REVISION OF 1/3 COMMUTED PORTION OF PENSION FOR ABSORBEES.

 REVISION OF 1/3 PORTION OF COMMUTED PENSION OF         

  CENTRAL GOVT.ABSOBEES IN PSU -

 EXPLANATION OF OFFICE MEMORANDUM:

 GOI. Dept.of p&pw   NO.4/30/2010-P&PW(D) DT.11-7-2013

Revision of  1/3 commuted portion  of  pension in respect of  central  Govt.Absorbees in  Public Undertakings,.

The illustration 0f calculation is as follows:

For example:

A person of Absorbee – Basic pension as per V th Pay Commission as on 1-1-1996

Basic pension………say………4073.00

A)            Consolidated Formula:

1/3 of   Basic………….4073/3 = 1358.00

50% merger  of 4073…………    2037.00

DA 24%  of 4073+

                    2037= 6110……..     1467.00

Fixation @ 40% of 4073……..     1630.00

                        Total…………….. 6492.00 this was the pension fixed  ….(1)

on 1-1-2006and being paid as of now.

Now as per the latest Order the factor 2.26 is taken for calculation .

 The same case--BP as on 1-1-96…….4073

Multiplied by the factor 2.26…………4073*2.26= 9205.00

1/3 of the Basic……………………….9205/3=3069

As per new method..1/3 *2.26………. 3069*2.26=6936 this the rate of pension(2)

Now see the difference between  (1)  and  (2).

The 2.26 factor method is more  beneficial than the Consolidation method.

Hence, all the affected  absorbees may approach the PDAs for the revision and get the benefit.