Dear Subject Matter experts on EPS
-There is an interpretation of the Supreme Court judgment dated 04.11.22 that pensionable salary for calculating the Pension will be the average of the last 60 Months’ salary.
-Presently if you see the PPO, this is not true and nobody is getting the Pension based on Rs. 15000/- for the entire service i.e. service between 95 to September, 14. It means the EPFO is taking the average salary/wages of the entire service while determining the pensionable Service.
-I joined EPS Scheme on 01.09.1997 and have deferred my Pension up to 60 years, please confirm the basis of the calculation of my Pensionable salary. If I calculate my pension on the basis of the average of the last 60 months of salary, I will be getting around 40% more pension as compared to the calculation based on the salary/PF wages of the entire service. In other words, if I take an average of 60 months, the option of a higher pension is very lucrative to me and if I take an average from the date of joining the EPS Scheme, it is not beneficial to opt for a higher pension.
Request you to kindly suggest as even the top consultants charging a very hefty fee and organizing the conferences on this, are not very clear.
Kindly also suggest which para of the SC judgment dated 04.11.22 is confirming the change of calculation of pensionable service contrary to the existing practice except for the period of 12 months to 60 months, I mean, in which para it is written / or can be interpreted that the pensionable service even prior to the period before 01.09.14 will be on the basis of last 60 months average salary.
Regards,
Dr Kamlesh Agrawal, Mumbai
From India, Delhi
10-There is an interpretation of the Supreme Court judgment dated 04.11.22 that pensionable salary for calculating the Pension will be the average of the last 60 Months’ salary.
-Presently if you see the PPO, this is not true and nobody is getting the Pension based on Rs. 15000/- for the entire service i.e. service between 95 to September, 14. It means the EPFO is taking the average salary/wages of the entire service while determining the pensionable Service.
-I joined EPS Scheme on 01.09.1997 and have deferred my Pension up to 60 years, please confirm the basis of the calculation of my Pensionable salary. If I calculate my pension on the basis of the average of the last 60 months of salary, I will be getting around 40% more pension as compared to the calculation based on the salary/PF wages of the entire service. In other words, if I take an average of 60 months, the option of a higher pension is very lucrative to me and if I take an average from the date of joining the EPS Scheme, it is not beneficial to opt for a higher pension.
Request you to kindly suggest as even the top consultants charging a very hefty fee and organizing the conferences on this, are not very clear.
Kindly also suggest which para of the SC judgment dated 04.11.22 is confirming the change of calculation of pensionable service contrary to the existing practice except for the period of 12 months to 60 months, I mean, in which para it is written / or can be interpreted that the pensionable service even prior to the period before 01.09.14 will be on the basis of last 60 months average salary.
Regards,
Dr Kamlesh Agrawal, Mumbai
From India, Delhi
Pensionable salary is the Pension contributing salary 60 months immediately preceding your date of attaining 58 years of age. It is not preceding the age on which you have reached 60. It is true that by opting for deferred pension, you would have received the benefits of certain additional amounts, say 2% or 4% depending upon contribution to the Pension fund since the date of actual retirement at 58 years of age. If your actual date of retirement is some time in 2021, the average would be on Rs 15000 but if your actual retirement was some time in 2018, while calculating 60 months average a period of service with Rs 6500 as Pension Contributing salary would also come up. This would make the pension less. Please check.
The Apex Court has not said the 2014 amendment to Pension Scheme was whimsical. The Court noted that EPF Act gives power to the Central Government to modify the pension scheme prospectively or retrospectively. But at the same time, it observed that additional contribution of 1.16% by the employees on contributions over and above Rs 15000 is illegal and thus quashed. Similarly, the amendment regarding calculation of pensionable salary has also been upheld by the Court. There are employees who are getting pension on the basis of 12 months salary as directed by Kerala High Court. They have been directed to refund the amounts calculating the pension on the basis of 60 months.
From India, Kannur
The Apex Court has not said the 2014 amendment to Pension Scheme was whimsical. The Court noted that EPF Act gives power to the Central Government to modify the pension scheme prospectively or retrospectively. But at the same time, it observed that additional contribution of 1.16% by the employees on contributions over and above Rs 15000 is illegal and thus quashed. Similarly, the amendment regarding calculation of pensionable salary has also been upheld by the Court. There are employees who are getting pension on the basis of 12 months salary as directed by Kerala High Court. They have been directed to refund the amounts calculating the pension on the basis of 60 months.
From India, Kannur
I joined eps on 22.09.1997 and retired on 17.08.2014 on attainig age of 58 years.
My pension is not calculated on the average salary for last 12 months or 60 months. The pension is calculated separtely on the basis of sealing of salary.
That is on 5000 upto the period when sealing was raised to 6500 and after that on 6500. I wanted to know that is this correct method ?
From India, Pathankot
My pension is not calculated on the average salary for last 12 months or 60 months. The pension is calculated separtely on the basis of sealing of salary.
That is on 5000 upto the period when sealing was raised to 6500 and after that on 6500. I wanted to know that is this correct method ?
From India, Pathankot
The method of calculation of pension to persons like you who retired prior to 1st Sept 2014 should be average salary of Rs 6500 for the preceding 12 months and not 60 months. The calculation on average pension qualifying salary of subject to a maximum of Rs 15000 of 60 months preceding the date of retirement came in only in the 2014 amendment effective from 1st Sept 2014. In the absence of any loss of pay or non contributing salary, you should get a pension of Rs 1578 approximately.
From India, Kannur
From India, Kannur
Dear Experts Please let me know about factor of 70 which divided to pensionable salary as below. What is 70 and what is the basis of it. 15000/70 X No. of year of service Regards Rakesh Dubey
From India, Raipur
From India, Raipur
70 is a constant common factor used to calculate pension as per the Pension Scheme 1995. It may be ( I don't know if it is scientifically true) on the assumption that a pensioner may live till the age of 70. If the life expectancy is increased to 80 years, naturally, he should get lesser pension from his date of retirement, right?
From India, Kannur
From India, Kannur
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