Dear Mr.Madhu
I need your professional advice and opinion. I retired in March 2014 and technically the pension started in Dec 2011 after I attained 58 years of age after service of 12 years in my present organization. My salary for pension deduction was capped at Rs.6500/- and accordingly paid Rs.541 then. My pension today is Rs.1075/- per month.
I was contributing to PF on the actual salary. The last pay drawn in Dec 2011 was Rs.117400/-
Question is whether I will be entitled for enhanced pension after remittance of the differential amount for 12 years service period together with interest (6%)? As per calculation approximately I might have to shell out Rs.866941( considering my then last 5 years salary and calculation of 8.33% less 541 plus interest). The gain I suppose is the arrears from Dec 2011 till date plus regular enhanced pension of Rs20125/-(117400x12/70). In this process I might get an arrears of Rs.1690560 ( from Dec 2011 plus ) plus interest which should be around 12lacs ...
Can you kindly confirm my understanding in order for further action with EPFO please .
From India, Tiruchirappalli
15I need your professional advice and opinion. I retired in March 2014 and technically the pension started in Dec 2011 after I attained 58 years of age after service of 12 years in my present organization. My salary for pension deduction was capped at Rs.6500/- and accordingly paid Rs.541 then. My pension today is Rs.1075/- per month.
I was contributing to PF on the actual salary. The last pay drawn in Dec 2011 was Rs.117400/-
Question is whether I will be entitled for enhanced pension after remittance of the differential amount for 12 years service period together with interest (6%)? As per calculation approximately I might have to shell out Rs.866941( considering my then last 5 years salary and calculation of 8.33% less 541 plus interest). The gain I suppose is the arrears from Dec 2011 till date plus regular enhanced pension of Rs20125/-(117400x12/70). In this process I might get an arrears of Rs.1690560 ( from Dec 2011 plus ) plus interest which should be around 12lacs ...
Can you kindly confirm my understanding in order for further action with EPFO please .
From India, Tiruchirappalli
Dear Mr. Narasimhan T.S.,
I would like to give my views on your query as follows as per my experience in getting enhanced pension from EPFO as per SC’s verdict :
You are eligible for enhanced pension /arrear pension as follows:-
1.You have contributed to pension fund on Rs.6500/- (wage ceiling amt only) for 12 year from 1999 to 2011,whereas you have contributed to PF @12% on actual salary,the last month’s salary being Rs.1,17,400 in2011(i.e. at the time of attaining 58 yrs).As you have not mentioned about your pensionable service/PF contributing prior to 1999,I am assuming that you were neither member of EPF/EPS or if member,you have withdrawn the PF amt prior to 1999 i.e. before joining your last employer.
2.You have to refund the differential of pension contribution (8.33% of actual salary on which PF@12% was deducted minus Rs.541/- p.m from 1999 to 2011 i.e. for entire period of your pensionable service with uptodate interest till dt of deposit calculated @ interest rate declared by EPFO for different year from 1999 to 2019 at monthly rest( e.g. @12% for year1999 .......@8.55% for 2019).
3.You will be entitled to receive enhanced pension @ Rs.1,17,400/70*12=Rs.20,126 p.m.(This will vary depending your avg of last 12 months’ salary actual period of pensionable service ) w.e.f. dt of your retirement in 2011.
4.You will get arrear pension @Rs.19141/-( Rs.20126-Rs.1075) for 12yrsx12 months which comes to Rs.27,56,304(Approx).No interest will be given by EPFO over it.
Regards,
S.K.Hota
Bhubaneswar
From India, Calcutta
I would like to give my views on your query as follows as per my experience in getting enhanced pension from EPFO as per SC’s verdict :
You are eligible for enhanced pension /arrear pension as follows:-
1.You have contributed to pension fund on Rs.6500/- (wage ceiling amt only) for 12 year from 1999 to 2011,whereas you have contributed to PF @12% on actual salary,the last month’s salary being Rs.1,17,400 in2011(i.e. at the time of attaining 58 yrs).As you have not mentioned about your pensionable service/PF contributing prior to 1999,I am assuming that you were neither member of EPF/EPS or if member,you have withdrawn the PF amt prior to 1999 i.e. before joining your last employer.
2.You have to refund the differential of pension contribution (8.33% of actual salary on which PF@12% was deducted minus Rs.541/- p.m from 1999 to 2011 i.e. for entire period of your pensionable service with uptodate interest till dt of deposit calculated @ interest rate declared by EPFO for different year from 1999 to 2019 at monthly rest( e.g. @12% for year1999 .......@8.55% for 2019).
3.You will be entitled to receive enhanced pension @ Rs.1,17,400/70*12=Rs.20,126 p.m.(This will vary depending your avg of last 12 months’ salary actual period of pensionable service ) w.e.f. dt of your retirement in 2011.
4.You will get arrear pension @Rs.19141/-( Rs.20126-Rs.1075) for 12yrsx12 months which comes to Rs.27,56,304(Approx).No interest will be given by EPFO over it.
Regards,
S.K.Hota
Bhubaneswar
From India, Calcutta
Dear Mr. S.K.Hota,
I sincerely thank you for the enlightenment. Yes prior to 2000 , I had withdrawn PF as I was overseas. From May 2000 to March 2014 I was in employment as Executive Director in Darcl Logistics Limited when I finally retired. For purpose of EPFO I attained 58 years in Dec 2011 when pension started.
On the issue of my returning the differential amount and the interest, can the same not be adjusted from receivables?
As per your advice , I am working out the statement of my salary from 2000 to 2011 and 8.33% on same plus interest as you advised. Is there a time frame from EPFO as to when I can get the amount and enhanced pension.
Regards
From India, Tiruchirappalli
I sincerely thank you for the enlightenment. Yes prior to 2000 , I had withdrawn PF as I was overseas. From May 2000 to March 2014 I was in employment as Executive Director in Darcl Logistics Limited when I finally retired. For purpose of EPFO I attained 58 years in Dec 2011 when pension started.
On the issue of my returning the differential amount and the interest, can the same not be adjusted from receivables?
As per your advice , I am working out the statement of my salary from 2000 to 2011 and 8.33% on same plus interest as you advised. Is there a time frame from EPFO as to when I can get the amount and enhanced pension.
Regards
From India, Tiruchirappalli
Dear Mr.S.K.Hota I forgot to mention that arrears, I should get from Dec 2011 till date is 7 years plus .Is it not? I think not 12 years please. Can you kindly clarify please. Regards
From India, Tiruchirappalli
From India, Tiruchirappalli
Dear Mr. Madhu.T.K
Greetings!
I am a retired person and as I hear that I need to pay off the differential amount (8.33% on salary minus Rs.541) during the pensionable service with interest .My queries are:
1.What interest element I should take on the principal sum to be returned to EPFO.
2.Will that be till 31.3.2019 or which date precisely
3.Will pension arrears have interest element by EPFO till 31.3.19 or some cut off date?
4.If my pension arrears receivable is less than payable amount will I have to remit the difference to EPFO?
5.If my pension arrears receivable is more than payable amount will EPFO give me the difference?
6. What is the timeline you envisage for the above process ?
6. 14 March 2019 circular from Additional commissioner PF ( Pensions)says that PF department should send calculation sheet. Are they doing in your expert opinion Sir?
Regards
From India, Tiruchirappalli
Greetings!
I am a retired person and as I hear that I need to pay off the differential amount (8.33% on salary minus Rs.541) during the pensionable service with interest .My queries are:
1.What interest element I should take on the principal sum to be returned to EPFO.
2.Will that be till 31.3.2019 or which date precisely
3.Will pension arrears have interest element by EPFO till 31.3.19 or some cut off date?
4.If my pension arrears receivable is less than payable amount will I have to remit the difference to EPFO?
5.If my pension arrears receivable is more than payable amount will EPFO give me the difference?
6. What is the timeline you envisage for the above process ?
6. 14 March 2019 circular from Additional commissioner PF ( Pensions)says that PF department should send calculation sheet. Are they doing in your expert opinion Sir?
Regards
From India, Tiruchirappalli
Dear Mr. Narasimhan T.S.,
1.Yes,you will get arrear pension @Rs.19141/-( Rs.20126-Rs.1075) for 7 years 4 months(12/2011 to to 3/19)=88 months which comes to Rs.16,84,408(Approx).
2.With regards to interest on the arrear pension,I have indicated in my correspondences with EPFO authorities regarding the same .But,I have learnt from my ex-colleages that they have not been paid interest on their arrear pension amt.I will request for the same to EPFO authority after I receive my arrear pension.Now I have depositted the refund amount and not yet received the enhanced pension/arreat pension.
3.With regard to adjustment of refundable pension contribution from arrear pension,my request for the same has been rejected by EPFO authority on the plea that there is no mention of such adjustment in the Supreme Court order,rather it is mentioned that EPFO can seek refund of differential pension contribution with uptodate interest from pensioners
4.The EPFO authority is giving the pensioners the calculationsheet of refundable amt for the entire period,which I have got.
Regards,
S.K.Hota
Bhubaneswar
From India, Calcutta
1.Yes,you will get arrear pension @Rs.19141/-( Rs.20126-Rs.1075) for 7 years 4 months(12/2011 to to 3/19)=88 months which comes to Rs.16,84,408(Approx).
2.With regards to interest on the arrear pension,I have indicated in my correspondences with EPFO authorities regarding the same .But,I have learnt from my ex-colleages that they have not been paid interest on their arrear pension amt.I will request for the same to EPFO authority after I receive my arrear pension.Now I have depositted the refund amount and not yet received the enhanced pension/arreat pension.
3.With regard to adjustment of refundable pension contribution from arrear pension,my request for the same has been rejected by EPFO authority on the plea that there is no mention of such adjustment in the Supreme Court order,rather it is mentioned that EPFO can seek refund of differential pension contribution with uptodate interest from pensioners
4.The EPFO authority is giving the pensioners the calculationsheet of refundable amt for the entire period,which I have got.
Regards,
S.K.Hota
Bhubaneswar
From India, Calcutta
Dear Narasimhan Sir,
I beg to pardon, I was away for a couple of days and could not visit citehr. But I am very happy that our friend SK Hota has given you the right answer. Since pension is processed in a separate department which only receives the directions from the PF department as to whether the refund has been received or not sothat pension at revised rates could be released, I don't think that adjustment of amount payable from the pension arrears would be possible.
From India, Kannur
I beg to pardon, I was away for a couple of days and could not visit citehr. But I am very happy that our friend SK Hota has given you the right answer. Since pension is processed in a separate department which only receives the directions from the PF department as to whether the refund has been received or not sothat pension at revised rates could be released, I don't think that adjustment of amount payable from the pension arrears would be possible.
From India, Kannur
Dear Mr.Madhu TK
Thanks for your considered advice , and Mr.S.K.Hota's considered advice to my queries . I attach the Madras High Court Judgement of 27.3.19 and excerpts :
vi)"In case where the refund of the amount by any employee with interest is higher than the enhanced pension with arrears payable to him, the refund shall be insisted upon and in case where the refund, after calculation, is lower than the arrears of pension payable to the employee, the same shall be adjusted while disbursing the arrears to the employees concerned".....
May be this helps.
iii)The employees, namely, the writ petitioners shall be permitted to exercise their option in terms of Proviso to Clause 11(3) of the Pension Scheme and while permitting so, the EPFO is at liberty to seek return of the higher Provident Fund contribution received by the respective employees with simple interest at the rate of 6% p.a. from the date of receipt of Provident Fund amount and till the date of payment;
You had earlier mentioned on 6% interest ( simple interest) Mr.Hota mentioned higher interest than this may be this gives a bit of reprieve too.
Your thoughtful advice is awaited.
Regards
From India, Tiruchirappalli
Thanks for your considered advice , and Mr.S.K.Hota's considered advice to my queries . I attach the Madras High Court Judgement of 27.3.19 and excerpts :
vi)"In case where the refund of the amount by any employee with interest is higher than the enhanced pension with arrears payable to him, the refund shall be insisted upon and in case where the refund, after calculation, is lower than the arrears of pension payable to the employee, the same shall be adjusted while disbursing the arrears to the employees concerned".....
May be this helps.
iii)The employees, namely, the writ petitioners shall be permitted to exercise their option in terms of Proviso to Clause 11(3) of the Pension Scheme and while permitting so, the EPFO is at liberty to seek return of the higher Provident Fund contribution received by the respective employees with simple interest at the rate of 6% p.a. from the date of receipt of Provident Fund amount and till the date of payment;
You had earlier mentioned on 6% interest ( simple interest) Mr.Hota mentioned higher interest than this may be this gives a bit of reprieve too.
Your thoughtful advice is awaited.
Regards
From India, Tiruchirappalli
The Madras High Court judgement as above clears for Exempted and unexempted organisation please. Regards
From India, Tiruchirappalli
From India, Tiruchirappalli
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PF guidleines for Pension fund.pdf