Pension Government Scheme Benefit Calculator

Work out pension government scheme benefit instantly with clear inputs, formula shown and shareable results.

About Pension Government Scheme Benefit Calculator

A defined-benefit government pension is typically half of last drawn emoluments, pro-rated where qualifying service falls short of the full-pension threshold. Commuting part of the pension converts it into a lump sum using a commutation factor, permanently reducing the monthly amount until restoration.

Formulas

Pension entitlement

Pension = Last drawn pay x 50% x min(1, Qualifying service / Full-pension service)

Commutation lump sum

Lump sum = Commuted monthly pension x 12 x Commutation factor

Worked example

With the default values below, Pension Government Scheme Benefit Calculator returns Monthly pension after commutation of $21,272.73. Change any input above and every figure here is recalculated in your browser.

Inputs used

Last drawn basic pay plus dearness allowance: 78,000
Qualifying service: 30 years
Service required for full pension: 33
Portion of pension commuted: 40

Results

Monthly pension after commutation: $21,272.73
Monthly pension before commutation: $35,454.55
Commutation lump sum: $1,394,469.82
Service as % of full-pension service: 90.91%

Step by step

1Values used
2Pension entitlement
3Commutation lump sum
4Monthly pension after commutation= 21,272.73
5Monthly pension before commutation= 35,454.55
6Commutation lump sum= 1,394,469.82
7Service as % of full-pension service= 90.91

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

Frequently Asked Questions

Is the commuted portion restored?

In many schemes the commuted portion is restored after a set period, commonly 15 years, after which the full pension resumes.

Does dearness relief apply to the reduced pension?

Dearness relief is usually calculated on the full original pension, not the reduced one, which materially improves the value of commuting.