Dear Fraternity,
One of our ex-employees received a pension amount less than the minimum pension up to now because of the new amendment. The minimum pension is now Rs. 1000/- (w.e.f. 01-09-2014), but the ex-employee is only receiving Rs. 580/- every month. If anyone knows the reason for this discrepancy, please inform me why they are receiving less than the minimum pension.
Thank you.
From India, Bengaluru
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21One of our ex-employees received a pension amount less than the minimum pension up to now because of the new amendment. The minimum pension is now Rs. 1000/- (w.e.f. 01-09-2014), but the ex-employee is only receiving Rs. 580/- every month. If anyone knows the reason for this discrepancy, please inform me why they are receiving less than the minimum pension.
Thank you.
From India, Bengaluru
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Dear friends,
The above pensioner might have opted for two provisions:
1) Reduced pension before attaining 58 years.
2) Pension Commutation.
If he exercised both of the above options, there is a chance to get a pension like this. If he didn't, kindly make an enquiry under the RTI Act regarding how the pension amount is arrived at.
Abbas.P.S
From India, Bangalore
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The above pensioner might have opted for two provisions:
1) Reduced pension before attaining 58 years.
2) Pension Commutation.
If he exercised both of the above options, there is a chance to get a pension like this. If he didn't, kindly make an enquiry under the RTI Act regarding how the pension amount is arrived at.
Abbas.P.S
From India, Bangalore
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The Employee Pension sanction certificate mention the below details Original Pension-1023 Monthly Pension-580 Commutation Amount-34100 can you explain about commutation amount.
From India, Bengaluru
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From India, Bengaluru
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Dear friends,
Here, one-third is commuted and received 100 times as compensation. The balance pension is 1023 - 341 = 682. The member opted for reduced pension at the age of 54 years. Each year, he will lose 4%, i.e., 0.96 (96%) at 57, 0.96 x 0.96 = 0.9216 (92.16%) for 56 years, 0.96 x 0.96 x 0.96 = 0.8847 (88.47%) for 55 years, and 0.96 x 0.96 x 0.96 x 0.96 = 0.85 (85%) for 54 years.
682 x 85% is 580/-
Abbas.P.S
From India, Bangalore
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Here, one-third is commuted and received 100 times as compensation. The balance pension is 1023 - 341 = 682. The member opted for reduced pension at the age of 54 years. Each year, he will lose 4%, i.e., 0.96 (96%) at 57, 0.96 x 0.96 = 0.9216 (92.16%) for 56 years, 0.96 x 0.96 x 0.96 = 0.8847 (88.47%) for 55 years, and 0.96 x 0.96 x 0.96 x 0.96 = 0.85 (85%) for 54 years.
682 x 85% is 580/-
Abbas.P.S
From India, Bangalore
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Another employee applied for superannuation pension and receives a monthly pension of Rs. 609 only. However, the scheme certificate states an original pension of 1076, a monthly pension of 609, and a commutation amount of 35900. How is the pension amount of Rs. 609 arrived at? Could you please explain the calculation of the pension amount?
From India, Bengaluru
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From India, Bengaluru
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Dear friends,
After receiving a commutation amount of 35,900, 1/100 of it will be deducted from the original pension. Subsequently, the pension will amount to 1,076 - 359 = 717. Following this, the individual may have chosen to opt for the return of capital. A reduction of 10 to 12.5% will then be applied to the eligible pension at that time, based on the chosen option (please specify the type of option for clarity). However, it appears that a 15% reduction has been made. It is advisable to write to the EPFO Sub Regional Office under the RTI Act to request the correct calculation.
Abbas.P.S
From India, Bangalore
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After receiving a commutation amount of 35,900, 1/100 of it will be deducted from the original pension. Subsequently, the pension will amount to 1,076 - 359 = 717. Following this, the individual may have chosen to opt for the return of capital. A reduction of 10 to 12.5% will then be applied to the eligible pension at that time, based on the chosen option (please specify the type of option for clarity). However, it appears that a 15% reduction has been made. It is advisable to write to the EPFO Sub Regional Office under the RTI Act to request the correct calculation.
Abbas.P.S
From India, Bangalore
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