A pension calculator has just been provided to employees covered by the Employees' Pension Scheme (EPS) 1995 by the Employees' Provident Fund Organization (EPFO). This calculator shows an example pension payment that an employee might get after retiring. The EPS calculator's main features and operation are described in detail in this article.
If the pension start date is on or after January 4, 2014, the EPS calculator can be used to estimate the pension amount.
The EPFO describes how to use the pension calculator in a paper that states, "The benefits presented are on wages up to the pay ceiling, which is Rs 6500/- for up to 31-08-2014 and Rs 1500/- beyond that date.
EPS calculator
On the EPFO website, you can use the EPS calculator. The following are some inputs that you need to provide for calculation if you want to know how much pension you could receive:
Birthdate: The member must have turned 58 on January 4, 2011, or later. Therefore, to use this calculator, the user's birthdate must be on or after January 4, 1953.
Service period: The time between joining and leaving the service.
The EPFO paper states that the date of entry into service cannot be earlier than November 16, 1995, and the date of leaving cannot be later than the date of superannuation.
Members must supply information about their non-contributory period (NCP) of service, which consists of NCP 1 and NCP 2 days.
Members can add additional service time, according to EPFO, if they have worked for different organizations.
Pension opted date: If the member has reached the age of 58, the system will display the pension start date. If the member has not yet become 58 years old, he can input date from the time he left the military or when he became 50 to the time, he used the calculator.
Pensionable salary: If the pension start date is on or before August 31, 2014, the pensionable salary is the average wage for the previous 12 months; if it is after that date, it is the average wage for 60 months.
According to EPFO rules, the maximum salary is Rs. 6500 up until August 31, 2014, and Rs. 15,000 thereafter.
In order to use this calculator, the average salary must be at least Rs. 15,000 as of September 1, 2014, and at least Rs. 6500 as of August 31, 2013.
The calculator will show you your monthly or annual pension once you have entered all the required info. According to EPFO, "If the pension amount is less than Rs 1000/- the member will be eligible for a minimum pension of Rs 1000/- with effect from September 1, 2014, or the date the pension begins, whichever is later."
The announcement continues, "In case of early pension, the reduction amount of the pension @4% per annum will be removed from the early pension for each year from pension fixed at age of 58 years till the age (minimum 50 years) from which early pension opted.
Here’s an example: Let's say a member was born on December 10, 1964 and he started working on October 12, 1996, and will retire on October 11, 2022, with no NCP days and a pensionable salary of Rs. 15,000. His pension will begin on November 11, 2022. The calculator indicates this member will be eligible for a monthly pension of Rs 3401 after entering all these data.
