EPS pension deferment lead to loss of penision principle amount.
1. Consder a person superanuates at 58 year with fixed pension amount Rs 2000 on 31Mar2024.
2. He/She applies for pension deferment for 2 years (till age 60 years). As per EPFO rule, he/she becomes eligible for addtional 8-.16% pension.
3. So updated pension becomes 2000+8.16% of 2000 = 2163.
4. Pension start date 01Apr2026 ( 2years after 58 years as he/she opted 2 year pension deferment to obtain 8.16% addtional pension benefit)
Take same case but pension deferment not applied. So pension start date 1-Apr-2024.
1. Penison amount Rs 2000.
2. Penion acculated for 2 years till 60 years = 2000 * 24 months = 48000
3. Pension put 48000 in bank FD on 01-Apr-2026.
4. interest earned on 48000 per month (ocnisdering 7% annual FD rate) = Rs 280
So if pensiner does not opt for pension deferment, he/she gets Rs 280 per month which is more that additional pension, Rs 163 by EPFO deferment rule. Also Rs 48000 is alwasy with Pensioner. There is loss of Rs 48000 also.
Please guide on
1. If applied penion deferment appliation (alread approved and pension fixed) can be reversed
2. OR should EPFO provide Rs 48000 as a part of some amount
From India, Bengaluru
1. Consder a person superanuates at 58 year with fixed pension amount Rs 2000 on 31Mar2024.
2. He/She applies for pension deferment for 2 years (till age 60 years). As per EPFO rule, he/she becomes eligible for addtional 8-.16% pension.
3. So updated pension becomes 2000+8.16% of 2000 = 2163.
4. Pension start date 01Apr2026 ( 2years after 58 years as he/she opted 2 year pension deferment to obtain 8.16% addtional pension benefit)
Take same case but pension deferment not applied. So pension start date 1-Apr-2024.
1. Penison amount Rs 2000.
2. Penion acculated for 2 years till 60 years = 2000 * 24 months = 48000
3. Pension put 48000 in bank FD on 01-Apr-2026.
4. interest earned on 48000 per month (ocnisdering 7% annual FD rate) = Rs 280
So if pensiner does not opt for pension deferment, he/she gets Rs 280 per month which is more that additional pension, Rs 163 by EPFO deferment rule. Also Rs 48000 is alwasy with Pensioner. There is loss of Rs 48000 also.
Please guide on
1. If applied penion deferment appliation (alread approved and pension fixed) can be reversed
2. OR should EPFO provide Rs 48000 as a part of some amount
From India, Bengaluru
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EPS - Form No. 10-D Pension Claim Form Aadhaar.pdf
EPFO-EPS-FUNCTI ONS & BENEFITS.docx