# What is the formula for calculation of pension?

What is the formula for calculation of pension?

## What is the formula for calculation of pension?

Kasturirangan says, “The formula to calculate the EPS pension is as follows: Monthly pension amount= (Pensionable salary X pensionable service)/70.” Pensionable service: This refers to the number of years for which contributions were made to the EPS account.

## What is the commutation formula?

Formula for working out Commuted Value of pension = Amount of pension to be commuted X 12 X purchase value for age next birth day.

How is pension calculated in Tamilnadu?

Pension shall be determined based on 50% of pay last drawn. NOTE: Now the minimum pension is Rs. 3050/-w.e.f. 1.1. 2007.

### How is Uncommuted pension calculated?

The amount of taxable uncommuted pension is calculated as under: Uncommuted pension June 1 to Dec 31, 2012 = Rs. 1,05,000/- [ ie Rs. 15000 x 7 ].

### How is pension calculated as per 7th CPC?

After regular retirement the pension has been calculated under CCS Pension Rules….Examples of New Pension Determination.

Retired on 31.05.2015
Pay band at the time of retirement 67000-79000 (6thCPC Scale)
Final Pay on retirement 79,000
Old Pension as on 1.1.2016 39,500
Revised pension (multiply with 2.57) 1,01,515

What is pension commutation example?

Such pension received in advance is called commuted pension. For example, at the age of 60 years, you decide to receive 10% of your monthly pension in advance for the next 10 years worth Rs 10,000. This will be paid to you as a lump sum. Therefore, 10% of Rs 10000x12x10 = Rs 1,20,000 is your commuted pension.

#### How much monthly pension will I get from NPS?

Calculation of Monthly NPS Pension Payouts
NPS Annuity Purchase Price ₹50 lakh ₹50 lakh
Annuity Provider LIC of India Bajaj Alliance Life Insurance
Average Annual Annuity Returns 5.34% 6.31%
Monthly Pension from NPS annuity ₹22,231 ₹25,411

#### What is Uncommuted basic pension?

Uncommuted Pension: Uncommuted Pension refers to Pension received periodically. Any amount received as Uncommuted Pension is fully taxable in the hands of both govt and non-govt employees. 2. Commuted Pension: Commuted means Interchange.

What is Mcq Uncommuted pension?

(a) Uncommuted pension is a periodic payment received after retirement. Illustration : Mr. Keshav receives pension of Rs. 25,200 per month after his retirement from Shyamal Ltd. (b) Commuted pension is a lump sum payment in lieu of periodic pension.