Under the Employees' Pension Scheme, 1995 (EPS-95), what is the statutory mathematical formula to determine the monthly superannuation pension for a member retiring at age 58?

[ A ]Monthly Pension = (Pensionable Salary * Pensionable Service) / 70 (where Pensionable Salary is capped at statutory wage ceiling of ₹15,000/month, unless higher pension opted).[ CORRECT ]

[ B ]Monthly Pension = Last drawn salary multiplied by 10.

[ C ]Monthly Pension = ₹100 flat for all employees.

[ D ]Monthly Pension = Total EPF balance divided by 12.

Takeaway

The correct answer is A: EPS-95 monthly pension is computed as (Pensionable Salary x Pensionable Service) / 70, with Pensionable Salary generally capped at the statutory wage ceiling unless the member has opted for higher pension on actual salary.

Derivation

This defined-benefit formula rewards both a higher average salary in the final years of service and a longer service tenure -- pension rises proportionally with each. The '70' divisor is a fixed statutory constant set by the EPS scheme rules, not a market-linked or discretionary figure, which is why EPS pensions are entirely predictable given salary and service inputs. Historically Pensionable Salary was capped at the statutory wage ceiling (₹15,000/month, up from earlier ₹6,500), but following the Supreme Court's 2022 ruling, eligible members who exercised the option can compute pension on actual (uncapped) salary instead -- a nuance frequently layered onto this base formula in advanced questions.

Why the others fail

B — Monthly Pension = Last drawn salary multiplied by 10.

Fabricated formula; EPS-95 uses the defined-benefit (Pensionable Salary x Service)/70 calculation, not a simple ten-times-last-salary multiple.

C — Monthly Pension = ₹100 flat for all employees.

False; EPS-95 has a formula-driven pension, not a uniform ₹100 flat payout for every member regardless of salary or service.

D — Monthly Pension = Total EPF balance divided by 12.

Incorrect mechanism; EPS pension is computed from the (Salary x Service)/70 formula, it is not simply the EPF corpus divided by 12.