ONGC/CALCULATION OF PENSION UNDER EPS-1995 by Narayan Singh Rathore on Thursday, November 3, 2011 at 2:15pm Contribution to EPS-1995: 2.1. Since mem

CALCULATION OF PENSION UNDER EPS-1995
by Narayan Singh Rathore

Contribution to EPS-1995:

2.1. Since members of EFPS-1971 were automatically entitled to become members of the EPS-1995, they had to pay following rates of Contribution: -

(a). “8.33% of employees’ pay, restricted to pay ceiling of Rs.5000/- P.M. upto 31.5.2001 and Rs.500/- P.M. on or after 1.6.2001”. However, an employee had “Option to contribute 8.33% of actual pay as EPS contribution in accordance with Para 11(3) of EPS”.

(b). Head ICE was required to “ensure necessary modification in the ‘Pay-Roll Module’ to divert the EPS contribution, w.e.f. August 2005, in respect of all eligible employees, out of employer’s CPF contribution (ERC), @ 8.33% restricted to salary ceiling of Rs.6500/- P.M. or on actual pay in case of option executed by individual under Para 11(3) of EPS”.

3. Entitlement of Pension:

3.1. Para 12 of the Act-1995 provided following Provisions for Pension:

“12. Monthly Member’s Pension – (1) A member shall be entitled to,-

(a). Superannuation pension, if he has rendered eligible service of 20 years or more and retires on attaining the age of 58 years;

(b). retirement pension, if he has rendered eligible service of 20 years or more and retires or otherwise ceases to be in the employment before attaining the age of 58 years;

(c). short service pension, if he has rendered eligible service of 10 years or more but less than 20 years.

(2). In the case of a new entrant the amount of monthly superannuation pension or retiring pension, as the case may be, shall be computed in accordance with the following factors, namely: -

Pensionable salary x Pensionable service

Monthly Member’s Pension = 70

(5). In the case of an employee who was a member of the existing Family Pension Scheme-1971 and who has attained the age of 53 years or more on the 16th November 1995, the superannuation/retirement pension shall be equal to the aggregate of : -

(a) pension as determined under sub-paragraph (2) for the period of service rendered from the 16th November 1995 per month or Rs.335/- per month whichever is more;

(b). past service benefit provided in sub-paragraph (3) subject to the minimum of Rs.500/- per month, provided the past service is 24 years:

Provided further that if it is less than 24 years the pension payable and the past service benefit shall be proportionately lesser but subject to the minimum of Rs.265/- per month.”

IMPORTANT NOTES:

Note 1. Monthly Member’s Pension is = Pensionable salary x Pensionable service divided by 70.

Note 2. Pensionable Salary is Rs.5000/- for contributory service of 24 years. If period is less than 24 years. Pensionable salary has to be prorated i.e. 5000 divided by 24 and multiplied by past service (before 16.11.1995) and contr. service (after 16.11.1995). Both have to be worked out separately and then put together.