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.

Up to 30.11.2008, the qualifying service for getting full pension was 33 years. So, the pension amount received was – where R represents average reckonable emoluments for last 10 months of qualifying service or the last pay drawn as opted by the Govt servant. Family Pension: If the Govt. servant dies within service, family pension is received at 50% of last emoluments for 10 years and thereafter 30% w.e.f. 01.12.2008

Pension amount = R/2(X) 61/66 From 01.11.2008, the qualifying service for getting full pension has been changed to 25 years. So, the pension amount received would be – Pension amount = R/2(X) 49/50.

Additional Pension: w.e.f. 01.12.2008

Age (in years) Pension amount
80-85 20% of basic pension
85-90 30% of basic pension
90-95 40% of basic pension
95-100 50% of basic pension
100 & above 100%

Commuted value of Pension – 1/3rd of the basic pension was commuted up to 30.11.2008 From 01.12.2008 – 40% of the basic pension Government servants retiring on or after 31.12.2008, restoration of CVP is 15 years

 

Commutation of Pension

A Central Government/State 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

 

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. 7.5 lakhs with effective from 1/1/2006.

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 6 times of basic pay
One year or more but less than 5 years 2 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. 7.5 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.

 

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.
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