Pension Matters
The pensionary benefits in respect of the West Bengal Govt. Employees who retire after 01.01.2006 shall be determined as follows:
- Last Pay
- Qualifying Service
- Pension
- Additional Pension
- Family Pension
- Additional Family Pension
- Retiring Gratuity/ Death Gratuity
- Commutation of Pension
Last Pay: Basic Pay + Grade Pay
Qualifying Service Calculation: Date of Superannuation – Date of appointment – Period of E.L – Period of suspension. Below 3 months of service will not be counted. Three or more than three months of service will be counted as next 6 months qualifying service.
Illustration: A qualifying service of 23 years 7 months 11 days calculated above will be taken as 23 years 6 months. Similarly 23 years 9 months will be taken as 24 years.
Pension Calculation:-
- Minimum qualifying service for eligibility in pension is 10 years.
- Full Pension is applicable for qualifying service of 20 years or more.
- For qualifying service between 10 and 20 years, proportionate reduction in pension is applicable.
- Full pension = 50% of Last Pay.
- Maximum ceiling of pension = Rs. 35,000/-
- Minimum amount of pension = Rs. 3,300/-
Illustration:-
- For a service period of 33 years and last pay of Rs. 30,000/-, pension will be Rs. 15,000/-.
- 20 years of service period and last pay Rs. 30,000/-, pension will be Rs. 15,000/-
- 15 years of service period and last pay Rs. 30,000/-, pension will be Rs. 15000*15/20 = Rs. 11250/-
- 8 years of service period and last pay Rs. 30,000/-, pension will be Rs. NIL.
Additional Pension
The amount of pension increases with the increase of age of the pensioner by the following:
| Age of Pensioner | Additional Quantum of Pension |
|---|---|
| From 80 years to 85 years | 20% of the basic pension |
| From 85 years to 90 years | 30% of the basic pension |
| From 90 years to 95 years | 40% of the basic pension |
| From 95 years to 100 years | 50% of the basic pension |
| 100 years or more | 100% of the basic pension |
Family Pension
- Family Pension is 30% of the last pay.
- Maximum ceiling of family pension is Rs. 21,000/-
Additional Family Pension
The amount of pension increases with the increase of the age of the family pensioner by the following methods:
| Age of Family Pensioner | Additional Quantum of Pension |
|---|---|
| From 80 years to 85 years | 20% of the basic family pension |
| From 85 years to 90 years | 30% of the basic family pension |
| From 90 years to 95 years | 40% of the basic family pension |
| From 95 years to 100 years | 50% of the basic pension |
| 100 years or more | 100% of the basic pension |
Retiring Gratuity/ Death Gratuity
- Retiring gratuity is 16½ times the last pay.
- Death gratuity is applicable if the employee dies while in service.
- Death gratuity is 33 times the last pay.
- Maximum amount of retiring gratuity/ death gratuity is Rs. 6,00,000/-.
- In case of death gratuity it is calculated as follows:
- Less than 1 year of qualifying service, 2 times the last pay.
- 1 year to 5 years of service, 6 times the last pay.
- 5 years to 20 years of service, 12 times the last pay.
- 20 years or more of service, last pay x qualifying service (which is maximum 33 years)
- Last Pay means Basic Pay, Grade Pay plus Dearness Pay & Allowances in calculation of Gratuity only.
Illustration:-
- For a service period of 20 years and last pay of Rs. 15,000/-, DA Rs. 3000/- retirement gratuity will be Rs. 2,97,000/- and death gratuity if applicable would be Rs. 5,94,000/-.
- An employee of 3 years of qualifying service having last pay of Rs. 15,000/-, D.A Rs. 3000/-, retirement gratuity will be Rs. 6 x 18,000 x 3 = Rs. 1,62,000/-.
Commutation of Pension
A Government employee is entitled to commute up to a lump sum of 40% of pension as per the following table:
| Age on next birthday | Commutation value expressed as number of year’s purchase | Age on next birthday | Commutation value expressed as number of year’s purchase |
|---|---|---|---|
| 20 | 9.188 | 51 | 8.808 |
| 21 | 9.187 | 52 | 8.768 |
| 22 | 9.186 | 53 | 8.724 |
| 23 | 9.185 | 54 | 8.678 |
| 24 | 9.184 | 55 | 8.627 |
| 25 | 9.183 | 56 | 8.572 |
| 26 | 9.182 | 57 | 8.512 |
| 27 | 9.180 | 58 | 8.446 |
| 28 | 9.178 | 59 | 8.371 |
| 29 | 9.176 | 60 | 8.287 |
| 30 | 9.173 | 61 | 8.194 |
| 31 | 9.169 | 62 | 8.093 |
| 32 | 9.164 | 63 | 7.982 |
| 33 | 9.159 | 64 | 7.862 |
| 34 | 9.152 | 65 | 7.731 |
| 35 | 9.145 | 66 | 7.591 |
| 36 | 9.136 | 67 | 7.431 |
| 37 | 9.126 | 68 | 7.262 |
| 38 | 9.116 | 69 | 7.083 |
| 39 | 9.103 | 70 | 6.897 |
| 40 | 9.090 | 71 | 6.703 |
| 41 | 9.075 | 72 | 6.502 |
| 42 | 9.059 | 73 | 6.296 |
| 43 | 9.040 | 74 | 6.085 |
| 44 | 9.019 | 75 | 5.872 |
| 45 | 8.996 | 76 | 5.657 |
| 46 | 8.971 | 77 | 5.443 |
| 47 | 8.943 | 78 | 5.229 |
| 48 | 8.913 | 79 | 5.018 |
| 49 | 8.881 | 80 | 4.812 |
| 50 | 8.846 | 81 | 4.611 |
[Basis: LIC(94-96) Ultimate Tables and 8.00% interest]
Illustration: An employee with last pay of Rs. 30,000/-, qualifying service 22 years, then pension is Rs. 15,000/-, Commutation is Rs. 15,000 x 40% = Rs. 6000/-. If the age at next birthday is 61 years then Commutation Values for Pension (CVP) from the above table = Rs. 6000 x 8.194 x 12 = Rs. 5,89,968/-, Reduced pension is Rs. 9000/-.