Hi,
I am newly joined to this site. I need some information about the PF pension scheme. How does a person receive the final settlement? I understand that after 5 years, he can apply for a pension. If he is not interested, or leaves before 5 years, I would like to know whether the pension amount is also added to the PF amount or if it goes to the government. Kindly explain.
Thanks,
Chitra
From India, Madras
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2I am newly joined to this site. I need some information about the PF pension scheme. How does a person receive the final settlement? I understand that after 5 years, he can apply for a pension. If he is not interested, or leaves before 5 years, I would like to know whether the pension amount is also added to the PF amount or if it goes to the government. Kindly explain.
Thanks,
Chitra
From India, Madras
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Hi,
Please also go through the EPFO website and its various links where complete information is available on all issues related to the PF and pension scheme, etc. However, a few specific web links are shown below for quick reference:
a) EPFO - <link updated to site home>
b) The relevant forms (with brief explanatory notes alongside) are available under the 'DOWNLOADS' link on the said website.
c) EPFO - <link updated to site home>
d) EPFO - <link updated to site home> #
Regards,
Varghese
From India, Delhi
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Please also go through the EPFO website and its various links where complete information is available on all issues related to the PF and pension scheme, etc. However, a few specific web links are shown below for quick reference:
a) EPFO - <link updated to site home>
b) The relevant forms (with brief explanatory notes alongside) are available under the 'DOWNLOADS' link on the said website.
c) EPFO - <link updated to site home>
d) EPFO - <link updated to site home> #
Regards,
Varghese
From India, Delhi
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Dear Chitra,
Please find enclosed the PF Pension manual. This, along with other supporting documents/notes, is available on the EPFO website at www.epfindia.gov.in.
Regards,
Varghese
From India, Delhi
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Please find enclosed the PF Pension manual. This, along with other supporting documents/notes, is available on the EPFO website at www.epfindia.gov.in.
Regards,
Varghese
From India, Delhi
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Dear Chithra,
There should be a minimum of 10 years of service in EPF to get a pension.
For pension calculation, the service will be divided into two parts: service before 16.11.95 and service w.e.f 16.11.95. The first one is called past service, and the latter one is 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, and 150 respectively. For Rs. 2500 & above, this will be Rs. 85, 105, 135, and 170. This amount is for those who attain 58 years on 16.11.95. In the case of those who attain 58 years after 16.11.95, the above compensation will be multiplied by a factor stipulated in table B, according to 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: 1) Below Rs. 6500. 2) Rs. 6500 & above, but contribution on the statutory ceiling of Rs. 6500. 3) Above Rs. 6500 & opted to contribute on actual salary. In the case of the 2nd category, pensionable salary is Rs. 6500. In the other two cases, pensionable salary will be the average of the last twelve months. Also, if pensionable service is 20 years & above, 2 years' bonus will be given.
For details, please see the website: [EPFO](http://epfindia.com)
One example I shall quote:
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 years 9 months (approx.) rounded up 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
Besides the above method calculation, there will be a minimum for those who have service before 16.11.95. In the EPS-95, they are categorized into three:
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 shall give a brief on the third.
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 service. If it 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 shall insert 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 break 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 is any error or suggestion, please notify me.
Abbas.P.S, ITI Ltd, PALAKKAD - 678 623
Ph. +91 9447 467 667
From India, Bangalore
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There should be a minimum of 10 years of service in EPF to get a pension.
For pension calculation, the service will be divided into two parts: service before 16.11.95 and service w.e.f 16.11.95. The first one is called past service, and the latter one is 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, and 150 respectively. For Rs. 2500 & above, this will be Rs. 85, 105, 135, and 170. This amount is for those who attain 58 years on 16.11.95. In the case of those who attain 58 years after 16.11.95, the above compensation will be multiplied by a factor stipulated in table B, according to 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: 1) Below Rs. 6500. 2) Rs. 6500 & above, but contribution on the statutory ceiling of Rs. 6500. 3) Above Rs. 6500 & opted to contribute on actual salary. In the case of the 2nd category, pensionable salary is Rs. 6500. In the other two cases, pensionable salary will be the average of the last twelve months. Also, if pensionable service is 20 years & above, 2 years' bonus will be given.
For details, please see the website: [EPFO](http://epfindia.com)
One example I shall quote:
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 years 9 months (approx.) rounded up 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
Besides the above method calculation, there will be a minimum for those who have service before 16.11.95. In the EPS-95, they are categorized into three:
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 shall give a brief on the third.
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 service. If it 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 shall insert 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 break 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 is any error or suggestion, please notify me.
Abbas.P.S, ITI Ltd, PALAKKAD - 678 623
Ph. +91 9447 467 667
From India, Bangalore
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PF & Pension Amdmt Scheme 2010 for IW.pdf