Thursday, March 29, 2012

Types of Pension Cases 
            (1)       Superannuation
            (2)       Family Pension
            (3)       Voluntary Retirement (VR )
(i)           The qualifying service for evaluation of pension is reduced to 10 years w.e.f. 02 09.2008. Earlier it was 33 years.

(ii)       Pension is evaluated on the basis of the last 10 months average pay or last pay drawn whichever is beneficial to retiring employee

Terms related to the PENSION Calculation
            (i)        PENSION
            (ii)       DCRG (Death Cum Retirement Gratuity)
            (iii)      COMMUTATION
            (iv)      RESTORATION of Pension
            (v)       FAMILY PENSION

How to calculate Pension
The pension amount is calculated based on the Basic Pay at the time of retirement, Age, Service years, etc.     It is calculated as 50% of average emoluments of last 10 months salary drawn. It is calculated on Basic and Dearness Pay only.

                               SMP  means Six monthly period of qualifying service
    Formula for Calculation of Pension Amount =    
  50% of Avg. emoluments (last 10 months)    or     50 % emoluments drawn on the retirement                                                                     

  • This is basically known as Gratuity. Gratuity is the amount given to the employee at the time of retirement.
  • It is calculated on Basic, DP and DA.
  • This amount is limited to maximum Rs.1000000 / - only.

Formula for Calculation of DCRG

                                            Last Salary Drawn   X    SMP
                      =   -----------------------------------------

                                           Last Salary Drawn   X    SMP
                            = --------------------------------------- (in case of Death)                                        2

·         At the time of retirement of the employee, a portion of pension can be withdrawn by the employee.
·         A maximum of 40% of pension amount can be withdrawn at the time of retirement. However, depending on the amount withdrawn proportionate amount will be deducted from the Pension amount till 15 years and employee will get reduced Pension till 15 years.

       Formula for calculation of Commutation
       =   Commutation Percent of Full Pension   x  Age Factor  x  12

       Formula for calculation of Reduced Pension
=   (Full Pension – Commutation Percent of Full Pension)
                        +  DA on Full Pension

If employee is dead before attaining his qualifying Service of Retirement, The calculation of DCRG in such case is as follows

DCRG        =      Total Pay X Multiplying Factor

(Total pay = Basic pay + Grade  Pay )

                                                Where Multiplying Factor varies as follows

                                        Service Life                 MF

                                                1  to  5  years                                              6

                                                5 to   20 years                                           12

                                                above 20                    SMP / 2  (in case of death)
                                                                                    SMP / 4  (on retirement)

Method for calculate family pension

Step  1    Calculate  Total Pay   ie  Basic Pay  +  DP ( A= Basic Pay + DP )

Step 2     Calculate  30 % of  Total pay               ( B=  A*30/100)


It was one of the most important Circle Council Meetings held during last few years. Circle Secretary required to obtain consensus of Councilors for reviewing/redesigning method of approach to various issues while dealing with administrative functionaries.   

In this meeting, almost all Divisional Secretaries spoke at length about their problems and about experience of Circle Union so far. They expressed faith in one voice and appreciated  working of Circle Union.

By this meeting, we have emerged as a united force and strengthened our efforts for redressing problems of postal employees and counteracting against complaint of corruption and injustice.

Minutes of the meeting along with several Resolutions passed by the Council is being typed out and will be published within two-three days, a print should be taken for knowledge of members.


Circle Secretary has been granted one more year of temporary transfer under grounds of Immunity from transfer. 

He has been posted at:

Circle Stamp Depot
Army Cantonment, Shahibag, 
Ahmedabad 380 004 

All are requested to note change of this address.