Terminal benefits of Armed Forces personnel as well as civilian employees of Govt of India is determined by the Govt Rules and regulations which have been updated from time to time. The benefits which is the major part is the commutation of pension. Your pension can be commuted means the commuted value (one time lump sum amount) can be drawn in lieu of pension upto 50% for defence personnel ( 40% for civilians) as per commutation value (factors) exist in the table.
The calculation of commutation is very simple. You need to follow very simple steps to determine your CVP (commuted value of pension).
Step-1 : Calculate your basic pension which is 50% of your last emoluments ( Basic Pay + Class Pay + MSP + X Gp Pay). No allowance or any other pay will be included.
Step : 2 Follow the illustration below to calculate your commutation
Formula for working out Commuted Value of pension = Amount of pension to be commuted X 12 X purchase value for age next birth day. This may be calculated using the rules and provisions of MoD – Defence Pension as well as Civil Pension.
| Rank | Subedar |
| Date of Birth | 15.04.1971 |
| Date of Appointment | 26.12.1993 |
| Date of Retirement | 30.04.2021 |
| Qualifying Service | 27 years 4 months 5 days |
| Basic Pension | Rs. 27,000/- |
| Portion of Pension to be Commuted: 50% i.e. 50% of 27000 | = 13500/- |
| Portion to be commuted after ignoring the fraction | Rs.13500/- |
| Age next birthday i.e. on 15.04.2022 | 51 years |
| Purchase value | 8.808 (as per new Commutation Table) |
| Amount of commutation | 13500 X 12 X 8.808 |
| Rs. 14,26,896/- | |
| Commuted value of Pension | Rs. 14,26,896/- payable on or after 01.05.2021 |
| Age on your next birthday | Commutation value expressed as number of year’s purchase (Purchase Value) |
| 20 | 9.188 |
| 21 | 9.187 |
| 22 | 9.186 |
| 23 | 9.185 |
| 24 | 9.184 |
| 25 | 9.183 |
| 26 | 9.182 |
| 27 | 9.180 |
| 28 | 9.178 |
| 29 | 9.176 |
| 30 | 9.173 |
| 31 | 9.169 |
| 32 | 9.164 |
| 33 | 9.159 |
| 34 | 9.152 |
| 35 | 9.145 |
| 36 | 9.136 |
| 37 | 9.126 |
| 38 | 9.116 |
| 39 | 9.103 |
| 40 | 9.090 |
| 41 | 9.075 |
| 42 | 9.059 |
| 43 | 9.040 |
| 44 | 9.019 |
| 45 | 8.996 |
| 46 | 8.971 |
| 47 | 8.943 |
| 48 | 8.913 |
| 49 | 8.881 |
| 50 | 8.846 |
| 51 | 8.808 |
| 52 | 8.768 |
| 53 | 8.724 |
| 54 | 8.678 |
| 55 | 8.627 |
| 56 | 8.572 |
| 57 | 8.512 |
| 58 | 8.446 |
| 59 | 8.371 |
| 60 | 8.287 |
For Govt authority click the link here : https://www.mod.gov.in/dod/sites/default/files/corg-post2006.pdf
Check the PCDA Website for authenticate Table of commutation :https://pcdapension.nic.in/pcda/ci-commutation-table.php