1. #1
    Unregistered Guest

    How pension is calculated for the Central Government employees?

    How pension is calculated for the Central Government employees? How can I compute the same?

  2. #2
    GovernmentJobsExpert is offline Senior Member
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    Re: How pension is calculated for the Central Government employees?

    Pension is one of the forms of retirement benefit of the Central government Employees. The various retirement benefits of the central government employees include a pension (monthly) which is calculated and withdrawn as a Lump sum amount called a Commuted pension.

    As part of the Retirement benefits in case of the Central government employees, an employee is eligible for pension benefits only after the completion of the 10years of service in an organization. Hence, regarding the question whether a person is eligible for pension after 12 years of service the answer is YES.

    Pension amount is mainly calculated as 50% of the last salary (basic pay + grade pay). It is also arrived as average benefits drawn during the last 10 months of service. The minimum pension amount that can be drawn is Rs 3500 and the maximum amount being around Rs 45000.

    The half months Basic pay withdrawn last by the employee is used for calculating the Service gratuity. This is calculated on behalf of each completed 6 months period of service. This is in lieu of Pension. This is a lump sum payment which is different. Service gratuity is given apart from the retirement amount on a whole. The central government employees are eligible for a number of benefits in terms of pension, gratuity etc.

  3. #3
    prasad_19in@yahoo.co.in is offline Senior Member
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    Re: How pension is calculated for the Central Government employees?

    Hi,

    The new Pension scheme as per VI-Pay commission has come in to effect from 01-01-2006
    for all central govt. employees including defence and railway employees.

    The qualifying service for monthly Pension is 10 Yrs as per CCS (Pension) Rules 1972, but to earn
    full pension the employee has to serve maximum 33 Yrs of service. And Minimum 20 Yrs / 15 yrs respectively
    for different cadre of the posts as per the revised policy.

    The simple formula for calculating pension as per new rules is:

    First the eligibility of the employee will be counted i.e. has he completed minimum service required to become
    eligible for monthly pension i.e. 10Yrs for qualifying + No. of Years of service as per the prevailing
    departmental policies i.e. minimum 20 Yrs Or 15 Yrs accordingly.
    THEN
    50% of average emoluments (Pay + grade pay) in a Pay Band are calculated from the last 10 months of the
    qualifying period of service. (The applicability is the last slab of the highest pay applicable in each pay band).
    THEN
    Then the pension per month is calculated by reducing pension Pro-Rata (residual) value but not less than 3500/-pm.
    (This Pro-rata is applicable to employees who are not becoming eligible for full service Pension i.e. on completion of 33 years of service,
    and proceeding on Superannuation, the pension is proportionately reduced as mentioned in this Para)

    Type of Pensions in India
    Superannuation, Retirement, Invalid Pension, Compensation Pension, Medical Pension,
    Compulsory Retirement Pension, Family Pension as per the Central Civil Services Rules (Pension) 1972

    Other Points:
    Pension will be restored if a central govt. employee commutes his pension to the percentage as applicable
    (i.e. up to 50% of his earned pension) after completion of 15 years from the date of his drawl of first pension.

    Additionally every month Dearness Allowance to the Pension is also applicable.

  4. #4
    nagamalleswararao is offline Senior Member
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    Re: How pension is calculated for the Central Government employees?

    dear
    pension: the pension means the amount which is at the time of old age is called as pension.this is only income to the employee that time.Because the employee get retirement of the company.so some amount will give to the employee.
    if you want to know how to calculate central government plans is
    1.at the time of employee working the organization will take 12.5% of basic salary
    2.the organization also give 12.5% of money
    3.the two are combined investment account on the name of employee name
    4.at the time of retirement employee will get money

  5. #5
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    Re: How pension is calculated for the Central Government employees?

    dear guest, a central government servant is eligible for receipt of pension after a service of 10 years. there are some pension rules which right now i am not mentioning here as i suppose you may be knowing them. pension is calculated with reference to average emoluments namely, the average of the basic pay drawn during the last 10 months of service or last basic pay drawn whichever is beneficial. full pension with 10/20 yrs qualifying service is 50% of avg emoluments or last basic pay drawn. before 1 jan 2006, for qualifying service of less than 33yrs, amount of pension was proportionate to actual qualifying service broken in completed half periods, and the pension can be calculated by the formula
    pension amount=R/2(X)61/66
    where R represents avg reckonable emoluments for last 10 months of qualifying serviceor last pay drawn as opted by the govt. servant.
    min. pension presently is Rs 3,500 per month. max. limit of pension is 50%.
    pension is payable upto and including the date of death

  6. #6
    Neelaveni is offline Junior Member
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    Re: How pension is calculated for the Central Government employees?

    according to their worked years

  7. #7
    hardikjethava is offline Member
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    Re: How pension is calculated for the Central Government employees?

    For calculating pension you can visit.
    >http://pensionersportal.gov.in/retire-benefit.asp


    You can also calculate pension from the below site
    http://www.imyideas.com/2010/03/pens...r-central.html
    which includes following points...
    The following pension details can be calculated.
    1. Emoluments for Gratuity.
    2. Retirement Gratuity.
    3. Emoluments for Family Pension.
    4. Family Pension Admissible.
    5. Enhanced Family Pension.
    6. Portion Commutable.
    7. Reduced Pension.
    8. Commuted Value.

  8. #8
    khushal viradiya is offline Junior Member
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    Re: How pension is calculated for the Central Government employees?

    hi friends,

    This small software can be used to calculate pension amount,


    The following pension details can be calculated.
    1. Emoluments for Gratuity.
    2. Retirement Gratuity.
    3. Emoluments for Family Pension.
    4. Family Pension Admissible.
    5. Enhanced Family Pension.
    6. Portion Commutable.
    7. Reduced Pension.
    8. Commuted Value.

    The screen shots are attached below.


  9. #9
    faheemiet is offline Senior Member
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    Re: How pension is calculated for the Central Government employees?

    you can calculate the pension through the software
    This small software can be used to calculate pension amount, save details and print reports.

    The following pension details can be calculated.
    1. Emoluments for Gratuity.
    2. Retirement Gratuity.
    3. Emoluments for Family Pension.
    4. Family Pension Admissible.
    5. Enhanced Family Pension.
    6. Portion Commutable.
    7. Reduced Pension.
    8. Commuted Value.
    Download Pension Calculator software Modified
    you can download software through this link:
    www.mediafire.com/?mjzvwmwlzwu

    Try the following usernames or passwords:
    username: imyideas
    password: imyideas
    or
    username: binu
    password: binu


    Trouble in printing ?? download this http://www.mediafire.com/?zmjyjdzz5chtool and install.


  10. #10
    sailajaps is offline Junior Member
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    Re: How pension is calculated for the Central Government employees?

    Hello
    The minimum eligibility period for receipt of pension in central government employes is 10 years.A central governement employ retiring in accordance with pension rules is entitled to receive superannuation pension on cmpletion of atleast 10 years of qualifying service.
    Pension is calculated with reference to average emoluments of the following
    1.Last 10 months basic salary or last 10 months basic pay whichever is benificial.
    Pension amount is given as 50% of the last best salary.
    The total service yeras are divided into half years like if you have 30 years 4 months experience then they consider 61 half years of service.
    Pension amount = (average emoluments of last 10 months/2)x 61/66.

  11. #11
    abdullahsaquib is offline Junior Member
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    Re: How pension is calculated for the Central Government employees?

    Pension is
    calculated with
    reference to average
    emoluments namely, the
    average of the basic pay
    drawn during the last 10
    months of the service or
    last basic pay drawn
    whichever is beneficial.
    Full pension with 10/20
    years of qualifying
    service is 50% of the
    average emoluments or
    last basic pay drawn
    whichever is beneficial.
    Before 1.1.2006, for
    qualifying service of less
    than 33 years, amount of
    pension was
    proportionate to the
    actual qualifying service
    broken into completed
    half-year periods. For
    example, if total
    qualifying service is 30
    years and 4 months (i.e.
    61 half-year periods),
    pension will be
    calculated as under:-
    Pension amount =
    R/2(X)61/66
    where R represents
    average reckonable
    emoluments for last 10
    months of qualifying
    service or the last pay
    drawn as opted by the
    govt servant.

  12. #12
    Malarvizhi Shanmugam is offline Junior Member
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    Re: How pension is calculated for the Central Government employees?

    Basic pay + dearness allowance divided by 2 and then multiply by number of years of service and then divide it again by 33.

  13. #13
    shanmuga priya is offline Junior Member
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    Re: How pension is calculated for the Central Government employees?

    hello friend,pension for central government employees is calculated by taking 50% from basic pay +DA(dearless allowance).

  14. #14
    jainesh_15792 is offline Junior Member
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    Re: How pension is calculated for the Central Government employees?

    Calculation of Superannuation pension

    The formula for the calculation of superannuation pension is as given below:

    50% of the emoluments drawn during the last month

    For example:
    emoluments drawn during the last month = Rs.12000.00
    Dearness Allowance rate on the date of retirement = 16%
    Qualifying service = 28 years
    Age on retirement = 60 years
    Commutation desires = 40%
    In the above case pension will be equal to 1/2 x 12000 = Rs. 6000.00


    The minimum amount of pension payable is Rs.3500 and the minimum amount of qualifying service entitled for pension is 20 years.



    Calculation of Retirement gratuity

    Retirement gratuity is admissible to all employees after completion of 5 years of qualifying service. The quantum of gratuity payable is also derived from the emoluments (but here DA on the date of retirement is also included) @ of emoluments for each completed 6 monthly period of qualifying service subject to a maximum of 16 times the emoluments from Rs. 3.5.lacs to raised 10 lakh. Therefore in the above example the amount of gratuity payable would be:
    13920 (Pay + DA) x 66/4 = Rs.229680.00.

    Gratuity is not payable to retirees against whom disciplinary / vigilance proceedings are pending at the time of retirement, till the conclusion of such proceedings.



    Calculation of Commuted Value of pension

    As per the CCS (Pension) Rules, the government also gives an opportunity to its employees to commute a part of their pension in return for a lumpsum payment. The maximum percentage of pension which can be commuted under these rules is 40%. Upon the receipt of the lumpsum commuted value of pension, the pensioner draws reduced pension to the extent of the amount commuted, for 15 years. Thereafter, his pension is restored to full. Commuted value of pension is not payable to retirees against whom disciplinary / vigilance proceedings are pending at the time of retirement, till the conclusion of such proceedings.

    In the above example the amount of pension admissible for commutation will be calculated in the following manner:
    40/100 x 6000 = Rs. 2400

    The amount of lumpsum payable in lieu of the commuted amount is determined by means of a Commutation Table (given above) containing the commutation factors. The formula for working out the lumpsum payable is as follows.

    Amount offered for Commutation x 12 x Commutation factor.

    Therefore in the above case the amount will be equal to 2400x12x8.194 = Rs.2,35,987

    The reduction in the amount of pension on commutation will become operative from the date of receipt of the commuted value by the pensioner, or at the end of three months after the issue of authority for payment, whichever is earlier. For the restoration of the commuted value of pension upon completion of 15 years, the pensioner should apply to the pension disbursing authority i.e., Post office / Bank in the



    Encashment of Earned leave

    The encashment of earned leave at credit at the time of retirement. The amount of leave encashment payable is worked out in the following manner. Emoluments (Pay +GP)/30 x No. of days of EL credit subject to max. 300 days Therefore in the above case the leave encashment payable would be; 13920/30 x 300 = Rs. 139200.00 (For 300 days of earned leave.)



    General Provident Fund

    The GPF balance at the credit of the employee becomes due for payment at the time of his retirement. GPF subscription is to be compulsorily discontinued during the last 3 months of service on superannuation. The employee should fill up the form for final payment and submit in his office. After processing of the same the form shall be forwarded to the concerned CCA office, which shall make arrangement for the payment of the principal and interest in the GPF account of the subscriber.

  15. #15
    DEEPAK YADAV is offline Junior Member
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    Re: How pension is calculated for the Central Government employees?

    it is mostly calculated depending upon 50 % of last salary drawn by the employee.

    by d way r u retiring this month from your job .

  16. #16
    anoopkumarsingh is offline Junior Member
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    Re: How pension is calculated for the Central Government employees?

    for pension calculation refer to http://90paisa.blogspot.com/2008/11/...mmutation.html
    download software for calculation of pension from http://www.imyideas.com/2010/03/pens...r-central.html

  17. #17
    Anmol Mehta is offline Junior Member
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    Re: How pension is calculated for the Central Government employees?

    Hello,
    The pension is based on the no of worked years of a govt emoploy.You can see the article related to this on google.

  18. #18
    Unregistered Guest

    Re: How pension is calculated for the Central Government employees?

    central gov emp min pension is Rs 3500/- I would now have any increase this pension

  19. #19
    Unregistered Guest

    Re: How pension is calculated for the Central Government employees?

    Can pay and accounts officer send cheque of provisional pension to the bank of the pensioner

  20. #20
    Unregistered Guest

    Re: How pension is calculated for the Central Government employees?

    can pay and account officer send provisional pension cheque to the pensioner's bank account

  21. #21
    Unregistered Guest

    Re: How pension is calculated for the Central Government employees?

    Can any pensioner of central govt can opt for sending his provisional pension cheque to his bank account?

  22. #22
    PradeepN is offline Senior Member
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    Re: How pension is calculated for the Central Government employees?


    Dear
    For Calculation of pension following are the points are to be consider
    1.Name
    2.Designation
    3.Basic Pay
    4.Grade pay
    5.Total Pay
    6.Average Emoluments
    7.Acceptable Pay
    8.Retirement gratuatity
    Calculation of Pension:
    1.Find out the Total Service
    2.Find out the Salary as a Last Payment
    3.Accordingly Locate the past Service benefit from table Given 12(3)(b)
    4.Date of Attaining 58 years for Early pension
    5.Date of Death for widow Pension
    These are the points are to be consider for Calculation of Pension
    Thank you for asked this Question

  23. #23
    Unregistered Guest

    Re: How pension is calculated for the Central Government employees?

    I have completed 14 years of service in State Bank of India. I want to know if I resign whether I will be eligible for pension.
    In VI pay commission for central government there was a point of 15 years pension policy I want to know whether it is implemented or still pending. Earlier the minimum pensionable service was 20 years
    Regards

    AJAY

  24. #24
    AJAYCHOUDHARY is offline Junior Member
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    Re: How pension is calculated for the Central Government employees?

    I am working in State Bank of India having 16 years of service now I want to resign. I want to know whether I will be eligible for pension.
    and also there was news of minimum pensionable service to be reduced from 20 years to 15 years VI pay commission for central government, I want to know whether it has been implemented or the matter is still pending.

  25. #25
    Unregistered Guest

    Re: How pension is calculated for the Central Government employees?

    What is formula for calculating the family pension for the dependent of the Central Govt Employee(Railway).The employee had retired from Service on 31.05.2002 and passed away on 16.07.2012

  26. #26
    Unregistered Guest

    Re: How pension is calculated for the Central Government employees?

    i am planning to retire on 31dec2012.service length 24years 10months age47years9months. Please inform pension,gratuaty &commutation etc

  27. #27
    Unregistered Guest

    Re: How pension is calculated for the Central Government employees?

    pl tell me know what will be the pension after completing 14 yrs of service

  28. #28
    Unregistered Guest

    Re: How pension is calculated for the Central Government employees?

    minimum pension in sbi

  29. #29
    Unregistered Guest

    Re: How pension is calculated for the Central Government employees?

    My Mrs. was expiered Oct.12. I have completed 31 years of central govt. service. How pension is calculated in my case.

  30. #30
    Unregistered Guest

    Re: How pension is calculated for the Central Government employees?

    How pension contribution is calculated for an employee(Covered by post 2004 pension rules) who has gone on lien and joined a different organization?

  31. #31
    Unregistered Guest

    Re: How pension is calculated for the Central Government employees?

    for existing pensioner ,pension is calculated on minimum of salary sscale.After pay revision ,if that pay scale is abolished how new pension should be worked out?

  32. #32
    Unregistered Guest

    Re: How pension is calculated for the Central Government employees?

    My basic pay is 54,350 and grade pay is Rs. 10,000/-. My DA is 46,332/-. I have 300 days of earned leave at my credit. How to calculate my leave encashment benefit on superannuation. I am retiring by the end of March, 2013.

  33. #33
    Unregistered Guest

    Re: How pension is calculated for the Central Government employees?

    now I have completed 20 years of service in indian railways now I am in the PB-2 with grade pay of Rs.4200/- how much of pension will be calculated if i give for VR please kindly let me know

  34. #34
    Unregistered Guest

    Re: How pension is calculated for the Central Government employees?

    sir I am working in scr now I am in PB-2 with a grade pay of Rs.4200/- how much of pension will be calculated when if am opted for VR from railways kindly let me know the correct pension.

  35. #35
    Unregistered Guest

    Re: How pension is calculated for the Central Government employees?

    I REMAINED IN SERVICE FROM 17. 01 1977 TO 16.04 1993 WITH E.P.F ORGANISATION. NITHER I ASKED FOR GRATUATY NOR PENSION. I RESIGNED AT MY OWN. AM I ELIGIBLE FOR PENSION IF YES FROM WHICH DATE?

  36. #36
    koti.kwr is offline Senior Member
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    Re: How pension is calculated for the Central Government employees?

    Hi Guest,

    In calculation of pension there are many things which are taken in to consideration.


    Few of them are as follows:


    Name, Designation, Basic Pay, Grade Pay, Total Pay, Average Emoluments, Acceptable Pay


    The calculation of pension also involves the total service to the organization and the salary of the last payment

    Thank you,

    All the best.

  37. #37
    Unregistered Guest

    Re: How pension is calculated for the Central Government employees?

    i am central govt emply. i am voluntre retair on 31-8 2013. my total service is 21yr 4 moth &18 day on the day of retairment. how much pension i will get

  38. #38
    Unregistered Guest

    Re: How pension is calculated for the Central Government employees?

    i am central govt emply. i am voluntre retair on 31-8 2013. my total service is 21yr 4 moth &18 day on the day of retairment. how much pension i will get. my pay grade=13780 at the time of retairment

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