Confused About EPS 1995 Pension Calculations? Seeking Clarity on Two-Year Weightage and Salary Considerations

EPS 1995 Pension Computation Queries

Under EPS 1995, two years of additional weightage are being given to all who have more than 20 years of service. The monthly pension computation consists of two parts:

Part 1: Up to August 31, 2014

Rs. 6500 is considered as basic.

Part 2: Effective September 1, 2014, Until Retirement

The pensionable salary is considered.

Now, the queries are:

1. For the two-year weightage, EPFO is considering Rs. 6500 as the salary (as per Part 1) and not the salary applicable to the 2nd part (that is beyond September 1, 2014).

2. EPS 12(2) indicates as follows: "Provided that the members' monthly pension shall be determined on a pro-rata basis for the pensionable service up to the 1st day of September, 2014, at the maximum pensionable salary of six thousand five hundred rupees per month and for the period thereafter at the maximum pensionable salary of fifteen thousand rupees per month." However, EPFO is considering the pensionable salary (a 60-month average basic) and not Rs. 15000 for the 2nd part.

Elite members of HR are requested to clarify the above.

A petition has been filed with the Consumer Commission in this regard. The pensionable salary of Rs 6,500.00 is nonexistent after the 2014 amendment. For the calculation of pension after 2014, including that of the 2-year weightage, it has to be based on Rs 15,000.00. If the weightage is earned after 2014, there is no way to consider Rs 6,500.00, as Rs 6,500 has been replaced by Rs 15,000 via the 2014 amendment.