Solution
Tiffin Time Numerical Problem (TTNP) Dated 30.09.2024
Topic: Calculation of Pensionary benefits.
Q-5. Calculate the (a) Pension (b) Retirement Gratuity (RG) (c) Commuted Value of
Pension (CVP) and Family Pension (FP) from the following information of a Central
Govt. Employee :-
(i) Date of Birth : 15.11.1959.
(ii) Date of joining service : 09.06.1981
(iii) He was drawing the pay of Rs 10,890/- + Grade Pay (GP) of Rs 4200 in PB -2
(Rs 9300 -34,800) from 01.11.2015 with DNI on 01.07.2016.
(iv) EXOL taken without MC : 01.03.1983 to 31.03.1983
(v) Overstayal of leave treated as unauthorised: from 01.01.1996 to 30.05.1996.
(vi) Unable to join duty due to civil commotion in the local Area.
(vii) Remained under suspension from 01.08.1996 to 30.09.1986. The competent
authority has decided not to treat this period as duty.
(viii) In the year 2006, he remained again under suspension in a separate case for 4
months. After the finalisation of the disciplinary proceedings, he was awarded a
minor penalty.
(ix) There was an overstayal of joining time of 15 days which was treated as dies non
but did not entail forfeiture of his past service.
(x) He was on Foreign Service in India from 10.08.2011 to 12.05.2013 and Foreign
Service contribution were payable by the Foreign Employer. The contribution, had
not, however been paid by the foreign employer.
(xi) He took voluntary retirement on 30.11.2016 (A/N).
(xii) DA rate at the time of retirement is 2%.
A-5.
Basic information of the employee as per the given question:-
Date of Birth : 15.11.2019
Date of Entry into Service : 09.06.1981
Date of Voluntary Retirement: : 30.11.2016 (A/N)
Calculation of Qualifying Service :-
Y M D
Gross service from 09.06.1981 to 30.11.2016 35 05 22
Deduct non-qualifying service Y M D
EXOL from 01.03.1983 to 31.03.1983 00 01 00
Overstayal of leave 01.01.1996 to 30.05.1996 00 04 30
Suspension from 01.08.1986 to 30.09.1986 00 02 00
Overstayal of joining leave 00 00 15
TOTAL = 00 08 15
00 08 15
34 09
07
Net Qualifying Service is 70 Six Monthly Periods (SMPs) or 35 years.
Regulation of Pay is as under:-
Period Amount in (Rs)
From To
01.11.2015 31.12.2015 Rs ,10,890 + GP Rs 4200
01.01.2016 30.06.2016 Rs 39,900
01.07.2016 30.11.2016 Rs 41,100
Calculation of Average Emoluments for the period from 01.02.2016 to 30.11.2016.
Period Monthly emoluments No of Months Amount in (Rs)
From To (In Rs)
01.02.2016 30.06.2016 39,900 05 1,99,500
01.07.2016 30.11.2016 41,100 05 2,05,500
Total = 4,05,000
Average Emoluments = Rs 4,05,000 /10 = Rs 40,500
Emoluments Last Drawn = = Rs 41,100 (Beneficial)
So, Pension Admissible :-
= Rs 41,100x 50%
= Rs 20,550/- per month.
Calculation of Retirement Gratuity (RG) :-
Formula for calculation of Retirement Gratuity is ¼ of the emoluments for each
completed six monthly periods of qualifying service subject to a maximum of Rs 20
lakhs up to 31.12.2015 and Rs 25 lakh w.e.f. 01.01.2024 and onwards.
Emoluments = Basic Pay + DA
= Rs 41,100 + Rs 822 ( DA 2% of Rs 41,100)
= Rs 41,922
Calculation of Retirement Gratuity (RG) = { (Basic Pay) + DA@2%} x 66
4
= Rs 41922 x 66
4
= Rs 6,91, 713/-
Calculation Commuted Value of Pension (CVP):
Pension = Rs 20,550
Maximum amount for commutation = 40% of Rs 20,550 = Rs 8,220
Age at next birthday = 58 years
Commutation Factor = 8.446
Commuted Value of Pension (CVP) amount
= Rs 8,220 x 8.446 x 12
= Rs 8,33,113.44
= Rs 8,33,114 (Rounded off).
Calculation of Family Pension:-
30% of Basic Pay subject to maximum of Rs 9,000/- and maximum of 30% of pay
=Rs 41,100 x30%
= Rs 41,100x30 = Rs 12,330
100
In the event of death of the pensioner immediately after retirement, the family
pension at the enhanced rate of Rs 20,550 per month (restricted to the amount of
pension authorised on retirement) is payable from the date following the date of his
death for the period of seven years or 67 years of the age of the pensioner had he
been alive, whichever is earlier. Thereafter, the family pension is payable at the
normal rate of Rs 12,330/-.
Important Notes :-
Note -1 : Calculation of Revised pay as on 01.01.2016 is as under:-
(i) Existing Pay Band : Rs 9,300-34,800 + GP Rs 4200/-
(ii) Pay level applicable : Pay Level -6.
(iii) Existing/Old Basic Pay as on 01.01.20016 : Rs 10,890/- + Rs 4200/-.
(iv) Pay after multiplication by 2.57 : Rs 38,781.30
Rounded off to : Rs 38,900/-
(i) Pay in the Pay Level 6 : Rs 39,900/-
(ii) Date of Next Increment : 01.07.2016.
Note - 2 : In calculating the length of qualifying service, fraction of a year equal to
three months and above shall be treated as completed on half year vide old Rule 44
(7) of CCS (Pension ) Rules, 2021 as notified on 20.12.2021.
Note - 3 : When the suspension is ended with minor penalty, the suspension is
wholly unjustified. The period of suspension will be treated as duty Rule 23(1) of
CCS (Pension) Rules, 2021 as notified on 20.12.2021.
Note – 4 : From 01.012006, in all cases of retirement with Q/S for 10 years or more,
the pension will be 50% or Average Emoluments or 50% of last pay drawn whichever
is more beneficial vide Rule 44 (1) of CCS (Pension) Rules, 2021 as notified on
20.12.2021.
Note - 5 : In case of retirement/ death while in service taking place on or after
01.01.2006, Dearness Allowance will be reckoned as emoluments for all types of
Gratuity vide Rule 45 (6) of CCS (Pension) Rules, 2021 as notified on 20.12.2021.
.
\Note - 6 : The official can commute the maximum of 40% of his original pension of
Rs 20,550/- vide Rule 5(1) of CCS (Commutation of Pension) Rules, 1981
Q-4. From the particulars given below calculate – (i) Superannuation Pension, (ii)
Family Pension (both normal & enhanced), (iii) Retirement Gratuity and (iv)
Commuted value of Pension.
(a) Date of birth: - 24.07.1961. `
(b) Date of joining service - 12.09.1987.
(c) Date of confirmation - 01.08.1989.
(d) Apart from several spells of EL he availed following spells of leave –
(i) EXOL for private purpose for 56 days.
(ii) Overstayal of leave treated as dies from 12.05.1991 to 14.06.1991
(iii) HPL from 16.04.2001 to 18.06.2001.
(iv) EXOL with MC for 18 days in 2003.
(e) Overstayal of joining time of 12 days treated as dies-non.
(f) He was drawing pay of Rs. 78800/- in the pay level in pay level 8 on
01.01.2020 with DNI on 01.07.2020.
(g) He promoted in the pay level 9 on 16.11.2020.
(h) Pension offered for commutation 30%.
(i) Rate of DA. 28%.
A4.
Date of birth 24.07.1961.
Date of entry 12.09.1987.
Date of retirement 31.07.2021.
Qualifying Service:
D Y M
Gross service from 12.09.1987 to 31.07.2021 33 10 19
Deduct: Non-qualifying service Y M D
EXOL for private purpose 56 days 0 1 26
Overstayal of leave from 12.05.1991 to 0 1 04
14.06.1991
Overstayal of Joining Time for 12 days 0 0 12 03 12
Net Qualifying Service 33 07 07
i.e 33.5 years, maximum 33 years or 66 SMP.
Regulation of pay.
Period Level-8 Level-9
From To
01.01.2020 to 30.06.2020 78800 -
01.07.2020 to 15.11.2020 81200 -
16.11.2020 to 30.06.2021 (81200) 85100
01.07.2021 to 31.07.2021 - 87700
Average emoluments:- (Period from 01.10.2020 to 31.07.2021)
Period Emoluments Months Amount
From To
01.10.2020 to 15.11.2020 81200 1.5 121800
16.11.2020 to 30.06.2021 85100 7.5 638250
01.07.2021 to 31.07.2021 87700 1 87700
Total 10 847750
Average Emoluments = Rs. 847750/10 = Rs. 84775.
Calculation of Pension:
Pension admissible - 50% of last pay (as it is more than A.E)
= Rs. 87700/2
= Rs. 43850/- per month.
Calculation of Family Pension:
At normal rate –
30% of last pay subject to minimum Rs. 9000/-and a maximum Rs. 75000/- per
month = Rs.87700 x 30/100 = Rs. 26310/- per month.
Enhanced rate –Twice the normal Family Pension subject to maximumAmount of
pension authorized on retirement
= Rs. 43850/- per month.
The family pension is payable at the enhanced rate of Rs.43850/ per month
from the date following the date of death of the pensioner upto the date on which the
deceased pensioner would have attained the age of 67 years, had he survived, i.e.
up to 23.07.2028. Thereafter, the family pension will be payable at the normal rate of
Rs.26310/- per month.
Retirement Gratuity:
Emoluments:- Last Basic Pay plus DA @ 28% = Rs. 87700 + Rs.24556 =
Rs.112256/-
1/4th emoluments for each completed six-monthly
Period of net qualifying service subject to maximum of
16.5 times of emoluments limited to Rs. 20 lakhs.= Rs.112256 x.0.25 x 66 =
Rs.1852224/-.
Commutation of Pension:-
Date of birth - 24.07.1961
Date of retirement - 31.07.2021
Age on next birthday - 61 years.
Amount of pension - Rs. 43850/- p.m.
Amount offered for commutation- 30%
= Rs.43850x 30/100 = Rs.13155/-
Commutation rate per rupee is 8.194
Amount payable
= Rs. 13155 x 8.194 x 12
= Rs. 12,93,504.84
= Rs. 12,93,505/- (Rounded off)
