Please, can anyone help me out regarding the calculation of pension?
Pension Withdrawal Inquiry
The question is: Suppose a person has worked in a company for 10 years and then switched to a different organization and is in need of money. Can he apply for the withdrawal of pension money that was deducted? If yes, what will be the process? If not, then what benefits will he get if the money is withdrawn after the completion of the pension period? At what rate of interest will he be getting if so?
From India, Indore
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Pension Withdrawal Inquiry
The question is: Suppose a person has worked in a company for 10 years and then switched to a different organization and is in need of money. Can he apply for the withdrawal of pension money that was deducted? If yes, what will be the process? If not, then what benefits will he get if the money is withdrawn after the completion of the pension period? At what rate of interest will he be getting if so?
From India, Indore
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Those who have rendered 10 years of service in EPS-95 are eligible for a pension. Accordingly, a one-time withdrawal benefit is not applicable in this case. Full pension will be received upon completion of 58 years. From the age of 50 years onwards, a reduced pension is admissible if the individual is not working in a PF-applicable service. In such cases, the pensioner will lose 4% for every year below 58. The details of pension calculation are as follows:
Pension Calculation Details
There is no upper limit for EPS-95 pension. For pension calculation, the service will be divided into two parts: service before 16.11.95 and service from 16.11.95 onwards. The former is referred to as past service, and the latter as pensionable service. Past service is divided into four slabs: service up to 11 years, 12 to 15 years, 16 to 19 years, and 20 & above. If the salary on 16.11.95 is below Rs. 2500, the monthly compensation will be Rs. 80, 95, 120, & 150 respectively. For Rs. 2500 & above, this will be Rs. 85, 105, 135, & 170. This amount is for those who turn 58 years on 16.11.95. If an individual reaches 58 years after 16.11.95, the compensation will be multiplied by a factor stipulated in Table B, based on the difference between 16.11.95 and the date of completion of 58 years.
For pensionable service, there is a formula to calculate pension: Pensionable Salary x Pensionable Service / 70. Pensionable salary can be categorized into three groups: 1) Below Rs. 6500, 2) Rs. 6500 & above but contributions at the statutory ceiling of Rs. 6500, and 3) Above Rs. 6500 & opted to contribute on actual salary. In the second case, the pensionable salary is Rs. 6500. In the other two cases, the pensionable salary will be the average of the last twelve months. Additionally, if the pensionable service is 20 years & above, a 2-year bonus will be provided.
For further details, please visit the website: http://epfindia.com
Example Calculation
- Date of Birth: 2.1.1961
- Date of Joining: 23.2.1987
- Salary on 16.11.95: Rs. 2500 & above
- Salary on completion of 58 years on 1.1.2019: Rs. 6500 (Statutory Ceiling)
- Past Service: 8 yr 9 m (approx) rounded to 9 years
- Compensation: Rs. 85
- Factor as per Table B (for less than 24 years, i.e., the difference between 16.11.95 & 1.1.2019): 6.102
(This can be calculated as 1.08 to the power of 24 - 0.5, correct to 3 decimals)
- Past Service Benefit: 85 x 6.102 = Rs. 519 - (A)
- Pensionable Service: 23 years
- Bonus (Service is 20 & above): 2
- Pensionable Salary: Rs. 6500
- Pensionable Benefit: 6500 x 25 / 70 = 2321 - (B)
- Total Pension: (A) + (B) = Rs. 2840
Apart from the above method of calculation, there is a minimum for those who have service before 16.11.95. In EPS-95, they are categorized into three groups:
1. Date of commencement of Pension before 16.11.2000
2. Date of commencement of Pension between 16.11.2000 & 16.11.2005
3. Date of commencement of Pension after 16.11.2005
As the first two categories are already over, I will briefly explain the third category.
Pensionable benefit (minimum) of Rs. 635 and Past Service Benefit as mentioned above, subject to a minimum of Rs. 800. This amount is for 24 years or more of service. If the service is less than 24 years, this will be reduced proportionately (amount x actual service / 24). However, this amount will be subject to a minimum of Rs. 450.
I will provide an Excel worksheet to calculate pension. Enter Date of Birth, Date of Joining, Date of Separation from Service, Salary on 16.11.95, Salary on Separation from Service (in compliance with the contribution to the pension fund), and breaks in service before and after 16.11.95, if any, in the green color column. The results will appear in the yellow color column. The red color is for static information.
If there are any errors or suggestions, please inform me.
Regards, Abbas.P.S, Secretary, ITI Employees' Association, ITI Ltd, Palakkad - 678 623, KERALA Ph. [Phone Number Removed For Privacy Reasons]
From India, Bangalore
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530Pension Calculation Details
There is no upper limit for EPS-95 pension. For pension calculation, the service will be divided into two parts: service before 16.11.95 and service from 16.11.95 onwards. The former is referred to as past service, and the latter as pensionable service. Past service is divided into four slabs: service up to 11 years, 12 to 15 years, 16 to 19 years, and 20 & above. If the salary on 16.11.95 is below Rs. 2500, the monthly compensation will be Rs. 80, 95, 120, & 150 respectively. For Rs. 2500 & above, this will be Rs. 85, 105, 135, & 170. This amount is for those who turn 58 years on 16.11.95. If an individual reaches 58 years after 16.11.95, the compensation will be multiplied by a factor stipulated in Table B, based on the difference between 16.11.95 and the date of completion of 58 years.
For pensionable service, there is a formula to calculate pension: Pensionable Salary x Pensionable Service / 70. Pensionable salary can be categorized into three groups: 1) Below Rs. 6500, 2) Rs. 6500 & above but contributions at the statutory ceiling of Rs. 6500, and 3) Above Rs. 6500 & opted to contribute on actual salary. In the second case, the pensionable salary is Rs. 6500. In the other two cases, the pensionable salary will be the average of the last twelve months. Additionally, if the pensionable service is 20 years & above, a 2-year bonus will be provided.
For further details, please visit the website: http://epfindia.com
Example Calculation
- Date of Birth: 2.1.1961
- Date of Joining: 23.2.1987
- Salary on 16.11.95: Rs. 2500 & above
- Salary on completion of 58 years on 1.1.2019: Rs. 6500 (Statutory Ceiling)
- Past Service: 8 yr 9 m (approx) rounded to 9 years
- Compensation: Rs. 85
- Factor as per Table B (for less than 24 years, i.e., the difference between 16.11.95 & 1.1.2019): 6.102
(This can be calculated as 1.08 to the power of 24 - 0.5, correct to 3 decimals)
- Past Service Benefit: 85 x 6.102 = Rs. 519 - (A)
- Pensionable Service: 23 years
- Bonus (Service is 20 & above): 2
- Pensionable Salary: Rs. 6500
- Pensionable Benefit: 6500 x 25 / 70 = 2321 - (B)
- Total Pension: (A) + (B) = Rs. 2840
Apart from the above method of calculation, there is a minimum for those who have service before 16.11.95. In EPS-95, they are categorized into three groups:
1. Date of commencement of Pension before 16.11.2000
2. Date of commencement of Pension between 16.11.2000 & 16.11.2005
3. Date of commencement of Pension after 16.11.2005
As the first two categories are already over, I will briefly explain the third category.
Pensionable benefit (minimum) of Rs. 635 and Past Service Benefit as mentioned above, subject to a minimum of Rs. 800. This amount is for 24 years or more of service. If the service is less than 24 years, this will be reduced proportionately (amount x actual service / 24). However, this amount will be subject to a minimum of Rs. 450.
I will provide an Excel worksheet to calculate pension. Enter Date of Birth, Date of Joining, Date of Separation from Service, Salary on 16.11.95, Salary on Separation from Service (in compliance with the contribution to the pension fund), and breaks in service before and after 16.11.95, if any, in the green color column. The results will appear in the yellow color column. The red color is for static information.
If there are any errors or suggestions, please inform me.
Regards, Abbas.P.S, Secretary, ITI Employees' Association, ITI Ltd, Palakkad - 678 623, KERALA Ph. [Phone Number Removed For Privacy Reasons]
From India, Bangalore
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EPS.DETAILS OF PENSION SCHEME.docx
18.12.2023 - All-in-One EPS'95 Pension Calculator FINAL - Shared by Parveen Kohli.xlsx