Difference Between Pension and Provident Fund

The main difference is that if a pension fund member retires, the member gets one third of the total benefit in a cash lump sum and the other two-thirds is paid out in the form of a pension over the rest of the member's life. A provident fund member can get the full benefit paid in a cash lump sum.

1. Is provident fund and pension fund the same?
2. Which is better pension or provident fund?
3. What is PF amount and pension amount?
4. What percentage is Provident Fund in South Africa?
5. Can I check my provident fund balance?
6. How do I calculate my provident fund?
7. What are the new provident fund rules?
8. Does Provident Fund expire?
9. How do I check my pension balance?
10. What is the formula for pension calculation?
11. How is PF pension calculated?
12. How is basic pension calculated?

Is provident fund and pension fund the same?

A provident fund is a retirement fund run by the government. A pension plan is a retirement plan run by an employer. Pension funds operate much like annuities. Provident funds operate more like 401(k) or savings accounts.

Which is better pension or provident fund?

The advantage of a pension fund is that, although a smaller amount, you will receive a monthly income for the rest of your life. And, there is no risk of spending it all in one go with a lump sum payout. With a provident fund, the member has more flexibility and is given the entire cash lump sum all at once.

What is PF amount and pension amount?

The total PF amount comprises the contribution made by you and your employer plus accrued interest. Under EPF Act 1952, you can withdraw the full PF amount if you retire from your service after having attained the age of 58 years and you can also claim the EPS amount (Employees' Pension Scheme amount) at the same time.

What percentage is Provident Fund in South Africa?

Average Contribution Structure in South Africa

Can I check my provident fund balance?

To check your EPF account balance on the EPFO portal, you must have an active Universal Account Number (UAN). To check your balance, you will have to visit https://passbook.epfindia.gov.in/MemberPassBook/Login.jsp and enter your UAN and password. The website allows you to view and download your EPF account statement.

How do I calculate my provident fund?

Employees' Basic Pay + DA: Rs 25000. Employee contribution towards EPF: 12% x 25000 = Rs 3000. As per the Act -12% Employer contribution will be divided into 2 parts i.e. 8.33% towards Employees pension scheme and rest 3.67% towards Employee Provident fund.

What are the new provident fund rules?

As per the new PF rules, the deposit threshold limit has been raised to Rs 5 lakh per annum in provident fund for which interest would continue to be tax exempt. In simple terms, the interest on contribution to Provident Fund for up to Rs 5 lakh per annum will be tax-free.

Does Provident Fund expire?

Answer: Zolani, In theory it does not prescribe; however the money will be transferred to an unclaimed benefits fund in due course, and the fund rules may provide that the amount is written back after a set period (although National Treasury wants to prohibit this). However, even then, you can still claim your money.

How do I check my pension balance?

1. Visit EPFO Website – www.epfindia.gov.in.
2. Click on 'Pensioners Portal' ( left side of page under Online Services)
3. On the next page – Welcome to Pensioners' Portal – click on 'Know your PPO No. '
4. Here, you can enter your bank account number which is linked to pension.

What is the formula for pension calculation?

So, upon applying the formula, (15000 * 35 / 70) = Rs. 7,500 per month is the maximum pension that one can earn through EPS.

How is PF pension calculated?

Effective from September 1, 2014, the contribution will be made as follows: 8.33% of Rs 15,000 = Rs 1250. Kasturirangan says, "The formula to calculate the EPS pension is as follows: Monthly pension amount= (Pensionable salary X pensionable service) /70."

How is basic pension calculated?

1. Date of Retirement. (dd/mm/yyyy)
2. Total Qualifying Service.
3. Sum of Last 10 months' Emoluments (Basic Pay + NPA + SI +DP)
4. Average Emoluments(in Rs.)
5. Basic Pension Amount (in Rs.)
6. Sum of Last Month Emoluments (Basic Pay + NPA + SI + DP) (in Rs.)
7. Normal Family Pension ( in Rs.)
8. Enhanced Family Pension (in Rs.)