The minimum eligibility period for receipt of pension is 10 years. A Central Government servant retiring in accordance with the Pension Rulesis 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.
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.
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 16� 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 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
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.
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. 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 and 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 of advances/ withdrawals from the Fund for specific purposes.
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.
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.
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.
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 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.
I opted for Voluntary Retirement along with other 110 employees from the services of M/s. Hindustan Cables Ltd.,Rupnarainpur Unit(West Bengal) under the Ministry of Heavy Industries & Public Enterprises, Govt. of India on 31.03.2010. But unfortunately during retirement our legitimate admissible statutory dues i.e. the deducted portion of our enhanced PF contribution i.e. Arrear PF (both employee and employer along with interest thereof) on account of Wage Revision of 1992 and 1997 had not been disbursed to all of us, not to speak of other admissible retirement benefits. Now,as the Company has been declared closed by the concerned Ministry w.e.f. 01.02.2017 and as reported NCLT has ordered clearance of all admissible statutory dues of eligible employees, the RPFC, Durgapur started processing of PF disbursement. But we demanded the actual amount accrued with interest up to date (as was committed by the present Unit Management) a few months back against replies to RTI queries in this regard. God knows whether we will receive the actual amount with interest up to date or will be deprived of the same.
We would urge upon the concerned Ministry to immediately disburse all our legitimate dues before serving formal closure notice of M/s. Hindustan Cables Ltd.
As per the law of the land all retired Government employees ought to receive their retirement benefits either on the date of retirement or within a shortest possible time and if there is any delay in disbursement of retirement benefits of the employees, they should receive interest for the delayed period.
The retired employees of M/s. Hindustan Cables Ltd., Rupnarainpur Unit, West Bengal should not be deprived of their outstanding admissible retirement benefits (Arrear PF for 1992 and 1997 Wage Revisions along with Wage Arrear of 1997 Wage Revision) accrued with interest up to date for long delayed period till disbursement of the above mentioned benefits.
Ex-employees of M/s. Hindustan Cables Ltd, Rupnarainpur, West Bengal ought to receive their legitimate admissible outstanding retirement benefits accrued with interest up to date which is mandatory as per the law of the land.
Sir mein NSQF ki tarf se Punjab mein govt senior secondary school mein vocational teacher hu 06 dec 17 k imeri company ki tarf se joining hai. Aur sir mein army se 31Aug 17 se retire hu. Sir mein one year mein kitni aur kon kon si leave le sakta hu. Sir please reply
Accumulated Earned Leave (EL) at the time of resignation gets encashed subject to a maximum of 300 days. However, can the employer restrict encashment to only part of the unavailed ELs even if the total accumulated EL is less than 300 days?
Sir, please provide information about NPS also.
I was working in SBI till 12 february 2019. Bank given me CRS on that day. I had worked in bank 21 years 11 months. Bank not decline pension application reasion that my age was not 50 years. What should I do ?
I worked in a Private Ltd., company 30- years back and the this company is closed 7- years back.
Now I don’t any salary slip and the copany is deducted PF from my salary.How I can get the my PF money.
Now I don’t have any proof. Let me know what is to done?
Kindly guide me.
Thx & Rgds.,
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