 # HOW TO CALCULATE PENSION/ COMMUTATION ## HOW TO CALCULATE PENSION/ COMMUTATION

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 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 service will be counted full year.)

Example:
If a Govt Servant whose date of birth is 1/1/1970 and date of appointment is 1/3/1990 retires on 28/2/2015 after completing 25 Years service and his Last basic pay is 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 = 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 20.3555 = 1496129

COMMUTATION TABLE:
In the above example, age on next birthday of Govt servant on 28/2/2015 becomes 47. ( Age on 1/1/2016). So we have taken the rate of 47 years from the commutation table which is 20.3555

NET PENSION:
Net Pension = 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
10% Increase of year 2013 = 1137.50
10% Increase of year 2014 = 1137.50
7.5% Increase of year 2015 = 853.12
TOTAL PENSION PER MONTH = 21470

CONCLUSION:
The Govt servant will get commutation Rs. 1496129k and Pension Rs. 21470 per month.

Thanks for sharing.