Friday, April 4, 2008

Sixth Pay Commission Pension and Arrears

I have been receiving very large number of requests for many types of problems related to 6 CPC Report- pension of widows, premature retirement cases, disability cases and many other similar problems.
Seeing the vastness of the problem I tried to find a solution which could in 'one go' solve most of these problems.
Luckily I did find such a solution, which can apply universally to many type of questions (but not all).
You can now very easily help all your friends in finding answers to the questions related to 6 CPC Report.

The interesting thing is that the formulae worked out apply equally to all universally- whether prematurely retired person or with full pension, a or widow/ widower of service person, from officer grade, PBOR, from any Central Government Service, any grade, whether the person knows his/ her basic pension or not. All that a person needs to know, what is his/ her full pension as in November 2007.

Before I give your those universal formulae, I wish to tell you something more. While the figures given vide my previous emails to you for the new pension as on 1-1-2006 and as on date are correct, the arrears calculated by me and intimated to you, need some correction. The arrears would be somewhat less then what was worked out by me earlier. In my calculations I had taken the figures of the Old Pension little less than the actual figures what we have been receiving. Therefore, obviously the arrears figures are more than the actual. Fresh table of arrears are given below. ALSO, please note that the formulae and tables given below are applicable only to those persons who retired before 1-1-2006.

The Universal Formulae to Calculate 6 CPC Related Pension and Arrears

As mentioned earlier, for answering questions of your friends on the above subject all you need to know from him/ her is the full pension of as received by the person in November 2007.
Full pension here means- The pension received in bank + the commuted amount if any.
Let us abbreviate Full Pension of November 2007 as FPN07.
Now the universal formulae to calculate the various amounts are as under:

1. New Pension as on 1-1-2006 FPN07 x 1.1737

2. New Pension as on 1-1-2008 FPN07 x 1.385

3. Arrears of 2006 FPN07 x 3.600

4. Arrears of 2007 FPN07 x 3.8892

5. Arrears per month in 2008 till implementation 6 CPC or till next DA added, which ever is earlier FPN07 x 0.3424

6. Arrears from Jan to Mar 2008 FPN07 x 1.0273

7. Total Arrears from Jan 2006 to Mar 2008 FPN07 x 8.5168

Note: FPN07= Full Pension in November 2007= Pension received in bank plus commuted amount if any.

The table given below applies to only those who earned full pension of the rank, and those who retired before 1-1-2006.

I once again reiterate that the pension of persons who retired before 1-1-2006 has been de- linked from the currently serving personnel. Even if the pay and allowances of Defence Officers and PBOR given in 6 CPC get revised, the pension of those who retired before 1-1-2006 will not be affected. So stop thinking of MSP etc.

Please do give wide publicity to the Universal Formulae given above.
If you are not sure of those formulae, try them out on your own pension details and do backward and forward calculations to verify the formulae. You may find a difference of few rupees here and there, because of the formulae being truncated to just 3 or 4 places of decimal, while actual formulae go upto 8 or 9 places of decimal.

A large number of questions received by me are still pending. I will try my best to find answers to those questions, if feasible.

Please appreciate that all this information I am sending to you is being handled by me single handed and not by a team, as some of you seem to be carrying the impression. So, kindly bear with me the delay in answering your questions.

With Compliments from "Report My Signal".

Brig CS Kamboj, VSM (Retd)

We are truly indebted to Brig CS Kamboj for giving us a easy to understand universal formulae for calculation of Pension and Pension Arrears.

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