Calculate Pension , DCRG, Commutation , Family Pension - Study Material for PO/RMS accountant Examination

Types of Pension Cases              (1)       Superannuation             (2)       Family Pension             (3)       Voluntary Retirement (VR )             Rules (i)           The qualifying service for evaluation of pension is reduced to 10 years w.e.f. 02 09.2008. Earlier it was 33 years. (ii)       Pension is evaluated on the basis of the last 10 months average pay or last pay drawn whichever is beneficial to retiring employee

Terms related to the PENSION Calculation                                     (i)        PENSION             (ii)       DCRG (Death Cum Retirement Gratuity)             (iii)      COMMUTATION             (iv)      RESTORATION of Pension             (v)       FAMILY PENSION

How to calculate Pension The pension amount is calculated based on the Basic Pay at the time of retirement, Age, Service years, etc.     It is calculated as 50% of average emoluments of last 10 months salary drawn. It is calculated on Basic and Dearness Pay only.                                SMP  means Six monthly period of qualifying service                                                                                                   Formula for Calculation of Pension Amount =                                          50% of Avg. emoluments (last 10 months)    or     50 % emoluments drawn on the retirement

DCRG This is basically known as Gratuity. Gratuity is the amount given to the employee at the time of retirement. It is calculated on Basic, DP and DA. This amount is limited to maximum Rs.1000000 / - only. Formula for Calculation of DCRG                                             Last Salary Drawn   X    SMP                       =   -----------------------------------------                                         4                                    OR                                            Last Salary Drawn   X    SMP                             = --------------------------------------- (in case of Death)                                        2 COMMUTATION ·         At the time of retirement of the employee, a portion of pension can be withdrawn by the employee. ·         A maximum of 40% of pension amount can be withdrawn at the time of retirement. However, depending on the amount withdrawn proportionate amount will be deducted from the Pension amount till 15 years and employee will get reduced Pension till 15 years.        Formula for calculation of Commutation        =   Commutation Percent of Full Pension   x  Age Factor  x  12        Formula for calculation of Reduced Pension =   (Full Pension – Commutation Percent of Full Pension)                         +  DA on Full Pension

If employee is dead before attaining his qualifying Service of Retirement, The calculation of DCRG in such case is as follows DCRG        =      Total Pay X Multiplying Factor (Total pay = Basic pay + Grade  Pay )                                                 Where Multiplying Factor varies as follows                                         Service Life                 MF                                                 1  to  5  years                                              6                                                 5 to   20 years                                           12                                                 above 20                    SMP / 2  (in case of death)                                                                                     SMP / 4  (on retirement)

Method for calculate family pension Step  1    Calculate  Total Pay   ie  Basic Pay  +  DP ( A= Basic Pay + DP ) Step 2     Calculate  30 % of  Total pay               ( B=  A*30/100)

Prepared by S Jayachandran , SA, Mavelikara Division -690101 Please visit  Http://nfpemavelikaradivision.blogspot.com

Revision of interest rates for small savings schemes.

With effect  01.04.2012   

Rates of interest on various small savings schemes for the financial year 2012-13 effective from 1.4.2012, on the basis of the interest compounding/payment built-in the schemes, shall be as under: 

Scheme	Rate of Interest w.e.f. 1.12.2011	Rate of Interest w.e.f.1.4.2012
Savings Deposit	4.0	4.0
1 year Time Deposit	7.7	8.2
2 year Time Deposit	7.8	8.3
3 year Time Deposit	8.0	8.4
5 year Time Deposit	8.3	8.5
5 year Recurring Deposit	8.0	8.4
5 year SCSS	9.0	9.3
5 year MIS	8.2	8.5
5 year NSC	8.4	8.6
10 year NSC	8.7	8.9
PPF	8.6	8.8

Previous Year Question Paper for PO and RMS Accountants Examination - 2003 Part II

Previous year  Question paper for  PO and RMS accountants  Examination 2003 Part II 5           (a)       What are the conditiona when government servant shall not be entitiled to  HRA ?  (Marks  5) (b)   Fill in the blanks in the following in respect of remote locality allowance Pay Range                    Areas included  in  Part A Part B Part C Part D ( Rate of remote  locality allowance  ( Rupee per month) Below Rs  3000 300 ------------- 150 ---------- Rs  3000 to  Rs  4499 ------- 400 ------ 80 Rs  4500 to Rs 5999 700 -------- 450 120 Rs 6000 to Rs  8999 ------ 800 ---- 160 Rs  9000 pm and above 1300 -------- 750 -----                                                                                                         ( Marks 9 )  ©  Fill  in the blanks  in the  following  table Date from which  payable Rate  of dearness allowance per  month From 01-01.1999 From 01.07.1999 From 01.01.2000 From 01.07 .2000 From  01.01.2001 From 01.07.2001

( Marks 6)

Q6 What is the procedure for payment of children educational allowance , reimbursement of tuition fees and hostel subsidy ?                                                                     (Marks 5 )

( b)     Fill  in the blanks in the following : (1)     Delivery  and  conveyance allowance to GDS BPMs/GDS SPMs who have been entrusted the additional work of conveyance of mails and delivery               ----------------  PM     ( Per Month) (2)     Cycle allowance to GDS mail deliverer , if the distance covered is more than  10 KMS                                                                                                   ------------------------ PM    (  (3)     Office maintenance allowance to GDS BPMs/ GDS SPMs----------- PM (4)    Fixed stationery  charges to GDS BPMs/GDS SPMs -----------------PM (5)    TRCA payable to GDS BPM having workload of  more than 3 hours -----------PM (6)    TRCA payable to GDS BPM having workload of  more than 3 hours -------- PM (7)    DA payable on combained duty allowance to GDS MCs ------------------  PM (8)    TRCA payable to GDS SPMs  ------- PM (9)    House rent to be paid to the house owner of GDS BO/GDS SO  premises when work is being looked after by line overseer in the same premises on accountant of superannuation / put off duty  of GDS BPM /GDS SPM---------  PM (10) Maximum period up to which house rent in (IX) above  can be paid--------                                                                                                      ( Marks 10 )

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CABINET APPROVED 7% HIKE IN DEARNESS ALLOWANCE

UNION CABINET APPROVED A PROPOSAL TO HIKE ADDITIONAL DEARNESS ALLOWANCE BY 7% FOR CENTRAL STAFF AND CENTRAL PENSIONERS... THE CENTRAL GOVERNMENT ON FRIDAY APPROVED A SEVEN PER CENT HIKE IN DEARNESS ALLOWANCE TO CENTRAL GOVERNMENT EMPLOYEES AND PENSIONERS, THIS HIKE IS TO BE EFFECTIVE RETROSPECTIVELY FROM JAN 2012... THE DEARNESS ALLOWANCE AND DEARNESS RELIEF FOR CENTRAL GOVERNMENT SERVING EMPLOYEES AND PENSIONERS WILL INCREASE FROM 58% PER CENT OF BASIC EMOLUMENTS TO 65% PER CENT WITH EFFECT FROM 1.1.2012.

CALCULATE  YOUR  DA ARREARS AND NEW PAY                -  CALCULATE   DA ARREARS

Question Paper for PO and RMS Accountants Examination 2003 Part I

Previous question paper for  PO and RMS Accountants Examination  2003 Paper I  with Books Part I Q1   Calculate  the pension  retirement gratuity and commutatation payable to an official who retired on 30.04.2003 with the following particulars 1.      Date of Birth   12.04.1943 2.    Date of appointment 01.08.1972 3.    Promoted as HSG 1 Postmaster in the pay scale of rs  6500-200-10500 with effect from  01.10.2001 4.    Pay in the promoted grade was fixed at Rs  8900/- with DNI on 01.10.2002 5.    Rate of D A 52 %

Q2 (A)  Calculate  GPF Balance at credit of an official  as on 31.03.2003  with the following details 1.     O B  as on  01.04.2002  Rs 95000 2.    Subscription at the rate of  Rs  5000 per month 3.    Raised GPF subscription to Rs  6000/-  from  the pay  of  Oct 2002 4.    Taken  final withdrawal of Rs 25000/- in December 2002 5.    Taken  an advance  of  Rs  10000/- during jaunary 2003  recoverable in 10 equal instalments 6.    Rate of interest 09 %

(B)  Define Honorarium and illustrate any five items of work for which honorarium should not be paid

Q 3 ( A)  Prpeare the earned leave account and half pay leave account of a postman up to  31.03.2003 from the following data 1 Date of appointment   15.04.2000 2. Dies non for 18 days from 03.12.2000 3.; Availed EL  for 10 days from  26.12.2000 4. availed EL for 5 days from  15.03.2003 for LTC and also encashed EL  for  5 days 5 Availed HPL on MC from 15.09.2000 to  24.09.200         6.    Availed commuted leave on MC for 8 days from  01.05.2002 ( Please visit nfpemavelikaradivision.blogspot.com)

Russian words absorbed / not absorbed in to English

Familiar Russian Words (Absorbed into English)

1. Agitprop: artistic political propaganda, from a truncated form of the Russian forms of the words agitation and propaganda
2. Apparatchik: a Communist Party member and/or functionary, from the Russian form of the word apparatus
3. Babushka: in Russian, “old woman”; in English, a type of scarf commonly worn by babushkas
4. Beluga: a type of whale or sturgeon
5. Bolshevik: a revolutionary or radical, from name of the majority Communist faction in Tsarist Russia, ultimately from the Russian word for “majority”
6. Commissar: an official
7. Cossack: a Russian ethnic group associated in popular culture with military prowess and a nomadic society; the name, like the ethnic appellation Kazakh, derives from the Turkish word for “nomad”
8. Dacha: a country house
9. Duma: a legislative body
10. Glasnost: a policy of political openness and transparency, from the Russian word for “publicity”
11. Gulag: originally an acronym for a Soviet-era system of forced-labor camps; it now can refer to any repressive or coercive environment or situation
12. Intelligentsia: the intellectual elite of a society, from the English word intelligent
13. Kopeck: a Russian coin
14. Mammoth: a prehistoric mammal, and, by extension, a synonym for massive
15. Menshevik: the name of the minority Communist faction in Tsarist Russia, originally in power briefly after the Russian Revolution but defeated by the Bolsheviks
16. Perestroika: the Soviet-era system of reform, from the Russian word for “restructuring”
17. Pogrom: originally, violent persecution of Jews in Russia; now, any officially sanctioned attack on a particular group
18. Politburo: the Soviet-era primary source of government policy decisions, a truncation of the Russian forms of the words political and bureau
19. Ruble: the basic unit of Russian currency
20. Sable: a mammal related to the weasel whose sleek black coat was long prized as a clothing material, and, by extension, a synonym for black
21. Samizdat: prohibited literature produced clandestinely
22. Samovar: an urn for heating tea
23. Sputnik: a traveling companion; also, the name given to a series of Soviet-era satellites, the first objects launched into space
24. Taiga: the far northern coniferous forests of both Asia and North America, from a Turkish or Mongolian word
25. Troika: a carriage or sleigh pulled by three horses, or a triumvirate (a ruling or administrative trio)

Unfamiliar Russian Words (Not Yet Absorbed into English)

26. Druzhina: a unit of bodyguards and elite troops
27. Glavlit: the Soviet-era government censorship agency
28. Izba: a log house
29. Knout: a whip used in punishment
30. Konyushy: an official responsible for horses used in ceremonies
31. Kulak: a well-off farmer
32. Lishenets: a disenfranchised group
33. Matryoshka: a set of Russian nesting dolls
34. Muzhik: a peasant
35. Namestnik: an administrator (from the Russian word for “deputy”)
36. Narkompros: a Soviet-era agency responsible for education and culture, later called the Ministry of Enlightening
37. Nomenklatura: the Soviet elite, holding prestigious government and industrial posts (from the Latin term nomenclature, “list of names”)
38. Okhrana: the Tsarist secret police
39: Oprichnik: Ivan the Terrible’s brutal bodyguards and henchmen
40. Prikaz: originally, a bureaucratic position; later, an administrative directive
41. Propiska: a Tsarist regulation requiring subjects to remain in their hometown
42. Rasputitsa: spring and fall periods in which, because of heavy snow or rain, unpaved roads are impassable (possibly related to the name of Rasputin)
43. Sambo: a form of martial arts
44. Silovik: the elite
45. Spetsnaz: special-forces soldiers
46. Tamizdat: prohibited literature produced outside the country
47. Tovarishch: a companion or fellow traveler; used as a direct form of address in the Soviet Union, equivalent to comrade
48. Ukase: a decree; refers specifically to a government proclamation or generically to an arbitrary command
49. Ushanka: a fur cap with ear flaps
50. Zek: an inmate