What is railway pension commutation?
What is railway pension commutation?
A railway servant shall be entitled to commute for a lumpsum payment a fraction not exceeding one third of his pension and shall indicate fraction of pension which he desires to commute and may either indicate maximum limit of one third or such lower limit as he may desire to commute.
How much pension will a railway employee get?
Once a Railway Servant has rendered the minimum qualifying service of 20 years, pension shall be 50% of the last emoluments or average emolument received during the last 10 months whichever is beneficial to him. (b) After completion of 10 years service, 50% of last Pay is admissible as Pension.
How is gratuity calculated for railway employees?
When a Railway Employeehas rendered minimum qualifying service of 5 years Retirement Gratuity is paid at the rate of 1/4th of one month’s pay per each completed half year of service subject to a maximum of 161/2 month’s pay or 10 Lakh rupees whichever is less.
What is the commutation factor?
Commutation Factor Value of Pension Calculator as per 7th CPC Commutation Table. “Pension commutation is a lifetime asset for Government employees. After completion of his Government service, more than 30 years, half of the lifetime, selling his 40% of the pension amount, an employee gets a bulk amount while retiring”.
How is railway commutation pension calculated?
Compensation, Invalid, Superannuation and Retiring Pension) is admissible….IIustration for calculating Railway Pension Commutation.
| Commutation Amount (CA) | = Pension x % of Pension Commuted | = 10000 x 40% = Rs.4000/- |
|---|---|---|
| Commutation of Pension | = CA x CV x 12 | = 4000 x 8.194 x 12 = Rs.393312 |
What is the commutation formula?
Model Calculation: Commutation The commutation table as prescribed by the Govt. w.e.f. 1.3. 1971 is still operative. Formula for working out Commuted Value of pension = Amount of pension to be commuted X 12 X purchase value for age next birth day.
What is a commutation rate?
A commuted value is the sum of money that a beneficiary is entitled to receive as a lump sum payment at retirement through a pension plan. This value is estimated based on factors including the future life expectancy of the beneficiary.
How is railway commutation calculated?
20000/- retires on superannuation after completing 33 years of qualifying service….IIustration for calculating Railway Pension Commutation.
| Commutation Amount (CA) | = Pension x % of Pension Commuted | = 10000 x 40% = Rs.4000/- |
|---|---|---|
| Commutation of Pension | = CA x CV x 12 | = 4000 x 8.194 x 12 = Rs.393312 |
What is the commutation value of railway pension?
Presently the Commutation Value for a Pension of Rs.1 per annum is done as per Commutation Table given below: In case of an employee serving in Pay Band-2 ScaleRs.9300-34800 in Grade Pay Rs.4200 who was drawing Last Pay Rs.20000/- retires on superannuation after completing 33 years of qualifying service. 40% commutation of Pension opted.
How to calculate commuted value of pension ( CVP )?
The formula for arriving for commuted value of Pension (CVP) is. CVP = 40 % (X) Commutation factor* (X)12. * The commutation factor will be with reference to age next birthday on the date on which commutation becomes absolute as per the New Table annexed to the CCS (Commutation of Pension) Rules, 1981.
How does pension commutation work for government employees?
“Pension commutation is a lifetime asset for Government employees. After completion of his Government service, more than 30 years, half of the lifetime, selling his 40% of the pension amount, an employee get a bulk amount while retiring”. ‘Commutation’ is not easy money for Government employees, not a git also”.
How is commutation factor value of pension calculator 2018?
Commutation Factor Value of Pension Calculator 2018 as per 7th CPC Commutation Table “Pension commutation is a lifetime asset for Government employees. After completion of his Government service, more than 30 years, half of the lifetime, selling his 40% of the pension amount, an employee gets a bulk amount while retiring”.