The Employees’ Provident Fund Organisation (EPFO) has issued a circular regarding the computation of the pension method. This article provides the latest update on the application process for the validation of options and outlines the method of calculating pension based on average monthly pay.
The circular addresses the method of computation of pension for different scenarios based on the date of commencement of pension. It highlights the importance of average monthly pay drawn during the contributory period of service and provides specific time spans for calculation. This information is crucial for individuals seeking validation of options and understanding how their pension will be calculated.
EMPLOYEES’ PROVIDENT FUND ORGANISATION
MINISTRY OF LABOUR & EMPLOYMENT,
GOVERNMENT OF INDIA
Bhavishva Nidhi Bhawan, 14, Bhikaiji Cama Place, New Delhi-110066
Website: www.epfindia.gov.in.
No. Pension/SC/HigherPension/2022/1357 Date: – 01.06.2023
To,
All Addl. CPFCs, Zonal Offices.
All RPFCs / OICs, Regional Offices.
Sub: Applications for Validation of Option / Joint Options — Method of Computation of Pension – Reg.
Madam/ Sir,
Please refer to the Circular No. Pension/Supreme Court judgement/POHW/2022/143 dated 09.05.2023 regarding “Deposit / Transfer of due contribution with interest into Pension Fund” wherein it was informed in Para 14 that the method of computation of Pension will follow through subsequent circular.
2. In this regard, the matter of method of computation of Pension has been considered and it is informed that, as for now, the computation of pension shall be in accordance with the provisions of Employees’ Pension Scheme(EPS), 1995 as follows:-
i. found eligible for pension on higher wages where date of commencement of pension is prior to 01.09.2014: Pension shall be calculated based on average monthly pay drawn during contributory period of service in the span of 12 months preceding the date of exit from the membership of the pension fund.
ii. Cases found eligible for pension on higher wages where date of commencement of pension is post 01.09.2014: Pension shall be calculated based on average monthly pay drawn during contributory period of service in the span of 60 months preceding the date of exit from the membership of the pension fund.
[This issues with the approval of CPFC.]
Yours faithfully,
Aprajita Jaggi
Regional P.F. Commissioner-I (Pension)
Copy to:-
1. All CBT members for kind information please.
2. PS to CPFC
3. Shri Samir kumar Das, Under Secretery to Government of India, Ministry of Labour and Employment for Kind information
4. FA & CAO, CVO, Director (PDNASS) & ZTIs
5. ACC (HQ) (Audit) for 100% audit of PPOs related to pension on higher wages by the internal audit parties.
6. All ACC (HQ)s and ACCs at H.0 for information & necessary action.
7. Rajbhasha Section for providing Version in Hindi
