Step by step Procedure to solve pension problem

1.Find there is any boyhood service

How to find boyhood service?

Date of entry into service > = Date of birth + 18 yrs No boyhood service .

so Date of commencement of net qualifying service is date of entry into service

Date of entry into service < Date of birth + 18 yrs There is boyhood service . so
Date of commencement of net qualifying service is = Date of birth + 18 yrs

2.Find the date of retirement.

For this simply add 58yrs with DOB

3. Find total service

For no boyhood service Total service = Date of retirement - Date of entry into service

for boyhood service Total service = Date of Retirement - (DOB + 18 yrs)

4.Find period of service not qualifying for pension:

They are Apprentice service, Extraordinary leave(EOL) without medical certificate,

suspension as penalty, boy service, over stayal of joining time, unauthorised absence,
interruption in service, service in non pensionable post do not count for qualifying
service

5.Calculate Net qualifying Service:

Net Qualifying Service = Total service - Non qualifying service

5a.Find the no of half years:

No. of half years = Net qualifying service years x 2

For purpose of pension, the minimum qualifying service is 10 years ( 20 half years ) and
maximum 33 years ( 66 half years ) The fraction of three months and more shall be
taken as one half year and less than three months ignored

Example : Net qualifying service = 36years-07months-03 days

 No of half years =( 36 x 2 ) + 1 (for fraction of 7 months 3 days) = 73 half years

6.Calculate Average Emoluments (AE) during the last ten month of service :

AE = total pay during the last ten month of service / 10

Example:
Date of Birth 20.09.1942.
Date of Commencement of Service 10.04.1965.
Date of retirement 30.09.2000
Qualifying Service 30.09.2000-10.04.1965 =
35 years 5 months 20 days.
Non qualifying Service Nil.

st
Emoluments from 1 July 1999,

Pay Rs. 5875 + Special Pay Rs.50 + Personal Pay Rs.50.

st
From 1 July 2000,

Pay Rs. 6000 + Special Pay Rs. 50 + Personal Pay Rs.50 in

the Scale of Rs.4500-125-7000.

Pay last drawn Rs.6100/-.

Total pay for 7 months : 5975 X 7 = Rs. 41,825

Total pay for 3 months : 6100 X 3 = Rs. 18,300
Total pay for 10 months : Rs. 60,125

Average emoluments is Rs.6012.50/-.

7. compare AE with Pay lastdrawn and which is advantageous to employee has to

be adopted to calcuate pension

For the above example

Pay last drawn being advantageous it has to be adopted Rs.6100

8.Calculate pension:

pay last drawn = pay+ DP +PP +Spl.PAy

Pension = Pay last drawn or AE x service in half years (max limit 60 half years) /2 x 60

9.Calculate Family pension:

pay last drawn = pay+ DP +PP +Spl.PAy

Family pension = Pay last drawn or AEx 30 / 100

10. Calculate Enhanced Family pension:

pay last drawn = pay+ DP +PP +Spl.PAy

Enhanced Family pension = Pay last drawn or AEx 50 / 100

11. Find DCRG (Death Cum Retirement Gratuity)

pay last drawn = pay+ DP +PP +Spl.PAy + DA

DCRG = Pay last drawn or AE x service in half years (max limit 66 half years) / 4

The ceiling limit of DCRG has been enhanced from Rs.3.5 lakhs to

Rs.10 lakhs as in Government of India

12. Calculate Commuted value of pension :

Commute value of pension = ( pension / 3) x 12 x commutation value(from commutation

table)

Commute value of pension = ( pension / 3) x 12 x 10.46

(from rercent GO Dt.23rd july 2009 commutation value at the age of 59 is 8.371) see the
table)

Solved problems …coming soon

Solved problems …coming soon

Solved problems …coming soon

“COMMUTATION TABLE, PRESCRIBED UNDER RULE 7 OF THE CIVIL
PENSION (COMMUTATION) RULES, ADOPTED BY THE GOVERNMENT OF
TAMIL NADU WITH EFFECT FROM THE 1st JANUARY 2006

(See Rule 8)
COMMUTATION VALUE FOR A PENSION OF Re. 1/- PER ANNUM

Agenext Commutation Agenext Commutation Agenext Commutation

Birthday value Birthday value Birthday value
20 9.188 41 9.075 62 8.093
21 9.187 42 9.059 63 7.982
22 9.186 43 9.040 64 7.862
23 9.185 44 9.019 65 7.731
24 9.184 45 8.996 66 7.591
25 9.183 46 8.971 67 7.431
26 9.182 47 8.943 68 7.262
27 9.180 48 8.913 69 7.083
28 9.178 49 8.881 70 6.897
29 9.176 50 8.846 71 6.703
30 9.173 51 8.808 72 6.502
31 9.169 52 8.768 73 6.296
32 9.164 53 8.724 74 6.085
33 9.159 54 8.678 75 5.872
34 9.152 55 8.627 76 5.657
35 9.145 56 8.572 77 5.443
36 9.136 57 8.512 78 5.229
37 9.126 58 8.446 79 5.018
38 9.116 59 8.371 80 4.812

39 9.103 60 8.287 81 4.611