Defence Pension Calculation Example for JCOs and ORs

Defence Pension Calculation Formula

PBOR (Personnel Below Officer Rank)

How to Calculate Commutation?

A PBOR may commute 50% of his basic pension. Amount commuted will be in whole rupee. A commuted value of pension is calculated on the basis of age on next birthday, which falls after the date on which the commutation become absolute.

Commutation Formula

50% of pension x 12 x Purchase Value( on the age next birth day)

Absolute Date

Commutation application submitted After one year

• The date on which medical board signs the medical proceedings.

Commutation application submitted within one year

• The date of commencement of pension when application received prior to retirement.
• The date of receipt of application by PSA where application is received after retirement.

A few examples of calculation of pension/family pension in the manner prescribed above in the orders (MoD Order No.17(01) / 2017 (02) / D (Pen/Policy) dated 5th September 2017) are given in Annexure-I to this letter.

Check also: Latest news for Defence Pensioners (Ex-Servicemen)

Defence Pension and Regulations: Kinds of Pension

1. Service Pension: Pension is granted @ 50% of emoluments last drawn or average of reckonable emoluments during the last 10 months, whichever is more beneficial to pensioners subject to minimum of Rs. 9000 /p.m. The minimum qualifying service to earn pension is 20 years in case of Commissioned Officer and 15 years in the case Personnel Below Officer Rank.
2. Ordinary Family Pension: The pension is granted @ 30% of reckonable emoluments last drawn subject to a minimum of Rs.9000/- p.m. (in case of natural death of the individual).
3. Special Family Pension: The pension is granted at a uniform rate of 60% of reckonable emoluments last drawn by the deceased (in case of death of a individual attributable to military service).
4. Liberalized Family: The pension is Pension granted which is equal to the reckonable emoluments last drawn by the deceased (to the families of personnel killed in war or war like operations, counter-insurgency operations, encounter with terrorists etc.)
5. Disability Pension: The pension has been referred to Anomaly Committee-Ministry of Finance, Department of Expenditure.
6. War Injury Pension: The rates of War Injury Element for 100% disability for various rank shall be equal to the reckonable emoluments last drawn in case of invalided out and 60% of reckonable emoluments last drawn in case of discharge, which would be proportionately reduced where disability is less than 100%.

ANNEXURE-I
EXAMPLES (JCOs / ORs)
(Reference – Para 15 of MoD letter No 17(01)/2017(02)/D(Pen/Policy) dated 5th September 2017)

Pension Revision Example for Naik, Havildar, Nb Subedar and Subedar

Sl.No.	Description	1st Case	2nd Case	3rd Case	4th Case
1	Rank	Naik	Hav	Nb Sub	Subedar
2	Group	‘C’	‘D’	‘Y’	‘Y’
3	Date of Retirement	31.12.1984 (3td CPC scale)	31.01.1989 (4th CPC scale)	30.06.1999 (5th CPC scale)	30.09.2013 (6th CPC scale)
4	Qualifying Service	20	18.5	26	30
5	Scale of Pay (or Pay Band & G.P) at the time of retirement OR Notional pay scale as on 1.1.1986 for those retired before 1.1.1986.	980-20-1140- 25-1315	1050-25-1300- 30-1450	5620-140-8140	9300-34800 GP- 4600 MSP- 2000
6	Pay on retirement OR Notional pay as on 1.1.1986 for those retired before 1.1.1986	1140+40 (CA)	1175+30 (CA) =1205	6320	15030 (BP) 4600 (GP) 2000 (MSP) 21630
7	Pension as on 01.01.2016 before revision	7170	7693	10405	12690
8	Family pension as on 01.01.2016 before revision	4302	4616	6243	7614
9	Family pension at enhanced rate as on 01.01.2016 before revision (if applicable)	NA	NA	NA	12690
10	Revised pension by multiplying pre-revised pension by 2.57	18427	19772	26741	32614
11	Revised family pension by multiplying pre-revised family pension by 2.57	11057	11864	16045	19568
12	Revised family pension at enhanced rate by multiplying pre-revised enhanced family pension by 2.57	NA	NA	NA	32614
13	Pay fixed on notional basis on 1.1.1996	3500+80 (CA) (3150-70- 4200	3680+80 (CA) (3600-85-4875)	NA	NA
14	Pay fixed on notional basis on 10.10.1997	3510+100(CA) (3425-85- 4700	3700+100(CA) (3600-100-5100)	NA	NA
15	Pay fixed on notional basis on 1.1.2006	6840 (BP) 2400 (GP) 2000 (MSP) + 200 (CA) 11440 (PB-I, GP-2400)	7050 (BP) 2800 (GP) 2000 (MSP) + 200 (CA) 12050 (PB-I, GP-2800)	11760 (BP) 4200 (GP) + 2000 (MSP) 17960 (PB-II, GP- 4200)	NA
16	Pay fixed on notional basis on 1.1.2016	25500 +5200 30700 (Level- 4)	29200 +5200 34400 (Level- 5)	41100 +5200 46300 (Level- 6)	50500 +5200 55700 (Level- 7)
17	Revised pension w.e.f. 1.1.2016 as per first formulation.	15350	17200	23150	27850
18	Revised family pension w.e.f.1.1.2016 as per first formulation.	9200	10320	13890	16710
19	Revised family pension at enhanced rate w.e.f. 1.1.2016 as per first formulation.	NA	NA	NA	27850
20	Revised pension payable (Higher of SI.No. 10 and 17)	18427	19772	26741	32614
21	Revised family pension payable (Higher of SI. No. 11 and 18)	11057	11864	16045	19568
22	Revised family pension at enhanced rate payable (Higher of SI. No. 12 and 19)	NA	NA	NA	32614

Pension Revision Example for Major, Colonel, Lt. Colonel and Brigadier

S.No	Description	1st Case	2nd Case	3rd Case	4th Case
1	Date of Retirement	26.05.1976	30.04.1988	07.09.1999	31.05.2014
2	Rank	Major	Colonel	Lt. Colonel	Brigadier
3	Qualifying Service	30/06/01	30/02/00	22/02/27	34/11/22
4	Scale of Pay (or Pay Band & G.P) at the time of retirement OR Notional pay scale as on 1.1.1986. for those retired before 1.1.1986.	2300-100-3900- 150-5100 Rank Pay-1000	2300-100- 3900-150- 5100 Rank Pay-1000	13500-400-17100 Rank Pay-1600	37400-67000 Grade Pay- 8900
5	Pay on retirement OR Notional pay as on 1.1.1986 for those retired before 1.1.1986	3400 (Basic Pay) +600 (Rank Pay) 4000	4650 (B. Pay) +1000(R. Pay) 5650	15100 (Basic Pay) +1612 (Rank Pay) 16700	63150 (PIPB) +8900 (Grade Pay) +6000 (MSP) 78050
6	Pension as on 01.01.2016 before revision	23815	36130	32428	39025
7	Family pension as on 01.01.2016 before revision	14289	21678	19457	23415
8	Family pension at enhanced rate as on 01.01.2016 before revision (if applicable)	NA	NA	32428	39025
9	Revised pension by multiplying pre-revised pension by 2.57	61205	92855	83340	100295
10	Revised family pension by multiplying pre-revised family pension by 2.57	36723	55713	50005	60177
11	Revised family pension at enhanced rate by multiplying pre-revised enhanced family pension by 2.57	NA	NA	83340	100295
12	Pay fixed on notional basis on 1.1.1996	11600 (Basic Pay) +1200(Rank Pay) 12800	15100 (B. Pay) +2000(R. Pay”) 17100	15100(Basic Pay) +1600(Rank Pay) 16700	–
13	Pay fixed on notional basis on 1.1.2006	23810 (PIPB) +6600 (Gr Pay) +6000(MSP) Rs 36410	40,890 (PIPB) +8700(Gr Pay) +6000(MSP) Rs 55,590	40,890 (PIPB) +8000 (Gr Pay) +6000(MSPI Rs 54.890	63150(PIPB)
14	Pay fixed on notional basis on 1.1.2016	80400 (PIPM) +15500(MSP) 95900	130600 (PIPM) +15500(MSP) Rs 146100	128500 (PIPM) +15500 (MSP) Rs. 144000	187700(PIPM) +15500 (MSP) 203200
15	Revised pension w.e.f. 1.1.2016 as per first formulation.	47950	73050	72000	101600
16	Revised family pension w.e.f. 1.1.2016 as per first formulation.	28770	43830	43200	60960
17	Revised family pension at enhanced rate w.e.f. 1.1.2016 as per first formulation.	NA	NA	72000	101600
18	Revised pension payable (Higher of S.N0.9 and 15)	61205	92855	83340	101600
19	Revised family pension payable (Higher of S.No. 10 and 16)	36723	55713	50005	60960
20	Revised family pension at enhanced rate payable (Higher of S.No. 11 and 17	NA	NA	83340	101600

Example of Pension Revision for Commissioned Officers;