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Pension : Pensionary benefits

1. Retirement Benefits

 

Pension

Commutation of Pension

Death-cum-retirement Gratuity

Leave Encashment

Central Government Employees group Insurance Scheme (CGEGIS)

 

Pension

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.

 

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.  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 competent authority.

 

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:-

1.   Superannuation Pension

2.   Voluntary Pension

3.   Family Pension

4.   Compensation Pension

5.    Provisional Pension

 

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 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.

 

Death Gratuity

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:  

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 11 years

12 times of basic pay

11 years or more but less than 20 years.

20 times of basic pay

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

 

Service Gratuity

 

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.

 

 

Issue 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.   

 

Leave Encashment

 

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.