The lump sum has a real cost
Commuting pension trades a permanent, lifelong monthly amount for a one-time payment now — the commutation factor is essentially an actuarial price for that trade. It's typically worth it only if you have a specific need for the lump sum or a shorter-than-average life expectancy; otherwise the monthly income usually wins out over enough years.
Frequently asked questions
Why is the full-pension rate editable instead of a fixed percentage?
The percentage of last basic pay paid as full pension after complete qualifying service is set by Finance Division pay-scale circulars and has changed across pay commissions — use the figure from your applicable circular, or check with your Accounts Office / CAFO, rather than the illustrative default here.
What is pension commutation?
Government employees can convert (commute) part of their monthly pension into a one-time lump sum at retirement, up to a maximum share — commonly around half. What remains keeps paying monthly for life. The commutation factor used to size the lump sum depends on your age at retirement and is published in an official table.
Where do I get my exact numbers?
This gives a planning estimate only. Your qualifying service, exact pension rate and commutation factor should be confirmed with your Accounts Office, CAFO, or the official pension calculator before you rely on a figure.
Last updated: June 2026