Pension Commutation for those born on 1st of the month
This is a general querry .
If a person is born on 1st of a month he retires on superannuation on the last day of earlier month. ( e.g. Person born on 1.4.48 retires on 31.3.2008 )
So he has not attained the age of 60 at the time of retirement.
He becomes 60 on the next day ( that is 1.4.2008 in the example ).
Then which commutation factor should be used for the pension commutation? ... 9.8( corresponding to 61 as is usually done for all ) or 10.3 ( Corresponding to 60 Years ) ??
..............
Thanks in advance
S S Salvi
From India, Hyderabad
This is a general querry .
If a person is born on 1st of a month he retires on superannuation on the last day of earlier month. ( e.g. Person born on 1.4.48 retires on 31.3.2008 )
So he has not attained the age of 60 at the time of retirement.
He becomes 60 on the next day ( that is 1.4.2008 in the example ).
Then which commutation factor should be used for the pension commutation? ... 9.8( corresponding to 61 as is usually done for all ) or 10.3 ( Corresponding to 60 Years ) ??
..............
Thanks in advance
S S Salvi
From India, Hyderabad
Dear Salvi, As per example the employee has completed 60 years on 31.03.2008. From midnight of 31.03.2008 - 01.04.2008 he enters into 61 years. AMATYA
4
Thanks Amatyaji,
BUT my point is that :
On the age is 59Yrs, 11Months, 30 days ... not 60 Years.
( 2008 minus )
To verify the calculations I counterchecked with :
Online age calculator, calculate your birthday
From India, Hyderabad
BUT my point is that :
On the age is 59Yrs, 11Months, 30 days ... not 60 Years.
( 2008 minus )
To verify the calculations I counterchecked with :
Online age calculator, calculate your birthday
From India, Hyderabad
Dear Salvi,
As per your calander calculation it comes 59Yrs, 11Months, 30 days.
While we are calculation the age, we assume 30 days in a month.
For eg. Week starts from Sunday and end on Saturday not again on Sunday.
In your case have you added 15 extra days for leap years ??
Either you have to count 01-04-48 is the first day then 31-03-2008 he has completed 60 Years. OR if you have to start he first day from 02-04-48 then he has complete 60 yrs on 01-04-2008.
AMATYA
As per your calander calculation it comes 59Yrs, 11Months, 30 days.
While we are calculation the age, we assume 30 days in a month.
For eg. Week starts from Sunday and end on Saturday not again on Sunday.
In your case have you added 15 extra days for leap years ??
Either you have to count 01-04-48 is the first day then 31-03-2008 he has completed 60 Years. OR if you have to start he first day from 02-04-48 then he has complete 60 yrs on 01-04-2008.
AMATYA
As per example the employee has completed 60 years on 31.03.2008.
From midnight of 31.03.2008 - 01.04.2008 he enters into 61 years.
Verified the Calculation:
<a href="http://agecalculatoronline.com/">Age Calculator Online</a>
From India, Delhi
From midnight of 31.03.2008 - 01.04.2008 he enters into 61 years.
Verified the Calculation:
<a href="http://agecalculatoronline.com/">Age Calculator Online</a>
From India, Delhi
Just my 2 cents since a family member is facing a similar predicament. Since he was born on 1 Jun, he retired on 31 May. Thus for Jun, he received pension which is 50% of last drawn salary. Makes sense. But the commutation factor used (incorrectly in my opinion) was for age 61 yrs and not 60 yrs, thereby resulting in a lower amount. Thus he "lost out" on both fronts.
Now consider a hypothetical colleague who was born on 2 Jun. That person would retire on 30 Jun, and so receive full salary for Jun. The CVP factor would be for 61 yrs. Thus overall this person would "benefit" on the salary front for his last month of service, and "lose out" on the CVP front. Net net it makes sense for this person.
This, despite whatever age, etc these online calculators throw up, logically the CVP factor that should be used for people born on the 1st of any month is for (Retirement age minus 1) years.
From India, New Delhi
Now consider a hypothetical colleague who was born on 2 Jun. That person would retire on 30 Jun, and so receive full salary for Jun. The CVP factor would be for 61 yrs. Thus overall this person would "benefit" on the salary front for his last month of service, and "lose out" on the CVP front. Net net it makes sense for this person.
This, despite whatever age, etc these online calculators throw up, logically the CVP factor that should be used for people born on the 1st of any month is for (Retirement age minus 1) years.
From India, New Delhi
Commutation Factor:
1. At the age of 61 years commutation factor is 8.194.
2. An individual Govt Servant having DOB 2nd of the month onwards, the next birthday will fall on from 2nd onwards.
3. An individual Govt Servant having DOB 1st, his next birthday will be only on 1st.
4. As per FR 56(a), if the individual Govt Servant having DOB 1st, he is forced to retire on last working day of preceding month.
5. At that time, he is not completing 60 years on that day, his next birthday will be fall on 1st of next month only. (If is having DOB 1st Jan. retiring on 31st Dec. his next birthday will be only on 1st Jan.)
6. Then commutation factor shall be 8.287 and cannot be 8.194
However, Govt not agreeing as above.
From India, Malkajgiri
1. At the age of 61 years commutation factor is 8.194.
2. An individual Govt Servant having DOB 2nd of the month onwards, the next birthday will fall on from 2nd onwards.
3. An individual Govt Servant having DOB 1st, his next birthday will be only on 1st.
4. As per FR 56(a), if the individual Govt Servant having DOB 1st, he is forced to retire on last working day of preceding month.
5. At that time, he is not completing 60 years on that day, his next birthday will be fall on 1st of next month only. (If is having DOB 1st Jan. retiring on 31st Dec. his next birthday will be only on 1st Jan.)
6. Then commutation factor shall be 8.287 and cannot be 8.194
However, Govt not agreeing as above.
From India, Malkajgiri
Commutation Factor:
1. At the age of 61 years commutation factor is 8.194.
2. An individual Govt Servant having DOB 2nd of the month onwards, the next birthday will fall on from 2nd onwards.
3. An individual Govt Servant having DOB 1st, his next birthday will be only on 1st.
4. As per FR 56(a), if the individual Govt Servant having DOB 1st, he is forced to retire on last working day of preceding month.
5. At that time, he is not completing 60 years on that day, his next birthday will be fall on 1st of next month only. (If is having DOB 1st Jan. retiring on 31st Dec. his next birthday will be only on 1st Jan.)
6. Then commutation factor shall be 8.287 and cannot be 8.194
However, Govt not agreeing as above.
jvsr krishna
9441903448
From India, Malkajgiri
1. At the age of 61 years commutation factor is 8.194.
2. An individual Govt Servant having DOB 2nd of the month onwards, the next birthday will fall on from 2nd onwards.
3. An individual Govt Servant having DOB 1st, his next birthday will be only on 1st.
4. As per FR 56(a), if the individual Govt Servant having DOB 1st, he is forced to retire on last working day of preceding month.
5. At that time, he is not completing 60 years on that day, his next birthday will be fall on 1st of next month only. (If is having DOB 1st Jan. retiring on 31st Dec. his next birthday will be only on 1st Jan.)
6. Then commutation factor shall be 8.287 and cannot be 8.194
However, Govt not agreeing as above.
jvsr krishna
9441903448
From India, Malkajgiri
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
EPS - Form No. 10-D Pension Claim Form Aadhaar.pdf
EPF Pension.xls
Pension.doc