NOTIONAL
FIXATION OF PAY / PENSION- AT A GLANCE.
How to arrive the Notional fixation of pay / Pension.
Example: Take a Rank of Sgt- Air Force Group- X Qualifying service- 20 yrs,
Discharged on
31-3- 2006.
We should know the Last pay drawn- for calculation.
Here :
Last Drawn Pay: 10230
- Grade pay- 2800 (6th CPC)
MSP=2000
Class
Pay:240 and X Group pay: 1400-
As per 2.57
method- Sgt- Gp-X QS-20 yrs-
pension= 9055 X2.57= 23272/-
Now, for arriving the Notional
Pay- you
arrive- Last pay + Grade pay= 10230+2800= 13030--------------This is pay as on 1-1-2006
Now , you go to
Concordance Table- 12 of CDA cir 608---
for the Rank of SGT –X
You match this 13030 in
the table- it falls in the Min- Max –
12810-13190- for this range, the
Notional Rate is 33900-…………OK This is the Basic
Revised Pay will be= 33900
+ MSP- 5200 + Class pay-240 + X-Gp pay-6200
It comes to =
33900+5200+240+6200=45540- Notional
Pay
Hence the Notional pension- 50% of Notional pay= 45540/2=22770/---
The pensioner is already
drawing his pension as 23272/-
So, there is no benefit
for him.
For Pre-1996 retiriees, there will be no MSP and Grade pay: They have to take Last drawn Pay and read the corresponding Notional pay in the table.
eg: WO, Gp-X say 21 yrs QS- Discharged in August 1995-Last drawn pay= 2080
Refer Table no: 34---- the notional pay is 44900 +5200+6200=56300
Pension = 56300/2= 28150 . Like wise the calculation.
For Y Group pensioners, the
X-group pay of 6200 not to be
added. Rest is the same.
.
NOTE: Here. ,the Last pay drawn will vary according to the increment received on the same Rank-
At present, we calculate
flatly on the total service like 20 yrs
–Sgt ,whether he held the Rank for one
year or 5 yrs.
But, in the Notional
fixation, the increment is taken into account
and the pension will very.
If the last Pay drawn is
known, we can calculate the Notional Rate as per the above method.
This is the method of calculation as compared with a New
e-PPO.