EPFO Higher Pension: To clear the confusion regarding higher pension, EPAO has explained how it will calculate how much amount the subscribers will need to transfer in pension.
However, so far EPFO has not given detailed information about the method of calculation of pension, which will be introduced later.
EPFO will present the calculation formula to calculate the amount of pension received after the retirement of the members. For the time being, subscribers eligible for higher pension will be able to calculate their potential liability including interest payable to the Pension Fund.
Subscribers will have three months
EPFO said that PF account holders will have three months to agree to withdraw money from their account or deposit more amount if the contribution is less. At present, pension under EPS-1995 is calculated by multiplying the average of the actual basic pay of the last five years of service with those years and dividing the total by 70.
Higher pension calculation not clear
The application regarding higher pension has been postponed till June 26. There is a lack of clarity on getting higher pension. Many questions have come to the fore that how much pension the subscriber will get will it be calculated or not? At the same time, pension will be calculated from the old system itself or a new system will be added.
What is the rule of higher pension under the new circular
On the other hand, in the new letter under EPFO, it has been said that when the complete information of the subscriber is found eligible for higher pension, then the subscribers will receive a demand letter from EPFO and will be informed that how much amount and interest will be transferred to them. If there is not enough money in the account, then the customers will have to deposit the same amount.
How much contribution has to be given
To get the amount of pension under EPFO, some part has to be deposited under the PF account. Depending on your contribution, an amount ranging from Rs 5000 to Rs 15 thousand is given.
