PENSION MATTERS

An Employee is entitle to get Pensionary benefits (Monthly Pension, Retiring Gratuity, Leave Salary, Communion of Pension Value , Final Payment of GPF deposit, Deposit of General Insurance -cum-Savings Schemes)   on superannuation or retirement  after rendering a specif period of qualifying service. Full pension @ 50% of Last Pay drawn on superannuation or retirement  for a minimum qualifying service of 20 years and proportionate  reduction need to be made for qualifying service for 10 (ten) years or more but less than 20 (twenty) years while calculating Pension of a Govt. Employee.

Following Terms to be used while Calculation  of  Pension:

1) Last Pay : Basic Pay + Special pay , if any of retiring or superannuating month.

2) Qualifying Service : Date of retirement or superannuation or death
                                      less : Date of appointment
                                      Less : Period of extraordinary leave other than own treatment
                                      Less : civil commotion or higher studies leave

 Qualifying Service>=3 months  = Next 6 months
 ( <3 months service will not come under calculation for determining qualifying service)

 Example : 18 years 8 months 28 days = Qualifying service of 18 years 6 months
                  28 years 9 months 1 day = Qualifying service of 29 years

BASIC FORMULAS 

(1) Formula for Calculation  of  Monthly Pension:

 Full Pension =  Half of Last Pay drawn by the Govt. Employee
                         ( fraction of a rupee will be rounded off to next higher rupee)

Proportionate Pension for qualifying service >= 10 and <20 years :
=  (Last Pay * Qualifying service *50) / 100*20
 ( fraction of a rupee will be rounded off to next higher rupee)

Maximum amount of Monthly  Pension : Rs. 35,000/-
Minimum Amount of Monthly Pension/Family Pension :  Rs. 3300/-
(As per ROPA 2009, Rules)


(2) Formula for Calculation  of  Retiring Gratuity

[Qualifying service * 2 * (Last Pay+DA ) / 4

The maximum amount of Death / Retiring Gratuity  Rs. 6.0 lakh
(Rupees six lakh only.as per ROPA 2009, Rules)

(3) Formula for Calculation  of  Leave Salary 

[Last Pay + Dearness Allowance (DA) + Medical Allowance(MA)] * [ No. of Earned Leave (EL) credited (maximum limit 300 days)] / 30 days.


(4) Formula for Calculation  of  Commutation Value of Pension 
Maximum 40% of Basic Pension can be commuted

Present rate of commutation value of Rs. 1 = 98.328

Example :  if a pensioner commutes 40% , say Rs. 2000.00 of his/her basic Pension he will get
2000 * 98.328 as commutation value.