EPS Calculation for employees who joined before 16th November 1995

For the employees who have been contributing towards EPS before 16th Nov 1995, pension calculation will have two parts -

• Past Service - Service Period of the employee before 16th Nov 1995.
     
• Pensionable Service - Service Period of the employee with effective from 16th Nov 1995.

Let's Understand this with an example. 

	Name Of Employee	Ashish
	Date Of Birth	10th Jan 1961
	Date of Joining EPS	12th March 1987
	Date of Relieving Service	9th March 2019
	Past Service Period till 16.11.1995	8 Years 7 Months
	Pensionable Service Period since 16.11.1995	23 Years 4 Months
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Pension is separately calculated for past service and pensionable service. Former is called past service pension and later is known as Pensionable pension. Pension of such employees is the aggregate of past service pension and pensionable pension.

Total Pension = ( Past Service Pension ) + ( Pensionable Pension )

A.  Past Service Pension

Past Service Pension   =  "Past Service Benefit" x "Benefit Factor".

1.) Past Service Benefit shall be calculated using the table below - 

S.No	Year of Past Service	Salary up to Rs. 2500	Salary more than Rs. 2500
1	Upto 11 years	80	85
2	More than 11 years but upto 15 years	95	105
3	More than 15 years but less than 20 years	120	135
4	More than 20 years	150	170
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2.) Benefit Factor shall be taken from the table below, which is commonly known as Table-B. Another way to calculate the benefit factor is -

• 1.08 to the power of (no of Pensionable Service - 0.5) upto 3 decimals. In our case it will be 1.08^23.5 = 6.101

Years Factor	Years Factor	Years Factor	Years Factor
Less than 1 1.039	Less than 10 2.077	Less than 18 3.845	Less than 27 7.686
Less than 2 1.122	Less than 11 2.243	Less than 19 4.152	Less than 28 8.301
Less than 3 1.212	Less than 12 2.423	Less than 20  4.485	Less than 29 8.965
Less than 4 1.309	Less than 13 2.616	Less than 21 4843	Less than 30 9.682
Less than 5 1.413	Less than 14 2.826	Less than 22 5.231	Less than 31 10.457
Less than 6 1.526	Less than 15 3.052	Less than 23 5.649	Less than 32 11.294
Less than 7 1.649	Less than 16 3.296	Less than 24 6.101	Less than 33 12.197
Less than 8 1.781	Less than 17 3.560	Less than 25 6.589	Less than 34 13.173
Less than 9 1.923		Less than 26 7.117
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Now put the these factors from both tables in the example above and calculate the Past Service Pension.

	Name Of Employee	Ashish		Past Service Rounded Off	9 Years
	Date Of Birth	10th Jan 1961		Pensionable Service Rounded Off	23 Years
	Date of Joining EPS	12th March 1987		Salary drawn on 15th Nov 1995	Rs. 2800
	Date of Relieving Service	9th March 2019		Past Service Benefit	Rs. 85
	Past Service Period Period till 16.11.1995	8 Years 7 Months		Benefit Factor ( Less than 24 )	6.1
	Pensionable Service Period Period since 16.11.1995	23 Years 4 Months		Past Service Pension	= 85 x 6.101 = Rs. 519
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B.  Pensionable Service Pension

We have already calculated the past service pension which was the complex part. Now we need to calculate the Pensionable Service Pension which is the easy part and is calculated using the formula below.

Pensionable Service Pension = (Average Salary * Service) / 70

=> If your "Basic Salary + DA" is more than Rs. 15,000 ( earlier it was Rs. 6500 ) than there is a statutory ceiling of Rs. 15,000.

=> If you are contributing towards EPS on statutory ceiling of Rs. 15,000, which is being done for many private employees, than average salary will be Rs.15,000. If you are contributing on actual salary than average of actual salary needs to be taken.

	Name Of Employee	Ashish		Pensionable Service Rounded Off	23 Years
	Date Of Birth	10th Jan 1961		After Bonus (2 year bonus for more than 20 years of Service)	25 Years
	Date of Joining EPS	12th March 1987		Pensionable Salary (Statutory Ceiling)	Rs. 15000
	Date of Relieving Service	9th March 2019		Pensionable Pension	15000 x 25 / 70 = Rs. 5357
	Past Service Period Period till 16.11.1995	8 Years 7 Months		Past Service Pension	Rs. 519
	Pensionable Service Period Period since 16.11.1995	23 Years 4 Months		Total Pension	519 + 5357 = Rs. 5876
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We have seen above that the total pension comes out to be Rs. 5876.

=> For all the employees who have joined Employee Pension Scheme, EPS after 15th November 1995 can check this link - "EPS Calculation for New Entrant"

Still have a doubt, put your query in comment section.

Reference Document: Section 12 of EPS95_update102008.pdf