EPS Higher Pension: EPF vs Employee Pension Scheme - What To Opt For | EPS Calculation

EPS Higher Pension Scheme: Should private sector employees opt for a higher pension outgo under the revised Employees’ Pension Scheme? How will this impact your EPF or Employees’ Provident Fund corpus at the end of retirement? The time to decide is now since as per EPFO circulars, your employer would be asking you to make this one time choice. Simplifying this somewhat complicated issue is our focus in this week’s TOI Wallet Talks. Puneet Gupta, Partner, People Advisory Services at EY India helps us understand what it would mean to opt for a higher pension outgo under EPS and how it would impact your PF corpus at the time of retirement.

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0:00- Intro
0:46- Explain the pension system - from a private and government employee perspective?
3:01- What has happened now with the SC ruling?
5:25- If I am a private sector employee with EPFO membership, how do I decide?
9:15- What happens to the EPS corpus in case of death?
10:27- What should I opt for: EPS, NPS, EPF?

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[chatcmvdo]

Do i have the option of reducing the EPS further and increase the EPF portion.

[amitabhmaheshwari]

In actual practice, proportionate salary from 2014 or even earlier will be taken as the basis, not just last 60 months average salary. Circular will be coming to this effect. Just last 60 months average salary would be unsustainable

[keshavbkulkarni]

Thanks for the information. Please let me know what happens if an employee has withdrawn his EPF from previous employer.

[Trendtrack]

Thank you for the detailed information

[karunasagarmallela]

Depositing amount in post office scheme is better than returning it.
In PO also the depositor gets better amount without any fuss. Thanks

[kkdivenkat]

Couple of things... 1. The differential payment involves repayment of interest received as well. 2. The purpose of moving for enhanced pension will be defeated if the individual passes away immediately or just before retirement. The nominee would get only 50 percentage as pension. Rather if the money is invested in FD, even a monthly payout from the lumpsum would be bringing stable returns

[kumarkrishna]

Good analysis. But it is wrong to say that a person having 35 years (actually 33 years + 2 years weightage) would get 50% of his last 60 months average salary, as pensionable service is reckoned from 16.11.1995 only. So a person retiring in 10.05.2023, is entitled to get his pension in proportion of 29/70 (27 yrs from 16.11.1995 to 10.05.2023+2 years weightage) of his last 60 months average salary. His service prior to 16.11.1995, to which a total contribution of 3.48% of salary was made to FPS and which was merged in FPS, provides a very small amount that is based on a absurd tables. This amount which is similar to an FD for 27 years may not provide more than 450 rupees, irrespective of the amount transferred to EPS, which is totally unfair. EPFO is not only asking for the differential amount but wants the EPS members to pay PF interest from the date of exit till actual date of payment. By delaying a decision on this, the interest rate is being increased making it unviable for opting on higher pension. Besides, EPFO will not be paying any interest on pension arrears they pay to pensioners, but want members to pay interest, which is arbitrary and lopsided. There cannot be a one way traffic in such pension scheme.

[gauravnyahoo]

If company has pan trust for PF / pension, does this higher pension scheme is applicable?

[srjagtap]

We are bore, it's all we are studied, we want justice for our pensionar

[kethepalle]

Hello There, Thanks a lot for the Video and explaining in good detail.
I have been employed in India since 2005 but in 2014, I moved out of India (withdrawing the PF balance) and returned back to India by end of 2017.
As the Higher Pension scheme is expected to take ~40% of accumulated PF(Employer share). In my case, there is no accumulated PF. Here are the questions I have:

1. As I have rejoined a job in India in 2017, am I actually eligible for option for Higher Pension.
2. If I am higher, what happens to the amount for accumulated PF balance which needs to be taken into account for EPFO? DO I need to pay from pocket or would it be taken from the current PF balance?
3. Lets say, I have optioned for HPS and I survive for 12 years (58+12 = 70 Years). Would I be able to recover the complete amount I would have given to the HPS or would we need more time there to recover the amount paid itself

[sureshganesan]

Sir,
It's new Pension shecme is is Worth or Not

[srjagtap]

ज्येष्ठ नागरिक की सुरक्षा हेतू 60 वर्ष होने के बाद उनकी शारीरिक मानसिक क्षमता कम होने बाद उनकी पुरी न्यायालयीन सुरक्षा लेना चाहिए कोई उनकी शारीरिक aur मानसिक आर्थिक छेडछाड नहीं होने चाहिए उसे लिये भारतीय कानून ज्येष्ठ नागरिक के लिये बनाना चाहिए.

[kmukesharma]

pention should be businessman also based on some tax collection to country, not only pention there be LTA, Medical, Etc

[jaswantdas]

मैडम क्या हम भारतीय हैं अगर हां तो कर्मचारियों या मजदूरों की पेंशन योजना में इतनी देर क्यो ?? जो आदमी 2011/12 में रिटायर हुए हैं (58) आज उनकी उम्र 71/72 साल के लगभग ही होगी कितने दिन पेंशन मिलेगी कई की घरवाली भी गुजर चुकी है सब पैसा सरकार का ऐसा क्यों????😢😢😢

[shantharamcr]

My sister is a widow. Is she elegible for higher pension. She is getting only 1383/ pm as pension. Her husband died in 1998

[mukeshr]

No vote running center gov , think only gov.employee, Why? cut and replace adjust epfo pentioner employer All should get equal after 60 years