Retirement Benefits Calculator for Central Government Employees – Commutation Factor Value of Pension
Commutation Factor Value of Pension Calculator 2018 as per 7th CPC Commutation Table
“Pension commutation is a lifetime asset for Government employees. After completion of his Government service, more than 30 years, half of the lifetime, selling his 40% of the pension amount, an employee gets a bulk amount while retiring”.
Commutation is not easy money for Government employees, not a gift also..!
The Calculation of Pension Commutation as per the Pension Rules for existing and retired CG employees. This is a simple tool to find the value of pension, reduced pension after commutation and the commutation amount as per your inputs. The pension and commutation calculation is not applicable for premature retirement or Voluntary retirement employees.
What is commutation Value of Pension calculation formula?
Retiring Government employees has a choice to sell a part of his pension and get the bulk amount as ‘Commutation’. After the implementation of the 7th pay commission, there is no change in the calculation of the commutation of pension.
|The formula for arriving for commuted value of Pension (CVP) is
CVP = 40 % x Commutation factor* x 12
* The commutation factor will be with reference to age next birthday on the date on which commutation becomes absolute as per the New Table annexed to the CCS (Commutation of Pension) Rules, 1981.
[Note : All the figures are indicative]
Commutation Calculation Formula with Example as per Pension Rule: A Central Government servant has an option to commute a portion of pension, not exceeding 40% of it, into a lump sum payment.
No medical examination is required if the option is exercised within one year of retirement. If the option is exercised after expiry of one year, he/she will have to under-go medical examination by the specified competent authority.
Pension Commutation Factor Calculation and Benefits
Lump sum payable is calculated with reference to the Commutation Table. The monthly pension will stand reduced by the portion commuted and the commuted portion will be restored on the expiry of 15 years from the date of receipt of the commuted value of pension.
Dearness Relief, however, will continue to be calculated on the basis of the original pension (i.e. without reduction of commuted portion).
Retirement Benefits for Central Government Employees
Pension – Minimum and Maximum Pension
After the implementation of the 7th pay commission, the minimum pension is Rs. 9000 per month and the maximum amount of pension is 125000 per month.
Commutation of Pension
There are no specific 7th pay commission recommendations on this subject. No change in the formula for calculating the commutation of the pension amount.
Retirement Gratuity & Death Gratuity
Retirement gratuity is eligible for the retiring employees from Government service with a minimum of five years of regular service. The formula for the retirement gratuity calculation is 1/4th of a month’s Basic Pay plus Dearness Allowance drawn on the date of retirement for each completed six monthly periods of qualifying service. There is no minimum limit for the amount of gratuity. The retirement gratuity payable for qualifying service of 33 years or more is 16 times the Basic Pay plus DA, subject to a maximum of Rs. 20 lakhs.