Understanding Pension Calculations: How Does Weightage Service Affect Early Retirement?

Kindly clarify whether the weightage service of 2 years (given for employees whose service period is 20 years or more) is added to the past service (service prior to 16-11-1995) or to pensionable service (service after 16-11-1995) for the calculation of the pension if the past service is 20 years.

Also, please clarify at what rate of percentage per year is reduced from the pension if we retire on VRS before attaining the age of 58 years.

Weightage Service for Pension Calculation

Past Service (Service Prior to 16-11-1995): If an employee has past service (service before 16-11-1995) of 20 years or more, and if weightage service (additional service credit) of 2 years is provided for completing 20 years of service, typically this weightage service is added to the past service for pension calculation purposes.

Pensionable Service (Service After 16-11-1995)

For service after 16-11-1995 (pensionable service), the actual service period is considered. Weightage service is generally not added to the pensionable service period after 16-11-1995 but rather to the past service to increase the overall length of service considered for pension calculation.