Pension
The minimum
eligibility period for receipt of pension is 10 years. A Central Government
servant retiring in accordance with the Pension Rules is entitled to receive
superannuation pension on completion of at least 10 years of qualifying service.
In the case of Family Pension the widow is eligible to
receive pension on death of her spouse after completion of one year of
continuous service or before even completion of one year if the Government
servant had been examined by the appropriate Medical Authority and declared fit
for Government service.
W.e.f 1.1.2006, Pension
is calculated with reference to average emoluments namely, the average of the
basic pay drawn during the last 10 months of the service or last basic pay
drawn whichever is beneficial. Full pension with 10/20 years of qualifying
service is 50% of the average emoluments or last basic pay drawn whichever is
beneficial. Before 1.1.2006, for qualifying service of less than 33 years, amount
of pension was proportionate to the actual qualifying service broken into
completed half-year periods. For example, if total qualifying service is 30
years and 4 months (i.e. 61 half-year periods), pension will be calculated as
under:-
Pension amount = R/2(X)61/66
where R represents
average reckonable emoluments for last 10 months of qualifying service or the
last pay drawn as opted by the govt servant.
Minimum pension
presently is Rs. 3500 per month. Maximum limit on pension is 50% of the highest
pay in the Government of India (presently Rs. 45,000) per month. Pension is
payable up to and including the date of death.
Commutation of Pension
A Central Government
servant has an option to commute a portion of pension, not exceeding 40% of it,
into a lump sum payment with effect from 1.1.1996. No medical examination is
required if the option is exercised within one year of retirement. If the
option is exercised after expiry of one year, he/she will have to under go
medical examination by the specified competent authority.
Lump sum payable is calculated
with reference to the Commutation Table constructed on an actuarial basis. The monthly pension will stand reduced by the
portion commuted and the commuted portion will be restored on the expiry of 15
years from the date of receipt of the commuted value of pension. Dearness
Relief, however, will continue to be calculated on the basis of the original
pension (i.e. without reduction of commuted portion).
The formula for
arriving for commuted value of Pension (CVP) is
CVP = 40 % (X) Commutation
factor* (X)12
* The commutation
factor will be with reference to age next birthday on the date on which
commutation becomes absolute as per the New Table as Annexure to this Deptt's O.M. No. 38/37/08- P&PW(A) dated 2.9.2008
Death/Retirement Gratuity
Retirement Gratuity
This is payable to
the retiring Government servant. A minimum of 5 years qualifying service and
eligibility to receive service gratuity/pension is essential to get this one
time lump sum benefit. Retirement gratuity is calculated @ 1/4th of a month’s
Basic Pay plus Dearness Allowance drawn before retirement for each completed
six monthly period of qualifying service. There is no minimum limit for the
amount of gratuity. The retirement gratuity payable is 16½ times the Basic Pay,
subject to a maximum of Rs. 10 lakhs.
Death Gratuity
This is a one-time
lump sum benefit payable to the widow/widower or the nominee of a permanent or
a quasi-permanent or a temporary Government servant, including CPF
beneficiaries, dying in harness. There is no stipulation in regard to any
minimum length of service rendered by the deceased employee. Entitlement of
death gratuity is regulated as under: Qualifying Service Rate
Less than one year 2
times of basic pay
One year or more but less than 5 years 6 times of basic pay
5 years or more but less than 20 years 12 times of basic pay
20 years of more Half
of emoluments for every completed 6 monthly period of qualifying service
subject to a maximum of 33 times of emoluments.
Maximum amount of
Death Gratuity admissible is Rs. 10 lakhs w.e.f. 1.1.2006
Service Gratuity
A retiring Government
servant will be entitled to receive service gratuity (and not pension) if total
qualifying service is less than 10 years. Admissible amount is half month’s
basic pay last drawn for each completed 6 monthly period of qualifying service.
There is no minimum or maximum monetary limit on the quantum. This one time
lump sum payment is distinct from and is paid over and above the retirement
gratuity.
Issue of No Demand Certificate
Dues owed by the
retiring employees on account of Licence Fee for Government accommodation, advances,
over payment of pay and allowances are required to be assessed by the Head of
Office and intimated to the Accounts Officer two months in advance of the date
of retirement so that these are recovered from retirement gratuity before
payment. For this purpose the Licence Fee for those in occupation of Government
accommodation is taken into account up to the end of the permissible period for
which accommodation can be retained after retirement under the Rules on normal
rent. The recovery of Licence Fee beyond that period is the responsibility of
the Directorate of Estates. If, for any reason final dues cannot be assessed on
time, then 10% of gratuity is withheld from gratuity
General Provident Fund and Incentives
As per General
Provident Fund (Central Services) Rules, 1960, all temporary Government
servants after a continuous service of one year, all re-employed pensioners (Other
than those eligible for admission to the Contributory Provident Fund) and all
permanent Government servants are eligible to subscribe to the Fund. A
subscriber, at the time of joining the fund is required to make a nomination, in
the prescribed form, conferring on one or more persons the right to receive the
amount that may stand to his credit in the fund in the event of his death, before
that amount has become payable or having become payable has not been paid. A
subscriber shall subscribe monthly to the Fund except during the period when he
is under suspension. Subscriptions to the Provident Fund are stopped 3 months
prior to the date of superannuation. Rates of subscription shall not be less
than 6% of subscriber’s emoluments and not more than his total emoluments. Rate
of interest on GPF accumulations with effect from 1.4.2009 is 8% compounded
annually and the rate of interest will vary according to notifications of the
Government. The Rules provide for drawal of advances/ withdrawals from the Fund
for specific purposes.
Deposit Linked Insurance Revised Scheme
Under the GPF Rules, on
the death of subscriber, the person entitled to receive the amount standing to
the credit of the subscriber shall be paid an additional amount equal to the
average balance in the account during the 3 years immediately preceding the
death of the subscriber subject to certain conditions provided in the relevant
Rule. The additional amount payable under that Rule shall not exceed Rs. 60,000/-.
To get this benefit, the subscriber should have put in at least 5 years service
at the time of his/her death.
Contributory Provident Fund
The Contributory
Provident Fund Rules (India), ,1962 are applicable to every non-pensionable
servant of the Government belonging to any of the services under the control of
the President. A subscriber, at the time of joining the Fund is required to
make a nomination in the prescribed Form conferring on one or more persons the
right to receive the amount that may stand to his credit in the Fund in the
event of his death, before that amount has become payable or having become
payable has not been paid.
A subscriber shall
subscribe monthly to the Fund when on duty or Foreign Service but not during
the period of suspension. Rates of subscription shall not be less than 10% of
the emoluments and not more than his emoluments. The employer’s contribution at
that percentage prescribed by the Government will be credited to the
subscriber’s account and this is 10%. Rate of interest with effect from 1.4.2009
is 8% compounded annually. The Rules provide for drawal of advances/ withdrawals
from the CPF for specific purposes. As in GPF Rules, the CPF Rules also provide
for Deposit Linked Insurance Revised Scheme.
Leave Encashment
Encashment of leave
is a benefit granted under the CCS (Leave) Rules and not a pensionary benefit. Encashment
of Earned Leave/Half Pay Leave standing at the credit of the retiring
Government servant is admissible on the date of retirement subject to a maximum
of 300 days. There is no provision under the Rule for payment of interest on
delayed payment of Leave Encashment.
Central Government Employees Group Insurance Scheme
A portion of monthly
contributions paid while in service is credited in a Saving Fund, on which
interest accrues. A Government servant while entering service has to apply in
Form No. 4 of the above Scheme to the Head of Office, who shall issue a
sanction for the payment of subscriber’s accumulation in the Savings Fund
segment together with interest and arrange for its disbursement, soon after
retirement. Payments under this Scheme are made in accordance with the Table of
Benefit which takes in to account interest up to the date of cessation of
service. Insurance cover benefit under this Scheme is available to the family
in the event of death of the subscriber. No interest is payable on account of
delayed payments under this Scheme.
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