Calculation as per 7 th CPC recommendation DPTI

Calculation as per 7 th CPC recommendation DPTI

CASE STUDY-1 Superannuation Pension Retirement Gratuity, Commuted value of Pension & Joint notification of Ordinary Family Pension DATA 1. 2. 3. 4. 5. 6 7. 8. Name Post last held Date of Birth Date of appointment Commencement of Pension Nature of Pension Pay matrix Pay last drawn Pay in pay matrix S. L. MISHRA SR. AUDITOR 16 -04 -1963 14. 04. 1983 30. 08. 2016 Voluntary L-6 56900 -

Pension CALCULATION Reckonable emoluments for service pension PAY IN PAY matrix Emoluments - Rs. 56900/- Net qualifying service 33 04 16 i. e. 33. 5 years Rate of Service pension Formula: 56900 X 50 100 Pension = Rs 28450/ - wef 31. 08. 2016

Retirement Gratuity Formula: - 1/4 th reckonable emoluments for each completed six monthly period of qualifying service subject to a maximum of 16 ½ times of reckonable emolument restricted to Rs 20 lakhs Total qualifying service 33. 5 years Number of completed six monthly periods of qualifying service (33. 5 x 2) = 67(Restricted to 66) Reckonable emoluments for service pension Emoluments Rs. 56900/Dearness allowance (02% of Rs 56900/- = Rs. 1138/-)i. e. Rs 1138/ Total Amount of Retirement Gratuity 58038 x 66 4 = 9, 57, 627/- Net Amount of Retirement Gratuity payable: Rs. 9, 57, 627/- Rs. 58038/-

Capitalised Value of Pension CVP) Maximum Percentage of pension commutable 40% of pension i. e. 40 x 28450 = Rs 11380/100 Age next birth day 54 yrs Absolute date of commutation 15. 11. 2016 Purchase value 8. 678 Formula Amount of service pension commutable X 12 X Purchase value Calculation Rs. 11380 x 12 x 8. 678 = Rs 11, 85, 067. 68/ Amount of commutation payable = Rs. 11, 85, 068/ Residual amount of service pension (28450 -11380) = Rs. 17070/- pm Note: Dearness Relief will be payable on the original pension before commutation.

Family pension (Joint Notification) Enhanced Rate Formula: 50% of the emoluments or Amount of pension whichever is less for a period of 7 years from the date following the date of death or 67 years age whichever is earlier. 50% of Emoluments Rs 56900/2 = Rs. 28450/ Amount of pension Rs. 28450/ Enhanced Rate will be Rs 28450/- pm is payable for seven years from the date following the death or up to 15/04/2030 whichever is earlier. Normal Rate Formula: 30% of the emoluments subject to a minimum of Rs 9000/-pm 30% of emoluments – Rs 56900 x 30 100 =Rs 17070/ Normal rate: Rs. 17070/- p. m. from date of stoppage of Enhanced rate till widow hood. (Dearness Relief as applicable)

CASE STUDY-2 Superannuation Pension Retirement Gratuity, Commuted value of Pension & Joint notification of Ordinary Family Pension DATA Date of Birth Date of Appointment Date of Retirement Qualifying Service Pay Level - 15. 04. 1957 - 26. 12. 1980 - 31. 03. 2017 - 36 years 3 Months & 5 Days - L-7, Rs 68000/- Details of Pay Drawn during the last ten months period preceding the Date of Retirement and Average Emoluments: FROM TO PERIOD PAY TOTAL 01. 05. 2016 30. 06. 2016 1 MONTH 66000 66, 000/- 01. 07. 2016 31. 03. 2017 9 MONTHS 68000 6, 12, 000/- 10 MONTHS 6, 78, 000/-

Average Emoluments - Pension - 6, 78, 000 10 = 67800 50% of 67800. 00 = Rs. 33900. 00 Or 50% Last Pay drawn 50% of (68000) i. e. 50% of Rs. 68000 Rs. 34000/Whichever is more beneficial. Superannuation Pension admissible @ Rs. 34000/- PM w. e. f. 01. 04. 2018 for life.

Retirement Gratuity Formula: - 1/4 th reckonable emoluments for each completed six monthly period of qualifying service subject to a maximum of 16 ½ times of reckonable emolument restricted to Rs 20 lakhs Total qualifying service 37. 5 years Completed six monthly periods of qualifying service (33 x 2) = 66 Reckonable emoluments for service pension Emoluments Rs. 68000/= Rs. 68000/Dearness allowance (04% of Rs 68000/- = Rs. 2720/-)i. e. Rs 2720/Total (Rs. 68000+ Rs. 2720) = Amount of Retirement Gratuity 70720 x 66 4 Rs 70720/= Rs 11, 66, 880/- Net Amount of Retirement Gratuity payable = Rs. 11, 66, 880/-

Capitalised Value of Pension CVP) Maximum Percentage of pension commutable 40% of pension i. e. 40 x Rs. 34000/- = Rs 13600/100 Age next birth day 61 yrs Absolute date of commutation 01. 04. 2017 Purchase value 8. 194 Formula Amount of service pension commutable X 12 X Purchase value Calculation Rs. 13600 x 12 x 8. 194 = Rs 13, 37, 260. 80/Amount of commutation payable = Rs. 13, 37, 261/Residual amount of service pension (34000 -13600) = Rs. 20400/- pm Note: Dearness Relief will be payable on the original pension before commutation.

Family pension (Joint Notification) Enhanced Rate Formula: 50% of the emoluments or Amount of pension whichever is less for a period of 7 years from the date following the date of death or 67 years age whichever is earlier. 50% of Emoluments Rs 68000/2 = Rs. 34000/Amount of pension Rs. 34000/Enhanced Rate will be Rs 34000/- pm is payable for seven years from the date following the death or up to 14/04/2024 whichever is earlier. Normal Rate Formula: 30% of the emoluments subject to a minimum of Rs 9000/-pm 30% of emoluments – Rs 34000 x 30 = Rs 10200/-PM 100 Normal rate: Rs. 10200/- p. m. from date of stoppage of Enhanced rate till widow hood. (Dearness Relief as applicable)

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