Types of Pension Cases
(2) Family Pension
(3) Voluntary Retirement (VR )
Terms related to the PENSION Calculation
(iv) RESTORATION of Pension
(v) FAMILY PENSION
Information regarding Pensioners
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Minimum service required for getting Pensionery benefits 10 years on attaining the age of 58 years / 60 years (including weight age i.e 5+5=10)
Minimum service required for getting Gratuity is 5 years.
Maximum service counts for Pensionery benefits is 33 years.
5 years Service weight-age will be given to Superannuation or Voluntary retirements only. But maximum service is limited to 33 years. Service weight age is not admissible for dead while in service cases.
Example: 1. Service after superannuation = 29 years
Net service = 29 + 5 = 34 years but limited to 33 years only
2. Service after Voluntary = 23 years
Net service = 23 + 5 = 28 years.
5. Service weight-age is not be admissible to invalid pension.
6. As per PRC 2015, Maximum gratuity payable RS.12,00,000/-.
7. A fraction of year : 3 months or more be treated as 1 half year.
Example: 26 y 8 m 21 d = 27 years
12 y 3 m 13 d = 12 years 6 months
8. Pension Rounded up to next higher Rupee.
Example: 8592.17 = 8593/-
8549.57 = 8550/-
9. Minimum pension is Rs.6500/- pm.
How to calculate Pension
The pension amount is calculated based on the Basic Pay at the time of retirement, Age, Service years, etc. It is calculated on Basic and Dearness Pay only.
SMP means Six monthly period of qualifying service = 33 x 2 = 66
Service Pension = Last Drawn Basic Pay x Total Qualifying Service / 66
Method for calculate Family pension
Calculate Total Pay i.e., Basic Pay + DA ( A= Basic Pay + DA )
1. Enhanced Family Pension : Last Basic Pay Drawn X 50/100 (Limited to Service pension)
2. Normal Family Pension : Calculate 30 % of Total pay (Last Basic Pay Drawn*30/100)
Revised Consolidated Basic Pension/ Revised Consolidated Basic Family Pension falls short of Rs.6,500 per month, the same shall be raised to Rs.6,500 per month. This enhancement shall come into force with effect from July 01, 2013, with the monetary benefit accruing from June 02, 2014 as per G.O.Ms.No.51, FINANCE (HRM.VI-PENSION) DEPARTMENT, Dated: May 08, 2015.
At the time of retirement of the employee, a portion of pension can be withdrawn by the employee.
A maximum of 40% of pension amount can be withdrawn at the time of retirement. However, depending on the amount withdrawn proportionate amount will be deducted from the Pension amount till 15 years and employee will get reduced Pension till 15 years.
Formula for calculation of Commutation
= Commutation Percent of Full Pension x Commutation Factor x 12
Formula for calculation of Reduced Pension
= (Full Pension – Commutation Percent of Full Pension) + DA on Full Pension