pension as per the deferment terms mentioned in the EPFO order, follow these steps:

1. Your current pension amount is Rs. 6428 per month.
2. With the deferment of 2 years, at the age of 59, you will receive an additional 4% pension per annum.
3. Calculate the additional 4% increase on your current pension amount for each year of deferment.
4. For April 2010, when you turn 59, the pension would be:
- Rs. 6428 + (4% of 6428) = Rs. 6428 + Rs. 257.12 = Rs. 6685.12 per month.
5. At the age of 60, the pension would further increase by 4%:
- Rs. 6685.12 + (4% of 6685.12) = Rs. 6685.12 + Rs. 267.28 = Rs. 6952.40 per month.

Therefore, your pension amounts would be as follows:
- April 2020 (age 58): Rs. 6428 per month.
- April 2010 (age 59): Rs. 6685.12 per month.
- Subsequent to turning 60: Rs. 6952.40 per month.

Ensure to keep track of your pension calculations as per the EPFO order to receive the correct amounts at the specified ages.