A pension calculator has just been made available to employees covered by the Employee Retirement Scheme (EPS) 1995 by the Employee Provident Fund (EPFO). This calculator shows an example of a pension payment an employee might receive after retirement. The main features and operation of the EPS calculator are described in detail in this article.
If the pension start date is January 4, 2014 or later, the RPP calculator can be used to estimate the pension amount.
The EPFO describes how to use the pension calculator in a document which states: “The benefits presented are on salaries up to the salary ceiling, which is Rs 6500/- until 31-08-2014 and Rs 1500/ – beyond this date.
On the EPFO website, you can use the EPS calculator. Here are some data you must provide for the calculation if you want to know how much pension you could receive:
Date of Birth: Member must have turned 58 on January 4, 2011 or later. Therefore, to use this calculator, the user’s date of birth must be January 4, 1953 or later.
Service period: The time between entering and leaving the service.
The EPFO document stipulates that the date of entry into service cannot be earlier than 16 November 1995 and that the date of departure cannot be later than the date of the retirement pension.
Members must provide information about their non-contributory period (PCN) of service, which consists of PCN 1 and PCN 2 days.
Members can add additional service time, according to EPFO, if they have worked for different organizations.
Annuity option date: If the member has reached age 58, the system will display the annuity start date. If the member has not yet reached age 58, they can enter the date from when they left the military or when they reached age 50 to when they used the calculator.
Pensionable salary: If the pension start date is on or before August 31, 2014, the pensionable salary is the average salary for the previous 12 months; if it is after this date, it is the average salary for 60 months.
According to EPFO rules, the maximum salary is Rs. 6,500 until August 31, 2014 and Rs. 15,000 thereafter.
To use this calculator, the average salary must be at least Rs. 15,000 as of September 1, 2014, and at least Rs. 6,500 as of August 31, 2013.
The calculator will show you your monthly or annual pension once you have entered all the required information. According to EPFO, “If the amount of the pension is less than Rs 1000/-, the member will be eligible for a minimum pension of Rs 1000/- from 1 September 2014 or the start date of the pension, depending on latest date”.
The announcement continues: “In the event of early retirement, the amount of pension reduction @ 4% per annum will be removed from the early pension for each year from the pension set at age 58 until at the age (minimum 50 years) from which early retirement has opted.
Here’s an example: Assume a member was born on December 10, 1964, and started work on October 12, 1996, and retires on October 11, 2022, with no ASC days and pensionable pay. of Rs. 15,000. His pension will start on November 11, 2022. The calculator indicates that this member will be eligible for a monthly pension of Rs 3401 after entering all these data.
First published: August 19, 2022, 11:35 a.m. IST