personal finance

EPFO pensioners to get pension calculation statement: Move aimed at reducing grievances


EPFO pensioners should soon be able to get a clear statement of how their monthly pension is calculated along with the order sanctioning the pension. This would lead to greater transparency and enable pensioners to detect errors in calculation, if any, and get them corrected faster.

Puneet Gupta, Director, People Advisory Services, EY India says, “Employees’ Pension Scheme (EPS) is a defined benefit scheme – the benefit from EPS does not match the contributions made under the scheme by the employer. From EPS, employees are eligible for monthly pension benefit as per specific calculation prescribed under the law if the period of eligible service is 10 years or more. Lump-sum withdrawal benefit is available if the period of eligible service is less than 10 years. The pension worksheet proposed to be provided by the Provident Fund office will help employees understand calculation of their monthly pension benefit. This is a welcome step as it will bring transparency and reduce employee grievances. However, there is no clarity as of now whether a similar worksheet will be provided to employees if their period of eligible service is less than 10 years and they receive lump sum withdrawal benefit. Also, it is not clear whether the worksheet will be sent via email or in hard copy.”

Employees Provident Fund Organisation (EPFO), in a circular dated March 14, 2019 has directed its regional offices to provide the calculations on the pension sanctioned to the pensioner. Earlier there was no system in place to automatically provide pensioners with such a statement.

Pensioners will be given a pension worksheet providing information about the quantum of pension to reduce their grievances and confusion on how their pension amount is calculated. According to the circular, the move is aimed at bringing more transparency in the settlement of pension claims.

EPFO has asked its regional offices to ensure that a copy of the pension worksheet is given to the pensioner along with the intimation sent regarding sanction of pension to the pensioner.

The above has to be given immediate effect as per the circular.

This circular covers all EPF pensioners. Such a statement would help particularly in cases where pension is for any reason revised with retrospective effect.

Apart from this, EPFO has also made it easier for individuals to find out their claim status as well. At the time of retirement, after making the PF claim, one can check its status via three ways. These three ways are as follows:

a) Via EPFO website

b) Via EPFO’s unified portal for members

c) By visiting member claim status link

For a step-by step guide on how to check the status of it, click
here.





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