DelhiDesk: The Employees’ Provident Fund Organization (EPFO) is considering changing the formula for determining monthly pension under the Employees Pension Scheme (EPS-95). The proposed change would use the average pensionable salary received during the entire pensionable service instead of the average salary of the last 60 months of pensionable salary. However, no final decision has been made, and it will depend on the report of the actuary assessing the pension, the amount paid for it, and the risk. EPFO subscribers contribute a fixed limit of Rs 15,000 per month for pension, and with the option of higher pension, they will be able to get a higher monthly pension. The new formula is being considered to avoid a financial burden. The EPFO received an interest of Rs 50,614 crore in 2021-22 on the EPS fund.
Follow DelhiBreakings on Google News
Here is the news bullets sorted by DelhiBreakings.com team.
👉 EPFO is considering a change in the formula for monthly pension determination.
👉 The proposed change is to fix monthly pension based on average pensionable salary received during entire pensionable service.
👉 Final decision will be taken after report of the actuary assessing pension, amount paid for it and the risk.
👉 Currently, EPFO uses the formula of pensionable salary (average salary of last 60 months) times pensionable service / 70.
👉 The change in formula will affect all, including those who choose the option of high pension.
👉 EPFO has provided online facility to fill joint option form with employers to opt for higher pension.
👉 The subscribers contribute a fixed limit of Rs 15,000 per month for pension, while their actual salary is more than this.
👉 Employees contribute 12 percent to the social security scheme of EPFO.
👉 The remaining 3.67 percent goes to the Employees’ Provident Fund.
👉 EPFO is considering the new formula to reduce financial burden.
👉 The Pension Fund of EPFO has Rs 6.89 lakh crore, which belongs to all shareholders and not just the pensioners.
👉 EPFO received an interest of Rs 50,614 crore in 2021-22 on the EPS fund.
For superfast news and Delhi Breaking Stories visti us daily at https://delhibreakings.com
Something went wrong. Please refresh the page and/or try again.