Kozhikode: Although the long-delayed disbursement of Pension Payment Orders (PPOs) under the Higher Pension Scheme has begun, providing significant relief to beneficiaries, it has also raised concerns over a substantial reduction in the pension amounts received by pensioners.
In the case of B R Chauhan, a retiree from Himachal Pradesh Tourism Development Corporation, the Rs 18,161 issued under the Pension Payment Order (PPO) by the regional office of the Employees Provident Fund Organisation (EPFO) was lower than the entitled (as per the Supreme Court order guidelines) Rs 23,700.
It remains unclear whether this shortfall is a result of a calculation error or the application of the pro-rata (proportionate) pension rule.
Talking to Manorama, Chauhan said that the EPFO has not provided him with a detailed report on the pension calculation yet.
Meanwhile, there are widespread speculations that the EPFO Head Office sent an email instructing the calculation of the higher pension on a pro-rata basis. According to reports, a labour representative from the Coimbatore Zonal Office within the Tamil Nadu EPFO regional committee received this response on December 8.
The report further states that a request was forwarded to the Head Office to provide various models for calculating the pension using this method. However, there is currently no confirmation regarding any such communication being received by the EPFO offices in Kerala.
According to B R Chauhan's PPO, who retired from service on January 25, 2018, he has a pensionable service of 22 years, two months, and six days (8906 days—22.18 years). When the weightage of two years, available to those completing 20 years of service, is added to this, the period of pensionable service becomes 24.18 years.
Though he drew a salary of Rs 77, 825 at retirement, it decreased to Rs 66,999 when the average salary of 60 months was considered for pension calculation.
Accordingly, he was due to receive Rs 24,143 as the monthly pension (66,999 x 24.18/70). Since he had more than 15 years of service before November 16, 1995, when the pension scheme (EPS) was launched, Chauhan is also eligible for a small sum as a Past Service Benefit. This way, his pension should have been Rs 23,700. Instead, he received only Rs 18,161.
According to Chauhan, the pension he used to draw earlier was Rs, 3239. To qualify for the higher pension, he also repaid Rs 10,61,771 to the pension fund. As per the Pro-rate scheme, the pension for service until August 31, 2014, is calculated based on the then-average salary. For the service from September 1, 2014, it is calculated on the average salary drawn at retirement.
If Chauhan's pension was calculated on a pro-rata basis, the EPFO should have clarified his average salary until 2014. However, the PPO he received has not provided any such details.
