Commuted Value of Pension Calculator
Enter the basic pension, the share to commute and the age at next birthday to see the lump sum and the reduced pension.
Result
- Pension commuted per month
- Rs 6,000.00
- Commutation factor
- 8.194
- Reduced pension per month
- Rs 9,000.00
- Lump sum = commuted pension × factor for the age × 12. Factors are from the Finance Department table (LIC 94-96 Ultimate, 8% interest).
- An estimate from the rules in Finance Department notification 535-F (01.10.2019) as summarised by WBXPress. Check the current notification and your office before relying on it.
How to use Commuted Value of Pension Calculator
- Enter the basic monthly pension.
- Enter the share to commute, up to 40%.
- Enter your age at next birthday.
- Read the lump sum and the reduced monthly pension.
About this tool
Commutation lets a pensioner take part of the pension as a lump sum. Up to 40% of the pension can be commuted, and the pension is reduced by that amount, usually until the commuted portion is restored.
The lump sum is the commuted monthly amount multiplied by a factor for the age at next birthday, and by 12. The factors come from the Finance Department table, which is based on LIC (94-96) Ultimate mortality and 8% interest. At age 61 the factor is 8.194, so commuting 6,000 a month gives 6,000 × 8.194 × 12 = Rs 5,89,968.
The retirement-benefit rules and rates come from the Finance Department (Pension Branch) notification 535-F dated 01.10.2019, as summarised on WBXPress. Paul Digital is not connected with the Government of West Bengal.
How it is calculated
Commuted amount = pension × share ÷ 100.
Lump sum = commuted amount × factor for the age at next birthday × 12.
Reduced pension = pension − commuted amount.
Worked examples
- Pension 15,000, 40% commuted at age 61: lump sum Rs 5,89,968.00, reduced pension Rs 9,000.00.
- The same pension at age 60 uses a factor of 8.287, giving Rs 5,96,664.00.
Tips for better results
- Age is counted at the next birthday, not the current age.
- Commute less than 40% by entering a smaller share.
- Get the basic pension from the Pension Calculator.
Frequently asked questions
How much pension can be commuted?
Up to 40% of the pension.
How is the commuted value calculated?
The commuted monthly amount × the age factor × 12.
Which age is used?
Age at next birthday.
Is this result official?
No. It is an estimate from the published rules. The sanctioned amount is decided by your Pension Sanctioning Authority and the Accountant General (A&E), West Bengal, so check the figures with your office.
Are my details saved or sent anywhere?
No. The calculation runs in your browser on your own device. Nothing you type is sent to Paul Digital or any other server.
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- Pension Calculator (ROPA 2019)
- Gratuity Calculator (Retiring and Death Gratuity)
- Superannuation Date Calculator
- Service Length Calculator
- All web tools
Privacy
The calculation runs in your browser on your own device. The numbers you type are not sent to Paul Digital or any other server. Results are estimates from the numbers you enter and are not financial, tax or legal advice.