Use this sheet to estimate your EPS pension (fill only green cells)

No of years of service 10
Year of retirement 2017
Choose
2017 15000 300000
2016 15000 300000
Annual EPS
2015 15000
contribution in
2014 6500
2013 6500

Pensional salary 11,600

Monthly EPS Pension 1,657

The maximum EPS contribution was 6500 a year before Sep 1st 2014 and 15000 a year after that.

If you want to do a more exact calculation, you need to tabulate the last 60 months (before retirement) estimated EPS contrib
Take their average and divide by 12 to get the annual average.
Multiply annual average by no of years (add 2 to service if it is 20 or above) and divide by 70 to get the monthly EPS pension
 Annual EPS contribution
15000
15000
15000
6500
6500

ore retirement) estimated EPS contribution

y 70 to get the monthly EPS pension

 EPS Pension Projection

After how many years will you retire (has to be at least 5 20 Past service plus future service
and not more than 33) should be at least 10 years
Current annual basic + DA 600000
Avg rate at which the above will increase each year 5%

Total EPS contribution at full salary 1,652,636

Total EPS contribution at salary ceiling 300,000

EPS monthly pension at full salary 36,089

EPS monthly pension at salary ceiling contribution 4,714

Extra corpus given to EPS for extra pension over the

service period 1,352,636
Had this money remained in EPF you would have got upon
retirement (this is in addition to the corpus from your
contributions 2,870,998 EPF return assumed

Is this good or bad?

Amount paid for higher pension (actual amount) 1,352,636
Actual amount paid after accounting for EPF return it will
generate 1,518,361

If you take 2,870,998 and buy an annuiry at the rate of

you will only get a monthly pension of 14,354.99 This is about

So if you are going to buy an annuity with your EPF corpus (at least employers contribution) then it makes sense to increas
provided you understand that your spouse will only receive half that money if you die and after she dies the money is lost
In an annuity scheme you can opt for return of purchase price

If you are going to invest the EPF money, then it make sense not to increase EPS contribution. To fight inflation, you must b
a large corpus and invest it instead of getting a pension

Suppose you invest 2,870,998 at a rate of (after tax)

and assume an inflation of (during retirement) 8% and if draw an initial amount =
The corpus will last for about 7.00 years

At the above inflation, the money

On the other hand if you opt for constanly monthly will lose 50% of purchasing power
pensionof 36,089 in

If you do not opt for enhanced EPS pension, you will be able to generate an inflation protected income for
If you opt for ehnahced EPS pension, your pension will lose 50% of its purchasing power due to inflation in
Now decide which is better
 EPS EPS pension
EPS contribution
year salary contribution at for full EPS
at 15,000 ceiling
full salary contribution
1 600,000 49,980 15000

2 630,000 52,479 15000

3 661,500 55,103 15000
4 694,575 57,858 15000
5 729,304 60,751 15000
6 765,769 63,789 15000
7 804,057 66,978 15000
8 844,260 70,327 15000
9 886,473 73,843 15000
10 930,797 77,535 15000
11 977,337 81,412 15000

12 1,026,204 85,483 15000

8%
13 1,077,514 89,757 15000
14 1,131,389 94,245 15000
15 1,187,959 98,957 15000
16 1,247,357 103,905 15000
17 1,309,725 109,100 15000
18 1,375,211 114,555 15000

19 1,443,972 120,283 15000

20 1,516,170 126,297 15000
6% 21 36,089
0.40 of the revised EPS pension 22 36,089
23 36,089
n it makes sense to increase EPS contribution 24 36,089
she dies the money is lost 25 36,089
26 36,089
27 36,089
o fight inflation, you must build 28 36,089
29 36,089
30 36,089
10% 31 36,089
36,089 per month 32 36,089
33 36,089
34 36,089
Note that each year
inflation will lower the
8.31 purchasing power 35 36,089

7.00 years
8.31 years
 If EPS
EPS Pension with contribution was
salary ceiling EPS not increased, this
contribution would amt would
grow in EPF
37,778

81,278
131,091
187,865
252,306
325,182
407,333
499,672
603,197
718,991
848,235

992,215

1,152,330
1,330,101
1,527,182
1,745,374
1,986,632
2,253,082

2,547,034
2,870,998
4,714
4,714
4,714
4,714
4,714
4,714
4,714
4,714
4,714
4,714
4,714
4,714
4,714
4,714

4,714