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 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 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 emoluments (i.e.last basic pay) or
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.
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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 under-go 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.
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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 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 16½ 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 completed 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. 1.1.2016
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 plus DA for each completed 6 monthly period of
qualifying service. This one time lump sum payment is distinct from retirement gratuity
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 on the basis of a commutation
from the Directorate of Estates in this regard.
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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.
However, these rules are not applicable to any of the Government Servants who join service on or after 1.1.2004. 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 are not more than his emoluments. Rate of interest varies according to notifications of the Government issued from time to time.
The rules provide for drawal advances/ withdrawals from the fund for specific purposes.
The conditions for withdrawal from the fund have been liberalized and now no documentary proof is required to be furnished by the subscriber for GPF withdrawal. On retirement of a subscriber, instructions have been issued for immediate payment of final balance on retirement. No application is required to be submitted by the subscriber for final payment from the fund.
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Deposit Linked Insurance 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.
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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%. 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
Scheme.
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Leave Encashment
Encashment of leave is a benefit granted under the CCS (Leave)
Rules and is 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.
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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 (as issued by Department of Expenditure) 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.
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