This illustrative spreadsheet below gives an idea to the member / user about the range of  PF amount that the Bank may eventually ask him to refund. As the amounts involved are substantial, he may have to  take steps  in advance to arrange for the money .
Further, it gives him a view about  the estimated gross pension amount  that he may get, and also the amount of pension he will get in case he opts for commutation.
These decisions although very important are purely personal, dependent on his own set of circumstances.

However it may be noted that:

  • In terms of Regulation 30 of RBI Pension Regulations, 1990, commuted portion of pension shall be restored on the fifteenth anniversary of the date on which commutation became absolute.
  • Commutation is subject to Medical examination by BMO, where a period of more than one year has elapsed after the date of retirement.
  • Family Pensioners are not entitled to commutation.
  • Lump Sum payment of commutation is calculated on the basis of a value given in Commutation Table. The Commutation value expressed as number of years purchase depends on your age next birthday. The more your age, less is the lump sum value of commutation.
  • For example , the commuted value expressed as number of years of purchase in case of an retiree aged 60 years next birth day is 10.13 i.e if he commutes Rs 100/- he will get Rs 12156 (100*12*10.13) whereas a retiree whose 70th birthday falls next year will get Rs 8292 (100*12*6.91) as his commutation value has declined to 6.91.

The important applicable Instructions as extracted from Pension regulation 1990, and Master Circular dated
July 1, 20 are here.

Needless to say , this calculator gives output on the basis of input of Data which is solely with the user, and in no case is linked with the amount of refund that bank may demand and the pension that bank may determine taking into account other factors.
AIRBIOPF bears no responsibility whatsoever in the matter.

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