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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.Description1st
Case
2nd Case3rd Case4th Case
1RankNaikHavNb SubSubedar
2Group‘C’‘D’‘Y’‘Y’
3Date of Retirement31.12.1984 (3td CPC scale)31.01.1989 (4th CPC scale)30.06.1999 (5th CPC scale)30.09.2013 (6th CPC scale)
4Qualifying Service2018.52630
5Scale 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- 25-13151050-25-1300- 30-14505620-140-81409300-34800 GP- 4600 MSP- 2000
6Pay on retirement OR
Notional pay as on 1.1.1986 for those retired before 1.1.1986
1140+40 (CA)1175+30 (CA) =1205632015030 (BP) 4600 (GP) 2000 (MSP) 21630
7Pension as on 01.01.2016 before revision717076931040512690
8Family pension as on 01.01.2016 before revision4302461662437614
9Family pension at enhanced rate as on 01.01.2016 before revision (if
applicable)
NANANA12690
10Revised pension by multiplying pre-revised pension by 2.5718427197722674132614
11Revised family pension by multiplying pre-revised family pension by 2.5711057118641604519568
12Revised family pension at enhanced rate by multiplying pre-revised
enhanced family pension by 2.57
NANANA32614
13Pay fixed on notional basis on 1.1.19963500+80 (CA) (3150-70- 42003680+80 (CA) (3600-85-4875)NANA
14Pay fixed on notional basis on 10.10.19973510+100(CA) (3425-85- 47003700+100(CA) (3600-100-5100)NANA
15Pay fixed on notional basis on 1.1.20066840 (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
16Pay fixed on notional basis on 1.1.201625500 +5200 30700 (Level- 4)29200 +5200 34400 (Level- 5)41100 +5200 46300 (Level- 6)50500 +5200 55700 (Level- 7)
17Revised pension w.e.f. 1.1.2016 as per first formulation.15350172002315027850
18Revised family pension w.e.f.1.1.2016 as per first formulation.9200103201389016710
19Revised family pension at enhanced rate w.e.f. 1.1.2016 as per first
formulation.
NANANA27850
20Revised pension payable (Higher of SI.No. 10 and 17)18427197722674132614
21Revised family pension payable (Higher of SI. No. 11 and 18)11057118641604519568
22Revised family pension at enhanced rate payable (Higher of SI. No. 12
and 19)
NANANA32614

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

S.NoDescription1st Case2nd Case3rd Case4th Case
1Date of Retirement26.05.197630.04.198807.09.199931.05.2014
2RankMajorColonelLt. ColonelBrigadier
3Qualifying Service30/06/0130/02/0022/02/2734/11/22
4Scale 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-10002300-100- 3900-150- 5100 Rank Pay-100013500-400-17100 Rank Pay-160037400-67000 Grade Pay- 8900
5Pay on retirement OR Notional pay as on 1.1.1986 for those retired before 1.1.19863400 (Basic Pay) +600 (Rank Pay) 40004650 (B. Pay) +1000(R. Pay) 565015100 (Basic Pay) +1612 (Rank Pay) 1670063150 (PIPB) +8900 (Grade Pay) +6000 (MSP) 78050
6Pension as on 01.01.2016 before revision23815361303242839025
7Family pension as on 01.01.2016 before revision14289216781945723415
8Family pension at enhanced rate as on 01.01.2016 before revision (if applicable)NANA3242839025
9Revised pension by multiplying pre-revised pension by 2.57612059285583340100295
10Revised family pension by multiplying pre-revised family pension by 2.5736723557135000560177
11Revised family pension at enhanced rate by multiplying pre-revised enhanced family pension by 2.57NANA83340100295
12Pay fixed on notional basis on 1.1.199611600 (Basic Pay) +1200(Rank Pay) 1280015100 (B. Pay) +2000(R. Pay”) 1710015100(Basic Pay) +1600(Rank Pay) 16700–
13Pay fixed on notional basis on 1.1.200623810 (PIPB) +6600 (Gr Pay) +6000(MSP) Rs 3641040,890 (PIPB) +8700(Gr Pay) +6000(MSP) Rs 55,59040,890 (PIPB) +8000 (Gr Pay) +6000(MSPI Rs 54.89063150(PIPB)
14Pay fixed on notional basis on 1.1.201680400 (PIPM) +15500(MSP) 95900130600 (PIPM) +15500(MSP) Rs 146100128500 (PIPM) +15500 (MSP) Rs. 144000187700(PIPM) +15500 (MSP) 203200
15Revised pension w.e.f. 1.1.2016 as per first formulation.479507305072000101600
16Revised family pension w.e.f. 1.1.2016 as per first formulation.28770438304320060960
17Revised family pension at enhanced rate w.e.f. 1.1.2016 as per first formulation.NANA72000101600
18Revised pension payable (Higher of S.N0.9 and 15)612059285583340101600
19Revised family pension payable (Higher of S.No. 10 and 16)36723557135000560960
20Revised family pension at enhanced rate payable (Higher of S.No. 11 and 17NANA83340101600

Example of Pension Revision for Commissioned Officers;

Ex CO
Ex CO
Ex JCO
Ex JCO
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