I will be retiring shortly. I am a private sector employee. I want to start my family pension. I learnt that there is a Supreme Court Judgement that increases the pension 5 times provided to transfer some amount from your PF to FPF which was not done before due to maximum limit of Rs.15000 a year. Also I want to find my old employers and add that service to my UAN.
Your query is not clear.
Pension and its quantum solely depends on the service rules of your company.
No amount of pension can be increased 5 five fold only due to passing of an order of the supreme court.
If you be specific then I can advise further.
Yes you can do that as per SC judgement of oct 2016. You need to apply to the EPFO with the consent letter of employer. As per SC rules it is mandatory for EPFO to raise your contribution to EPS.
File a specific performance suit against the EpFo
You have misunderstood. Earlier the maximum limit to calculate monthly pension was 15k but after SC rulling subscribers will be eligible to get pension based on their actual basic plus DA.
To avail this benefit, employee will have to deposit more in the EPS to make up for the shortfall in the previous years and desiring a higher pension will have to divert this amount from their EPF corpus to the EPS.
People working in private organisations and making PF contributions are eligible for pension under the Employees’ Pension Scheme (EPS) on fulfilment of some terms and conditions.
Eligibility: The scheme is compulsory for private sector employees having a basic salary of Rs 15,000 (which is revised periodically). It is optional for employees having a basic salary of over Rs 15,000 per month. The basic salary includes basic wages, retaining allowance and dearness allowance (DA), including the cash value of any food concession.
How to apply: The EPF account is opened for the employees who join an organisation registered under the EPFO.
Contribution: Out of 12 per cent matching contribution by employers, 8.33 per cent goes to EPS. Out of the total 24 per cent (12 per cent employee contribution plus 12 per cent employer contribution), 15.67 per cent goes to EPF. The Central government also contributes 1.16 per cent of the eligible basic salary.
Return: The amount of pension is calculated by the following formula: X=AxB/70
(Where, X=monthly pension, A=pensionable salary, B= pensionable service).
Pensionable salary is average monthly pay drawn during the contributory period of service in a span of 12 months preceding the date of exit from the membership of the PF. The maximum pensionable salary is limited to Rs 15,000 per month, unless if at the option of the employer and employee, contribution is paid on salary exceeding Rs 15,000 per month from the date of commencement of this scheme or from the date salary exceeds Rs 15,000, whichever is earlier, and 8.33 per cent share of the employer thereof is remitted into the pension fund.
Benefits: An employee is eligible for pension if he/she has rendered eligible service of 10 years or more and retires at the age of 58. One may also opt for early pension if he/she retires at an age of 50 after rendering eligible service of 10 years or more. However, the amount of pension is reduced by 4 per cent for each year if taken in advance before 58 years of age.
If an employee retires at the age of 58 or more after rendering 20 or more years of eligible service, 2 years will be added to the pensionable service, which is determined by the contribution received or receivable in the employees’ pension fund.
On the death of the member, the family (spouse and thereafter two below-25 children) is entitled to receive monthly family pension.
https://www.mondaq.com/india/employee-benefits-compensation/804688/supreme-court39s-ruling-on-pension-scheme.
1. There is no SC judgment which says that pension given to an employee has to be increased 5 times. Such a judgment will be a catastrophe for employers, public and private sector.
2. The old pension rule has been changed due to the judgment of the Supreme Court. Supreme Court has ruled that EPFO has to give full pension to all EPS subscribers, which means that all retiring employees can now draw pension on the basis of actual salary, and not on the basis of the earlier Rs 15,000/month cap on pension contributions.
3. To qualify for this benefit, you will have to shift a significant chunk of your provident fund balance to your EPS account. So, if you want higher pension, you will have to submit an application via your employer to the EFPO to deduct a sum retrospectively equal to 8.33% of your basic+DA towards the EPS and shift the extra amount from the PF account to the EPS retrospectively.
1. If you have EPF account then you can apply for EPS.
2. You should contact previous employer to provide you details of your PF account with them and tranfer the funds to current UAN.
The HC had asked EPFO to give pension to all retiring employees on the basis of their full salary, rather than capping the figure on which contribution is calculated at a maximum of Rs 15,000 per month.
This has been upheld by the SC.
