Hi,
I turned 58 in July 2010. I had last worked in Mumbai in April 2006. For the next 16 months, I worked and paid PF through a company based in Gurgaon, Haryana.
From September 2007 till now (March 2011), I have been in a company based in Mumbai that does not have any PF obligations; hence, PF payments have not been made during this period.
I applied for a claim on PF and pension in August 2010, mainly because I was told that even if I claim pension, I will get it only after turning 58.
I have a few questions:
While my PF form was sent through my last employer in August 2010, I still have not received the PF amount. What is the normal time a PF office is supposed to take (their website says 60 days) to calculate and release the PF amount?
With all this delay, will I get the interest on my PF balance until the date I receive the money in my account? If not, then why? The PF office will be holding (and using) the money till that date, and they should be liable for interest until that date.
How can I know the date until which the PF office will be paying me the interest? At what rate will the interest on the PF amount be calculated during this period? Today's news says that a rate of 9.5% is approved for this period. So, they should be making the interest calculation at this rate. How can I get confirmation of the same?
About the pension calculation:
My last salary in Mumbai had a basic salary value of about Rs 56,000 per month. PF was deducted on this full amount - both my contribution and the matching contribution from the employer.
I am reading in the newspapers that currently, the old limit of Rs 6,500 for basic salary for the calculation of pension is done away with. In other words, pension calculation will be done on the basis of the full basic salary. Is this true?
The same articles also mention that the pension calculation is done on the basis of the average basic salary for the last 12 months of service. Since the actual employment and PF payment were done over 4-5 years ago, I would like to know how this calculation will be done.
I understand the calculation would be done for the total service. My total service has been over 37 years. The PF payment was made from Jan 1974 till April 2006. This would mean PF was paid for 32 years, and the PF account was with the PF office for a total of 36 years. In that sense, what would be the duration to be used for the pension calculation?
I would surely appreciate real insight into this matter.
Regards,
Shashank
From India, Pune
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I turned 58 in July 2010. I had last worked in Mumbai in April 2006. For the next 16 months, I worked and paid PF through a company based in Gurgaon, Haryana.
From September 2007 till now (March 2011), I have been in a company based in Mumbai that does not have any PF obligations; hence, PF payments have not been made during this period.
I applied for a claim on PF and pension in August 2010, mainly because I was told that even if I claim pension, I will get it only after turning 58.
I have a few questions:
While my PF form was sent through my last employer in August 2010, I still have not received the PF amount. What is the normal time a PF office is supposed to take (their website says 60 days) to calculate and release the PF amount?
With all this delay, will I get the interest on my PF balance until the date I receive the money in my account? If not, then why? The PF office will be holding (and using) the money till that date, and they should be liable for interest until that date.
How can I know the date until which the PF office will be paying me the interest? At what rate will the interest on the PF amount be calculated during this period? Today's news says that a rate of 9.5% is approved for this period. So, they should be making the interest calculation at this rate. How can I get confirmation of the same?
About the pension calculation:
My last salary in Mumbai had a basic salary value of about Rs 56,000 per month. PF was deducted on this full amount - both my contribution and the matching contribution from the employer.
I am reading in the newspapers that currently, the old limit of Rs 6,500 for basic salary for the calculation of pension is done away with. In other words, pension calculation will be done on the basis of the full basic salary. Is this true?
The same articles also mention that the pension calculation is done on the basis of the average basic salary for the last 12 months of service. Since the actual employment and PF payment were done over 4-5 years ago, I would like to know how this calculation will be done.
I understand the calculation would be done for the total service. My total service has been over 37 years. The PF payment was made from Jan 1974 till April 2006. This would mean PF was paid for 32 years, and the PF account was with the PF office for a total of 36 years. In that sense, what would be the duration to be used for the pension calculation?
I would surely appreciate real insight into this matter.
Regards,
Shashank
From India, Pune
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I feel that you make a simple issue into a complicated one with some contradictory statements. You are stating that your PF contribution is from January 1974 to April 2006. At the same time, you contributed to PF for another 16 months thereafter through a Gurgaon company. Which statement is correct?
1. If you are not in PF applicable service, you may apply for EPS at any date after completing an age of 50 years. i.e., you need not wait to complete 58 years' age. But for each year below the age of 58 years, you will lose 4% in pension.
2. After the PF account becomes inoperative, the EPFO will allow interest for 36 months. This year the interest is 9.5%, but last year it was 8.5%.
3. The ceiling salary is still Rs. 6500, and the EPS contributions will be accordingly. If you want to contribute on actual salary above Rs. 6500, you have to opt for the same with the consent of RPFC and contribute the arrears when your salary crossed Rs. 5000 and Rs. 6500 as the case may be. Otherwise, your pensionable salary will be Rs. 6500.
4. If your PF service is from Jan 1974 to Aug 2007, your pension calculation will be as follows:
Past Service - up to 16.11.95 - 22 years. Compensation - Rs. 170 -(A), a factor as per table B - 3.052 (B).
Past Service Benefit - (A) x (B) = 519 - (1)
Pensionable Service - 16.11.1995 to Aug 2007 = 12 yrs
Pensionable Salary - 6500
Pension - 6500 x 12/70 = 1114 - (2)
Total Pension (1) + (2) = 1633.
Abbas.P.S, ITI Ltd, Palakkad - 678 623.
Ph +91 9447 467 667.
From India, Bangalore
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5301. If you are not in PF applicable service, you may apply for EPS at any date after completing an age of 50 years. i.e., you need not wait to complete 58 years' age. But for each year below the age of 58 years, you will lose 4% in pension.
2. After the PF account becomes inoperative, the EPFO will allow interest for 36 months. This year the interest is 9.5%, but last year it was 8.5%.
3. The ceiling salary is still Rs. 6500, and the EPS contributions will be accordingly. If you want to contribute on actual salary above Rs. 6500, you have to opt for the same with the consent of RPFC and contribute the arrears when your salary crossed Rs. 5000 and Rs. 6500 as the case may be. Otherwise, your pensionable salary will be Rs. 6500.
4. If your PF service is from Jan 1974 to Aug 2007, your pension calculation will be as follows:
Past Service - up to 16.11.95 - 22 years. Compensation - Rs. 170 -(A), a factor as per table B - 3.052 (B).
Past Service Benefit - (A) x (B) = 519 - (1)
Pensionable Service - 16.11.1995 to Aug 2007 = 12 yrs
Pensionable Salary - 6500
Pension - 6500 x 12/70 = 1114 - (2)
Total Pension (1) + (2) = 1633.
Abbas.P.S, ITI Ltd, Palakkad - 678 623.
Ph +91 9447 467 667.
From India, Bangalore
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EPF PENSION CALCULATION.zip
PF INTEREST CALCULATION SHEET.xls