Central Government (Postal, Railways, Defence & other Departments) Retirement Benefits. Compilation of central government retirement benefits prepared by Tara Prasad Mahapatra,PA Paralakhemundi HO Gajapati-761200.
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Pension (CCS PENSION RULE 1972) (Only for OPS):
Pension is admissible to permanent employees who retire with qualifying service of 10 years or voluntary retirement after 20 years of qualifying service.
The different classes of pension are (Appointed before 01.01.2004)
Superannuation Pension:-On retirement after superannuation(At 60 years)
Retiring Pension :-On voluntary or Before superannuation.
Invalid Pension:-On retirement after declaration by the competent medical authority to be permanently incapacitated for further service
Compulsory Retirement:-On compulsory retirement as a measure of penalty
For any classes of pension minimum amount will be ₹ 9000 p.m. w.e.f.01-01-2016 & maximum will be 50 % of the highest pay(250000)
Pension Calculation:
From 01-01-2006 –Full pension is admissible to an employee retiring with min. qualifying service of not less than 10 years .
The amount of pension will be 50% of emoluments drawn on the date of retirement.(Emoluments =Basic pay + DA)
After 01-01-2016 ,the min. Pension amount shall be ₹ 9000 per month & max. Shall be 50 % of highest pay in Govt.(₹ 2,50,000).
Additional pension shall be payable after completion of 80 years.
Age of pensioner Additional pension
80 years to less than 85 years : 20 % of basic pension
85 years to less than 90 years : 30 % of basic pension
90 years to less than 95 years : 40 % of basic pension
95 years to less than100 years : 50 % of basic pension
100 years or more: 100 % of basic pension
Example :-
Suppose service of an employee is 31 years
Last Basic pay = 68000
Pension=50 % of last BP + DR(now 38 %)+FMA (1000)(if admissible)
= 50 % of 68000 + DR +1000 (If admissible)
= 34000 + 12920 +1000
=₹ 47920
BP-Basic pay,DR-Dearness relief,FMA-Fixed medical allowance Family Pension
Family pension is payable to the family of an employee on his death in service/after retirement.
Two types :
1.Normal rate of family pension
2.Higher(Enhanced) rate of family pension
1.Normal rate:-Based on last basic pay on the date of death or on the date of retirement Rate=30 % of pay last drawn subject to min. ₹ 9000 +DR (plus FMA 1000 where admissible)
2.Higher rate :-w.e.f. 01.10.2019,it is not admissible to dependent parents but eligible for normal rate only.
It is admissible from date of death to upto 10 years in case of death in service & for 7years in case of death after retirement or upto the date on which the govt. Servent would have attained 67 years had he survived,whichever is less.
Rate=50 % of last BP drawn +DR +FMA(1000)if admissible
Gratuity(DCRG)
Three types :
1.Service Gratuity
2.Retirement Gratuity
3.Death Gratuity
1.Service Gratuity:-No pension is admissible if qualifying service is less than 10 years.Instead,Service Gratuity is admitted.
Rate =Emoluments x No. Of completed six monthly period
2.Retirement Gratuity:-Admissible on Retirement after Min. 5 years of qualifying service.
Service Gratuity in addition to retirement Gratuity is admissible to those who have completed 5 years of qualifying service.
Retirement Gratuity =1/4 x Emoluments x No. Of completed six months (Max 16½ x Emoluments or 20 Lakh)
Example:- Last Basic pay=68000,DA=25840
Emoluments=68000 + 25840=93840
Qualifying Service =35 years i.e. 70 completed six months
Retirement Gratuity=¼ x 93840 x 70= ₹16,42,200
3.Death Gratuity:- Admissible in case of death of an employee while in service.Payable to nominee.
D.G. Formula=½ x Emoluments x No. Of completed six months
Example :-Last Basic pay=68000 ,DA=25840,Service =35 years
Emoluments=68000 + 25840=93840
Death Gratuity =½ x93840 x 70= ₹ 32,84,400(But max.Gratuity is 20 Lakh)
So here Death Gratuity will be 20 Lakh.
Death Gratuity depends on length of service
Length of Service Rate of Gratuity
Less than 1 year: 2 times of emoluments
1 year or more but less than 5 years: 6 times of emoluments
5 years or more but less than 11 years: 12 times of emoluments
11 years or more but less than 20 years: 20 times of emoluments
20 years or more: ½ xEmoluments x No. Of completed six months subject to 33 times of emoluments or 20 Lakh ,whichever is less.
Leave Encashment
Number of days of EL & HPL at the credit of employee leave account on the last day of his service are encashed.
Max. Limit for leave Encashment is 300 days.
300 days includes EL & HPL.
If 300 days of EL is not available for encashment ,then rest HPL will be added to complete 300 days.
Leave Encashment is calculated on last basic pay and DA.
For leave encashment a month is considered as 30 days.
Example:-Leave Account
EL =250 days
Max. Leave encashment 300 days
Last Salary details :-Last basic pay=68000 ,DA(38%)=25840
Emoluments=68000 + 25840=93840
Half of Emoluments =46920
EL Encashment=Total Emoluments x 250 = 93840 x 250 =782000
HPL=150 days
HPL Encashment = Total Emoluments x 50 = 46920 x 50 =78200
Total Leave Encashment =782000 + 78200 = ₹ 860200
Commutation of Pension (Only for OPS)
Every pensioner is eligible to commute a percentage of his monthly pension for a lumpsum payment which is called commuted value.
Max. Commutation upto 40 % of monthly pension.
DR is applicable on original pension during Commutation period of 15 years and Reduced pension will be given.
Restored after 15 years from the date of retirement.
Example:-Original pension = 34000 ,40 % of pension commuted=13600
Commutation factor as per the table for retirement at 60 years =8.194
Commutation amount = 40 % of pension commuted x 12 x commutation factor
=13600 x 12 x 8.194=₹ 13,37,261
Pension after commutation :- Reduced pension =20400 DR@38% of 34000=12910
Total pension=20400 +12920 =33,320
(Plus FMA=1000 if admissible)
Pension before Commutation:-Original pension=34000 DR@38% =12920
Total pension before commutation=34000 + 12920 = ₹ 46920
(Plus FMA=1000 if admissible)
Commutation Factor Table
TA on Retirement
The Travelling allowances would be admissible to the retired government servant and member of his family from the last station of his duty to his home town or to the place where he and his family is to settle down permanently even if it is other than his declared home town. T.A. Entitlement on Retirement includes 4 components :
a. Travel entitlement for self and family
b. Composite Transfer grant (CTG)
c. Reimbursement of charges on transportation of personal effects; and
d. Reimbursement of charges on transportation of conveyance
If a Government servants who, on retirement, settles at the last station of duty itself or within a distance of less than 20 kms may be paid one third of the CTG subject to the condition that a change of residence is actually involved.
The Composite Transfer Grant shall be paid at the rate of 80% of the last month's basic pay in case of transfer involving a change of station located at a distance of or more than 20 kms from each other.
The claim of a Govt. servant to Travelling Allowance on Retirement,is forfeited or deemed to have been relinquished, if the claim for it is not preferred within sixty days succeeding the date of completion of the journey. Similarly, TA claims in r/o transportation of personal effects and conveyance shall be submitted within sixty days succeeding the date on which these are actually delivered to the Govt. servant at the new station.
CGEGIS(Central Government Employees Group Insurance Scheme)
The scheme was notified on 1st November, 1980 and came into effect from 1st January 1982 with the objective to provide a low cost self reliant insurance coverage to Government servant .
The Scheme has got two funds, i.e. Insurance Fund and Savings Fund. The subscription to the scheme is apportioned between the Insurance Fund and the Savings Fund at the rate of 30% to Insurance Fund and 70% to Savings Fund.
The balance in the Savings Fund with accumulated interest thereon will be paid back to the employees who retire, reign from service, etc. The interest on saving fund is calculated based on table published by DOE on quarterly basis.
On death of a Government servant during service, an insurance amount of Rs. 1,20,000/-, Rs. 60000/- and Rs. 30000/- is paid to the family of a Group A, Group B and Group C Government servant, respectively, in addition to the amount in the savings fund.
General Provident Fund (GPF) (Only for OPS)
A subscriber shall, nominate one or more family members to receive the amount that may stand to his credit in the fund, in the event of his death.
The subscriber may nominate following family members to
receive the GPF accumulation after his death -
a. Spouse
b. Parents
c. Children
d. Minor brothers
e. Unmarried sisters
f. Deceased son‘s widow and children
g. and where no parents of the subscriber is alive, a paternal grandparent.
Female subscriber by notice in writing to the Accounts Officer can exclude the name of her husband from the definition of family for the purpose of receiving GPF accumulation after her death.
Subscription to be compulsorily discontinued during the last 3 months of service on superannuation.
A Government servant within 2 years of his retirement on superannuation may withdraw upto 90% of the balance in his GPF account, without assigning any reason.
No application is required for final payment of GPF at the time of retirement.
GPF Advance:-Limit of GPF advance is upto 12 months of pay or 75 % of amount at credit ,whichever is less.
Amount of advance is recoverable in maximum 60 installments.
GPF withdrawal can be allowed upto 90 % of balance amount.
Withdrawal can be possible after completion of 10 years of service.
Withdrawal can be made for various purposes like illness of self or family, renovation of Ancestral house,Higher education of children etc.
