Those who have chosen option of higher PF pensions receive less amounts

Kozhikode: Those who had given the option of higher EPF pensions reportedly received amounts 20-30 percent less than what they were expecting. The news came out the other day, when pension payment orders were issued to a few persons at different places, at the district-level adalats conducted by the employees provident fund organisation. 

As per rules, the documents related to how the pensions were calculated shall be attached with the payment orders. However, that rule was not followed in this case. As a result, the pensioners are getting ready to take legal route yet again. The organisations will demand the pension calculation worksheets under the Right to Information Act.    

According to those involved in the field, the pension amounts were reduced as they were evaluated on a pro-rata basis. This, according to many, is not in adherence to the law.  As per the formula in use, the pension amount is determined by multiplying the pensionable salary with the pensionable service, and then dividing the product by 70. However, the released pensions are less than these numbers.

Those who have retired after 2020 suffered more than 20 percent loss in this manner. Meanwhile, those who had retired before 2017, did not face any problems. The pensions are being determined by considering the service periods prior to September 1, 2014 and after it as two separate entities. The pensions of those who have retired after September 1 2014, are being determined on the basis of their average salaries in the last 60 months of their services. If their salaries prior to September 1, 2014 are lesser than the averages, then those will be taken into consideration. All such details shall be encompassed in the worksheets. But that has not been done here.

“Since we have not been provided with the worksheets, it is difficult to understand how the pensions have been calculated,” says TP Unnikutty, president, PF pensioners association. The association members will study the issue in detail and take legal aid accordingly.