Sixth Pay Commission How to calculate Pension

Dear Friends,
I am unable to handle the individual queries being received by me regarding pension of individuals.

Below I shall give you the guidelines as to how to work out your pension as on 01 Jan 2006 and how to work out your pension as on date, including the DA increase up to 01 Jan 2008.

The calculations have been worked out based on the following Paras and Annexure of the 6th Pay Commission:
A – Paras 5.1.46 and 5.1.47 on Pages 346 and 347 of The Report of 6th CPC.
B – Annexure 5.1.1 on Pages 87 to 254 of The Report of 6th CPC.

Let us assume the following:
A – your pension on 01 Jan 1996 as– P96
B – your pension 0n 01 Jan 2006 as– P06

Calculation of Pension. (As per the interpretation of the above paras of the 6 CPC)

P06 = P96x2.48241
Calculation of Pension on date.
The DA rise between 01 Jan 06 and 01 Jan 08 as declared by the Govt= 23%. This DA rise is over the Pension + 50% merged DA. This needs correction factor because 50% merged DA is no longer applicable. Therefore, the DA rise of 23% on old pension translates as 14% on the new pension.

Pension on date (P06 + DA) = P06 + P06x0.14
Net Pension on date = (P96x2.48241) + (P96x2.48241) x0.14= P96x 2.830

If your pension on 01 Jan 1996 say was Rs 1,000.00. Your pension on 01 Jan 2006 will be P06 = Rs 2,482.41
Your pension plus DA as on date say P06 (08) = (Rs 2,482.41) x1.14 OR P06(08)= Rs 2,830.00

Now to simplify further.

To calculate your pension on 01 Jan 2006.
Multiply your pension amount as on 01 Jan 1996 by factor of 2.48241

To find your pension plus DA as in Mar 2008.
Multiply your pension amount as on 01 Jan 1996 by factor of 2.830

If you have any more queries individually on this subject please email to reportmysignalblogspot@gmail.com where we will try to to seek answers from the Report My Signal Forum.

Brig CS Kamboj, VSM (Retd)