Monday, November 23, 2015

3% increment Vs Increase in Level Index ?

In computing your Revised Pension (7CPC), please  note the following.

It is stated to add  3% of the notional pay for every increment in the scale ( not the number of years of service in the grade).
However,  the Cases used in the  7CPC report  for demonstrating the computation uses the corresponding Level Index .

Please refer Page 396 of the report.  Case I.  10.1.70

Therefore it is clear that you may get the notional pay directly from Pay Matrix (and without having to do the multiplication process).

Read the Notional Pay directly from the Pay Matrix.

First, Identify your PayBand and Grade Pay column in the Matrix.

The index number = Number of increments in the grade + 1.   eg. If you had 6 increments in the grade while retiring, the index is 7.

Therefore read your notional pay across the index number 7, in the column corresponding to your Grade pay.

Half of this figure is your new Pension (as on 1-1-2016).

7CPC Report

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