Central Government Employment News, 7th Pay Commission, MACP, LTC, CGHS, Railways, Bank News, CPSE, NPS, Pension, DOPT and More

How to calculate Railway Employees Retirement Benefits?

How to calculate Railway Employees Retirement Benefits? – Formulae, Calculation Methods and Illustration

Formulas for calculating settlement dues are given below. For convenience, an illustration is also given. 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.

Item

Formula

Illustration

Pension(Minimum Rs.3500/-) = 50% of LP + DR = 50% of 20000= Rs.10000/- + DR
Family pension (FP) (Minimum Rs.3500/-) = 30% of Last Pay (LP)= 30% of LP + DR = 30% of 20000= Rs.6000/- + DR
Family pension at the enhanced rate in case of death of serving employee (for a period of 1st ten years or remarriage, whichever earlier ) = 50% of the last pay drawn or twice the normal family pension or the retirement pension whichever is less= 50% of LP or NFP x 2 = 50% of 20000 = 10000 or= 6000 x 2 = 12000

i.e.  Rs.10000/- + DR

DCRG(Maximum Rs.10,00000/-) Retirement = LP + DA x No. of SMCS4 20000 + 9000 x 66 = Rs.478500/-4
Death    = LP + DA x No. of SMCS2 20000 + 9000 x 66 = Rs.957000/-2
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
Leave encashment LP + DA x No. of LAPs30 48920+22014×300  = Rs.70934030

Abbreviations used

LP        –    Last Pay

DA        –    Dearness Allowance

DR       –    Dearness Relief

FP        –    Family Pension

SMCS  –    Six Months Completed Service

CV       –    Commutation Value (as applicable see Commutation Table at Page 26)

CA        –    Commutation Amount

LAP      –    Leave on Average Pay

Check links below for more details on each of Retirement Benefit applicable to Railway Employees

Source: Indian Railways

Comments
Loading...
;