I have been a member of FPF since my date of joining, i.e., 1/12/1973. Effective 16/11/1995, I have been contributing at 8.33% of my salary (Basic plus DA), which was beyond the Rs 6500 and Rs 15000 limit of PF. My date of retirement is 31-10-1953. Please advise me on the pension receivable by me based on my last drawn salary for the last 3 years before retirement, which was Rs 125,000 (Basic + DA).
Is there a maximum limit to the pension under EPS 95 and what is the impact of the Kerala High Court judgment?
From India, Mumbai
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2Is there a maximum limit to the pension under EPS 95 and what is the impact of the Kerala High Court judgment?
From India, Mumbai
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Sorry date of retirement is 31-10-2011. I have been contributing to EPS more than the statutory ceiling so as to draw higher pension
From India, Mumbai
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From India, Mumbai
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2011 - 1995 = 16 years of EPS membership 16/70 x P P= 36 month average of pensionable salary
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From 1995 to 2011, your pension will be roughly the years of pensionable service (excluding the years you have contributed to EPS) multiplied by the pensionable salary (the EPF wage on which EPF contribution is deducted - an average of the 12 months preceding retirement - from September 2014, it is an average of 60 months EPF wage), all divided by seventy. For the period up to November 1995, you will receive a lump sum payment as per a chart. For exact calculations, please search on this site for an Excel sheet posted by IIT Abbas, possibly three years ago.
From India, Thane
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From India, Thane
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EPS Contribution and Retirement Considerations
From 1995 until your retirement at 58 years, your contribution towards the EPS was restricted to Rs. 6500 per month. Any excess contribution paid over Rs. 6500 in the EPS account would have been transferred to your EPF account and reflected in your annual statement each year. Even if someone continues working after reaching the retirement age of 58 years, no contributions would be credited to the EPS account. Instead, the entire contribution, including that of EPS, would be credited to the EPF account, with interest paid at prevailing rates.
In your case, you can review your old EPF annual slips. If you find that interest has not been credited to your EPF account for the difference between your actual EPS wages and Rs. 6500 in any year, you can appeal to your local EPFO for a reconsideration of your pension amount.
Regards,
M Venkatraghavan
From India, Selam
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From 1995 until your retirement at 58 years, your contribution towards the EPS was restricted to Rs. 6500 per month. Any excess contribution paid over Rs. 6500 in the EPS account would have been transferred to your EPF account and reflected in your annual statement each year. Even if someone continues working after reaching the retirement age of 58 years, no contributions would be credited to the EPS account. Instead, the entire contribution, including that of EPS, would be credited to the EPF account, with interest paid at prevailing rates.
In your case, you can review your old EPF annual slips. If you find that interest has not been credited to your EPF account for the difference between your actual EPS wages and Rs. 6500 in any year, you can appeal to your local EPFO for a reconsideration of your pension amount.
Regards,
M Venkatraghavan
From India, Selam
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As you were contributing more than Rs. 6500/- for EPS, you are entitled to receive higher benefits towards EPS, i.e., the average of 12 months' wages as of the retirement date divided by 70, multiplied by the number of years of service after November 1995. Also, as per the formula, service for past service should be considered.
In 1995, you should have declared that you were paying a higher contribution.
The average of 60 months' wages has been effective from September 2014 onwards. Previously, it was for 12 months only.
You have completed 58 years in 2011, and to this date, you have not claimed the EPS 1995 Pension?
Thanks,
Vidyadhar Bhat
From India, Pune
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In 1995, you should have declared that you were paying a higher contribution.
The average of 60 months' wages has been effective from September 2014 onwards. Previously, it was for 12 months only.
You have completed 58 years in 2011, and to this date, you have not claimed the EPS 1995 Pension?
Thanks,
Vidyadhar Bhat
From India, Pune
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SC Judgment-No obligation to excess contribution than Statutory Limit.docx
Epf SC-judgment-eps exceeding cealing limit.pdf
Kerala High Court Stay_ Payment of Bonus (Act) Amendment.jpg