Government Pension Scheme for Central Government.pptx

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1. Pension

2. PENSIONARY BENEFITS PART- I

3. PEN. COMMUTATION. GRATUITY. LVE ENCASHMENT. AGI MATURITY. PE N S IO N AR Y BENEFITS

4. PE N S I O N IT IS A MONETARY AWARD GIVEN TO AN INDL IN RECOGNITION OF HIS SERVICE. SERVICE PEN IS TAXABLE.

5. TYPES OF PEN SERVICE PEN. DISABILITY PEN. WAR INJURY PEN . FAMILY PEN. ORD FAMILY PEN (30%). SPL FAMILY PEN (60%). LIBERALISED FAMILY PEN (100%).

6. SERVICE PEN A D M I SS IB L E T O AN O FF R O N C O M P L E T I O N O F 20 Y RS Q S .

7. 5 0% O F E M O L U M E N T S L A S T DRAWN. E M O L UM E N T S INCL BP & M S P . C A L C U L A T I ON

8. PENSION C A L CU L A T IO N : COL : 33 Yrs : 2,00,500 : 15,500 PEN = BP + MSP 2 EX AM P L E RK QS LAST BP MSP PEN = 2,00,500 + 15,500 / 2 = 1,08,000+DA (13%) = 1,22,040

9. RESIDUAL PEN RESIDUAL PEN EXA M P L E PEN RESIDUAL PEN = 50% OF PEN + DA ON FULL PEN = 1,08,000 = 1,08,000 / 2 + DA (13%) = 54,000 + 14,040 = 72,040 IF COMMUTATION TAKEN

10. CO MM U T A T I O N A LUMP SUM AMT BEING PAID AT THE TIME OF RETIRMEMENT WHICH IS 50% (MAX) OF FULL PEN FOR NEXT 15 YRS PENSION (100%) RESIDUAL PENSION (50%) C O MM U T A T IO N (50%)

11. 50% OF PEN x 12 x PURCHASE VALUE (ON THE AGE NEXT BIRTHDAY) CALCULATION Age 51 52 53 54 55 56 57 58 59 60 61 PV 8.808 8.768 8.724 8.678 8.627 8.572 8.512 8.446 8.371 8.287 8.194 P UR C H A S E V A L U E

12. EX A M P L E RK : COL SERVICE : 33 Yrs AGE : 53 Yrs AGE NEXT B’DAY : 54 Yrs PURCHASE VALUE : 8.678 PEN : 1,08,000 COMMUTATION = 54,000 x 12 x 8.678 C O MM U T A T I O N = 50 % O F PE N S I O N x 12 x PURCHASE VALUE (ON THE AGE NEXT BIRTHDAY) = 56,23,344

13. R E C O VE R Y O F C O MM U T A T I O N EX A M PL E PEN C O MM U T A T I O N RECOVERY EXTRA PAID = 1,08,000 = 56,23,344 = 50% PENSION x 12 x 15 = 54,000 x 12 x 15 = 97,20,000 = 40,96,656 RECOVERY - UPTO 15 YRS FROM RETIREMENT

14. COMMUTATION COMMUTATION GOVT RECOVERY AMT RECOVERED EXTRA = 56,23,344 = 54,000 x 12 x 15 = 97,20,000 = 40,96,656 @ 5 % (Approx) N SC ( I N T R A T E - 9 . 3%) YR AMT INT PER YR INT AFTER 5 YRs MATURITY 5 56,23,344 5,22,970 26,14,855 82,38,200 10 82,38,200 7,66,152 38,30,762 1,20,68,962 15 1,20,68,962 11,22,413 56,12,067 1,76,81,029 BENEFIT MATURED AMT IN 15 YRS (A) = 1,76,81,029.00 RECOVERY BY GOVT (B) = 97,20,000.00 HENCE PROFIT (A) – (B) = 79,61,030