Farley And Partners

Types of pension

FULL ANNUAL PENSION

This is the person when no portion of the pension is exchanged for a lump sum or gratuity. The pensioner receives the maximum pension periodically because he did not exchange any portion of it in the form of gratuity or lump sum.

REDUCED PENSION AND GRATUITY

An initial gratuity is paid and then an annual reduced pension. The full pension is reduced by the portion of the gratuity is the product of commutation of 25% of the full pension or one year’s final salary, whichever is greater. The reduced pension is the rest or the value of the portion of the full pension which is not commuted (75%), payable annually but be drawn periodically.

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