Dear All,
Can you please tell me the correct formula to calculate an employee's pension (EPS 1995)? Data for calculation is given below:
Date of joining the scheme: 01.05.1991
Date of leaving the service: 30.04.2011
No break in service
PF salary for the last 1 year is Rs. 13,000/- (i.e. Basic + DA)
Pensionable Salary is Rs. 6,500/- (for which EPS contribution is remitted)
Pensionable Service = 19 years + 11 months (i.e. 20 years)
Since 11.09.1995, the formula applicable for Pension Calculation is:
Pensionable Salary X Pensionable Service
---------------------------------------
70
But for the service before 11.09.1995, how shall we arrive at the pension amount? Please suggest to me how to arrive at the total pension amount for the above said service.
Thanks in advance,
Esaki
From India, Coimbatore
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Can you please tell me the correct formula to calculate an employee's pension (EPS 1995)? Data for calculation is given below:
Date of joining the scheme: 01.05.1991
Date of leaving the service: 30.04.2011
No break in service
PF salary for the last 1 year is Rs. 13,000/- (i.e. Basic + DA)
Pensionable Salary is Rs. 6,500/- (for which EPS contribution is remitted)
Pensionable Service = 19 years + 11 months (i.e. 20 years)
Since 11.09.1995, the formula applicable for Pension Calculation is:
Pensionable Salary X Pensionable Service
---------------------------------------
70
But for the service before 11.09.1995, how shall we arrive at the pension amount? Please suggest to me how to arrive at the total pension amount for the above said service.
Thanks in advance,
Esaki
From India, Coimbatore
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For past service pension (pension for service prior to 16.11.1995), date of birth is also required. This is also essential to get the date of completion of 58 years. Kindly furnish. Abbas.P.S
From India, Bangalore
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530From India, Bangalore
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Pension Calculation Details
From 16.11.1995 onwards, your pension is calculated as 6500 x 15/70 = 1393. If the separation of service is on May 15 or later, you will receive a pension of 1486, which is an additional 93.
Past Service Benefit Calculation
The Past Service benefit as per the table is a minimum of 85. The multiplying factor according to Table B is 6.101. Therefore, the Pension for Past Service would be 85 x 6.101 = 519.
The total pension, combining both parts (1) and (2), would amount to 1912, effective from the completion of 58 years of age, i.e., from 23.2.2019 onwards. Opting for a reduced pension before reaching 58 years of age would result in a 4% deduction for each year prior to turning 58.
Regards,
Abbas.P.S
From India, Bangalore
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From 16.11.1995 onwards, your pension is calculated as 6500 x 15/70 = 1393. If the separation of service is on May 15 or later, you will receive a pension of 1486, which is an additional 93.
Past Service Benefit Calculation
The Past Service benefit as per the table is a minimum of 85. The multiplying factor according to Table B is 6.101. Therefore, the Pension for Past Service would be 85 x 6.101 = 519.
The total pension, combining both parts (1) and (2), would amount to 1912, effective from the completion of 58 years of age, i.e., from 23.2.2019 onwards. Opting for a reduced pension before reaching 58 years of age would result in a 4% deduction for each year prior to turning 58.
Regards,
Abbas.P.S
From India, Bangalore
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Amendment in Employees Pension Scheme, 1995.pdf
Employees Pension Scheme 1995.doc