I am working in the private sector and have been contributing to my pension since 16.01.1995. Initially, my salary was less than 2500, but later it increased to more than 6500. My date of birth is 22.10.1966. The company has announced a Voluntary Retirement Scheme (VRS). I would like to know how much pension I will receive if I choose to start receiving it now. Additionally, I would like to understand the pension amount if I wait until I reach 58 years of age. Please provide the calculations for my clarity.
Pensionable Salary Calculation
Could you also explain how the pensionable salary is calculated? If possible, please share an Excel file so I can verify the calculations.
From India, Hyderabad
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Pensionable Salary Calculation
Could you also explain how the pensionable salary is calculated? If possible, please share an Excel file so I can verify the calculations.
From India, Hyderabad
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Dear Mr. K. Kumar,
For the calculation of pension, two more pieces of data have to be addressed:
1) The average of the last 60 months' salary on which pension was contributed until 31.8.2014.
2) The average of the last 60 months' salary on which pension was contributed until the date of VRS (please specify the VR date).
Abbas. P. S.
From India, Bangalore
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530For the calculation of pension, two more pieces of data have to be addressed:
1) The average of the last 60 months' salary on which pension was contributed until 31.8.2014.
2) The average of the last 60 months' salary on which pension was contributed until the date of VRS (please specify the VR date).
Abbas. P. S.
From India, Bangalore
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Upto 8/2014 pensionable sal 6500 and from sept2014 15000
From India, Hyderabad
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From India, Hyderabad
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Dear Mr. K. Kumar,
Provide the following information for the Voluntary Retirement Scheme (VRS):
1) VRS date
2) Average of the last 60 months' salary on which pension contributions were made until the VRS date.
The answer to the second question will not be 15000. For example, if your VRS date is 31.8.2017, the period from 1.9.2014 to 31.8.2017 (36 months) will have contributions based on a salary of 15000. However, for the period from 1.9.2012 to 31.8.2014 (24 months), the salary will be 6500. Therefore, the average for the last 60 months will be calculated as follows: (36 x 15000 + 24 x 6500) = (540000 + 156000) / 60 = 696000 / 60 = 11600. Kindly confirm.
Abbas.P.S
From India, Bangalore
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Provide the following information for the Voluntary Retirement Scheme (VRS):
1) VRS date
2) Average of the last 60 months' salary on which pension contributions were made until the VRS date.
The answer to the second question will not be 15000. For example, if your VRS date is 31.8.2017, the period from 1.9.2014 to 31.8.2017 (36 months) will have contributions based on a salary of 15000. However, for the period from 1.9.2012 to 31.8.2014 (24 months), the salary will be 6500. Therefore, the average for the last 60 months will be calculated as follows: (36 x 15000 + 24 x 6500) = (540000 + 156000) / 60 = 696000 / 60 = 11600. Kindly confirm.
Abbas.P.S
From India, Bangalore
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If the join date is 16.01.1995, the pension at 58 years will be 717 + 2242 = 2959. Here, 717 is the past service benefit (up to 15.11.85). The slab amount for 1 year is 80 multiplied by 8.965. The pension from 16.11.95 has two parts:
1) Up to 31.8.2014
2) From 1.9.14 to 31.8.2017
The pension formula is service x salary / 70:
1) 18.789 x 6500 / 70 = 1744
2) 3 x 11600 / 70 = 498.
From India, Bangalore
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1) Up to 31.8.2014
2) From 1.9.14 to 31.8.2017
The pension formula is service x salary / 70:
1) 18.789 x 6500 / 70 = 1744
2) 3 x 11600 / 70 = 498.
From India, Bangalore
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Dear Sir, The date of joining in EPF is 16.01.1995. My salary was more than Rs 2500/-, and after 16.11.1995, my salary was Rs 6500/- only for pension purposes. From September 2014, it was Rs 15000.
The calculation you have given is understandable. My date of birth is 22nd October 1966, so my retirement date is 31st October 2024. However, the company has announced VRS now, and I may be relieved on 31st August 2017.
If I wait until the retirement age of 58 years (31st October 2024), how much pension will I receive? If I request a reduced pension from now, how much pension will I get from September 2017? Kindly provide the exact calculation.
From India, Hyderabad
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The calculation you have given is understandable. My date of birth is 22nd October 1966, so my retirement date is 31st October 2024. However, the company has announced VRS now, and I may be relieved on 31st August 2017.
If I wait until the retirement age of 58 years (31st October 2024), how much pension will I receive? If I request a reduced pension from now, how much pension will I get from September 2017? Kindly provide the exact calculation.
From India, Hyderabad
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Dear Mr. K. Kumar,
I have already posted the pension calculation in compliance with your first statement that the salary was below 2500. If it was above 2500, the past service benefit will be 85 x 8.965 = 762 (Difference of 762-717 = 45). Consequently, the total pension will be increased by 45, making it 3004/- on 2959.
Abbas.P.S
From India, Bangalore
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I have already posted the pension calculation in compliance with your first statement that the salary was below 2500. If it was above 2500, the past service benefit will be 85 x 8.965 = 762 (Difference of 762-717 = 45). Consequently, the total pension will be increased by 45, making it 3004/- on 2959.
Abbas.P.S
From India, Bangalore
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Employee Pension Scheme, 1995.doc
Voluntary Retirement Scheme.pdf