Your Retirement Benefits
WHO IS ELIGIBLE FOR PENSION
A Central Government employee in pensionable
service
A Central Government servant who joined in
pensionable service prior to 01.01.2004, retiring in
accordance with the Pension Rules is entitled to
receive pension on completion of at least 10 years of
qualifying service.
In the case of Family Pension the widow is eligible to
receive family pension on death of her spouse after
completion of one year of continuous service or even
before completion of one year if the Government
servant has been examined by the appropriate
Medical Authority and declared fit for Government
Service.
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Your Retirement Benefits
WHO IS ELIGIBLE FOR PENSION
Contributory Provident Fund(CPF) beneficiaries in
service on 01.01.1986 other than those who chose to
continue CPF Scheme thereafter.
Temporary employees retiring on uperannuation
pension/invalidation with not less than 10 years
service qualifying for pension.
An employee who is dismissed or removed from
service forfeits his pension
Resignation from service entails forfeiture of past
service.
Less than 10 years of service only service
gratuity/death gratuity is payable.
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WHEN YOU CAN GET PENSION
Pension is payable on retirement after attaining the
age of compulsory retirement (superannuation) or
in advance of this age under certain circumstances
Pension is also payable before the age of
superannuation on voluntary retirement after
rendering 20 years of qualifying service as laid
down in the Rules under Rule 48 of CCS(Pension)
Rules or attaining age of 50/55 years under FR
56(K) subject to other conditions
Family pension is payable to an eligible family
member on the death of an employee while in
service or after retirement
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CLASSES OFPENSION
Pension granted under CCS (Pension)
Rules, 1972 can be Superannuation
Pension, Retiring Pension, Invalid Pension,
Compensation Pension, Compulsory
Retirement Pension or Compassionate
Allowance or pension on absorption in
PSU/ autonomous body.
(Information that follows relates to benefits on
superannuation )
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WHAT ARE YOUR RETIREMENT BENEFITS MADE UP
Retirement Benefits comprise the following :
Pension or family pension subject to a guaranteed
minimum of Rs. 9000 per month (Since 1.1.2016)
Lump sum payment resulting from commutation of a
portion of pension
Retirement/death gratuity limited to a maximum of Rs.
20 lakh (since 1.1.2016).
Dearness relief on pension/family pension at rates
prescribed with reference to price rise (This remains
suspended during employment/re-employment under
the government)
(For a qualifying service of less than 10 years only
service gratuity is payable)
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HOW ARE YOUR PENSION/RETIREMENT BENEFITS
WORKED OUT
FOR RETIRED EMPLOYEES :
Service Gratuity
You are entitled to receive only service gratuity
(and not pension) if your total qualifying
service is less than 10 years
It is calculated @ 1/2 month's emoluments for
each completed six-monthly period of
qualifying service
An emolument for this purpose includes DA
admissible at the time of retirement.
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There is no limit for minimum amount.
The maximum retirement gratuity payable
is Rs. 20 lakh from 1.1.2016.
This is a one-time lump sum payment in
lieu of pension and is distinct from and is
paid over and above the retirement
gratuity referred to later in this Section
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Pension
If you have qualifying service of 10/20 years, your
pension is calculated @ 50% of last pay or average
emoluments (i.e. average of the basic pay drawn by you
during the last 10 months of your service), whichever is
more beneficial to you.
Guaranteed minimum pension is Rs. 9000 per mensem
(Rupees Nine thousand only) per month
Maximum limit on pension is Rs. 1,25,000 per mensem
(Rupees one lac and twenty five thousand only)
Pension is payable upto and including the day of death
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Commutation of Pension
You have the option to commute a portion of pension,
not exceeding 40% of it, into a lump sum payment
You need not undergo any medical examination if you
exercise this option within one year of retirement
The lump sum payable to you is calculated with
reference to the Commutation Table as provided in CCS
(Commutation of Pension) Rules, 1981.
Your monthly pension will stand reduced by the portion
commuted
But, your dearness relief entitlement will be calculated
on the basis of the full pension (i.e. including the
commuted portion)
The commuted portion of pension will be restored to you
on the expiry of 15 years from the date of commutation
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Retirement gratuity
5 years' qualifying service and eligibility to receive
service gratuity/pension is essential to get this one-time
lump sum benefit
Your retirement gratuity is calculated at the rate of 1/4
month's emoluments for each completed six-monthly
period of qualifying service subject to a maximum of 16
&1/2 times the monthly emoluments.
Emoluments for this purpose will include DA admissible
at the time of retirement.
There is no guaranteed minimum amount
The maximum retirement gratuity payable is 16 & half.
times the emoluments limited to Rs. 20 lakh from
1.1.2016.
CPF beneficiaries are also eligible for this benefit.
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Dearness relief
Dearness relief is sanctioned as compensation
against price rise
The quantum payable will be governed by the
orders issued by the Government from time to
time
All pensioners, irrespective of the amount of
their pension, are eligible for this benefit (except
these on reemployment).
There is no ceiling in regard to the total of
pension plus dearness relief which a pensioner
can receive
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FOR FAMILIES
• Death gratuity
Widow/widower or the nominee of a permanent
or a quasi-permanent or a temporary employee,
including CPF beneficiaries, dying while in
service is entitled to receive death gratuity.
There is no requirement of completing any
minimum length of service by the deceased
employee for this purpose
Entitlement is regulated as under :
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Length of qualifying service Rate of death gratuity
Less than one year 2 times of * emoluments
One year or more but less 6 times of *emoluments
than 5 years
5 years or more but less 12 times of *emoluments
than 11 years
11 years or more but less than 20 times of * emoluments
20 years or more Half of *emoluments for
every Completed
six-monthly period of
qualifying service
subject to a maximum
of 33 times
*The total of death gratuity payable cannot exceed Rupees
Twenty Lakhs in all cases.
*Emoluments for this purpose include dearness allowance
admissible at the time of retirement.
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Family pension
Family pension becomes payable to the widow/widower
or an eligible family member from the day following the
date of death of the employee either while in service or
after retirement
The deceased employee should have had either one year
of continuous service or should have been declared
medically fit for government service if death takes place
before completion of one year of continuous service
It is payable only to one member of the family at a time
barring cases wherein more than one widow is left
behind.
The guaranteed minimum amount is Rs. 9000 per month
(Rupees nine thousand only) (Since 1.1.2016)
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Entitlement is calculated as shown below:-
Basic pay Amount of monthly family pension
All levels 50% of basic pay subject to a
minimum of Rs. 9000 per month
since 1.1.2016
In case of a Govt. servant who dies while in service
family pension at enhanced rate is admissible for a
period of ten years from the date following the date of
death.
In case of death of a pensioner family pension at
enhanced rate would be payable for a period of seven
years or till the pensioner would have attained the age
of 67 years.
Like pension, family pension is also payable upto and
including for the day of death of the recipient
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But, family pension is payable for life to a
son/daughter who is suffering from any
disorder/disability of mind or is physically
crippled/disabled, thus rendering him/her unable
to earn a living. Divorced, widowed and
unmarried daughter, parents, dependant
disabled siblings are eligible for family pension
for life subject to fulfillment of certain
conditions.
Dearness relief to family pensioners is paid at
the same rate and on the same conditions as for
pensioners
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HOWTO CLAIM PENSION
Pension claims are processed by your
Head of Office. He is also responsible for
settling the entitlements consequent to
the death of an employee in harness
The process for sanctioning your pension
claims is required to be initiated by the
Head of Office two years in advance of the
retirement date in the prescribed form
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Eight months prior to the retirement date,
you are to furnish certain information (e.g.
joint photo with wife/husband, family
details, name of bank through which you
desire to draw your pension, etc) to your
Head of office in Form 5,. Form 1 at may
also be filled and filed with the head of
Office
Your co-operation with the Head of Office
is vital to ensure timely settlement of your
claims
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Pension is sanctioned by the Accounts officer
who is required to issue your Pension Payment
Order (PPO) not later than one month in
advance of the retirement date.
If any delay is anticipated in this, the Head of
Office is required to sanction provisional pension
and provisional gratuity.
Normally/ family pension is also sanctioned at
the same time as pension and indicated in the
PPO. Family pension is to be drawn only after
the death of the pensioner. In such cases no
separate sanction for family pension is required
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INTEREST ON DELAYED PAYMENT
You are entitled to receive interest on the
amount of retirement/death gratuity if its
payment is delayed due to administrative
lapse beyond a period of 3 months. The
interest shall be paid at such rates as may
be prescribed and in accordance with the
instructions issued from time to time.
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HOWPENSION IS PAID
You may choose to receive your monthly
pension/family pension through:
• Public Sector Bank
• Treasury
• Pay & Accounts Office
• Money Order
• Post Office (for postal & railway pensioners)
Nomination/Cheque Book/Standing Instructions
facilities have been extended to pensioners
drawing their pension through public sector
banks.
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GENERAL
Your PPO is a valuable document
containing a running account of your
pensionary entitlements. Please keep it in
safe custody.
All pensions/gratuities and dearness relief
are payable in rupees in India only.
They are expressed in whole rupees, the
fraction being rounded off to the next
higher rupee
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No employee can earn two pensions in the
same service/ post at the same time or by
the same continuous service. However,
there is no bar to an employee drawing
more than one pension due to a
combination of pension and family pension
or civil & military pension.
Pension/family pension is payable upto
and including the day on which its
recipient dies.
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A pensioner is entitled to nominate any
other person to receive his life-time
arrears. The nomination is to be submitted
to the Head of Office while the pension
claims are being processed or to the
pension disbursing authority any time
thereafter.
Grant of pension and its continuance are
subject to future good conduct of the
pensioners.
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Pension finally authorized cannot be revised to the
disadvantage of the pensioner except to correct a
clerical error.
Pension cannot be attached, seized etc., for any
demand against a pensioner; nor can a pensioner
make any assignments, etc., in anticipation of
pension
But, if a pensioner is convicted of a serious crime
or is found guilty of grave misconduct or
negligence, pension may be withheld or withdrawn
fully or partly for a specified or indefinite period.
Recovery from pension may also be made for any
pecuniary loss caused to the Government,
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Government dues (pertaining to government
accommodation, outstanding balance of
advances, overpayment, etc) are adjustable
against gratuities (other than service gratuity)
and/or dearness relief.
Acceptance of certain kinds of post-retirement
employment (e.g. commercial employment
before expiry of one year from retirement,
employment under foreign governments, etc) by
pensioners who retired from Group A
service/post requires prior permission of the
Central government. Failure to comply with this
requirement could lead to stoppage of pension
for such period as may be decided by the
Government
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REDRESS OF GRIEVANCES
If you have any grievance/complaint in
pension matters you may take it up with
your Head of Office, the pension
sanctioning authority or the pension
disbursing authority, as the case may be.
You may also approach the Dept. of
Pension & Pensioners' Welfare, 3rd Floor,
Lok Nayak Bhawan, Khan Market, New
Delhi-110003, which provides the platform
for facilitating redressal of the grievances
of pensioners
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NON-PENSIONARY RETIREMENT BENEFTTS
Retired employees or their families are also
entitled to the following non-Pensionary
retirement benefits:
*Cash equivalent of leave salary for earned
leave due to the employee, subject to a
maximum of 300 days
*Encashment of half pay leave due to the extent
of shortfall in earned leave to make up the
maximum of 300 days ceiling on Earned Leave
for encashment above.
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*Insurance cover and/or accumulation in the
Saving Fund under the Central Government
Employees Group Insurance Scheme, 1980
*Normal dues from the GPF account and in the
case of death of the employee while in service
additional amount limited to Rs, 60,000 from the
Deposit-linked Insurance Scheme under the
General Provident Fund Rules
* Transfer grant, TA/DA, packing allowance
and cost of transportation of personal
effects/conveyance to the retired employee
and/or his family from the headquarters to the
place chosen for settling down.
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FIXED MEDICAL ALLOWANCE
Fixed Medical allowance @ Rs. 300 per month is
paid to pensioners/family pensioners who are
residing outside the jurisdictional area of CGHS
scheme and other such schemes of other
Ministries/Departments and would have been
eligible for this scheme while in service.
Medical facilities under the Central Government
Health Scheme (CGHS) in about 25 cities areas
covered by the scheme are also available to
eligible Central Govt. pensioners on contribution/
payment basis.
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. You can lodge your grievance/complaint
through Centralised web-based Pension
Grievances Redress and Monitoring
System (CPENGRAMS) for speedy
redressal and effective monitoring of
grievances by various Central Government
Ministries/Departments/ Organisations.
How to use this system is explained in the
web site of the Department of Pension &
Pensioners' Welfare at
[Link].
For more details read Pensioners hand book by Er S.C. Maheshwari
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