How is pension commutation calculated?

Commuted Amount : Government Employee pension amount is Rs. 32000/- at the time of retirement, he / she commuted 40% of his pension, then the commuted amount is 40 percent of Rs. 32000 i.e. 12800 is the commuted amount here.

Is there any interest on commutation of pension?

The hard fact remains that commuted pension is like any other advance/ loan on which the Government charges interest (currently 8%) at market rate! As per extant rules [Central Civil Services (Commutation of Pension) Rules, 1981], commuted pension is restored 15 years after the date of drawal of the commuted amount.

How many months of pay do you get when you retire from the military?

Usually this will be the average of the 36 months for the member’s pay grade and years of service taken from the pay tables in effect for the 36 months immediately preceding the date that retired pay begins, regardless of when the member stopped participation (i.e. went into the gray area).

When does an officer retire from the Army?

Officer retirements (generally) start on the first of the month, so the next month that I could retire was 1 June. By then I actually had 20 years and five days of active-duty service.

Who is the expert on the military retirement system?

Rod Powers was the U.S. Military expert for The Balance Careers and was a retired Air Force First Sergeant with 22 years of active duty service. In recent years, the military retirement system has become a bit more complicated. Here are some basics to help you understand what to expect.

Are there any retirement plans for reserve soldiers?

There are two non-disability retirement plans currently in effect for reserve qualified retirees. These are Final Pay plan, High-36 Month Average plan. There is no REDUX retirement plan under non-regular (reserve) retirement.

How long do you have to be in the military to get retired pay?

Not entitled to receive military retired pay through any other provision of law. Complete at least 20 years of qualifying military service. Members who earn their 20th qualifying year of service before April 26, 2005, must serve the last six years of qualifying service as a member of a Reserve component.

How many retirement systems are there in the military?

There are currently 3 existing retirement systems depending on when you entered the service: If you entered prior to September 1980 you are eligible for the Final Pay retirement system. Under this system, your retirement pay is your final base pay times 2.5% for every year of active duty.

When does the new military retirement system start?

The military has announced that current members who have less than 12 total years of service when the new plan is effective in 2018 will be able to switch over to the new system. There will be no back pay but matching contributions will begin on enrollment.