EPS 95 Pension News: An analysis is made here in respect of an individual EPS 95 Pension

An analysis is made here in respect of an individual, say ""AA "", on the present pension being received by him and a higher pension on total salary under EPS 95 Scheme. All EPS 95 Pensioner know, pension is paid on the returns of our contributions to pension fund. 

"AA"'s contribution to pension fund @ 8.33 % on his total salary from 11/95 till his retirement during 2012 along with Annual interest as per the methodology working by EPFO is Rs 8.62 Lakhs. This includes applicable Administration charges of 1.16 %.

This Rs 8.62 Lakhs will fetch a return of around Rs 73,000/- per Annum at a rate of 8.50 % interest. This will be around Rs 6,100/- per month. The present pension being received by him under this scheme is Rs 1,670/- per month. This includes the additional 2 years as per the scheme.

As per his average pensionable salary and pensionable service, he will receive Rs 17,050/- per month as pension on total salary. His net increase of pension will be Rs 15,380/- per month. (Rs 17,050/- minus Rs 1,670/-)

If we work out and compare the return on his investment to pension fund and the higher pension he is entitled as per EPS 95 Scheme, EPFO should find out a source to meet the shortfall of Rs 10,950/- per month for this individual. (Rs 17,050/- minus Rs 6,100/-). Who will support financially EPFO on this requirement?

On similar terms, everyone should workout and justify their stand or otherwise on the demand. Will it happen?

It is an accepted fact that our contributions to pension fund is the only source for our pension and we cannot claim any right on the contributions made by deceased pensioners to be utilized for living pensioners.

EPS 95 Pensioners are Welcome to agree with these observations and also criticisms.