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Calculation of monthly contribution towards cost of Pension

Posted by binu P Friday, November 20, 2009


The pension contribution payable in respect of a Government servant during the active period of his foreign service shall be based on the maximum of the pay as defined in Rule 9(21)(a)(i) of the Fundamental Rule of the revisedpay scale of the post held by a Government servant at the time of proceeding on foreign service or to which he may receive proforma promotion while on foreign service.
Consequent upon revision of Central Government pay scales in Pay Bands and Grade Pay w.e.f. 1.1.2006 after implementation of the Sixth Central Pay Commission's recommendations, the question of issuing necessary revised orders on the above subject has been engaging the attention of the Government of India. The President is now pleased to decide that pension contribution payable in respect of a Government servant during the active period of his foreign service shall be based on the existing basic pay (Pay in the Pay Band plus Grade Pay) of the post held by a Government servant at the time of proceeding on foreign service and ip
case he receives proforma promotion/financial up-gradation while on foreign service, on the basic pay (Pay in the Pay Band plus Grade Pay) fixed on such promotion/financial up-gradation.

These orders will apply w.e.f. 1.1.2006. In respect of persons who are already on foreign service as on 1.1.2006, the rates of pension contribution will be calculated as per above formula with effect from the date they opt to come over to the revised scale in their parent cadres. For the earlier period, the pension contributions will be as per extant orders i.e. the orders in force period prior to 1.1.2006 from time to time.

In so far as the persons serving in the Indian Audit & Accounts Department are concerned, these orders are being issued after consultation with the Comptroller and Auditor General of lndia.

Calculation of monthly contribution towards cost of Pension



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1 Response to Calculation of monthly contribution towards cost of Pension

  1. Anonymous Says:
  2. Nice, but i wish to know that previously the Pension contribution is calculated on maximum of the scale of the post held by an officer. But now it is said to be paid on Basic Pay in pay band and Grade pay. Pl confirm.

     

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