The basis for calculating pension benefits under the National Pensions Act, 2008 (Act 766) includes the following key parameters:

1. Age at Retirement:
   • The retirement age can be full retirement (60 years or more) or reduced pension (between 55 and 60 years).
2. Number of Months Contributed:
   • The number of months of contributions to the scheme prior to retirement, with a minimum of 180 months of contributions required.
3. Earnings or Salaries:
   • Pension benefits are calculated based on the best three years or 36 months of basic salaries on which contributions were paid.
4. Pension Right:
   • The pension right starts at 37.5% for 180 months of contributions and increases by 0.09375% for every additional month of contributions beyond 180 months, up to a maximum of 60%.
5. Early Retirement Reduction Factor:
   • For reduced pensions (before age 60), a reduction factor is applied to ensure that early retirement benefits are actuarially equal to full retirement benefits.