Retirement benefits

Category: Education

Presentation Description

PPt by S.C.Maheshwari contains all broad features of the Pension & other retirement benefits admissible to the employees covered under CCS (Pension) Rules 1972 Duly updated


Presentation Transcript

Your Retirement benefits Up dated-Courtesy DOP &PW:

1 Your Retirement benefits Up dated-Courtesy DOP &PW PPt by S.C.Maheshwari contains all broad features of the Pension & other retirement benefits admissible to the employees covered under CCS (Pension) Rules 1972 Duly updated

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2 Retirement Benefits PPt By Er. S.C. Maheshwari. Former DEN C.Rly

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3 Your Retirement Benefits WHO IS ELIGIBLE FOR PENSION A Central Government employee in pensionable service Contributory Provident Fund (CPF) beneficiaries in service on 1.1,1986 other than those who chose to continue under the CPF Scheme thereafter. Quasi permanent and temporary employees retiring on superannuation pension/invalidation with not less than 10 years service qualifying for pension. An employee who is dismissed or removed from service forfeits his pension Resignation from service entails forfeiture of past service

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4 WHEN YOU CAN GET PENSION Pension is payable on retirement after attaining the age of compulsory retirement (superannuation) or in advance of this age under certain circumstances Pension is also payable before the age of superannuation on voluntary retirement after rendering 20 years of qualifying service subject to other conditions as laid down in the Rules Family pension is payable to an eligible family member on the death of an employee while in service or after retirement

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5 CLASSES OFPENSION Pension granted under CCS (Pension) Rules, 1972 can be Superannuation Pension, Retiring Pension, Invalid Pension, Compensation Pension, Compulsory Retirement Pension or Compassionate Allowance or pension on absorption in PSU/ autonomous body. ( Information that follows relates to benefits on superannuation )

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6 WHAT ARE YOUR RETIREMENT BENEFITS MADE UP Retirement Benefits comprise the following : Pension or family pension subject to a guaranteed minimum of Rs. 3500 per month (Since 1.1.2006) Lump sum payment resulting from commutation of a portion of pension Retirement/death gratuity limited to a maximum of Rs. 10 lakh (since 1.1.2006). Dearness relief on pension/family pension at rates prescribed with reference to price rise (This remains suspended during employment/re-employment under the government) (For a qualifying service of less than 10 years only service gratuity is payable)

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7 HOW ARE YOUR PENSION/RETIREMENT BENEFITS WORKED OUT FOR RETIRED EMPLOYEES : Service Gratuity You are entitled to receive only service gratuity (and not pension) if your total qualifying service is less than 10 years It is calculated @ 1/ 2 month's emoluments for each completed six-monthly period of qualifying service An emolument for this purpose includes DA admissible at the time of retirement.

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8 There is no limit for minimum amount. The maximum retirement gratuity payable is Rs. 10 lakh from 1.1.2006. This is a one-time lump sum payment in lieu of pension and is distinct from and is paid over and above the retirement gratuity referred to later in this Section

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9 Pension If you have qualifying service of 10/20 years, your pension is calculated @ 50% of last pay or average emoluments (i.e. average of the basic pay drawn by you during the last 10 months of your service), whichever is more beneficial to you. Guaranteed minimum pension is Rs. 3500 per mensem (Rupees three thousand five hundred only) per month Maximum limit on pension is Rs. 45000 per mensem (Rupees forty five thousand only) Pension is payable upto and including the day of death

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10 Commutation of Pension You have the option to commute a portion of pension, not exceeding 40% of it, into a lump sum payment You need not undergo any medical examination if you exercise this option within one year of retirement The lump sum payable to you is calculated with reference to the Commutation Table as provided in CCS (Commutation of Pension) Rules, 1981. Your monthly pension will stand reduced by the portion commuted But, your dearness relief entitlement will be calculated on the basis of the full pension (i.e. including the commuted portion) The commuted portion of pension will be restored to you on the expiry of 15 years from the date of commutation

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11 Retirement gratuity 5 years' qualifying service and eligibility to receive service gratuity/pension is essential to get this one-time lump sum benefit Your retirement gratuity is calculated at the rate of 1/4 month's emoluments for each completed six-monthly period of qualifying service subject to a maximum of 16 &1/2 times the monthly emoluments. Emoluments for this purpose will include DA admissible at the time of retirement. There is no guaranteed minimum amount The maximum retirement gratuity payable is 16 & half . times the emoluments limited to Rs. 10 lakh from 1.1.2006. CPF beneficiaries are also eligible for this benefit.

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12 Dearness relief Dearness relief is sanctioned as compensation against price rise The quantum payable will be governed by the orders issued by the Government from time to time All pensioners, irrespective of the amount of their pension, are eligible for this benefit (except these on reemployment). There is no ceiling in regard to the total of pension plus dearness relief which a pensioner can receive

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13 FOR FAMILIES • Death gratuity Widow/widower or the nominee of a permanent or a quasi-permanent or a temporary employee, including CPF beneficiaries, dying while in service is entitled to receive death gratuity. There is no requirement of completing any minimum length of service by the deceased employee for this purpose Entitlement is regulated as under :

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14 Length of qualifying service Rate of death gratuity One year or more but less 6 times of *emoluments than 5 years 5 years or more but less 12 times of *emoluments than 20 years Less than 1 year 2 times of *emoluments 20 years or more Half of *emoluments for every Completed six-monthly period of qualifying service subject to a maximum of 33 times * The total of death gratuity payable cannot exceed Rupees Ten Lakhs in all cases. *Emoluments for this purpose include dearness allowance admissible at the time of retirement.

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15 Family pension Family pension becomes payable to the widow/widower or an eligible family member from the day following the date of death of the employee either while in service or after retirement The deceased employee should have had either one year of continuous service or should have been declared medically fit for government service if death takes place before completion of one year of continuous service It is payable only to one member of the family at a time barring cases wherein more than one widow is left behind. The guaranteed minimum amount is Rs. 3500 per month (Rupees three thousand five hundred only) (Since 1.1.2006)

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16 Entitlement is calculated as shown below:- Basic pay Amount of monthly family pension All levels 30% of basic pay subject to a minimum of Rs. 3500 per month since 1.1.2006 In case of a Govt. servant who dies while in service family pension at enhanced rate is admissible for a period of ten years from the date following the date of death. In case of death of a pensioner family pension at enhanced rate would be payable for a period of seven years or till the pensioner would have attained the age of 67 years. Like pension, family pension is also payable upto and including for the day of death of the recipient

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17 But, family pension is payable for life to a son/daughter who is suffering from any disorder/disability of mind or is physically crippled/disabled, thus rendering him/her unable to earn a living. Divorced, widowed and unmarried daughter, parents, dependant disabled siblings are eligible for family pension for life subject to fulfillment of certain conditions . Dearness relief to family pensioners is paid at the same rate and on the same conditions as for pensioners

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18 HOWTO CLAIM PENSION Pension claims are processed by your Head of Office. He is also responsible for settling the entitlements consequent to the death of an employee in harness The process for sanctioning your pension claims is required to be initiated by the Head of Office two years in advance of the retirement date in the prescribed form

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19 Eight months prior to the retirement date, you are to furnish certain information (e.g. joint photo with wife/husband, family details, name of bank through which you desire to draw your pension, etc) to your Head of office in Form 5,. Form 1 at may also be filled and filed with the head of Office Your co-operation with the Head of Office is vital to ensure timely settlement of your claims

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20 Pension is sanctioned by the Accounts officer who is required to issue your Pension Payment Order (PPO) not later than one month in advance of the retirement date. If any delay is anticipated in this, the Head of Office is required to sanction provisional pension and provisional gratuity. Normally/ family pension is also sanctioned at the same time as pension and indicated in the PPO. Family pension is to be drawn only after the death of the pensioner. In such cases no separate sanction for family pension is required

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21 INTEREST ON DELAYED PAYMENT You are entitled to receive interest on the amount of retirement/death gratuity if its payment is delayed due to administrative lapse beyond a period of 3 months. The interest shall be paid at such rates as may be prescribed and in accordance with the instructions issued from time to time.

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22 HOWPENSION IS PAID You may choose to receive your monthly pension/family pension through: • Public Sector Bank • Treasury • Pay & Accounts Office • Money Order • Post Office (for postal & railway pensioners) Nomination/Cheque Book/Standing Instructions facilities have been extended to pensioners drawing their pension through public sector banks.

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23 GENERAL Your PPO is a valuable document containing a running account of your pensionary entitlements. Please keep it in safe custody. All pensions/gratuities and dearness relief are payable in rupees in India only. They are expressed in whole rupees, the fraction being rounded off to the next higher rupee

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24 No employee can earn two pensions in the same service/ post at the same time or by the same continuous service. However, there is no bar to an employee drawing more than one pension due to a combination of pension and family pension or civil & military pension. Pension/family pension is payable upto and including the day on which its recipient dies.

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25 A pensioner is entitled to nominate any other person to receive his life-time arrears. The nomination is to be submitted to the Head of Office while the pension claims are being processed or to the pension disbursing authority any time thereafter. Grant of pension and its continuance are subject to future good conduct of the pensioners.

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26 Pension finally authorized cannot be revised to the disadvantage of the pensioner except to correct a clerical error. Pension cannot be attached, seized etc., for any demand against a pensioner; nor can a pensioner make any assignments, etc., in anticipation of pension But, if a pensioner is convicted of a serious crime or is found guilty of grave misconduct or negligence, pension may be withheld or withdrawn fully or partly for a specified or indefinite period. Recovery from pension may also be made for any pecuniary loss caused to the Government,

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27 Government dues (pertaining to government accommodation, outstanding balance of advances, overpayment, etc) are adjustable against gratuities (other than service gratuity) and/or dearness relief. Acceptance of certain kinds of post-retirement employment (e.g. commercial employment before expiry of one year from retirement, employment under foreign governments, etc) by pensioners who retired from Group A service/post requires prior permission of the Central government. Failure to comply with this requirement could lead to stoppage of pension for such period as may be decided by the Government

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28 REDRESS OF GRIEVANCES If you have any grievance/complaint in pension matters you may take it up with your Head of Office, the pension sanctioning authority or the pension disbursing authority, as the case may be. You may also approach the Dept. of Pension & Pensioners' Welfare, 3rd Floor, Lok Nayak Bhawan, Khan Market, New Delhi-110003, which provides the platform for facilitating redressal of the grievances of pensioners

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29 NON-PENSIONARY RETIREMENT BENEFTTS Retired employees or their families are also entitled to the following non-Pensionary retirement benefits: *Cash equivalent of leave salary for earned leave due to the employee, subject to a maximum of 300 days *Encashment of half pay leave due to the extent of shortfall in earned leave to make up the maximum of 300 days ceiling on Earned Leave for encashment above.

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30 *Insurance cover and/or accumulation in the Saving Fund under the Central Government Employees Group Insurance Scheme, 1980 *Normal dues from the GPF account and in the case of death of the employee while in service additional amount limited to Rs, 60,000 from the Deposit-linked Insurance Scheme under the General Provident Fund Rules * Transfer grant, TA/DA, packing allowance and cost of transportation of personal effects/conveyance to the retired employee and/or his family from the headquarters to the place chosen for settling down.

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31 FIXED MEDICAL ALLOWANCE Fixed Medical allowance @ Rs. 300 per month is paid to pensioners/family pensioners who are residing outside the jurisdictional area of CGHS scheme and other such schemes of other Ministries/Departments and would have been eligible for this scheme while in service. Medical facilities under the Central Government Health Scheme (CGHS) in about 25 cities areas covered by the scheme are also available to eligible Central Govt. pensioners on contribution/ payment basis.

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32 . You can lodge your grievance/complaint through Centralised web-based Pension Grievances Redress and Monitoring System (CPENGRAMS) for speedy redressal and effective monitoring of grievances by various Central Government Ministries/Departments/ Organisations. How to use this system is explained in the web site of the Department of Pension & Pensioners' Welfare at

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33 THANK YOU For more information visit www.

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