# How is the pension calculated of a member of Employees Pension Scheme, 1995?

**The Employees Provident Fund Organisation (EPFO), India, is a provident fund institution working under the Ministry of Labour of the Central Government. It is one of the largest such institutions in the world if we take into consideration the number of the contributors it has and the financial transactions it undertakes on a day to day basis**

**Want to know how is the pension calculated of a member of Employees Pension Scheme, 1995? Find out the process of pension calculation for employees under the 1995 pension scheme.**It mainly runs three schemes:

(1) Employees Provident Fund Scheme, 1952

(2) Employees Deposit Linked Insurance Scheme, 1976, and

(3) Employees Pension Scheme, 1995.

Under the Employees pension scheme, 1995, a member becomes eligible for pension with ten years contributions to the Pension Fund provided he reaches a superannuation age of 58 years. The pension is also granted to the members at the reduced rates if a member leaves an organization on completing the age of 50 years. Those below the age of 50 years can withdraw their pension fund with interest or take a pension certificate which they can produce to the EPFO on reaching the age of 50 years or superannuation whatever the case may be, for sanction of pension. Those members, who do not complete minimum ten years contribution and leave an organization, are allowed to claim the withdrawal benefit of the pension funds with the accrued interest thereon.

My question is to know the formula for working out the pension of the employees, since the different members may leave an organization at different periods of service. For example a member may join the scheme at the age of 40 years and he completes 10 years of contribution and leaves the organization on completion of 50 years of age. What is the formula used to calculate the pension of such members. How will the pension be calculated if the employee retires from the organization on superannuation, i.e. on completing 58 years of age?