### 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”.*

One of the best and simple retirement calculator in India for Central Government employees and pensioners to know their retirement benefits. The comprehensive retirement calculator is working based on simple javascript software, not with the excel sheet. The online tool is shown the result only depends on CCS Pension Rules, not based on the inflation fluxation.

### 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 the commutation Value of the 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 the commuted value of Pension (CVP) isCVP = 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 the 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 the pension. Dearness Relief, however, will continue to be calculated on the basis of the original pension (i.e. without reduction of commuted portion).

## 7th CPC New Table for Commutation of Pension |

### 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.

**The superannuation age in Central Govt Services is now 60. If an employee gets voluntary retirement, the completed year of age will be taken for the account of Commutation calculation.**

**What is the Commutation Factor for normal retirement?**

- At present, the normal retirement age in Central Govt Services is 60. The age factor used in commutation calculation is 8.194

**How is Pension Commutation Calculated for PBOR?**

- An officer in the rank of Personnel Below Officer Rank (PBOR) may commute 50% of his basic pension. A commuted value of the pension is calculated on the basis of age on the next birthday, which falls after the date on which the commutation becomes absolute.

**Commutation of Pension Formula for PBOR**

- 50% of pension x 12 x Purchase Value (on the age next birthday)

*Benefits of Commutation of Pension*

- Calculation of restoration of commuted pension. After exactly 15 years, after 180 months received the payment of commutation, the pension will be revised by the pension paying bank.
**Commutation factor table for bank employees***Rate of interest on commutation of pension*

### What is the rate of interest on the commutation of pension?

As per the commutation table with effect from 1.3.1971, the table is based on a rate of interest of 4.75 percent per annum. And another commutation table effective from 1.1.2006 indicated ‘Basic LIC (94-96) Ultimate Tables and 8.00% interest”.

### Restoration of Commutation Form

Restoration of commuted portion of pensions after 15 years – Form of application for restoration of commuted portion of pension – Click here

### What is the commutation factor?

The commutation factor for the employees retiring on a regular basis (age next birthday of 60) is 8.194.

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Kumar Ravi Ranjan says

If any govt servent retired and got commuted pension amount. After that he got pension with deduction of commuted amount instalment. If he died before 15 yers than how the rest commuted amount is recovered. Is it forgive or recover from family pension.

M.K.KUMAR says

No recovery in family pension. It will be stoped upto pensioner death month.

Rajendra Singh Adhikari says

What is the benefits of vrs after 20 year job how much take advanced pension (15 year) please suggest me

रेखा देवी says

. मेरी मां 31 जनवरी 16 को रिटायर्ड कर गई उनको सिक्स पे रिवीजन पर provident fund 40% कम ट्यूशन ऑफ पेंशन डी सी आर जी लीव सैलरी एनकैशमेंट ग्रुप इंश्योरेंस मिला है जबकि 1 जनवरी 16 से सेवंथ पे रिवीजन लागू हुआ है क्या मुझे सेवंथ पे रिवीजन पर सभी लाभ मिलेगा, मुझे ग्रेच्युटी 40% कम ट्यूशन आप पेंशन 120000 कम मिला है इसका निराकरण बता दे धन्यवाद

Molugu VS says

Sir/Madam

My wife expired while in service I was getting Enhanced Family Pension Rs. 24500 till March 2019, in April 2019 I received reduced Family Pension Rs.14700, when will i get commutation amount, please help THANKS

M.K.Kumar says

You are not eligible of commutation amount since your wife was expired, soon you will get the following amounts:-

1) C.G.E.INSURANCE SCHEME AMOUNT.

2) BALANCE OF E.L. ENCASHMENT.

3) PER MONTH ENHANCED PENSION PER MONTH PLUS D.R. UPTO HER AGE OF 67 YEARS AFTERWARDS 60% OF FAMILY PENSION PLUS D.R P.M. until your life time.

Molugu VS says

Thanks, she expired on 4 4 2009, she was 47, now that my enhanced family pension is reduced by 40%, am I not entitled for commutation amount? my age now is 60/19-07/1958.

M.K.Kumar says

She was at the age 57 might have been expired. Commutation amount is given from the pension amount those who are after retirement, if she expired it is not given. You got enhanced Pension also full amount until her age of 67 years, after that until your life time you will get 60% of pension as family pension. It you are attaining the age 80 years you will get in additional of 20% of family pension.

Molugu VS says

Okay Thanks

Molugu VS says

Hi Sir

@80years 20% increase, would benefit only few, since average life span in our country is 72 Thanks

Ramesh Babu says

I joined coast guard jul 85 and VRS a on Jan 17 completion of 31.6 yrs. At the age of 51.6.commutation of pension is 12820.commutation amount received by me PPO 1355023.pls I need to know how many yrs was commuted.ppo it is not clear pls guide me.

M.K.Kumar says

Commutation amount is recoverable in 180 months from the retirement month.