Dear all,
I want to know some information on pension fund.
some were I have read that there are 3 types of pension.
1) superannuation pension
2) retirement pension
3) short service pension.
Can anybody tell me that
1) what are the basic difference in all these 3 types of pension
2) when and in which industry all these are applicable.
3) how are these calculated
Thanks in advance to all of you.
From India, Delhi
72I want to know some information on pension fund.
some were I have read that there are 3 types of pension.
1) superannuation pension
2) retirement pension
3) short service pension.
Can anybody tell me that
1) what are the basic difference in all these 3 types of pension
2) when and in which industry all these are applicable.
3) how are these calculated
Thanks in advance to all of you.
From India, Delhi
Superannuation Fund..........
It is a Fund which is kept with the LIC by the Organisation......and it is transferable just like provident Fund Account. The pension is provided to an employee after separation with the co. after 5 years or after retirement or to the nominees after the death of the employee.
Retirement Pension.............
Any pension which is received by the employee after the retirement is Retirment Pension...like from the Provident Fund Department....in case of the private limited cos.
Whereas in case of Government Employee they do get the Pension from the department which has no connection with the PF Department.
Short Service Pension..........
This termonolgy was used by the PF department, when they started the new current pension scheme, they started giving the pension to the members even when they were in the service and that pension was called Short Service Pension. But now that scheme is closed.
Also this is a Pension scheme which is already is in scheme by the Armed Forces. When the armed people are commissioned for short term duration, minimum is 5 years and it is extendable in the multiple of 5 year of service, say 10 year, 15 years etc. and after the separation of the person from the armed forces after a service of say 5,10 years he used to get pension for the whole life, which may you terned as Shart service commisssion pension.
This is what I feel the various types of pensions are, if any body has different opinion then he/she is most welcome to put his/her veiws on the above topic.
From India, Delhi
It is a Fund which is kept with the LIC by the Organisation......and it is transferable just like provident Fund Account. The pension is provided to an employee after separation with the co. after 5 years or after retirement or to the nominees after the death of the employee.
Retirement Pension.............
Any pension which is received by the employee after the retirement is Retirment Pension...like from the Provident Fund Department....in case of the private limited cos.
Whereas in case of Government Employee they do get the Pension from the department which has no connection with the PF Department.
Short Service Pension..........
This termonolgy was used by the PF department, when they started the new current pension scheme, they started giving the pension to the members even when they were in the service and that pension was called Short Service Pension. But now that scheme is closed.
Also this is a Pension scheme which is already is in scheme by the Armed Forces. When the armed people are commissioned for short term duration, minimum is 5 years and it is extendable in the multiple of 5 year of service, say 10 year, 15 years etc. and after the separation of the person from the armed forces after a service of say 5,10 years he used to get pension for the whole life, which may you terned as Shart service commisssion pension.
This is what I feel the various types of pensions are, if any body has different opinion then he/she is most welcome to put his/her veiws on the above topic.
From India, Delhi
Hi Nipuna,
As far as calculations are concerned, the methods are different for different pensions.
As myself working with a private Industry, so I can give the method of calculating the pension by the PF department.
Just go through the Employee Pension Scheme,1995 implemented on 16th November,1995.
From India, Delhi
As far as calculations are concerned, the methods are different for different pensions.
As myself working with a private Industry, so I can give the method of calculating the pension by the PF department.
Just go through the Employee Pension Scheme,1995 implemented on 16th November,1995.
From India, Delhi
I haven't heard any other pension scheme..............
Rest which I have heard is linked with the Insurance Company, which is taken care by the Individual himself, that has nothing to do with the Company, PF etc. and that has different terms and conditions.
From India, Delhi
Rest which I have heard is linked with the Insurance Company, which is taken care by the Individual himself, that has nothing to do with the Company, PF etc. and that has different terms and conditions.
From India, Delhi
Superannuation Pension is one given after the person completes his full tenure of service and as per policy there is no service left over for example for Government employees it is 60 years this is superannuation
Retirement Pension. This is pension given to employee after he is eligible for pension on pre mature release from service
Short service pension is from PF given after 50 years of age provided the employee has put in 10 years of contribution to the PF.
From India, Tiruppur
Retirement Pension. This is pension given to employee after he is eligible for pension on pre mature release from service
Short service pension is from PF given after 50 years of age provided the employee has put in 10 years of contribution to the PF.
From India, Tiruppur
Dear Nipuna,
As Under The Employees Provident Fund & M.P. Act-1952, and Scheme framed thereunder, the types of pensions in your question are as follows;
(1) superannuation pension if he has rendered eligible service of 20 years or more and retires on attaining the age of 58 years;
(2) retirement pension, if he has rendered eligible service of 20 years or more and retires or otherwise ceases to be in the employment before attaining the age of 58 years;
(3) short service pension, if he has rendered eligible service of 10 years or more but less than 20 years.
One more term reduced pension, it is actually a pension which P.F. deptt. offers to those members who have attained the age of 50 years but not 58 and ceases to be a member of pension fund, such member can opt for reduced pension @ 3% reduction per year untill the attaining age of 58 years. After 58 reduction shall be stoped.
All industry covered under the Employees Provident fund and Miscle. Provisions Act-1952 will be covered under aforesaid pension schemes, applicable to case to case basis on an employee as defined.
Currently, From 16/11/1995, the formula of calculating pension is as follows;
Pension Amount = (Pensionable Service (No. of Years) * Pensionable Salary )/70
However there are many factors which are being taken in to consideration on calculating pension, such as past service of a member before 16/11/1995 etc.
For your kind information there are various other pensions also offered under the Act.
1. Widow Pension
2. Children Pension
3. Orphan Pension
4. In case of unmarried member - Pension to a Nominee or legal heir or dependable parents.
I think the terms you have mentioned in your query now be very clear to you, else write once again, I will try to give you more infomation on the same.
Thanks
Mohd. Arif Khan
Dy. Manager HR
As Under The Employees Provident Fund & M.P. Act-1952, and Scheme framed thereunder, the types of pensions in your question are as follows;
(1) superannuation pension if he has rendered eligible service of 20 years or more and retires on attaining the age of 58 years;
(2) retirement pension, if he has rendered eligible service of 20 years or more and retires or otherwise ceases to be in the employment before attaining the age of 58 years;
(3) short service pension, if he has rendered eligible service of 10 years or more but less than 20 years.
One more term reduced pension, it is actually a pension which P.F. deptt. offers to those members who have attained the age of 50 years but not 58 and ceases to be a member of pension fund, such member can opt for reduced pension @ 3% reduction per year untill the attaining age of 58 years. After 58 reduction shall be stoped.
All industry covered under the Employees Provident fund and Miscle. Provisions Act-1952 will be covered under aforesaid pension schemes, applicable to case to case basis on an employee as defined.
Currently, From 16/11/1995, the formula of calculating pension is as follows;
Pension Amount = (Pensionable Service (No. of Years) * Pensionable Salary )/70
However there are many factors which are being taken in to consideration on calculating pension, such as past service of a member before 16/11/1995 etc.
For your kind information there are various other pensions also offered under the Act.
1. Widow Pension
2. Children Pension
3. Orphan Pension
4. In case of unmarried member - Pension to a Nominee or legal heir or dependable parents.
I think the terms you have mentioned in your query now be very clear to you, else write once again, I will try to give you more infomation on the same.
Thanks
Mohd. Arif Khan
Dy. Manager HR
Dear Mr. Arif,
Thank you for the detailed answer. I understood the things. but there is a query regarding the calculation of pension fund.
Pension Amount = (Pensionable Service (No. of Years) * Pensionable Salary )/70
in this formula can you tell me that why 70 is taken and what is the pensionable salary means here?
From India, Delhi
Thank you for the detailed answer. I understood the things. but there is a query regarding the calculation of pension fund.
Pension Amount = (Pensionable Service (No. of Years) * Pensionable Salary )/70
in this formula can you tell me that why 70 is taken and what is the pensionable salary means here?
From India, Delhi
hi,
i have recently join a retail chain . please tell me any body about the
employee provident fund
employee family fund
employer provident fund contribuctin fund
edli
admin charges
please tell me about the fund scheme
GAGAN DEEP SINGH GILL
From India, Chandigarh
i have recently join a retail chain . please tell me any body about the
employee provident fund
employee family fund
employer provident fund contribuctin fund
edli
admin charges
please tell me about the fund scheme
GAGAN DEEP SINGH GILL
From India, Chandigarh
Dear Nipuna,
Greetings of the day,
First, I will calrify the basis of 70 in the formula,
1. It is presumed that in general a person will work 33 Years (approx.) in his life time.
2. Under E.P.F. Act, there is 2 years wheightage to a member who has contributed to the scheme at least 20 years.
Thus the total pensionable service will become = 33+2 = 35 (Under normal assumptions)
In Govt. System the pension is approx. 50% of the monthly wages ie. (1/2 of wages)
Formula is Pension Amount = (Pesionable service *Pesionable Salary)/35*2
Now this 35*2 = 70 i.e. product of maximum year of service and 50% of wages.
You can now understood it like this
Pension Amount = (Actual Service One has rendered as a member of pension Fund * 1/2 of his wage on monthly contribution was paid) / Maximum No. of years a person can work before his normal retirement.
Secondly Pensionable salary is the amount of wages on which the monthly contribution is normally paid.
let me know for further any calrification in this regard.
Thanks
Mohd. Arif Khan
Dy. Manager - HR
Greetings of the day,
First, I will calrify the basis of 70 in the formula,
1. It is presumed that in general a person will work 33 Years (approx.) in his life time.
2. Under E.P.F. Act, there is 2 years wheightage to a member who has contributed to the scheme at least 20 years.
Thus the total pensionable service will become = 33+2 = 35 (Under normal assumptions)
In Govt. System the pension is approx. 50% of the monthly wages ie. (1/2 of wages)
Formula is Pension Amount = (Pesionable service *Pesionable Salary)/35*2
Now this 35*2 = 70 i.e. product of maximum year of service and 50% of wages.
You can now understood it like this
Pension Amount = (Actual Service One has rendered as a member of pension Fund * 1/2 of his wage on monthly contribution was paid) / Maximum No. of years a person can work before his normal retirement.
Secondly Pensionable salary is the amount of wages on which the monthly contribution is normally paid.
let me know for further any calrification in this regard.
Thanks
Mohd. Arif Khan
Dy. Manager - HR
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PF guidleines for Pension fund.pdf