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Until last year pension was given without dividing the service period
As the EPFO suggested calculating higher pension on a pro-rata basis, the sum received has been much below expectations, said the pensioners.
Chauhan was granted only Rs 18,161 by the EPFO, despite his eligibility to receive Rs 23,700 according to the Supreme Court order guidelines.
The latest decision to implement the pro rata system will lead to a reduction in the pension amount for subscribers who had given the option for the higher pension scheme.
EPFO extends deadline to apply for higher pension till July 11
Currently, pension amount is arrived at by multiplying the average salary by the years of service and dividing the result by 70.
The deadline for submitting applications is April 26th.
In March 2022, EPFO had lowered the interest on EPF for 2021-22 to an over four-decade low of 8.1 per cent
The EPF is managed by the Employees' Provident Fund Organisation. Several retired and serving employees feel that the pension it disburses, which is not in proportion to their salary, is rendering a huge loss to all subscribers.
The excess amounts paid to those who retired before 2014 without exercising the option for higher pension are being recovered.
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