1. Retirement Benefits
Commutation of Pension
Employees group Insurance Scheme (CGEGIS)
The Minimum eligibility period for receipt of pension is 10
years. A Central Government servant
retiring in in accordance with the pension Rule is entitled to receive pension
on completion of at least 10 years of qualifying service. The age prescribed
for retirement on superannuation is 60 years for all government servant.
Retirement is effective from the afternoon of the last day of the month in
which age of superannuation is attained.
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 had been examined by the appropriate Medical Authority and decided fit
for Government service.
W.e.f. 1.1.2006, pension is calculated with reference to
emoluments (i.e. last basic pay) average emoluments (i.e. average of the basic
pay drawn during the last 10 months of the service) whichever is more
beneficial. The amount of pension is 50%
of the emoluments or average emoluments whichever is beneficial.
Minimum pension presently is Rs. 9000/- per month. Maximum limit on pension is 50% of the
highest pay in the Government of India (presently Rs.1,25,000/-) per
month. Pension is payable up to and
including the date of death.
A Central Government servant has an option to commute a
portion of pension, not exceeding 40% of it, into a lump sum payment. 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 undergo medical examination by the specified
Lump sum payable is calculated with reference to the
commutation Table. 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
annexed to the CCS (commutation of Pension Rules, 1981.
Classes of Pension:-
3. Family Pension
Death/ Retirement Gratuity
This is payable to the retiring Government servant. A minimum of 5 years, qualifying service and
eligibility to receive service gratuity/ pension gratuity is calculated @ 1/4
of a month Basic Pay plus Dearness Allowance drawn on the date of retirement
for each completed six monthly period of qualifying service. There is no minimum limit for the amount of
gratuity. The retirement gratuity
payable for qualifying service of 33 years or more is (16 ½) times the Basic
Pay plus DA, subject to a maximum of Rs.20 lakhs.
This is a one-time lump sum benefit payable to the nominee
or family member of a Government servant 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:
Less than one year
2 times of basic
One year or more
but less than 5 years
6 times of basic
5 years or more but
less than 11 years
12 times of basic
11 years or more
but less than 20 years.
20 times of basic
20 years or more
Half of emoluments
for every competed 6 monthly period of qualifying service subject to a
maximum of 33 times of emoluments.
Maximum amount of Death
Gratuity admissible is Rs. 20 lakhs w.e.f. 01.01.2016
A retiring Government servant will be entitled to receive
service gratuity (and not pension) if total qualifying services less than 10
years. Admissible amount is half monthly
period of qualifying service. This one
time lump sum payment is distinct from retirement gratuity.
of No Demand Certificate
Dues owed by the retiring employees on account of license
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. For this
purpose license 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 License 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
on the basis of a commutation from the Directorate of Estates in this regard.
Encashment of leave is a benefit granted under the CCS
(Leave) Rules and is not a pensionery 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.
Central Government Employees Group Insurance Scheme(CGEGIS)
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 saving 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 (as issued by Department of Expenditure)
which takes into 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.