I am a worker teacher under Regional Workers' Education Centre, KOZHIKODE. I wish to share the informations on PF pension / EPS-95 with the friends in citeHR.com. Accordingly your responses are invited.
ABBAS.P.S,
Secretary,
ITI Employees' Association,
ITI Ltd, PALAKKAD - 678 623,
KERALA, INDIA.
Ph : +91 9447 467 667
From India, Bangalore
517ABBAS.P.S,
Secretary,
ITI Employees' Association,
ITI Ltd, PALAKKAD - 678 623,
KERALA, INDIA.
Ph : +91 9447 467 667
From India, Bangalore
There is no upper limit for Eps-95 pension. For pension calculation, the service will be taken into 2 parts. Service before 16.11.95 and service w.e.f 16.11.95. The first one is called as past service and latter one as pensionable service. Past service is divided into 4 slabs. Service upto 11 years, 12 to 15 years, 16 to 19 years and 20 & above. If the salary on 16.11.95 is below Rs. 2500, the monthly compensation will be Rs. 80, 95, 120 & 150 respectively. For Rs. 2500 & above this will be Rs. 85, 105, 135 & 170. This amount is for those who attain 58 years on 16.11.95. In the case of those attain 58 years after 16.11.95, the above compensation will be multiplied by a factor stipulated in table B, according to the difference between 16.11.95 and the date of completion of 58 years.
For pensionable service there is a formula to calculate pension. It is Pensionable Salary x Pensionable Service / 70. Pensionable salary can be categorised in to 3. 1) Below Rs. 6500. 2) Rs. 6500 & above, but contribution on statutory celing of Rs. 6500. 3) Above Rs. 6500 & opted to contribute on actual salary. In case of 2nd, pensionable salary is Rs. 6500. In other two cases, pensionable salary will be the average of last twelve months. Also if pensionable service is 20 years & above 2 year's bonus will be given.
For details please see the web site :
EPFO <link updated to site home>
One example I shall quote.
Date of Birth - 2.1.1961
Date of join - 23.2.1987
Salary on 16.11.95 - Rs. 2500 & above
Salary on completion of 58 years on 1.1.2019 - Rs. 6500 (Statutory Ceiling)
Past Service - 8 yr 9 m (approx) rounded to 9 years
Compensation - Rs. 85
Factor as per Table B (for less than 24 years, i.e the difference between 16.11.95 & 1.1.2019) - 6.102
(This can be calculated as 1.08 to the power of 24 - 0.5, correct to 3 decimals)
Past Service Benefit - 85 x 6.102 = Rs. 519 - (A)
Pensionable Service - 23 years
Bonus (Service is 20 & above) - 2
Pensionable Salary - Rs. 6500
Pensionable Benefit - 6500 x 25 / 70 = 2321 - (B)
Total Pension - (A) + (B) = Rs. 2840
Besides the above method of calculation there will be a minimum for those who have service before 16.11.95. In the EPS-95, they are categorised into three.
1. Date of commencement of Pension before 16.11.2000
2. Date of commencement of Pension between 16.11.2000 & 16.11.2005
3. Date of commencement of Pension after 16.11.2005
As the first two categories are already over, I shall a give a brief on third.
Pensionable benefit (minimum) of Rs. 635 and Past service benefit as mentioned above, subject to a minimum of Rs. 800. This amount is for 24 yrs or more service. If it is less than 24 yrs, this will be reduced in proportionate (amount x actual service / 24). However this amount will be subject to a minimun of Rs. 450.
I shall insert Excel work sheet to calculate pension. Enter Date of Birth, Date of Join, Date of Seperation from Service, Salary on 16.11.95, Salary on Seperation from Service ( in compliance with the contribution to pension fund) and break in service before and after 16.11.95, if any in green colour column. The results will appear in yellow colour column. The red colour is for static information.
In case of any error or suggestion, please notice to me.
From India, Bangalore
For pensionable service there is a formula to calculate pension. It is Pensionable Salary x Pensionable Service / 70. Pensionable salary can be categorised in to 3. 1) Below Rs. 6500. 2) Rs. 6500 & above, but contribution on statutory celing of Rs. 6500. 3) Above Rs. 6500 & opted to contribute on actual salary. In case of 2nd, pensionable salary is Rs. 6500. In other two cases, pensionable salary will be the average of last twelve months. Also if pensionable service is 20 years & above 2 year's bonus will be given.
For details please see the web site :
EPFO <link updated to site home>
One example I shall quote.
Date of Birth - 2.1.1961
Date of join - 23.2.1987
Salary on 16.11.95 - Rs. 2500 & above
Salary on completion of 58 years on 1.1.2019 - Rs. 6500 (Statutory Ceiling)
Past Service - 8 yr 9 m (approx) rounded to 9 years
Compensation - Rs. 85
Factor as per Table B (for less than 24 years, i.e the difference between 16.11.95 & 1.1.2019) - 6.102
(This can be calculated as 1.08 to the power of 24 - 0.5, correct to 3 decimals)
Past Service Benefit - 85 x 6.102 = Rs. 519 - (A)
Pensionable Service - 23 years
Bonus (Service is 20 & above) - 2
Pensionable Salary - Rs. 6500
Pensionable Benefit - 6500 x 25 / 70 = 2321 - (B)
Total Pension - (A) + (B) = Rs. 2840
Besides the above method of calculation there will be a minimum for those who have service before 16.11.95. In the EPS-95, they are categorised into three.
1. Date of commencement of Pension before 16.11.2000
2. Date of commencement of Pension between 16.11.2000 & 16.11.2005
3. Date of commencement of Pension after 16.11.2005
As the first two categories are already over, I shall a give a brief on third.
Pensionable benefit (minimum) of Rs. 635 and Past service benefit as mentioned above, subject to a minimum of Rs. 800. This amount is for 24 yrs or more service. If it is less than 24 yrs, this will be reduced in proportionate (amount x actual service / 24). However this amount will be subject to a minimun of Rs. 450.
I shall insert Excel work sheet to calculate pension. Enter Date of Birth, Date of Join, Date of Seperation from Service, Salary on 16.11.95, Salary on Seperation from Service ( in compliance with the contribution to pension fund) and break in service before and after 16.11.95, if any in green colour column. The results will appear in yellow colour column. The red colour is for static information.
In case of any error or suggestion, please notice to me.
From India, Bangalore
Dear Shish Uniyal,
Thank you for your complement. If you have any doubt on eps-95, please raise it in this column. For example an EPF subscriber retired from service after the age of 50 years and subsequently availed reduced pension. Later he came to join another job.
What about his pension contribution in the present job.
Because in normal case it is statutory and 8.33% of employer's contribution has to go to pension fund. At the same time he is getting a pension towards his previous job.
Ans: There will not be any contribution to the pension fund and the entire amount will go to his individual PF account.
From India, Bangalore
Thank you for your complement. If you have any doubt on eps-95, please raise it in this column. For example an EPF subscriber retired from service after the age of 50 years and subsequently availed reduced pension. Later he came to join another job.
What about his pension contribution in the present job.
Because in normal case it is statutory and 8.33% of employer's contribution has to go to pension fund. At the same time he is getting a pension towards his previous job.
Ans: There will not be any contribution to the pension fund and the entire amount will go to his individual PF account.
From India, Bangalore
Nobody have raised any questions. Now I shall register one question for kind attention of my friends in citeHR.
An employee with a salary of Rs. 2o,ooo/month has contributed to eps-95 on full amount, i.e. beyond ceiling limit. Due to some unforseen circumstances, he retired at the age of 45years. Within a few months, he came to join a new firm with EPF coverage for a meager salary of Rs.5000/month only.
Whether it is statutory to contribute to eps-95 in the second job again. If it is statutory, he will be compelled to receive a small amount on the basis his present salary; even though he contributed higher amounts. Is it justifiable.
With regards
ABBAS.P.S
From India, Bangalore
An employee with a salary of Rs. 2o,ooo/month has contributed to eps-95 on full amount, i.e. beyond ceiling limit. Due to some unforseen circumstances, he retired at the age of 45years. Within a few months, he came to join a new firm with EPF coverage for a meager salary of Rs.5000/month only.
Whether it is statutory to contribute to eps-95 in the second job again. If it is statutory, he will be compelled to receive a small amount on the basis his present salary; even though he contributed higher amounts. Is it justifiable.
With regards
ABBAS.P.S
From India, Bangalore
I have asked the above question to Dr. Vedprakash. He answered that as per the norms of the EPS-95/EPF, he has to continue in EPS and eligible pension only based on the average of last twelve month's salary.
Hence it is my humble request to all concerned to take up the issue with the EPF authorities.
Abbas.P.S
From India, Bangalore
Hence it is my humble request to all concerned to take up the issue with the EPF authorities.
Abbas.P.S
From India, Bangalore
In citeHR/274965, Binod Kumar Dutta has asked as under :
Hi Friends,seniors & Experts
I have some confusion regarding pension scheme of PF and need yours' suggesion, comment & guidance.My quiry is as follows
We are employees of a Pvt. Ltd. company. One of employee's DOB is 15.07.1946 and DOJ is 24.04.2000 and till date he is in job and his PF contribution is continue. Now he wants retirement. My question is whether he is entitled for pension or not? If yes then how much pension he will get, his current salary is 4500/ month.
With respect & regard
Thanks
Binod Kumar Dutta
I have replied as under :
Dear Binod Kumar Dutta,
As per the norms of Employees' Pension Scheme -1995 (PF Pension), contribution to Pension Fund will be ceased on the completion of 58 years. In this case completion of 58 years is on 14.7.2004. Means his pensionable service is only 4 years (between 24.4.2000 and 14.7.2004). Minimum service to get EPF pension is stipulated as 10years.
Accordingly he is not eligible to get above pension. But he is entitled for withdrawal benefit immediately after completion of 58years. For four years it is 3.99(factor as per Table D)x salary at the time of 58years. Present salary of Rs. 4500/- has no role on these calculations.
After 58yrs, full PF contribution has to go to his individual account.
Abbas.P.S
Binod Kumar Dutta has asked again as under :
Dear Abbas P.S. & Madhu T.K.
Thanks for your quick responce. This responce improved our knowledge and will help in solving the case. Details scenario of situation is as fallow. I am mentioning it once again becouse there is same change in information provided previously.
Employee's Date Of Birth - 08.09.1946
Employee's Date Of Joining - 15.04.2000
Salary was - Rs. 1,874.42 P. Per month ( April' 2004 )
Due to lake of awairness contribution to Pension Fund is ceaseless till date. We will stop it from next month(Contribution for the month of August - 2010 ).
Now, my question is what are the formalities to withdraw benefit. What will happen to the contribution deposited from 04/2004 to onward will this amount same calculated as Mr. Abbas informed for the period of Date of Joining to attaining 58 years age. Which attract the Table 'D'. I am eager to know what will happen to the contribution depositeed in pension fund after attaning age 58 years.
I hope, now i have clearly explained the case and you are in position to suggest better.
Waiting for your early response.
Thanks.
With Respect & Regard
Binod Kumar Dutta.
I have replied as under :
Dear Binod Kumar Dutta,
Withdrawal benefit is applicale only upto 58 years. In this case it is 3.99x1874.42 = 7479/- (Round figure).
Contribution to Pension Fund after 58 years has to be converted to his individual PF account as Employer's contribution.
In this regard please contact/write to your Regional EPF Commissioner with full details.
With regards
Abbas.P.S
From India, Bangalore
Hi Friends,seniors & Experts
I have some confusion regarding pension scheme of PF and need yours' suggesion, comment & guidance.My quiry is as follows
We are employees of a Pvt. Ltd. company. One of employee's DOB is 15.07.1946 and DOJ is 24.04.2000 and till date he is in job and his PF contribution is continue. Now he wants retirement. My question is whether he is entitled for pension or not? If yes then how much pension he will get, his current salary is 4500/ month.
With respect & regard
Thanks
Binod Kumar Dutta
I have replied as under :
Dear Binod Kumar Dutta,
As per the norms of Employees' Pension Scheme -1995 (PF Pension), contribution to Pension Fund will be ceased on the completion of 58 years. In this case completion of 58 years is on 14.7.2004. Means his pensionable service is only 4 years (between 24.4.2000 and 14.7.2004). Minimum service to get EPF pension is stipulated as 10years.
Accordingly he is not eligible to get above pension. But he is entitled for withdrawal benefit immediately after completion of 58years. For four years it is 3.99(factor as per Table D)x salary at the time of 58years. Present salary of Rs. 4500/- has no role on these calculations.
After 58yrs, full PF contribution has to go to his individual account.
Abbas.P.S
Binod Kumar Dutta has asked again as under :
Dear Abbas P.S. & Madhu T.K.
Thanks for your quick responce. This responce improved our knowledge and will help in solving the case. Details scenario of situation is as fallow. I am mentioning it once again becouse there is same change in information provided previously.
Employee's Date Of Birth - 08.09.1946
Employee's Date Of Joining - 15.04.2000
Salary was - Rs. 1,874.42 P. Per month ( April' 2004 )
Due to lake of awairness contribution to Pension Fund is ceaseless till date. We will stop it from next month(Contribution for the month of August - 2010 ).
Now, my question is what are the formalities to withdraw benefit. What will happen to the contribution deposited from 04/2004 to onward will this amount same calculated as Mr. Abbas informed for the period of Date of Joining to attaining 58 years age. Which attract the Table 'D'. I am eager to know what will happen to the contribution depositeed in pension fund after attaning age 58 years.
I hope, now i have clearly explained the case and you are in position to suggest better.
Waiting for your early response.
Thanks.
With Respect & Regard
Binod Kumar Dutta.
I have replied as under :
Dear Binod Kumar Dutta,
Withdrawal benefit is applicale only upto 58 years. In this case it is 3.99x1874.42 = 7479/- (Round figure).
Contribution to Pension Fund after 58 years has to be converted to his individual PF account as Employer's contribution.
In this regard please contact/write to your Regional EPF Commissioner with full details.
With regards
Abbas.P.S
From India, Bangalore
In citehr/73554 D.B. Satya has raised questions as under :
My Statutory PF is duducting Rs.1026 (12% on my basic). My employer is depositing the same amt..Deduction has been started from my April-2007 salary. My tentative retirement date is 03.01.2029.
Could any one please tell me what amt. (approx.) I will get from Provident Fund & Pension Scheme on the basis of my present deduction. If I want to take pension till my death what would be the amoumt. Will my wife get pension after my death? If yes, then how much?
Awaiting for a favourable repl
I have answered as under :
From your details it is learnt that your salary is Rs. 8550, because its 12% (1026) is deducted to EPF. If you have not opted pension for beyond Rs. 6500/-, it will be limited at 6500/-
Your service - 22yrs
Pensionable Service with bonus - 22+2=24
Pension = 24x6500/70 =2229
Note that the calculation is based on the ceiling limit of Rs. 6500/-. If it is getting hiked, the pensionable amount will also be enhanced proportionately.
After member's death spouse will get 50% of the pensionable amount till her death or remarriage. In addition two children will get 25% each of the widow/widower pension till attainment of 25 yrs age. When widow/widower pension is stopped, the child pension will become as orphan pension, resulting 3times of original child pension.
From India, Bangalore
My Statutory PF is duducting Rs.1026 (12% on my basic). My employer is depositing the same amt..Deduction has been started from my April-2007 salary. My tentative retirement date is 03.01.2029.
Could any one please tell me what amt. (approx.) I will get from Provident Fund & Pension Scheme on the basis of my present deduction. If I want to take pension till my death what would be the amoumt. Will my wife get pension after my death? If yes, then how much?
Awaiting for a favourable repl
I have answered as under :
From your details it is learnt that your salary is Rs. 8550, because its 12% (1026) is deducted to EPF. If you have not opted pension for beyond Rs. 6500/-, it will be limited at 6500/-
Your service - 22yrs
Pensionable Service with bonus - 22+2=24
Pension = 24x6500/70 =2229
Note that the calculation is based on the ceiling limit of Rs. 6500/-. If it is getting hiked, the pensionable amount will also be enhanced proportionately.
After member's death spouse will get 50% of the pensionable amount till her death or remarriage. In addition two children will get 25% each of the widow/widower pension till attainment of 25 yrs age. When widow/widower pension is stopped, the child pension will become as orphan pension, resulting 3times of original child pension.
From India, Bangalore
In citehr/84753 Kiran Kumar has asked some questions as under :
I am working in a private company for 8 years, I heard that If I continue in the same firm or continue the employement more than 10 years then my PF amount(Part of the PF) can not be withdrawn, as it is with the pension fund, so I want to know If I keep continue more that 10 years, then what benefits I get with PF pension scheme, is it better than other invetsments.
Pls suggest me whether I to go for pension scheme, or not, If I go for that what benefits I get compare to other outside pension schemes.
Thank You
M. Kiran Kumar
I have answered as under :
You have joined in EPS after 16.11.95. The method of calculation of pensionable amount in this case is,
Pensionable Service x Pensionable Salary / 70.
Here pensionable service means the difference between (1) date of join in EPS (2) date of exit or 58 yrs of age completion, whichever is earlier. If you continue in EPS till 58 yrs completion and having 20 yrs or more service, 2 yrs bonus will be added to the pensionable service.
The above pension amount is to draw pension at 58yrs. You may also draw pension before 58 yrs which is called as reduced pension, under the following conditions.
1. Minimum age should be 50yrs.
2. You should not be in service (EPS applicable) at the time of pension requirement.
3. You will lose 4% each in pension for every year below 58 yrs.
Abbas.P.S
From India, Bangalore
I am working in a private company for 8 years, I heard that If I continue in the same firm or continue the employement more than 10 years then my PF amount(Part of the PF) can not be withdrawn, as it is with the pension fund, so I want to know If I keep continue more that 10 years, then what benefits I get with PF pension scheme, is it better than other invetsments.
Pls suggest me whether I to go for pension scheme, or not, If I go for that what benefits I get compare to other outside pension schemes.
Thank You
M. Kiran Kumar
I have answered as under :
You have joined in EPS after 16.11.95. The method of calculation of pensionable amount in this case is,
Pensionable Service x Pensionable Salary / 70.
Here pensionable service means the difference between (1) date of join in EPS (2) date of exit or 58 yrs of age completion, whichever is earlier. If you continue in EPS till 58 yrs completion and having 20 yrs or more service, 2 yrs bonus will be added to the pensionable service.
The above pension amount is to draw pension at 58yrs. You may also draw pension before 58 yrs which is called as reduced pension, under the following conditions.
1. Minimum age should be 50yrs.
2. You should not be in service (EPS applicable) at the time of pension requirement.
3. You will lose 4% each in pension for every year below 58 yrs.
Abbas.P.S
From India, Bangalore
In citehr/49958 Parmod Redhu has asked as under :
I have 18yrs. service in hsmitc in haryana govt as j.e. i have c.p.f account.i have not withdrawn my dues till today. in 1996 i have been absrobed in panchayati raj deptt. at same post. in 2002 hsmitc has been closed by govt of haryana all employee of it lost their jobs. now i am 51 year old . my question is that can i have pension under pension scheme 1995 ? reply me on
thank you
I have answered as under :
Dear Parmod Redhu,
For Pension calculation the following details are required.
1. Date of Birth
2. Date of Join in EPF
3. Break in service before 16.11.95
4. Break in service after 16.11.95
5. Salary on 16.11.95
6. Salary at the time of Exit
From the available details I have reached to a conclusion as
1. Your service before 16.11.95 is 17 yrs
2. Service after 16.11.95 is 1 yr
As you are below 48 yrs age on 16.11.95, you are entitled to get minimum pension as follows.
1. In case your salary on 16.11.95 is below 2500/-
Past Service Benifit - 120x4.844 = 581
Pensionable Service Benefit - 635
Total = 1216/- (Subject to a minimum of 800/-) for 24 yrs' service.
For 18 yrs - 1216x18/24 = 912 (Subject to minimum 450/-)
2. If salary on 16.11.95 is 2500/- or above
Past Service Benefit - 135x4.844 = 654
Pensionable Service Benefit - 635
Total = 1289 for 24 yrs
For 18 yrs = 967
i.e. Either you will get 912 (for below 2500/- on 16.11.95) or 967 (for 2500/- & above on 16.11.95) on completion of 58 yrs age.
Those who are not in service with PF applicablity, can avail pension from the age 50 yrs onwards. But for each year they will be deducted 4%. For example if you opt for pension now, at 51 yrs; multiplying factor on pension will be 0.96 to the power of 7 = 0.885
Therefore reduced pension at 51 yrs = 912x0.885=807 or 967x0.885=856.
Abbas.P.S,
From India, Bangalore
I have 18yrs. service in hsmitc in haryana govt as j.e. i have c.p.f account.i have not withdrawn my dues till today. in 1996 i have been absrobed in panchayati raj deptt. at same post. in 2002 hsmitc has been closed by govt of haryana all employee of it lost their jobs. now i am 51 year old . my question is that can i have pension under pension scheme 1995 ? reply me on
I have answered as under :
Dear Parmod Redhu,
For Pension calculation the following details are required.
1. Date of Birth
2. Date of Join in EPF
3. Break in service before 16.11.95
4. Break in service after 16.11.95
5. Salary on 16.11.95
6. Salary at the time of Exit
From the available details I have reached to a conclusion as
1. Your service before 16.11.95 is 17 yrs
2. Service after 16.11.95 is 1 yr
As you are below 48 yrs age on 16.11.95, you are entitled to get minimum pension as follows.
1. In case your salary on 16.11.95 is below 2500/-
Past Service Benifit - 120x4.844 = 581
Pensionable Service Benefit - 635
Total = 1216/- (Subject to a minimum of 800/-) for 24 yrs' service.
For 18 yrs - 1216x18/24 = 912 (Subject to minimum 450/-)
2. If salary on 16.11.95 is 2500/- or above
Past Service Benefit - 135x4.844 = 654
Pensionable Service Benefit - 635
Total = 1289 for 24 yrs
For 18 yrs = 967
i.e. Either you will get 912 (for below 2500/- on 16.11.95) or 967 (for 2500/- & above on 16.11.95) on completion of 58 yrs age.
Those who are not in service with PF applicablity, can avail pension from the age 50 yrs onwards. But for each year they will be deducted 4%. For example if you opt for pension now, at 51 yrs; multiplying factor on pension will be 0.96 to the power of 7 = 0.885
Therefore reduced pension at 51 yrs = 912x0.885=807 or 967x0.885=856.
Abbas.P.S,
From India, Bangalore
In citeHR/228719, gunnam bhagawan has asked as under :
Dear Seniors
Please kindly calaculate the pension through the following information
Family Pension Scheme Date of Joining
01-08-1994
Employees Pension Scheme Date of Joining
16-11-1995
Last 12 Months Average Salary
6,500/-
November 1995 Salary
2,323/-
Date of Birth
22-10-1951
58 years completed date
21-10-2009
I have replied as under :
Now regarding your details.
Past Service (before 16.11.95) - 1yr
Benefit - Rs.80/-
Multiplying factor as per table B - 2.826
Past Service Benefit - 80x2.286 = 226/- (1)
Pensionable Service - 14yrs
Pensionable salary - Rs.6500/-
Pensionable Benefit - 14x6500/70 = 1300/- (2)
Total Pension - (1)+(2) = 226+1300
= Rs. 1526/-
Abbas.P.S
From India, Bangalore
Dear Seniors
Please kindly calaculate the pension through the following information
Family Pension Scheme Date of Joining
01-08-1994
Employees Pension Scheme Date of Joining
16-11-1995
Last 12 Months Average Salary
6,500/-
November 1995 Salary
2,323/-
Date of Birth
22-10-1951
58 years completed date
21-10-2009
I have replied as under :
Now regarding your details.
Past Service (before 16.11.95) - 1yr
Benefit - Rs.80/-
Multiplying factor as per table B - 2.826
Past Service Benefit - 80x2.286 = 226/- (1)
Pensionable Service - 14yrs
Pensionable salary - Rs.6500/-
Pensionable Benefit - 14x6500/70 = 1300/- (2)
Total Pension - (1)+(2) = 226+1300
= Rs. 1526/-
Abbas.P.S
From India, Bangalore
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Amendment in Employees Pension Scheme, 1995.pdf