PENSION /

TERMINAL BENEFIT

By
S.S. ASWAL
JWM/OLF
 Welcome !

All The Participants

 TERMINAL BENEFIT LIST
 Pension
 Retirement / Death Gratuity (DCRG)

 Leave Encashment upto 300 days.

 Commutation of Pension

 General Provident Fund (CC0-9)

 Medical Facility option ( CGHS/Monthly Rs 1000/-)

 T.A. for Home Town for Self and family

 CGEGIS ( Central Government Employees Group

Insurance Scheme)
 Provisional Pension for 6 months if pension /
Gratuity is not in time
 Central Civil Services ( Pension )
Rules, 1972
These rules come into force on the 1st June 1972

These rules apply to Govt. Servant appointed on or

before the 31st day of December, 2003.

These rules shall not apply to :-

(i) Railway Servants.
(ii) Person in casual and daily rated employment
(iii) Persons paid from contingencies.
(iv) Members of the All India Services
 Pension
 Pension is admissible to permanent
employees who retire or are retired
with a qualifying service of not less
than ten (10) years.

 Temporary employees who retire on

superannuation or invalidation after
rendering not less than 10 years of
service or retire voluntarily after 20
years service are also eligible for
pension.
 Qualifying Service for Pension
It commence from the date GS takes charge of the post to
which he first appointed. Followoing periods will not count
as qualifying service.
(a). Service rendered before attaining the age of 18 Years.

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(b). Un regularised absence.
(c). Dies non
(d). EOL without MC.
(e). Period of suspension with major penalty.
(f). For feature of service on
resignation/dismissal/removal.
QS for pension/gratuity is calculated and expressed in
completed half years. Fractions equal to 03 months and
above shall be treated as one half year. Fraction of less than
03 months will be ignored.
 Pension subject to future good conduct
(a). Future good conduct shall be an implied condition
of every grant of pension and its continuance under
these rules.
(b). The AA may, by order in writing, withhold or

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withdraw a pension or a part there of whether
permanently or for a specified period, if the
pensioner is convicted of a serious crime or is found
guilty of grave misconduct (case study).
(c). A GS should not accept commercial employment
within one year from the date of his retirement
without the previous sanction of the Govt.
(d). A retd. Group ’A’ GS should not accept any
employment under any Govt. outside India
without the prior sanction of the central Govt.
 Last working Day
The last working day for a government

8
servant is the date of retirement/
discharge /resignation/death.

However if a government servant retires

prematurely or voluntarily, the date of
retirement is treated as non working
day.
 CLASSES OF PENSION

 1. Superannuation Pension –
Government servant who is retired on
his attaining the age of retirement (i.e.
60 years).

 2.
Retiring pension – On voluntary or
premature retirement before
superannuation

 3.Pension on absorption in or under a

corporation company or body.- Pro rata
retirement benefits
 4. Pension on absorption consequent upon
conversion of a government into a central
autonomous body of PSU.

 5. Invalid Pension – On retirement after being

declared by the competent authority to be a
permanently incapacitated for further service. A
Govt. servant applying for an invalid pension shall
submit a medical certificate of incapacity.

 6. Compensation pension - On selection for

discharge owing to the abolition of his permanent
post and provision of alternate employment of
equal status is not possible, or offer of a lower post
is not accepted.
 7. Compulsory Retirement Pension- On
compulsory retirement as a measure of penalty. Such
pension or gratuity or both will not be less than two
thirds nor more than full compensation pension or
gratuity.

 8. Compassionate Allowance- On dismissal or

removal sanctioned by the competent authority in a
case deserving of special consideration. This is also
pension but the pension or gratuity or both will not
exceed 2/3 of compensation pension.)
 Minimum amount of Pension – Rs
9000/-

 Maximum amount of Pension – 50% of

the highest pay in the Government.
(i.e. 1,25,000/-)
Preparation for providing
Pension
 (i) List of retiring Government servants – 2
Years before
 (ii) Preparation of pension papers

 (iii) Furnishing of particulars of qualifying

service etc. to retiring government servant.
 (iv) Forwarding of pension papers to the
Accounts officer (PCDA)– Before Three
months.
 (v) Intimation of govt. dues to Accounts
Officer.
CALCULATION OF PENSION

FROM 01-01-2006 – FULL PENSION IS ADMISSIBLE TO

AN EMPLOYEE WITH MINIMUM QUALIFYING SERVICE
OF NOT LESS THAN 10 YEARS.

THE AMOUNT OF PENSION WILL BE 50% OF THE

AVERAGE EMOLUMENTS OR 50% OF EMOLUMENT
DRAWN ON THE DATE OF RETIREMENT, WHICHEVER IS
MORE BENEFICIAL.

FOR ALL CLASSES OF PENSION (INCLUDING

COMPASSIONATE ALLOWANCE), THE METHOD OF
DETERMINATION OF PENSION IS THE SAME.

THE AMOUNT OF PENSION SHOULD BE ROUNDED OFF

TO THE NEXT HIGHER RUPEE.
ADDITIONAL QUANTUM OF
PENSION
(WHEN PENSIONER ATTAINS THE AGE OF 80 YEARS
AND ABOVE)

80 - 85 YEARS = 20% OF BASIC PENSION

85-90 YEARS = 30 % OF BASIC PENSION
90-95 YEARS = 40% OF BASIC PENSION
95-100 YEARS = 50% OF BASIC PENSION
100 YEARS OR = 100% OF BASIC PENSION
MORE
 DEARNESS RELIEF TO PENSIONERS/
FAMILY PENSIONERS

 From 01-01-06, Dearness Relief (DR) is granted to

compensate for the increase in cost of living, twice in
a year from 1st Jan. and 1st July.
 Admissible on original pension before commutation
and also the additional / family pension.
 Fraction of a rupee shall be rounded off to the next
higher rupee.
 Dearness Relief will be admissible from 18-07-1997
to employed family pensioners also.
 For pensioners / family pensioners in receipt of more
than one pension the DR will be calculated on the
total of all pensions taken together.
1- SERVICE GRATUITY- NO PENSION IS
ADMISSIBLE TO A PERMANENT EMPLOYEE WHO
RETIRES BEFORE COMPLETION OF 10 YEARS OF
QUALIFYING SERVICE. INSTEAD A LUMPSUM
PAYMENT KNOWN AS SERVICE GRAUTITY AT THE
RATE OF HALF MONTH’S EMOLUMENTS FOR
EVERY COMPLETED SIX MONTHLY PERIOD OF
QUALIFYING SERVICE IS ADMITTED.
EMOLUMENTS = BP+NPA+DA (ON THE
DOR)

THIS GRATUITY IS IN ADDITION TO

RETIREMENT GRATUITY ADMISSIBLE TO THOSE
WHO COMPLETED 5 YEARS OF QUALIFYING
SERVICE.
2- RETIREMENT GRATUITY – ADMISSIBLE TO
ALL EMPLOYEES WHO RETIRE AFTER COMPLETION OF
5 YEARS OF QUALIFYING SERVICE AT THE RATE OF ¼
OF EMOLUMENTS FOR EACH COMPLETED 06
MONTHLY PERIOD OF QUALIFYING SERVICE SUBJECTS
TO A MAXIMUM OF 16 ½ TIMES OF THE EMOLUMENTS
OR RS 20 LAKHS, WHICHEVER IS LESS. .

EMOLUMENTS = BP + NPA + DA (ON THE DOR)

ROUNDING OFF – THE AMOUNT OF GRATUITY

SHOULD BE ROUNDED OFF TO THE NEXT HIGHER
RUPEE
 Death gratuity
Admissible in the case of death in service of an
employee at the following rates :-
Length of service Death gratuity payable to
family
a Less than one year 2 times of ‘emoluments’.
.
b One year or more, but 6 times of ‘emoluments’.
.less than 5 years.
c. 5 years or more, but 12 times of ‘emoluments’.
less than 11 years
d 11 years or more, but 20 times of ‘emoluments
less than 20 years
d 20 years or more Half of emoluments for every
completed six-monthly period of
qualifying service subject to a
maximum of 33 times of
 Residuary Gratuity –
when an employee dies within five years
after retirement, and the total amount
actually received by him on account of
pension (or service gratuity), dearness relief
on pension, retirement gratuity, commutation
amount is less than 12 times the
‘emoluments’ drawn at the time of
retirement, the deficiency is granted to his
nominee/family. This is ‘Residuary Gratuity’.
Interest payable on delayed payment of
DCRG
If delayed beyond 3 months from the date of
retirement, an interest at the rate applicable
to GPF deposits
 PAYMENT OF PENSION
 Pension Payment Order (P.P.O.) :- The
Accounts Office (PCDA)) responsible for issuing
PPO will issue authority to the pension disbursing
authority (PDA) from whom the pension is desired
to be drawn monthly.
 Pension Disbursing Authority (PDA) – Pension
is disbursed through Treasuries, Pay and Accounts
Offices, Post Offices and selected Nationalized
Banks.
 Due Date:- Pension fixed at monthly rates are
payable on the last working day of the month to
which they relate except in the case of pension for
the month of March which shall be paid on or after
the first working day of April. All pensions and
gratuities shall be payable in rupees in India
 COMMUTATION OF PENSION
 Every pensioner is eligible to commute a
percentage of his monthly pension for a
lumpsum payment which is the commuted
value of that percentage of the pension.
 Commutation of a percentage of
compassionate allowance is also admissible.
 An employee or pensioner against whom
departmental or judicial proceedings are
pending is not eligible till completion of such
proceeding.
 Amount admissible – Not exceeding 40%
of monthly pension.
 ENCASHMENT OF LEAVE
 Encashment of Earned leave - From
01/01/2006, the authority competent to sanction
leave should automatically grant lump sum cash
equivalent of leave salary admissible for the
number of days of earned leave and half pay
leave at the credit of the employee on the last day
of his service, subject to overall limit of 300 days.
GROUP INSURANCE SCHEME, 1980
1- Scope – The Scheme, which is compulsory to all
the Central Government employees, (including
Departmental Canteen employees) provides at a
low cost and on contributory and self-financing
basis, the twin benefits of an insurance cover to
help their families in the event of death in service
and a lumpsum payment to augment their
resources on retirement.
2- Membership - Employees are enrolled as
members of the Scheme only from 1st January
every year. If an employee enters service on or
after 2nd January in any year, he is enrolled as a
member only from 1st January of the next year.
From the actual date of appointment to 31st
December, he will be entitled only to Insurance
Cover.
3 Monthly subscription and amount of Insurance
Cover:-
Group to which Rate of Amount of
the employee subscription Insurance
belongs Cover

Rs. Rs.

‘A’ 120 1,20,000

‘B’ 60 60,000
‘C’ 30 30,000
 T.A. ON RETIREMENT
 1. Entitlements – When the retired employee
settles down in a station other than the last station
of duty :- same as on transfer including lumpsum
Composite Transfer Grant. Travel by air is also
admissible.
 2. The retired employee and family may travel from
the last headquarters to the declared Home town, or
to any other selected place of residence where he
wishes to settle.
 3. The concession is not admissible to persons who
are compulsorily retired as measure of punishment.
 4. Time – The concession should be availed by the
employee during leave preparatory to retirement or
within one year of the date of his retirement.
 Pension Calculation
Date of retirement = 31-1-2012 (A/N)
Qualifying service = 33 years (MORE THAN 10 YEARS)
Basic Pay= Rs.23,400 From 1-4-2011
= Rs.24,110 From 1-7-2011

Average emoluments ( 1-4-2011 to 31-1-2012)

= [Rs. 23,400 *3 + Rs.24,110* 7] /10
= (Rs. 70,200 + Rs.1,68,770) /10 =Rs. 23,897.
Pension = 50% of average emoluments
= Rs. 23,897*50/100 = Rs.11949 /-
OR
Pension = 50% of last pay drawn = 50% of 24110 = Rs 12055
Whichever is more beneficial.

Pension admissible = Rs. 12,055 p.m.

 RETIREMENT GRATUITY

 Basic Pay = Rs. 25,400

 Dearness Allowance @ 100% of Basic Pay = Rs. 25,400
 EMOLUMENTS = ( BP + DA )
= Rs. 25400 + 25400 = Rs. 50800
Retirement gratuity admissible :-
For 33 years or more of qualifying service.
= Rs. 50800 x ¼ x 66 = Rs. 838200

For 22.5 years of qualifying service.

= Rs. 50800 x ¼ x 45 = Rs. 571500
 DEATH GRATUITY
Band Pay = Rs. 25,400
Dearness Allowance @ 100% of Basic Pay = Rs. 25,400
EMOLUMENTS = ( BP + DA )
= Rs. 25,400 + 25400 = Rs. 50,800
Death gratuity admissible :-
(a) For 33 years or more of qualifying service.
= Rs 50800 x ½ x 66 = Rs 1676400 (limited to 20
lakhs)
(b) For 22.5 years of qualifying service.
= Rs 50800 x ½ x 45 = Rs 1143000 (limited to 20
lakhs)
(c ) For 02 years of qualifying service.
= Rs 50800 x 6 = Rs. 304800
 COMMUTATION OF PENSION
 Formula = Amount to be commuted x Commutation value x
12
Pension of official = Rs. 4,786. The maximum amount that he can
commuted Pension = 40% of pension = 40 x 4786 / 100 = Rs 1914.4
= Rs. 1,914 (ignoring the balance fraction) .
The commutation amount (rounded off to the next higher
rupee)
Agewill
nextbeCommutation
as follows according to his ageCommutatio
Calculation next birthday:-
birthday value as per n Amount
table
48 8.913 1,914 x 8.913 x 12 = Rs. 2,04,714
52 8.768 1,914 x 8.768 x 12 = Rs. 2,01,384
57 8.512 1,914 x 8.512 x 12 = Rs. 1,95,504
58 8.446 1,914 x 8.446 x 12 = Rs. 1,93,988
59 8.371 1,914 x 8.371 x 12 = Rs. 1,92,266
60 8.287 1,914 x 8.287 x 12 = Rs. 1,90,336
61 8.194 1,914 x 8.194 x 12 = Rs. 1,88,200
 FAMILY PENSION
 Family pension is payable to the family of an
employee / pensioner on his death in service / after
retirement.
1.Normal rate of family pension –
= 30% of Basic Pay last drawn or average
emoluments drawn during the last 10 months} ,
subject to a minimum of Rs 9000/-
2.Higher rate of family pension :-
If the deceased had rendered not less than seven
years continuous service.
Payable from the date following the date of death.
Not admissible to dependent parents, they are
eligible only for the normal rate.
 HIGHER RATE OF FAMILY PENSION
(a) In the case of death in service:-
Payable to the family for a period of 10 years from
the date of death of a Govt. servant, without any
upper age limit.
One and a half times the normal rate of family
pension, if compensation under WC act is also paid
Fifty percent of the pay last drawn in other cases.
(b) In the case of death after retirement:-
Payable for a period of seven years or up to the date
on which he would have attained 67 years had he
survived, whichever is less.
Fifty percent of pay drawn at the time of retirement
or the amount of pension authorized on retirement,
whichever is less
 FAMILY PENSION

 A Central Govt. servant drawing Basic Pay Rs

23400 from 1-8-12 died on 31-10-12 while in
service. His date of birth is 6-6-1953.
 His family is eligible for payment of family
pension as detailed below:-
 (i) At enhanced rate from 1-11-2012 to 31-10-2022
 (ii) At normal rate from 1-11-2022 onwards

 Family pension:

 Normal rate:

 30% of Basic Pay last drawn:

 Rs 23,400*30/100=Rs 7,020 p.m. subject to a minimum

of Rs 9,000p.m.
Enhanced rate :
Twice the normal rate limited
to 50% of Basic Pay last drawn
= Rs. 7,020 x 2 = Rs. 14,040
OR
Rs. 23,400 x 50/100
= Rs. 11,700
(whichever is less, i.e., Rs. 11,700
p.m.)
 (b) A Central Government servant drawing
Basic Pay of Rs. 26,420 retired on
superannuation on 30-9-2012, his date of birth
being on 10-9-1952. He was granted pension of
Rs. 13,210 p.m. He died on 12-10-2012.

His family is eligible for the payment of family

pension as detailed below :-

i. At enhanced rate from 13-10-2012 to 9-9-2019

(Attains the age of 67 years on 9-9-2019)

ii. At normal rate from 10-9-2019 onwards.

Family pension :

Normal rate:
30% of (Band Pay + GP) = Rs. 26,420 x 30/100
= Rs. 7926 p.m.
Enhanced rate:
Twice the normal rate of FP = Rs. 7926 x 2
= Rs. 15852 p.m.
or
50% of Basic Pay = Rs. 26420 x 50/100
last drawn or amount p.m. = Rs. 13210 p.m.
( Whichever is the least )
Pension granted on retirement = Rs 13210 p.m.

The family will be eligible for grant of

family pension:

From 13-10-2012 to 9-9-2019 @ RS. 13210 p.m.

From 10-9-2019 onwards – Rs. 7926 p.m.

(Dearness Relief on family pension is admissible as per

the rates prescribed from time to time.)
 Thank you
&
All the Best
nd
For 2 inning of life.