Retirement Benefits for Central Government Employees
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.
