Friday, 4 June 2021

Pension – Important aspects : Article from Sri. K.V.Sridharan

 Pension – Important aspects : Article from Sri. K.V.Sridharan

 Pension – Important aspects

  Applicable to those appointed prior to 1.1.2004

  Age of retirement is 60 years

  In the case of voluntary and premature retirements the day of retirement is treated as non-working day

  Date of death is treated as duty – exception leave on MC

  Verification of qualifying service after completion of 25 years of service or 5 years before retirement is an important stage in the process of settlement of retirement benefits.

  Verification of fixation of pay etc. can be done for 24 months prior to the date of retirement (Rule 59 (i) (b) (iii)).

  Govt. Servants retiring after 10 years of service on superannuation will get full pension.

  Pension is not attachable against any decree of a court even if the decree is for maintenance.

  Non recovery of excess payment from CGEIS amount provision can be applied in case of resignation also.

  Excess payment of Pay & Allowance cannot be recovered from pension.

  Nomination for DCRG is an important document which makes it convenient to settle the death gratuity in a most expeditious way

  Without medical examination, commutation of following classes of pensions is permissible if applied for before one year

  superannuation retiring or compensation pension

  Pension on absorption in a corporation, company or body.

  Within one year from the date of final orders after departmental/judicial proceedings.

Commutation only after medical examination.

  Invalid/compulsory retirement pension of compassionate allowance.

  Applying for commutation after one year

Qualifying Service

  QS commences from the date of taking over charge of the post to which the GS is appointed. Periods which count as QS are:

-        Duty and periods treated as duty such as training

     All kinds of leave with leave salary

     Deputation and foreign service

     EOL on MC; and EOL without MC granted due to (i) inability of the employee to join duty on  account of civil commotion or (ii) for prosecuting higher technical and scientific studies

     Probation followed by confirmation

     SAS apprentice

     Suspension treated as duty

     Qualifying service of 9 years 9 months and above should be treated as 10 years and the official is entitled for pension.

Regulation of Pension

  Full pension @50% of emoluments (or AE whichever is beneficial) is admissible with min QS of not less than 10 years. Minimum pension Rs.9000.

  Calculation for all classes of pension is same.

  Additional pension/FP on attainment of age as indicated is payable in addition: 80: 20%, 85: 30%, 90: 40%, 95: 50%, 100:100%

  QS of less than 10 years: service gratuity @ half months emoluments for every completed 6 monthly period of QS

  Final amount of pension, FP, gratuity and commutation amounts shall be rounded off to next rupee. This applies to pension or FP calculated for part of a month

Service gratuity / DCRG

  Service gratuity: No pension for less than 10 years of service In lieu thereof lumpsum SG @ half months emoluments for every completed 6 monthly period of QS is payable

  Retirement gratuity: eligible to all employees who retire after 5 years of QS @ 1/4th of emoluments for each completed 6 monthly period of QS (limited to 66 SMPs) subject to Max. of Rs.20 lakhs.

  Emoluments includes DA as on the DOR / death

  Death gratuity is admissible for death while in service

                less than one year  : 2 times of emoluments

                less than 5 years     : 6 times of emoluments

                less than 20 years   : 12 times of emoluments

20 years or more :@ ½ of emoluments for each completed 6 monthly period of QS (limited to 66 SMPs) subject to Max. of Rs.20 lakhs.

Family Pension

  Order in which FP is payable:

     Widow / widower till death.

     Unmarried Son(s)/daughter(s) [including widowed daughter(s)] up to his / her marriage / remarriage or till the date of he/she starts earning or till 25 years, whichever is earliest

     Unmarried Son/daughter/brother/sister with mental / physical disability payable for life or till gets married or starts earning livelihood, whichever is earliest.

     Unmarried/widowed/divorced daughter up to the date of marriage/remarriage or till the date she starts earning or up to the date of death, whichever is earliest

ü  Twin children will get the FP in equal shares

ü  Order of date of birth is followed in the above cases

  Order in which FP is payable:

     Parents who are wholly dependent on the GS when he/she was alive provided the deceased GS had left behind neither a widow/widower nor a child – till death. FP only @ normal rates is payable, first  to mother and then to father

     Dependency means min FP+DR.

     Family pension is admissible from only one source in respect of one GS. A military pensioner reemployed in Civil service can choose either of the schemes.

     Family pension is payable to spouse judiciary separated on the grand of adultery.

     Family Pension is payable to twins in equal shares.

     If the widow family pensioner got a children, Family pension should not be stopped.

   If the marriage is not terminated by means of ‘Divorce Decree’, the spouse is eligible for family pension.

   Post retiral spouse is entitled for Family Pension. Full Pension if no eligible children to first wife; other wise 50% of Family Pension.


Thanks to Mr. K.V.Sridharan, Ex General Secretary, AIPEU Group C


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