## HOW PENSION IS CALCULATED

The components of Salary for calculation of pension are Basic Pay plus Basic Portion of FPA plus Part of other allowances considered for PF calculation.

( 1 ) Average pay based on previous ten month Basic Pay plus other components Say Rs.24,000/-
( 2 ) 50% of Average pay Say Rs.12,000/-
( 3 ) Basic Pension (Average pay * 33/33) Say Rs.12,000/-
( 4 ) Date of Commutation: 1st of the next month Say 01.04.2010
( 5 ) Commutation of Pension: at the age of 61 (9.81*(12000/3*12) say Rs.4,70,880/-
( 6 ) Pension after Commutation (40% or 1/3rd of commutation) Say 8,000.00
( 7 ) D.R. on Basic Pension of Rs.12,000.00/-As per CPI
( 8 ) Monthly pension = ( 6 + 7 )
( 9 ) Restoration of Step 3 will be 15years from date of commutation viz: 01.04.2025

## FORMULA FOR CALCULATING DR ON PENSION

The simple formula of calculating Dearness Relief is

Retired after 01-08-2002 = Basic Pension X 0.0018 X No of slabs

Retired between 01-08-1997 to 31-07-2002 = Basic Pension X 0.0023 X No of slabs

Those who have retired prior to August 1997, the calculation will be according to the date of Retirement.

However the formula for the SVRS OPTEES of GIC though they have retired in 2004, calculation will be as if they have retired before August 2002 i.e. use second formula from above

## Actual Calculation

Basic Pension on retirement (After August 2002) was fixed at Rs. 9,000/-

After Computation, the Basic pension payable is fixed at Rs. 6,000/-

Now for calculating pension for and from the month of February, 2010.

First we will calculate the Dearness Relief as under

DR Slabas are 372 as per the Chart so 9000 X 372 X 0.0018 = Rs. 6,026/-

Total Pension = Basic Pension Payable Rs. 6,000/- + DR Rs. 6,026/- = Rs. 12,026/-

 Scale of Basic Pension Per month Rate of Dearness Relief as percentage of Basic Pension 1 (i) Upto Rs. 1250/- 0.67 p.c. (ii) Rs. 1251/- to Rs. 2000/- 0.67 p.c. of Rs. 1250/- plus 0.55 p.c. of Basic Pension in excess of Rs. 1250/- (iii) Rs. 2000/- to Rs. 2130/- 0.67 p.c. of Rs. 1250/- plus 0.55 p.c. of difference between Rs. 2000/- and Rs. 1250/- Plus 0.33 p.c. of Basic Pension in excess of Rs. 2000/- (iv) Above Rs. 2130/- 0.67 p.c. of Rs. 1250/- plus 0.55 p.c. of difference between Rs. 2000/- and Rs. 1250/- Plus 0.33 p.c. of difference between Rs. 2130/- and Rs. 2000/- plus 0.17 p.c. of Basic Pension in excess of Rs. 2130/- 2 (i) Upto Rs. 2400/- 0.35p.c. (ii) Rs. 2401/- to Rs. 3850/- 0.35 p.c. of Rs. 2400/- plus 0.29 p.c. of Basic Pension in excess of Rs. 2400/- (iii) Rs. 3851/- to Rs. 4100/- 0.35 p.c. of Rs. 2400/- plus 0.29 p.c. of difference between Rs. 3850/- and Rs. 2400/- Plus 0.17 p.c. of Basic Pension in excess of Rs. 3850/- (iv) Above Rs. 4100/- 0.35 p.c. of Rs. 2400/- plus 0.29 p.c. of difference between Rs. 3850/- and Rs. 2400/- Plus 0.17 p.c. of difference between Rs. 4100/- and Rs. 3850/- plus 0.09 p.c. of Basic Pension in excess of Rs. 4100/- 3 Basic Pension 0.23 p.c. of your Basic Pension 4 Basic Pension 0.18 p.c. of your Basic Pension

No posts.
No posts.