Second Pension option - Calculations

We are receiving requests from many individuals for calculating their pension, commutation and gap amount payable to the bank. It is impossible to calculate pension for every individual request. The pension calculators are made readily available on this site. Using these calculators an individual pension optee can easily calculate his pension, commutation and D.A.  For ready reference procedure for 2nd option calculation is given Below.
1. Calculate your pension basic using pension calculator.
    Inputs required - Last 10 months average basic, and 
    allowances  qualifying for PF, Qualifying service. 
    Click here for Pension Calculator
2. Calculate commutation amount and commutation value 
    using commutation calculator. Inputs required - Pension 
    Basic (calculated using above refered pension calculator),
    Age on the next birthday as on 01/09/2010 (the date for 
    reckoning  the age may differ according to individual bank
    The date referred in the bank circular may be taken for   
    this purpose.)
    Click here for Commutation Calculator
3. Calculate D.A on Basic Pension using D.A. calculator. 
    Inputs required - Pension Basic calculated using pension 
    calculator . D.A. depends upon date of retirement . Please 
    select proper option in D.A. calculator according to your
    date of retirement. (D.A is calculated on original basic 
    pension and not on the reduced basic pension after 
    commutation.)
    Click here for D.A. calculator
4. Calculate your monthly net pension by adding Basic,D.A  
    and reducing commuted amount from it.
    Net monthly  pension = Basic + D.A. - commuted amount.

5. Calculate the amount to be refunded to the bank
     1. Bank's Contribution to PF (along with intrerest
         paid by bank)
     2. Gap Amount - Multiply the above figure by 0.56
         (i.e 56% of bank's contri to PF with interest)
        
          By adding above figures one will get the amount 
          to be refunded to the bank.

6.  Calculate the amount to be received from the bank
       1. Commutation value calculated using commutation
           calculator (Step No. 2 above)
        2. Arrears of pension receivable - Pension is payable
            w.e.f from 27/11/2009 upto the date i.e arrears for 
           11 months and 4 days will be paid by the bank if
            the date of option is 31/10/2010. The arrears pension
            will be Full Basic pension + D.A and NOT reduced 
            basic after commutation.
            By adding above figures amount to be received from 
            the  bank can be calculated.

7.  Net payable to the bank can be arrived at by deducting
     the amount receivable from bank ( step 6 above) from 
     amount payable by bank (step 7 above). Some banks are
     allowing to set off commutation value and / or pension 
     arrears against  the amount payable to the bank and in 
     that case only net amount is  to be paid to the bank. 
     Some banks are not  allowing to set off this amount.