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    Pension Calculation 4 Dept - Exam

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    gcrajasekaran
    This document outlines the 12-step procedure for solving pension problems: 1. Determine if there was any boyhood service by comparing the date of birth and date of entry into service. 2. Find the date of retirement by adding 58 years to the date of birth. 3. Calculate total service by subtracting the date of entry or date of birth + 18 years from the date of retirement. 4. Determine the non-qualifying periods of service and subtract them from total service to calculate net qualifying service. The steps then describe how to calculate average emoluments, pension amount, family pension, commuted value of pension, and death-cum-retirement gratuity based on

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    Pension Calculation 4 Dept - Exam

    Uploaded by

    gcrajasekaran
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    This document outlines the 12-step procedure for solving pension problems: 1. Determine if there was any boyhood service by comparing the date of birth and date of entry into service. 2. Find the date of retirement by adding 58 years to the date of birth. 3. Calculate total service by subtracting the date of entry or date of birth + 18 years from the date of retirement. 4. Determine the non-qualifying periods of service and subtract them from total service to calculate net qualifying service. The steps then describe how to calculate average emoluments, pension amount, family pension, commuted value of pension, and death-cum-retirement gratuity based on

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    This document outlines the 12-step procedure for solving pension problems: 1. Determine if there was any boyhood service by comparing the date of birth and date of entry into service. 2. Find the date of retirement by adding 58 years to the date of birth. 3. Calculate total service by subtracting the date of entry or date of birth + 18 years from the date of retirement. 4. Determine the non-qualifying periods of service and subtract them from total service to calculate net qualifying service. The steps then describe how to calculate average emoluments, pension amount, family pension, commuted value of pension, and death-cum-retirement gratuity based on

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    4K views3 pages

    Pension Calculation 4 Dept - Exam

    Uploaded by

    gcrajasekaran
    This document outlines the 12-step procedure for solving pension problems: 1. Determine if there was any boyhood service by comparing the date of birth and date of entry into service. 2. Find the date of retirement by adding 58 years to the date of birth. 3. Calculate total service by subtracting the date of entry or date of birth + 18 years from the date of retirement. 4. Determine the non-qualifying periods of service and subtract them from total service to calculate net qualifying service. The steps then describe how to calculate average emoluments, pension amount, family pension, commuted value of pension, and death-cum-retirement gratuity based on

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    Step by step Procedure to solve pension problem

    1.Find  there is any boyhood service

       How to find boyhood service?

    Date of entry into service > = Date of birth  + 18  yrs  No boyhood service .

    so Date of commencement of net qualifying service is date of entry into service

     Date of entry into service <  Date of birth  + 18  yrs  There is  boyhood service . so
    Date of commencement of net qualifying service is = Date of birth + 18 yrs

    2.Find the date of retirement.

    For this simply add 58yrs with DOB

    3. Find the total service

    For no boyhood service  Total service = Date of retirement -  Date of entry into service

    for boyhood service  Total service = Date of Retirement - (DOB + 18 yrs)

    4.Find the period of service not qualifying for pension :

    They are  Apprentice service, Extraordinary leave(EOL) without medical certificate,


    suspension as penalty, boy service, over stayal of joining time, unauthorised absence,
    interruption in service, service in non pensionable post do not count for qualifying
    service 

     5.Calculate Net qualifying Service:

    Net Qualifying Service = Total service - Non qualifying service

    5a.Find the no of half years:

    No. of half years  = Net qualifying service years x 2

    For purpose of pension, the minimum qualifying service is 10 years ( 20 half years ) and
    maximum 33 years ( 66 half years ) The fraction of three months and more shall be
    taken as one half year and less than three months ignored 

    For remaining steps & past dept.exam question papers visit


    http://www.crsttp.blogspot.com
    Example : Net qualifying service = 36years-07months-03 days

         No of half years =( 36 x 2 ) + 1 (for fraction of  7 months 3 days) = 73 half years

    6.Calculate Average Emoluments (AE) during the last ten month of service :

    AE = total pay during the last ten month of service / 10

    Example:  
    Date of Birth                                       20.09.1942.  
    Date of Commencement of Service   10.04.1965. 
    Date  of  retirement                            30.09.2000
    Qualifying Service                             30.09.2000-10.04.1965 =
    35 years 5      months 20 days.
    Non qualifying Service  Nil.

    Emoluments from 1st July 1999,

    Pay Rs. 5875 + Special Pay Rs.50 + Personal Pay Rs.50.  

     From 1st July 2000,

     Pay Rs. 6000 + Special Pay Rs. 50 + Personal Pay Rs.50 in


    the Scale of Rs.4500-125-7000. 

    Pay last drawn Rs.6100/-.

    Total pay for 7 months     :  5975 X 7    =    Rs. 41,825


    Total pay for 3 months     : 6100 X 3     =    Rs. 18,300
    Total pay for 10 months   :                         Rs. 60,125

    Average emoluments is  Rs.6012.50/-.

    7. compare AE with Pay lastdrawn and which is advantageous to employee has to


    be adopted to calculate pension

    For the above example  

    Pay last drawn being advantageous it has to be adopted             Rs.6100

    8.Calculate pension: 

     Pension =  Pay last drawn or AE x service in  half years (max limit 60 half years) /2 x 60

    9.Calculate Family pension: 


    pay last drawn = pay+ DP +PP +Spl.PAy

    Family pension = Pay last drawn or AEx 30 / 100

    10. Calculate Enhanced  Family pension:

    pay last drawn = pay+ DP +PP +Spl.PAy + DA

    Enhanced  Family pension = Pay last drawn or AEx 50  / 100

    11. Find DCRG (Death Cum Retirement Gratuity)

    DCRG = Pay last drawn or AE x service in  half years (max limit 66 half years) / 4

    12. Calculate Commuted value of pension :

    Commute value of pension = ( pension / 3) x 12 x 10.46

    Solved problems …coming soon

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