How EPFO committing blunders while calculating Higher Pension

This is a post from the pen of Srinivasa Rao, a senior EPS 95 Analyst.
” How EPFO committing blunders while calculating Higher Pension”

Join Our WhatsApp Group

Name: Sri A. Veeraiah Chowdary,
Regional Manager, A,P. State Road Transport Corporation,
Date of Birth: 08-05-1962
Date of Appointment: 17-09-1988
Date of attaining 58 years: 07-05-2020
Contributory Service under Family Pension Scheme, 1971:
(17-09-1988 to 15-11-1995)
(7 years, 1 month and 28 days)
Contributory Service under Employees’ Pension Scheme, 1995:
16-11-1995 to 07-05-2020
a) 16-11-1995 to 31-08-2014: 7,586 days
(including two years weightage)
b) 01-09-2014 to 07-05-2020: 2,072 days
Average Wages for the last 60 months
from May, 2015 to April, 2020: 1,70,199/-
Higher Pension sanctioned initially: 16,292/-

How 16,292/- arrived (calculation shown nowhere)
1) Pension under EFPS,’71: 85X6.589=560/-
2) Pension calculated upto Ceiling under EPS,’95
for the period 16-11-1995 to 31-08-2014 i.e., for
7,586 Contributing days including 2 years Weightage
6,500/25,550 (70X365)X7,586=1,930/-
16,292 (-) 560 (-) 1,930=13,802/-
13,802/- is the Higher (not Pension upto
Ceiling) for the period from 01-09-2014 to
07-05-2020: 2,072 days
X/25,550 (70X365)X2,072=13,802
0.08109589041=13,802
13,802/0.08109589041=1,70,194/-
(Last 60 months average from
May, 2015 to April, 2020= 1,70,199/-

This means, P.F. Commissioner, Hyderabad simply shown
Pensionable Salary, it seems, in the PPO as 1,70,199/- but applied
it only for the period 01-09-2014 to 07-05-2020 and
applied Ceiling of 6,500/- for the period 16-11-1995 to 31-08-2014.
Sri A. Veeraiah Chowdary is an optee for Higher Pension as per
Gazette Notification of 16 th March, 1996. Higher Contributions were
remitted from 16-11-1995 to 07-05-2020 (in fact upto 31-07-2020)
This shows the sheer careless attitude of the P.F. Commission, Hyderabad
and also P.F. Commissioner, Visakhapatnam.

Second blunder:
His Higher Pension is to be sanctioned within 20 days
after attaining the age of 58 years on 07-05-2020. But it seems
it was sanctioned in the year 2022.

Pro-rata calculation of Higher Pension was communicated
vide E-mail to P.F. Commissioner, Coimbatore initially on 14-02-2024
i.e., after the Hon’ble Supreme Court judgement of 4th November, 2022.
But the Higher Pension of Sri A. Veeraiah Chowdary is due before the above
date when there is no Pro-rata calculation i.e., in the year 2022 (with delay of
two years) when Higher Pension was sanctioned @ 16,292/-
Now, P.F. Commissioner, either Hyderabad or Visakhapatnam has to
correct the Higher Pension of 16,292/- sanctioned in 2022 when there is no
Pro-rata calculation. But P.F. Commissioner, Visakhapatnam applied the
Pro-rata calculation applicable on or after 14-02-2024 when making correction.
This shows how EPFO twist rules disregarding the welfare of the employee in
sanctioning his genuine Higher Pension.

For resolving this Sri A. Veeraiah Chowdary, Regional Manager has to knock on the doors of
District Consumber Disputes Redressal Commission – II Visakhapatnam vide Consumer case No.
352/2023.

After correction of the Higher Pension of 16,292/-, it was enhanced to 42,697/- by applying Pro-rata calculation. On this Sri A. Veeraiah Chowdary, Regional Manager has to knock the doors of District Consumer Disputes Redressal Commission – II, Visakhapatnam for 64,896/- Higher Pension.
(1,70,199/9,658 (7,586+2,072)=64,336+560 (EFPS,’71)=64,896/-)

Join Our Telegram Group