Showing posts from February, 2013

Provident Fund: Pension Scheme - Part 3

So you came here searching for the answer for 541 Rs or 8.33% of PF which go to the Pension Scheme?
Then you should try reading this: .

Sounds too complicated? Let us simplify some part of it.

A Part of PF contribution goes to Pension fund. The Aim is to give you some money when you get retired on monthly basis, or in other words to pay you Pension.

1. When will I get Pension:
After you reach age of 58 years or 50 Years if you are willing to get a reduced amount.

2. How much pension I can get?
Well, If you work for 35 years and when you are 58 your basic pay is more than 6500 then you can get around 3250 Rs per month. Formula for calculation is as below
Pension = (Last pensionable salary*Years of  pensionable service)/70

3. Can I withdraw the amount?
Yes and No
Yes: If you withdraw your PF before 9 year 5 months of service.
No: If you withdraw your PF after 9 year 6 month of service.

4. How much amount I will get when I …