Learning Units : Planning for Retirement
Planning for Retirement
Terminal Benefits & Rules pertaining to these Benefits
Assessment of family responsibilities
Assessment of financial liabilities.
Assessment of possibilities for income after retirement
Assessment of needs for emergencies
BENEFITS : On Retirement
Pension for life (till the date of death)
DR on Pension
Commutation of Pension (optional : Max. 40%)
Retirement Gratuity (Max. 20 lakh) May go upto 25 & 30 lakh
Encashment of Leave (EL+HPL) – Maximum 300 days
GPF accumulations plus interest thereon
CGEGIS benefits (Savings Fund +
interest thereon)
Medical facilities – as were available during service
On Death while in Service
Family Pension (one person at a time: exceptions)
DR on Family Pension - same rate as for Pensioners
Death Gratuity (Rs 20 lakh). May go upto 25 & 30
Encashment of Leave (EL+HPL) Maximum 300 days
GPF accumulations along with interest
CGEGIS Benefits (Savings Fund plus interest thereon & Insurance amount)
DLIS : Maximum 60,000
Employment on compassionate grounds to NOK
Medical facilities
Death after Retirement
Family Pension
DR on Family Pension
Arrears of Pensionary Benefits on account of pay revision, etc, if any
CCS (Pension) Rules, 1972
Applicable only to employees entered in Govt service on or before 31/12/2003.
Defined Benefits Pension Scheme
Pension & Gratuity (updated as per instructions issued by Department of Pensions & Pensioners Welfare, Govt of India, consequent to implementation of the 7th Central Pay Commission)
Conditions Governing Pensionary Benefits
Qualifying Service
Important Events having a bearing on QS
Leave
Suspension
Net QS = Gross QS minus Non-Qualifying Service
Less than 3 months Nil
3 Months but < 9 months 1 SMP
9 months & above 2 SMPs
Minimum QS for Pension 10 years
Emoluments/AE
For Pension
BP+NPA
For Gratuity (RG, SG, DG)
BP+NPA+DA (on date of death or retirement)
Family Pension
BP+NPA
Leave Encashment
BP+NPA+DA
Calculation of Benefits
Pension BP+NPA
2
Minimum 9000 Maximum 125000
Retirement Gratuity (Max. 20 lakh)
(BP+NPA+DA) x No. of SMPs (Max 66)
4
Service Gratuity
(BP+NPA+DA) X No. of SMPs
2
(No minimum/maximum)
Death Gratuity
QS Rate
<one year 2 times of Emoluments
1 year< 5 years 6 times of Emoluments
5 years<11 years 12 times of Emoluments
11 years <20 years 20 times of Emoluments
20 years or more Half of emoluments for every completed
SMP maximum
33 times of emoluments
(Maximum
20 lakh)
Gratuity linked to DA
As and when DA goes up by 50%, Gratuity will be enhanced by 25%.
It means Gratuity will be increased to 25 lakh & 30 lakh respectively.
Calculation: Leave Encashment
(BP+DA+NPA) x No of days of EL (Max. 300) 30
(BP+DA+NPA)/2 x HPL days/30
Total number of days (EL+HPL) admissible for Encashment = 300
Classes of Pension
Superannuation Pension
Retiring Pension
Invalid Pension
Compensation Pension
Pension on Absorption in PSU/AB
Voluntary Retirement Pension
Compulsory Retirement Pension
Compassionate Allowance
Procedure for grant of Benefits
List of employees due for Retirement
Submission of documents to retiring employee for completion of details & photographs etc
Rectification of Service Book
Determination of QS & Emoluments/AE
Calculation of EL/HPL
Calculation of Interest on GPF accumulations
CGEGIS accumulations in Savings Fund
Calculation of Retirement Benefits
Intimation to PAO & employee concerned
Issue of PPO – at least one month before Retirement
Minimum/Maximum Pension
Minimum Revised consolidated pension from 1st January 2016 -
Rs 9000 p.m. + DR thereon
Maximum Revised consolidated Pension : Rs 125000 p.m. plus DR thereon
50% of LPD or AEs
DR on full revised basic pension before commutation
In cases where a Govt servant becomes entitled to pension on completion of 10 years of QS in accordance with Rule 49(2) of CCS (Pension) Rules 1972, pension shall be paid at 50% of emoluments or average emoluments received during the last 10 months, whichever is more beneficial to him.
Effective from 1st January 2006.
Commutations
Surrender of a portion of Pension and getting a lumpsum amount in lieu of such surrender.
Commutation of pension is as per the new commutation table, which will be revised periodically by the Govt keeping in view the interest rates and the mortality table
For all future pensioners, commutation of pension shall be computed and paid as per revised commutation table.
Age next birthday Commutation Value
59 8.371
60 8.287
61 8.194
62 8.093
Commuted Value of Pension
Formula:
Amount offered for commutation x12xC.F.
Example:
Last Pay Drawn Rs 60000
QS 20 years
Age next birthday 61 years
Pension Rs 30000
Commuted Amount 40% of Rs 30000 = Rs 12000
Commutation Amount in lumpsum:
12000 x 12 x 8.194 = Rs 1179936
Residual Pension Rs 30000 – Rs 12000
= Rs 18000 p.m.
Plus DR on full Basic Pension of Rs 30000
Revised definition of ‘Family’
Category-I
(a) Widow or widower, up to the date of death or re-marriage, whichever is earlier
(b) 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.
Category-II
(a) Unmarried/widowed/divorced daughter, not covered by Category I, up to the date of marriage/remarriage or till the date she starts earning or up to the date of death, whichever is earliest.
(b) Parents who were wholly dependent on GS when he/she was alive provided the deceased employee had left behind neither a widow nor a child.
Family pension to dependent parents, unmarried/ divorced daughter will continue till the date of death
Family pension to unmarried/widowed/ divorced daughters in Category II and dependent parents shall be payable only after the other eligible family members in Category I have ceased to be eligible to receive FP and there is no disabled child to receive FP.
Grant of FP to children in respective categories shall be payable in order of their date of birth and younger of them will not be eligible for FP unless the next above him/her has become ineligible for grant of FP in that category.
Dependant handicapped sibling (brother/sister)
Family Pension to Childless Widow even after her Re-marriage
Childless widow of a deceased Govt employee will continue to be paid Family Pension even after her remarriage subject to the condition that the family pension shall cease once her independent income from all sources becomes equal to or higher than the minimum prescribed family pension in Central Govt i.e. Rs 3500 plus dearness relief thereon
Older Pensioners/Family Pensioners
Require better deal because of their needs, especially those relating to health, with increased age.
Quantum of pension/family pension, available to old pensioners/family pensioners will be increased as follows:
Age Additional Pension/FP
80 20% of Basic pension/FP
85 30% of Basic Pension/FP
90 40% of Basic Pension/FP
95 50% of Basic Pension/FP
100 100% of Basic Pension/FP
Dearness Relief on Additional Pension
Dearness Relief will also be admissible on additional quantum of pension/family pension available to old pensioners/family pensioners.
Linkage of full pension
Linkage of full pension with 33 years of QS dispensed with.
Once an employee renders minimum pensionable service of 20 years, pension to be paid at 50% of AE received during the past 10 months or the pay last drawn, whichever is more beneficial to the retiring employee.
Family Pension
In case of Death while in Service – For 10 years at enhanced rate i.e. 50% of BP on date of death.
Thereafter @ 30% of Pay last drawn
In case of Death after Retirement -
For 7 years @ 50% of Pay last drawn or the Pension sanctioned
Thereafter @ 30% of Pay last drawn
Family Pension
In case of Govt employees dying in harness, FP to be paid at enhanced rates for a period of 10 years.
This will also apply in case of GS who died before 1.1.2016 in respect of whom family was receiving EFP as on 1.1.2016
Dependency criteria for all purposes will be minimum family pension along with DR thereon.
This is also followed in cases relating to FP
Higher quantum of family pension on attaining the age of 80, 85, 90, 95 & 100 – will be same at same rates as for old pensioners i.e. additional 20%, 30%, 40%, 50% & 100% respectively.
Admissible from the first of the month in which pensioner attains the age of 80, etc
Amount of additional FP will be shown distinctly in PPO
For example, in case where a family pensioner is more than 80 years of age and his/her FP is Rs 10,000 p.m., the pension will be shown as under:
Basic FP Rs 10000
Additional FP Rs 2000
FP on attaining the age of 85 years will be shown as under:
Basic FP Rs 10000
Additional FP Rs 3000
Dearness Relief also admissible on additional quantum of family pension to older family pensioners
Past pensioners
Fixation of pension will be subject to the provision that the revised pension, in no case, shall be lower than 50% of the sum of the minimum pay in the Level corresponding to the pre-revised pay scale from which the pensioner had retired.
Childless widow of a deceased GS will continue to be paid FP even after her remarriage subject to the condition that FP shall cease once her independent income from all sources becomes equal to or higher than minimum prescribed FP in Central Govt i.e. Rs 9000 + DR thereon
Constant Attendant Allowance on Disability Pension
For 100% disability, where individual is completely dependent on somebody else for day to day functions, Constant Attendant Allowance increased from Rs 3000 to Rs 6750 p.m., under CCS (Extraordinary) Pension Rules, 1939 shall also be paid to civilians, as in the case of Defence personnel.
CCS (Extraordinary) Pension Rules, 1939 stand modified to this extent.
No Dearness Relief on CAA
Ex Gratia
Rates of ex gratia are doubled and raised to Rs 25 lakh in cases of death occurring due to accidents in the course of performance of duties & death occurring in the course of performance of duties whether attributable to acts of violence by terrorists, anti-social elements, etc
High altitude & natural disasters 35 lakhs
Rs 45 lakh in cases of death occurring due to
(a) enemy action in international war or border skirmishes or action against militants, terrorists, extremists, etc
(b) Death occurring while on duty in specified high altitude, inaccessible border posts, etc on account of natural disasters, extreme weather conditions.
Family Pensioner in such cases would be required to give a declaration regarding her income from other sources to PDA every six months.
Pension – Subject to Future Good Conduct
Grant of Pension & its continuance is subject to future good conduct
Pension can be withheld or withdrawn permanently or for a specified period if the pensioner is involved in a criminal offence or is held guilty of grave misconduct.
Procedure – Same as for imposing Major Penalty on a Govt servant
E-Payment route for retired Govt staff
From 1st April 2012, retired Govt employees need not run from pillar to post to claim their retirement benefits anymore
Once an employee retires, all benefits like gratuity and PF will be credited to the account the next day.
Pension will be credited from next month.
CPAO Helpline for Pensioners
CPAO has set up a Toll Free Call Centre for registration & redressal of grievances of all Central Civil Pensioners
Toll Free Number – 1800-11-77-88
You may call the above number to register any grievance with CPAO and obtain registration number
While lodging your grievance kindly provide your PPO number
Understand Tension & Pension
Relationship between Tension, Pension & Family Pension?
Life begins at 60!
Never take Retirement as ‘Jeevan Sandhya or Evening of Life
Enjoy the golden period of life
Retirement for positive activities
Don’t feel retired; feel rewired & retyred
Toll Free Call Centre will be operational from 9.00 AM to 5.30 PM on all working days
You may also register your Grievance on the Website
Intimation regarding credit of pension/FP to pensioner/family pensioner by SMS on mobile by banks
www.cpao.nic.in or send it through
E-mail at cccpao@nic.in
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