Introduction
Understanding pension rules is crucial for planning your retirement. This guide covers the pension system for UP government employees under the 7th Pay Commission.
Types of Pension
1. Superannuation Pension
Granted to employees who retire on reaching the age of superannuation (60 years for most categories).
2. Voluntary Retirement Pension
Available after completing 20 years of qualifying service.
3. Invalid Pension
Granted when an employee is permanently incapacitated.
4. Family Pension
Paid to family members after the death of the employee.
Eligibility
- Minimum Qualifying Service: 10 years
- Full Pension: 33 years of qualifying service
- Pro-rata Pension: For service between 10-33 years
Pension Calculation
Basic Pension Formula
Basic Pension = (Last Basic Pay × 50%) × (Qualifying Years / 33)
For 33+ years of service:
Basic Pension = 50% of Last Basic Pay
Example
If your last basic pay is ₹56,100 with 35 years of service:
- Basic Pension = ₹56,100 × 50% = ₹28,050
Gratuity
A lump sum payment on retirement:
Gratuity = (Basic Pay × 15 × Years of Service) / 26
Maximum Limit: ₹20,00,000
Commutation
You can commute up to 40% of your basic pension to receive a lump sum amount.
Commutation Formula
Lump Sum = Monthly Pension Amount × 12 × Commutation Factor
Commutation factor varies by age (approximately 8.194 for age 60).
Important Notes
- Commuted portion restored after 15 years
- No medical examination required for superannuation
Family Pension
| Scenario | Family Pension |
|---|---|
| First 7 years | 50% of Basic Pay |
| After 7 years | 30% of Basic Pay |
Minimum family pension: ₹9,000/month