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CALCULATE YOUR NORMAL RETIREMENT BENEFITS BY YOURSELF

October 25, 2010

CALCULATION OF SETTLEMENT BENEFITS (  For Normal Retirement cases)

PENSION: Retirement Pension

50% of Last Basic Pay  or 50% of last Ten Months Basic Pay average which ever is beneficial to the employee, with out reference to number of qualifying years, provided minimum 20 years of qualifying years for voluntary and 10 years for Superannuation.

COMMUTATION OF PENSION:

Commutation of pension is not compulsory.

Up to one year from the day of Retirement without medical and after one year with medical.

Maximum amount of commutation is 40%. Full pension will be restored after 15 years of retirement / date of  commutation. There will be no effect of commutation of pension on Family pension.

Value of Commutation = Commutation Value X 12 X amount of pension commuted.

Age next birthday  and Commutation value under 6th PC

50 8.864 51 8.808 52 8.768
53 8.724 54 8.678 55 8.627
56 8.572 57 8.512 58 8.446
59 8.371 60 8.287 61 8.194

RESIDUAL PENSION: ie. Pension after commutation

60% Basic Pension + Dearness Relief as applicable from time to time for the full basic pension amount.

GRATUITY:

Retirement Gratuity – ¼ th of emoluments for every completed 6 monthly period of qualifying service subject to maximum of 33 times , with maximum amount of  10 Lakhs.

LEAVE ENCASHMENT:

Last Pay per day multiplied by number of  days LAP balance at credit, ( if the LAP balance is less than 300, the balance can  be made good by LHAP, but the payment will be equal to half pay only.)

REIS – Accumulated Value of Contribution will be refunded.

EXAMPLE.  Basic Pay Rs 20,000/-, Qualifying Service = 30 Years.& Age 55 yrs

Basic Pension = 20000 X 50%   = 10,000.      Commuted amount (40%) = Rs 4000/-

After commutation of 40%, Residual Pension will be 10,000 X 60% = Rs. 6,000/- + Dearness relief for Basic Pension.

COMMUTATION AMOUNT = 4000 X 12 X 8.572  = Rs 4,11,456/-

( Commutation Value for 56 years = 8.572  )

LEAVE ENCASHMENT

( Pay + DA ) / 30 X LAP balance = 20000+11600 X 300 / 30   = Rs  3,16,000/-

( D A as on 01-07-2011 @ 58% )

RETIREMENT GRATUITY :

(Last Basic Pay + DA) X 30 X 50%    ie. where Qualifying Service 30  years

(20000 +11600) X 30 / 2  =  4,74,000/-    ( D A as on 01-07-2011 @ 58% )

Other Retirement Benefits :

(1) Provident Fund & Voluntary Provident Fund amount, (2) Transfer allowance for self and family members, (3) Transfer grant, (4) Settlement / Kit Pass, (5) Post Retirement Complimentary Pass, (6) Facial facility, (7) Booking of Holiday Homes etc.

Qualifying service:

(1) All duty period, (2) All Leave period, (3) Deputation period, (4) EOL on medical grounds, (5) Pre-appointment training for Gr. C&D, (6) Probation followed by confirmation, (7) Suspension regularised as leave &  duty.

Service will not count for calculation:

(1) Before 18 years age, (2) As apprentice, (3) Suspension not regularised, (4) Period treated as Dies non, (5) absent period not regularised.

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