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)

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