Dear Abbas,
When is the CBT meeting scheduled next ? The decision regarding the implementation of the new pension scheme and remitting the due amount in respect of the new pension calculation can happen only after this meeting and decision then ?
1. How is the pensionable service calculated in the new pension scheme ? a) before 1995 b) after 1995 & c0 after 2014 ? How is the service calculated based on these factors ? Is there a additional +2 score added to the service if service is more than 20 Years ? Then the ( No of pensionable service / 70 ) gives you the factor for multiplication with your Basic Salary + DA. Is this correct ?
2. The ( Basic + DA ) for arriving at the pension amount per month - How is this taken ? Average of the last five years or average of the last one year ?
3. EPF proposal for ESI Insurance has been finalised ?
4. Is there a proposal to give a lump sum amount for the EPF retirees as a terminal benefit ? What is the formula for this ?
Satheesh Kumar.P
From India, Bengaluru
2When is the CBT meeting scheduled next ? The decision regarding the implementation of the new pension scheme and remitting the due amount in respect of the new pension calculation can happen only after this meeting and decision then ?
1. How is the pensionable service calculated in the new pension scheme ? a) before 1995 b) after 1995 & c0 after 2014 ? How is the service calculated based on these factors ? Is there a additional +2 score added to the service if service is more than 20 Years ? Then the ( No of pensionable service / 70 ) gives you the factor for multiplication with your Basic Salary + DA. Is this correct ?
2. The ( Basic + DA ) for arriving at the pension amount per month - How is this taken ? Average of the last five years or average of the last one year ?
3. EPF proposal for ESI Insurance has been finalised ?
4. Is there a proposal to give a lump sum amount for the EPF retirees as a terminal benefit ? What is the formula for this ?
Satheesh Kumar.P
From India, Bengaluru
Dear Satheesh Sir,
I am not aware of the next meeting date of CBT. EPFO will change the interim notification only if the CBT's decision in favour of employees.
1. Generally service will be divided into two a) Past service, i.e. service up to 15.11.95 b) Pensionable service w.e.f 16.11.95. If total service (including past service) is more than 20 years, 2 years bonus/weightage will be added with pensionable service; provided relieving from service is after completion of 58 years of age. If contribution is on ceiling limit pensionable service will be again divided as up to 31.8.14 (6500) & w.e.f 1.9.14.
(Rest of the queries may be addressed later)
Abbas.P.S
From India, Bangalore
I am not aware of the next meeting date of CBT. EPFO will change the interim notification only if the CBT's decision in favour of employees.
1. Generally service will be divided into two a) Past service, i.e. service up to 15.11.95 b) Pensionable service w.e.f 16.11.95. If total service (including past service) is more than 20 years, 2 years bonus/weightage will be added with pensionable service; provided relieving from service is after completion of 58 years of age. If contribution is on ceiling limit pensionable service will be again divided as up to 31.8.14 (6500) & w.e.f 1.9.14.
(Rest of the queries may be addressed later)
Abbas.P.S
From India, Bangalore
Dear Sir, It is not understood on what basis the EPFO has not agreed to companies with exempted trusts as it is clear that all the three aspects are having different status. The Provident Fund Trust might have got exempted but for Pension it is not exempted as most of the PSUs contribute to RPFC. The third aspect on EDLI. If EDLI is exempted then employer can go for alternative schemes. That is why most of the companies do have their own arrangement with LIC or other institutions.
I mean to say that PF Trust Pension Fund and EDLI all have got different status. The individual exempted status can be viewed in EPFO website. But why one is linked to other, is not really very clear. If some one can explain it would be better.
From India, Barhiya
I mean to say that PF Trust Pension Fund and EDLI all have got different status. The individual exempted status can be viewed in EPFO website. But why one is linked to other, is not really very clear. If some one can explain it would be better.
From India, Barhiya
Dear friends,
Exemption is possible for all three cases viz. PF, pension & EDLI. Now EPFO is not ready for full salary option on pension, as it is much expensive. Their circular dated 23.3.17 is in compliance with the Supreme Court direction to give the facility to all. Now I shall come to the point on which EPFO is denying the provision and the courts countering the argument.
Even though there was provision to contribute to EPS on full salary, EPS cannot receive arrears with retrospective effect. To this argument courts says that there is no question of retrospective payment. Whether the deposit is in PF or EPS, it is with EPFO only. Only paper adjustment is needed to transfer amount from PF to EPS. Now EPFO has observed that in the case of exempted trusts, PF amount is not with EPFO, but with concerned organizations. Accordingly they feel that they are not to obey the court order regarding exempted trusts.
Abbas.P.S
From India, Bangalore
Exemption is possible for all three cases viz. PF, pension & EDLI. Now EPFO is not ready for full salary option on pension, as it is much expensive. Their circular dated 23.3.17 is in compliance with the Supreme Court direction to give the facility to all. Now I shall come to the point on which EPFO is denying the provision and the courts countering the argument.
Even though there was provision to contribute to EPS on full salary, EPS cannot receive arrears with retrospective effect. To this argument courts says that there is no question of retrospective payment. Whether the deposit is in PF or EPS, it is with EPFO only. Only paper adjustment is needed to transfer amount from PF to EPS. Now EPFO has observed that in the case of exempted trusts, PF amount is not with EPFO, but with concerned organizations. Accordingly they feel that they are not to obey the court order regarding exempted trusts.
Abbas.P.S
From India, Bangalore
Hi, I have experience in HR but was in recruitment for long now I want to learn other aspects of HR especially Payroll and other compliances. Kindly guide me through on this. I am much keen to get these details as I am moving to a new project which needs me to gain knowledge in all these too. Please help me on this. - Vidhya
From India, Hyderabad
From India, Hyderabad
Subsequent to Circular Dated 23/03/2017 another Circular Dated 31/05/2917(Attached) has been issued by PF Organisation whereby glaring discrimination is being caused by differentiating between Exempted and Unexempted establishments in giving higher pension in terms of Circular Dated 23/3/2917 issued on the basis of Hon'ble Supreme Court's Order Dated 4/10/2016.
Employees having PF Account and EPS Account with concerned RPFC will only be given benefit of higher pension whereas Employees having PF Account with Trustees will not be the benefit of circular dated 23/03/2017.
This appears to be unreasonable and uncalled for as for no fault of an Employee having PF Account with Trustees is being deprived of a benefit accrued on the basis of Hon'ble Supreme Court's Order.
From India, Delhi
Employees having PF Account and EPS Account with concerned RPFC will only be given benefit of higher pension whereas Employees having PF Account with Trustees will not be the benefit of circular dated 23/03/2017.
This appears to be unreasonable and uncalled for as for no fault of an Employee having PF Account with Trustees is being deprived of a benefit accrued on the basis of Hon'ble Supreme Court's Order.
From India, Delhi
Dear Friends,
pl. advice is it good option to opt full pension scheme as we will be contributing 8.33% of Basic+DA which will reduce our EPF corpus ..is it a better option?
pl. provide if any estimated calculation sheets available ..
From India, Hyderabad
pl. advice is it good option to opt full pension scheme as we will be contributing 8.33% of Basic+DA which will reduce our EPF corpus ..is it a better option?
pl. provide if any estimated calculation sheets available ..
From India, Hyderabad
My Basic salary is 20860 and worked with the Organisation upto 26 years then what will be my pension amount as per new EPS formula.
Dear Mr Abbas,
I joined ITI LTD as AEE on 7th March 1983 and retired as DGM on 30th April 2014.
I am getting pension of Rs 2331 from May 2014.
Am I eligible for enhanced pension as per epo circular dt 23.3.2017 ?
If so, what is the procedure ? What is the calculation to arrive at the revised pension ?
Please inform me.
Thanks
k s manjunatha
From India, Bengaluru
I joined ITI LTD as AEE on 7th March 1983 and retired as DGM on 30th April 2014.
I am getting pension of Rs 2331 from May 2014.
Am I eligible for enhanced pension as per epo circular dt 23.3.2017 ?
If so, what is the procedure ? What is the calculation to arrive at the revised pension ?
Please inform me.
Thanks
k s manjunatha
From India, Bengaluru
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Epfo circular 070219 Pension-I_12_33 _96_Amendments_ Vol.IV_17154.pd f