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.
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.
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 months 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.
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 months 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. 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 subscribers 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. .
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.
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.
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.
Source: sapost.blogspot.in
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