Wednesday, November 30, 2016

HOW TO CALCULATE PENSION/ COMMUTATION AFTER 1-7-2016 ONWARD

A govt servant can get Pension and Commutation on
a) Completion of 25 years service
b) attaining the age of 60 years
c) If a Govt servant dies after completing minimum 10 Years service, his Family can get the family pension.

HOW TO CALCULATE GROSS PENSION:
Gross Pension= Last Basic Pay X Service in years (Max 30) X 7/300
(Note: 6 months or more than 6 months will be counted a full year.)
Example:
If a Govt Servant whose date of birth is 1/1/1972 and date of appointment is 1/3/1992 retires on 28/2/2017 after completing 25 Years service and his Last basic pay is Rs 30000 in Grade 14, his gross pension will be as under.
Gross Pension = 30000 X 25 X 7/300 = 17500
HOW TO CALCULATE COMMUTATION:
Commuted Pension (35%) = Gross Pension X 35/100 = 17500 X 35/100= 6125
Amount of Commutation=
Commuted Pension X12 X Rate from Commutation Table
= 6125 X 12 X 21.0538 = 1547454.30
COMMUTATION TABLE:
In the above example, age on next birthday of Govt servant on 28/2/2015 becomes 46. ( Age on 1/1/2018). So we have taken the rate of 46 years from the commutation table which is 21.0538
NET PENSION:
Net Pension (65%) = Gross Pension X 65/100 = 17500 X 65/100 = 11375
Increases on Net Pension are as under.
Medical (25% of Net Pension) = 2843.75
(Note: For Grade 16 and above, Medical is 20%)
25% Increase on Medical = 710.93
15% Increase of year 2010 = 1706.25
15% Increase of year 2011 = 1706.25
7.5% Increase of year 2015 = 853.12
10% Increase of year 2016 = 1137.50
TOTAL PENSION PER MONTH = 20382.80
CONCLUSION:
The Govt servant will get commutation Rs. 1547454 and Pension Rs. 20383 per month.
FAMILY PENSION:
In case of death of a Government servant while in service, his family gets Family Pension in which Commuted Pension becomes 25% and Net Pension becomes 75% with the same formula as mentioned above.
SERVICE LESS THAN 10 YEARS:
If a government servant dies or is declared invalid after completing 5 years service but less than 10 years service, he or his family is given Graduity equal to 1.5 months Pay for each year. For example 8 years service is entitled for 12 months Pay. Service less than 5 years has no such advantage.

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