Central Civil Services PENSION RULES.pptx

Pension Rules of central govt

1. Welcome To Training Session On Central Civil Services Pension Rules, 1972

2. General Retirement on superannuation – 60 years of age for all Government Servants Retirement is effective from the A/N of the last working day of the month in which age of superannuation is attained IF DOB is the first of a month, he/she shall retire on the A/N of the last of the preceding month The day of retirement treated as working day Relinquishing charge on the A/N of the last day of the month even if it happens to be closed holiday. Cash, stores etc. may be made over by the relinquishing officer on the close of the previous working day Actual relinquishment of charge of office shall be made in the prescribed form on the last day of service for which physical presence need not be insisted

3. General Any claim for pension/gratuity/Family pension benefits – on the basis of rules in force as on the date on which employee ceases to be in service due to retirement or death Not eligible for two pensions in same service or post or by the same continuous service A pensioner receiving superannuation or retiring pension and re-employed subsequently is not eligible for a separate pension and gratuity for the period of re-employment Pension subject to future good conduct – Conviction of a serious – whole or part of pension may be withheld or withdrawn – for a specific period or permanently President has right to withhold or withdraw pension – Recovery of any pecuniary loss caused to Government, if any departmental or judicial proceedings, the pensioner is found guilty during the period of service including reemployment after retirement

4. Commercial employment A retired Group ‘A’ Government servant should not accept any Commercial Employment within one year from the date of retirement without the previous sanction of the Government If accepts without previous sanction – may withhold whole or part of the pension A retired Group ‘A’ Government servant should not accept any employment under any Government out side India without the previous sanction of the Central Government If accepts without sanction – No pension is payable during such appointment or for a longer period as may be ordered by Government. If permission obtained during LPR, no further permission is required

5. Qualifying service Commences from the date takes charge of the post to which he is first appointed in a permanent capacity. Temporary service followed by confirmation without interruption in service will also count Service in State Government if appointed on deputation to Central Government and subsequently transferred permanently to the Central Government – counts Duty, periods treated as duty, All kinds of leave with salary, Deputation and Foreign service, EOL on MC, EOL without MC but inability to join, Pre appointment training followed immediately by appointment as Group C, Service on probation followed by confirmation, Service as SAS apprentice, Suspension followed by minor penalty, suspension followed by Major penalty, absence from duty including suspension if any – if ordered so – Count as service

6. Not counted as Qualifying service Service rendered before attaining the age of 18 years Service as Apprentice except SAS Apprentice Unauthorized absence treated as dies-non Overstay of leave/JT not regularized as leave with salary EOL without MC other than inability Suspension followed by major penalty – when not specified as duty

7. Other cases - Qualifying service Service on contract – if initially engaged on a contract for a specified period and subsequently appointed in the same or another post in a permanent capacity in pensionable establishment, has the option to forego Government’s contribution of CPF including any other compensation – The period will qualify Pre – Retirement civil/Military service – not counted/counted – Retention of Retirement benefits, continuing to draw pension or Refund all the benefits, cease to draw the pension Fractions equal to 3 months or more shall be treated as half year. Less than 3 months will be ignored

8. Emoluments and Average Emoluments Emoluments for pension include only Pay in the Pay level of Matrix and NPA, but does not include Special Allowance, Personal Pay, Deputation Duty Allowance etc. For service/retirement/death gratuity – DA on the date of retirement/death will also be taken as emoluments Average emoluments – Average of the emoluments drawn during the last 10 months of service Service/Retirement/Death Gratuity is based on the emoluments drawn at the time of retirement/death while in service. However, Retirement/death gratuity will be based on the average emoluments - if the emoluments have been reduced during the last ten months of service otherwise than as penalty

9. Emoluments and Average Emoluments If immediately before retirement or death in service had been on leave with leave salary, the emoluments which he would have drawn had he not been on leave will be taken into account. Increment falling due, though not drawn during EL not exceeding 120 days will be taken as emoluments Suspension and subsequently reinstated in service without forfeiture of service, emoluments which he would have drawn had he not been under suspension will be taken as emoluments If on EOL – emoluments drawn immediately before proceeding on such leave will be taken as emoluments For the period of leave with leave salary while officiating in a higher post, the emoluments drawn in the higher post will be taken as emoluments only if it is certified that he would have continued to officiate in the higher post but for proceeding on leave

10. Emoluments and Average Emoluments For the period of leave with leave salary, while on reversion to parent department from deputation in another department, the emoluments which he would have drawn had he not been absent from duty, from the post held in the borrowing department will be taken as emoluments In calculating the average emoluments, the period (s) of EOL, dies non, overstay of leave or JT and suspension not counting for pension falling within the last ten months will be ignored and a corresponding period added before ten months Pension shall be calculated on the basis of pay drawn by the absorbed employee during the last 10 months in the PSU prior to retirement and where the absorbed employee is drawing in Industrial Dearness Allowance scale will be taken into account for calculation of average emoluments, Dearness Relief as per IDA pattern is also admissible

11. Classes of Pension Superannuation Pension – Retirement on superannuation Retiring pension – VRS or Premature retirement Pension on absorption in or under a Corporation, Company owned or controlled or financed by the Government if absorption permitted Pension on absorption consequent on conversion of a Government department into a Central Autonomous Body of a PSU Invalid Pension – Retirement after being declared by the Competent Medical Authority to be permanently incapacitated for further service

12. Classes of Pension Compensation Pension – On selection for discharge owing to the abolition of his permanent post and provision of alternate employment of equal status is not possible or offer of a lower post is not accepted Compulsory Retirement pension – As a measure of penalty. Such pension or gratuity or both will not be less than 2/3 rd nor more than full compensation pension or gratuity or both Compassionate Allowance – On dismissal/removal sanctioned by the Competent Authority in deserving cases of special consideration. Should not exceed 2/3 rd of pension or gratuity or both admissible if he had retired on compensation pension Minimum amount of any class of pension will be Rs . 9000/- and maximum will be 50% of highest pay in the Government

13. Preparation of Pension Papers List of retiring Government servants – 1 st January and 1 st July – who are due to retire within the next 12 months to 15 months – Forwarding to Accounts Office Preparation of pension papers – One year in advance – Head of Office Furnishing of particular of qualifying service etc. to retiring Government servant – 8 months in advance a certificate – Submission of form 5 by the employee not later than six months prior to date of retirement Forwarding of pension paper to Accounts Officer – Not later than four months of date of retirement – Pension Calculation sheet Indication of Aadhar No., intimation of government dues Pension Payment Order Photographs – single/joint etc.

14. Calculation of Pension Full pension is admissible to the employees retiring with minimum qualifying service of not less than 10 years. 50% of the average emoluments or 50% of the last pay drawn whichever is more beneficial Additional quantum of pension when pensioner attains the age of 80-85: 20% of B. Pension; 85-90: 30%; 90-95: 40%; 95-100: 50% and 100 years or more: 100% of basic pension.

15. Gratuity Service Gratuity – No pension is admissible to a permanent employee who retires before completion of 10 years qualifying service. Instead a Lump sum payment known as Service Gratuity at the rate of half month’s emoluments for every completed six-monthly period of qualifying service is admitted. This gratuity is admissible in addition to retirement gratuity to those who have completed 5 years Ceiling limit on gratuity may increase by 25% when DA rises by 50%. Emoluments include DA Death Gratuity – In case of death in service – For length of service of less than one year – 2 times of monthly emoluments; 1 year or more but less than 5 years – 6 times; 5 years or more but less than 11 years – 12 times; 11 years or more but less than 20 years – 20 times; 20 years of more – Half month of emoluments for every complete six monthly period of qualifying service subject to maximum of 33 times of emoluments.

16. Gratuity Gratuity amount rounded off to next higher rupee Residuary Gratuity – When an employee dies within 5 years after retirement and the total amount actually received by him on account of pension (or service gratuity), Dearness Relief, retirement gratuity, commutation amount is less than 12 times the emoluments drawn at the time of retirement, the deficiency is granted to the nominees/family. Nomination – Every employee should make a nomination. If has a family – only family members. If has no family – Any person/persons/body whether incorporated or not. If subsequently acquires family – to be changed – Share to each nominee to be specified – Contingency on the happening on which nomination becomes invalid

17. Retirement Gratuity Admissible to all employees who retire after completion of 5 years of qualifying service At the rate of 1/4 th of the emoluments for each completed six-monthly period of qualifying service Subject to maximum of 16 and half time the emoluments or Rs . 20 lakhs Ceiling limit on gratuity may increase by 25% when DA rises by 50%. Emoluments include DA

18. Gratuity – Definition of Family Wife or wives including judicially separated or wives, in the case of a male employee Husband including judicially separated husband, in the case of a female employee Sons including stepsons and adopted sons Unmarried daughters including step daughters and adopted daughters Widowed daughters including step daughters and adopted daughters Father including adoptive father Mother including adoptive mother Brothers below the age of 18 years including step brothers Unmarried sisters and widowed sisters including step sisters Married daughters and Children of a pre-deceased son

19. Gratuity – other provisions Nominee debarred to receive RG/DG RG/DG Lapse – If no family member, no nomination, no succession certificate Recovery of government dues is permissible – no consent required Withholding 10% of gratuity – To intimate of Directorate of Estate’s order for withholding for outstanding LF, To inform on the ongoing disciplinary proceedings against the individual – PAO will not hold unless Head of Office orders No Income Tax on RG/DG Not liable for attachment

20. Authorization of Pension and Gratuity Issue of PPO and authority for payment of Gratuity If delay is anticipated – Provisional pension and gratuity – up to 100% - Withholding 10% if necessary In case the departmental/judicial proceedings pending – Provisional pension released. Gratuity is not paid till conclusion of proceedings except in the case of minor penalty proceedings Pension not to be revised to the disadvantage of the individual unless a clerical error. Can be done for bad conduct or President provisions If clerical error is detected after two years – concurrence of DOP&T is required, if it is disadvantage of the pensioner

21. Payment of Pension PPO – Disbursing agency – Disbursement portion an pensioner’s portion Due date – Last working day of the month except for March which will be payable on 1 st April – Payable in Rupees Interest payable on delayed payment of DCRG – Beyond 3 months – Interest at GPF rates – Responsibility will be fixed

22. Commutation of Pension Every pensioner is eligible to commute a percentage of pension for a lump sum payment. Admissible for compassionate allowance also. In case proceedings are pending – Not allowed till completion of proceedings Not exceeding 40% of monthly pension. Any fraction ignored Medical examination not required if applied within one year reckoned from the date of retirement in the case of superannuation, Retiring, Compensation pension; the date of issue of retirement orders in the of pension on absorption to PSU etc.; the date of final orders in the case of pension granted on finalization of proceedings and issue of final orders Medical examination required – Retired on invalidation; retired compulsorily as a measure of penalty; in respect of compassionate allowance, all pensioners applying for after one year

23. Commutation of Pension Competent Medical Authority – Medical officer not lower in status than that of a Civil Surgeon or a District Medical officer; Medical Board – Commutation of invalid pension; in all cases of second medical examination for commutation of pension Withdrawal permissible before medical examination; after medical examination if pensioner declines to accept addition to actual age directed in the medical report within 14 days of receipt; treated as withdrawn if fails to attend medical examination Second Medical Examination – Can be done if necessary after one year from the first examination. Even before one year if pensioner appeals to his last HOO against the medical verdict and seeks review. Appeal should be within a month of receipt of certificate by the pensioner Commutation becomes absolute and commuted value becomes payable – from the following date of retirement if applied on or before the date of superannuation; of receipt by the HOO the application for commutation without medical before one year; on which the Medical Authority signs the report; on which the first medical authority recorded it opinion when its decision is set aside or modified on appeal Amount = Commutation factor X 12 X Amount admissible Rounded off to the next higher rupee

24. Commutation of Pension Reduction of pension on commutation Payment of commutation difference on revision of pension Nomination if dies before receiving it Restoration after 15 years

25. Encashment of Leave Admissible on retirement/ death/ invalidation/termination of service/pre mature retirement/compulsory retirement /VRS/Retirement Reemployed Maximum of 300 days – HPL can be used for this purpose without commuting If resigns/quits service – Half of the EL subject to maximum of 150 days (HPL lapses) If dies during leave – benefit of increment is given – difference in the form of ex-gratia payment Pay + DA divided by 30 and result multiplied by days Family order of preference – widow or the eldest surviving widow (with reference to the date of marriage or husband; eldest surviving son or an adopted son, eldest surviving unmarried daughter, eldest surviving widowed daughter, father, ,mother, eldest surviving married daughter, eldest surviving brother below the age of 18 years, eldest surviving unmarried sister, eldest surviving widowed sister, eldest child of the eldest predeceased son Nomination to receive sums due on account of pension – death of pensioner - permissible

26. Family Pension Family of an employee/pensioner on his death while in service/after retirement Family – First Category – Widow or widower up to the date of death or remarriage whichever is earlier; son/daughter (including widowed daughter) up to the date of his/her marriage/remarriage or till the date he/she starts earning or till the age of 25 years whichever is the earliest Family – Second category – Unmarried /widowed /Divorced daughter, not covered by first category up to the date of marriage/remarriage or till the date she starts earning or up to the date of death, whichever is earliest. Parents who were wholly dependent on the Government servant when he/she was alive, provided that deceased employee had left behind neither a widow nor a child

27. Family Pension Normal Rate – 30% of pay last drawn subject to a minimum of Rs . 9000/- p.m. Additional family pension – 80 to 85: 20% of basic family pension, 85 to 90: 30%, 90 to 95: 40%, 95 to 100: 50% and 100 & above – 100% of basic family pension Rounding off to next higher rupee Higher rate – if the deceased employee had rendered not less than seven years continuous service. Not admissible for dependent parents

28. Family Pension Higher rates – In the case of death in service – payable to the family of a Government servant for a period of 10 years from the date following the date of death of Government servant without any upper age limit – One and half times the normal rate of family pension if compensation under WC Act is also paid and 50% of Last pay drawn in other cases In the case of death after retirement – Payable for a period of seven years or up to the date on which he would have attained 67 years had he survived, whichever is less – 50% of the pay drawn at the time of retirement or the amount of pension authorized on retirement, whichever is less

29. Order of preference - Family Pension The spouse Permanently disabled child/children Dependent parents – Mother and then father Permanently disable siblings Payment to more than one widow/twins – equal share Salary in addition to Family pension – spouse employed Two family pensions – if both husband and wife are employees and dead – Max. of Rs . 45000/- at enhanced rates otherwise Rs . 27000/-

30. Employee/Pensioner - whereabouts not known Family pension after 6 months of lodging of police report – From the date of Police report. In the case of pensioner – From the date of police report or from the date immediately succeeding the day till pension had been last paid, whichever is later In case disappears after committing fraud etc. the Family pension is to be sanctioned only after acquittal or conclusion of disciplinary proceedings If family pensioner is missing – next eligible member – same conditions of missing employee/pensioner Family pension is admissible to post- retiral spouse/children born after retirement/adopted legally after retirement

31. Voluntary Retirement An employee has the right to retire and get pensionary benefits by giving 3 months notice to the Appointing Authority After attaining the age of 50 years – Group A and B officers who had entered service before attaining the age of 35 years After attaining the age of 55 years – In the case of Group A and B officers other than above and All Group C officials On completion of 30 years qualifying service – All employees Retirement becomes effective on the expiry of notice period, without awaiting approval unless the official is under suspension or if a charge sheet has been issued and disciplinary proceedings are pending or if judicial proceedings on charges which may amount to grave misconduct are pending

32. Voluntary/Premature Retirement On completion of 20 years of qualifying service – 3 months notice Notice can be withdrawn before the date of retirement with the permission of Appointing authority Prematur e retirement – Appointing authority can give notice and retire – first 3 cases in the previous slide PR – not be to exercised – to retire an employee on grounds of misconduct or as a short cut to avoid formal Disciplinary proceedings – for reduction of surplus staff for effecting general economy without following the instructions related Appeal by employee to be submitted within three weeks

33. Retirement on Medical grounds Who suffers from physical/mental infirmity which permanently incapacitates Submission of application by employee Direction by HOO to appear before Medical authority Un fit – granted invalid pension Fit for less laborious character duties – If employee denies or it is not possible to assign – granted invalid pension Not less than normal rate of family pension admissible For commutation of pension – Medical examination is necessary

34. Absorption in Autono mous Bodies/PSUs Monthly pension and retirement gratuity on the basis of qualifying service up to the date of permanent absorption will be admissible Commutation of pension – admissible without Medical within one year if applied Encashment of leave – entitled – Max. 300 days Transfer/Refund of Provident Fund Family pension – If requested – based on the entitlement at the time of absorption

35. ABs/Statutory bodies – Counting of past service Option – To receive retirement benefits or Continue to have the benefit of combined service Transfer of PF – share of the employee in case of CPF Encashment of leave admissible

36. Missing employees Benefits at the first instance – Salary due, leave encashment due and the amount of GPF as per nominations on filing of a police report and submission of Indemnity Bond Within three months – Retirement gratuity will be paid to the family – Interest payable for delay – Responsibility fixed After Six months – Family Pension retirement gratuity – Police report and not traceable – Indemnity bond After death is established/seven years – Difference between the death gratuity and retirement gratuity shall be payable after the death of the employees is conclusively established. Family pension at ordinary/enhanced rate Missing after committing fraud – Benefits only after acquitted/disciplinary proceedings completed

37. Thank You