Let’s
have a look at the retirement benefits for a central government emplyee. These
benefits are also applicable for an employee who intends to quit
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 superannuation pension on completion of at least 10 years of qualifying
service.
In
the case of Family Pension the widow is eligible to receive pension on death of
her spouse after completion of one year of continuous service or before even
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 average emoluments namely,
the average of the basic pay drawn during the last 10 months of the service or
last basic pay drawn whichever is beneficial. Full pension with 20 years of
qualifying service (10 years in special cases) is 50% of the average emoluments
or last basic pay drawn whichever is beneficial.
Minimum
pension presently is Rs. 3500 per month. Maximum limit on pension is 50% of the
highest pay in the Government of India (presently Rs. 45,000) 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 with effect from 1.1.1996. 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 constructed
on an actuarial basis. 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
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
month’s Basic Pay plus Dearness Allowance drawn before retirement for each
completed six monthly period of qualifying service. There is no minimum limit
for the amount of gratuity. The retirement gratuity payable is 16½ times the
Basic Pay, subject to a maximum of Rs. 10 lakhs.
Death
Gratuity
This
is a one-time lump sum benefit payable to the widow/widower or the nominee of a
permanent or a quasi-permanent or a temporary Government servant, including CPF
beneficiaries, 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 20
years
|
12 times of basic pay
|
20 years of 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. 10 lakhs w.e.f. 1.1.2006
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 month’s basic pay last drawn for each completed 6 monthly period
of qualifying service. There is no minimum or maximum monetary limit on the
quantum. This one time lump sum payment is distinct from and is paid over and
above the retirement gratuity.
General
Provident Fund and Incentives
(For employees joined Government Service before 1.1.2004)
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. 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 subscriber’s emoluments and not more
than his total emoluments. Rate of interest on GPF accumulations with effect
from 1.4.2009 is 8% compounded annually and the rate of interest will vary
according to notifications of the Government. The Rules provide for drawal of
advances/ withdrawals from the Fund for specific purposes.
Deposit Linked Insurance Revised 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%. Rate of interest with
effect from 1.4.2009 is 8% compounded annually. 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 Revised Scheme.
Leave Encashment
Encashment
of leave is a benefit granted under the CCS (Leave) Rules and 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. There is no provision under the Rule for payment of
interest on delayed payment of Leave Encashment.
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 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. No interest is payable on account of
delayed payments under this Scheme.
No comments:
Post a Comment