CCS (Pension) Rules, 1972

A Treatise on the benefits available

to Central Govt. Employees on cessation of service on

superannuation and on other grounds

V KUNHIRAMAN FORMER SR HEAD, PGA, ISRO HQ

CONSULTANT, DEPT. OF SPACE, GOVERNMENT OF INDIA; CONSULTANT, CMTI; CONSULTANT, JNP; BANGALORE

WE PROCEED FROM HERE-

(1) Major Retirement Benefits a) PENSION – Recruiting Monthly Payment b) GRATUITY – Lumpsum Payment

(2) Pension is calculated on the basis of QUALIFYING SERVICE AND AVERAGE EMOLUMENTS Max Pension : 50% of The emoluments last drawn or 50% of the Average Emoluments for the last ten months whichever is more beneficial to the employee, for 10 years of Qualifying service. Max Gratuity : 16½ times of Emoluments last drawn subject to Max Rs.10 lakhs.

LET US UNDERSTAND THESE TERMS AND GO TO FURTHER DETAILS

1. SCOPE (1) CCS (Pension) Rules apply only to Central Government Employees and

Employees of Union Territories appointed on or before 31/12/2003.

(2) These rules do not apply to:

(i) CPF Optees

(ii) Railway Employees

(iii) All India Services

(iv) Casual / Contingent / Contract Workers

(3) No distinction between permanent and temporary employees in the application of

Pension Rules. (DPT OM dated 28/03/1988) (4) For the purpose of Pension Rules, ‘Foreign Service’ means service in which

Government Servant receives his pay with the sanction of the Government from any source other than the Consolidated Fund of India / a State or Union Territory.

(RULE 2 and GOI decisions)

2. TYPES OF RETIREMENTS Retirements on which pension is admissible: 1. RETIREMENT ON SUPERANNUATION

a) Prescribed age for superannuation is 60 years for all Central Government

Employees. b) Effective from the afternoon of the last day of the month in which the

superannuation age is attained. c) An employee whose date of birth is the first of the month shall retire on the

afternoon of the last day of the preceeding month. d) Day of Superannuation is a working day. e) If the day of Superannuation is a holiday, cash, stores etc., may be, made

over by the Retiring Officer on the previous working day. Relinquishment of charge in the prescribed form should be on the last day of service only. Physical presence of the Officer in the office is not compulsory for relinquishment on holiday.

(FR 56 and GOI decision)

2. VOLUNTARY RETIREMENT

(a) After attaining the age of 50 years (only for Group A & B Officers, who

entered service before attaining the age of 35 years). (b) After attaining the age of 55 years – All Employees. (c) On Completion of 30 years qualifying service – All Employees. (d) On Completion of 20 years qualifying service – All Employees.

POINTS TO NOTE:

(i) Three months notice to the Appointing Authority necessary in all cases. (ii) Notice can be withdrawn before retirement, with the permission of the

Appointing Authority. (iii) While Voluntary Retirement Under (a), (b) & (c) is a right of the employee, VR

notice under (d) requires acceptance by the Appointing Authority. (iv) On request, notice period can be waived or reduced by the Appointing

Authority. Commutation of Pension can however be applied only after 3 months notice period.

(v) Notice can be given before attaining the age or qualifying service, but the

effective date of retirement should be after attainment of age/qualifying service.

(vi) The day of Voluntary Retirement will be treated as a ‘Non-Working Day’.

(FR 56, Pension Rule 5, 48 and

48A and GOI decisions) III. PRE-MATURE RETIREMENT

a) Retirement ordered after FR 56 (j)/Rule 48 (1)(b) Review.

b) 3 months notice or pay & allowances in lieu there of.

c) Normal Pensionary benefits based on Qualifying Service completed.

d) Notice can be given before attainment of age/qualifying service but retirement date should be only after attainment of the same.

CIRCUMSTANCES:

(a) After attaining the age of 50 years - Groups ‘A’ & ‘B’ Officers who entered service before attaining the age of

35 years.

(b) After attaining the age of 55 years - Groups ‘A’ & ‘B’ Officers other than (a) above. - All Group ‘C’ & ‘D’ employees (erstwhile Group-D).

(c) On completion of 30 years Qualifying Service

- All Employees. APPEAL: An employee served with notice/order of premature retirement can appeal within 3 weeks. (FR 56, Pension Rule 48) IV. COMPULSORY RETIREMENT

As a penalty under CCS (CCA) Rules/DOS (CCA) Rules. Pensionary benefits normally based on Qualifying Service completed. If reduced, should not go below 2/3rd of Compensation Pension. (Pension Rule 40)

V. RETIREMENT ON MEDICAL GROUNDS

a) On being permanently incapacitated. b) On the basis of examination and report of appropriate medical authority. c) Invalid Pension and Gratuity.

(Pension Rule 38)

VI. DEEMED RETIREMENT ON ABSORPTION IN AUTONOMOUS BODIES/

PUBLIC SECTOR UNDERTAKINGS, ETC.

a) Employee is deemed to have retired from service from the date of absorption.

b) Pensionary benefits on the basis of Qualifying Service completed.

(Pension Rule 37)

3. CLASSES OF PENSION (1) Superannuation Pension:

- On retirement after Superannuation. (Rule 35)

a) Retirement on the afternoon of last date of the month in which superannuation

falls. b) As an exception, a Government Servant whose Date of Birth is the first of a

month shall retire from service on the afternoon of the last date of the preceding month.

c) No specific orders are necessary for retirement on due date, unless extension is

granted before that date. d) Superannuation Pension is admissible if 10 years of Qualifying Service is

completed. Gratuity is based on length of Qualifying Service. Maximum Pension is limited to 50% of the emoluments last drawn or 50% of the average emoluments for the last 10 months whichever is more beneficial to the retiring employee, for 10 years of Qualifying Service. Maximum Gratuity is 10 lakhs.

(GOI orders)

(2) Retiring Pension:

- On voluntary or pre-mature retirement before superannuation. (Rule 36)

a) Retirement pension is granted to employees, who are retiring or retired under

Rule 48 or 48-A of CCS Pension Rules or Rule 56 of the Fundamental Rules. b) Retirement pension is also granted to surplus employees opting for Voluntary

Retirement in accordance with the provision of Rule 29 of CCS Pension Rules.

(GOI orders)

(3) Compulsory Retirement Pension:

- on compulsory retirement as a penalty. Such pension or gratuity or both will not be less than two-thirds or not more than full compensation pension or gratuity or both admissible on the date of compulsory retirement.

(Rule 40)

a) Compulsory Retired Employees are ordinarily granted the full compensation

pension and retirement gratuity, admissible on the date of compulsory retirement.

b) Whenever a reduction is considered absolutely necessary, the same may be

made within the limits either in the retirement gratuity or in the pension or in both.

c) UPSC has to be consulted whenever the President passes an order awarding

the pension less than the full Compensation Pension. d) A compulsory retirement pension shall not be less than Rs. 3500/- (Rupees

Three thousand five hundred only).

(Pension Rule 40 & GOI decisions) (4) Invalid Pension:

- on retirement after being declared by the competent medical authority to be permanently incapacitated for further service.

(Rule 38)

a) A government servant is required to apply for retirement on invalid grounds to the Head of Office.

b) The Head of Office will then refer the Government Servant to a Medical

Board or Civil Surgeon etc., as the case may be. c) The Invalid Pension is sanctioned only after a Medical Certificate of

incapacity from the appropriate Medical Authority is received. d) The appropriate Medical Authority is a Medical Board in the case of a

Gazetted Government Servant and of a Non-Gazetted Government Servant whose basic pay exceeds Rs. 8000/- (Rupees Eight thousand only).

e) A lady doctor should be included as a member of the Medical board

when woman employee is to be examined. f) If the Medical Authority reports that the Employee is fit for further service of

less laborious character, efforts may be made to provide such post even in a lower grade, if the employee is willing to accept it. Otherwise, he may be admitted for invalid pension.

g) The invalid pension is admissible only if 10 years of qualifying service is

completed. h) The Invalid Pension and the disability pension are distinct and should not be

added together for deciding the minimum limit. However, the amount of disability pension and Invalid Pension should not exceed the last pay drawn.

(Rule 38 & GOI orders)

(5) Pension on absorption in Autonomous bodies/PSUs etc: - Monthly pension and retirement gratuity if completed 10 years of qualifying service

on the date of permanent absorption. - Commutation of pension is admissible (without MC if application is made within one

year of date of absorption.)

(GOI orders)

a) Applies to all Government Servants who joins Central Government/ State Government/ Joint Sector/ Autonomous/ Statutory Bodies/ PSUs on immediate absorption basis.

b) Such Government servants shall be deemed to have retired from service from the

date of absorption. c) The retirement benefits will be based on the length of service under the Government

till the date of absorption. d) If there is a pension scheme in operation in the Autonomous Body / Statutory Body/

PSU etc., the absorbed employee will have an option to count the Government service for pension in that body.

(GOI orders)

(6) 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.

(Rule 39)

a) On abolition of his permanent post, the employee has no abolition to accept the alternate employment offered or to take the Compensation Pension.

b) Compensation Pension will be admissible if 10 years of Qualifying Service is

rendered till the date of discharge. c) Notice of at least 3 months should be given to permanent Government servants

before their service are dispensed with abolition of permanent posts. d) If the notice period fall short of 3 months, pay and allowances may be given for the

period by which the notice falls short of 3 months. e) Compensation Pension will not be given for a period in respect of which an

employee receives pay and allowances in view of notice. f) If the employee eligible for Compensation pension accepts instead another

appointment under the Government, the pension which he would be finally receiving should not be less than the Compensation pension to which he would have been eligible if he had opted for the same.

(Rule 39)

(7) Compassionate Allowance: - on dismissal or removal, sanctioned by the competent authority in a case

deserving special consideration. This is also pension but the amount should not exceed two–thirds of pension or gratuity or both which would have been admissible to him if he had retired on compensation pension.

(Rule 41)

a) Sanctioned only in cases of dismissal or removal from service deserving special consideration.

b) Each case has to be examined on its merits. c) The Head of Office shall process the Compassionate Allowance papers without

waiting for an application from the dismissed/removed employee and put up for approval of the Competent Authority. The Authority who ordered dismissal/removal is Competent Authority to decide admissibility of Compassionate Allowance.

d) Even in deserving cases, Compassionate Allowance will be permissible only if the

employee is otherwise eligible for pension. e) Commutation of Compassionate Allowance, as in the case of other pensions, if

permissible. f) The relief’s in pension announced from time to time would be admissible to a former

Government servant who is in receipt of Compassionate Allowance. (GOI orders)

MINIMUM AMOUNT of any class of Pension will be Rs.3500/- per month. MAXIMUM AMOUNT will be 50% of the highest pay in the Government (Highest Pay in the Government as per VI PC Rs.90,000/-)

(DPT OM Dt 15/3/2004) (+VI PC Orders)

g) The amount of pension payable to the pensioner increases as their age increases as

follows. Age of Pensioners Additional amount From 80 years upto 85 years 20% of basic pension From 85 years upto 90 years 30% of basic pension From 90 years upto 95 years 40% of basic pension From 95 years upto 100 years 50% of basic pension 100 years or more 100% of basic pension

(8) Family Pension:

Family pension is payable to the family of the employee/pensioner on his/her death in service/after retirement.

Family for the purpose of Family Pension means the deceased pension’s -

(a) Widow or Widower; (b) Unmarried son/daughter/widowed/divorced daughter;

(c) Unmarried Son(s) suffering from disorder or disability of mind or physically crippled;

(d) Daughter(s) (including widowed/divorced daughter(s)) suffering from disorder

or disability of mind or physically crippled; (e) Dependent parent(s) (f) The income criteria for dependency will be that their earning is not more than

Rs.3500 + DA at Central Govt. rules rates per month.

(Rule 54)

4. QUALIFYING SERVICE (A) Qualifying Service: (1) Pension is admissible to permanent employees who retire or are retired with a

qualifying service of not less than 10 years.

(2) Qualifying service of a Government Servant commences from that date he takes charge of the post to which he is first appointed in a permanent capacity.

(3) Temporary service followed by confirmation in the same or another post without interruption will also qualify.

(4) The service of a Central Government Servant shall not qualify unless his duties and pay are regulated by the Central Government.

(5) When a State Government servant on deputation to Central Government is absorbed in the Central Government, the service rendered by him under the State Government will also qualify.

(Rule 13-32 CCS Pension Rules)

Note I: Temporary employees who retire on superannuation or invalidation with not less than 10 years of service are eligible for ‘Pension’ and ‘Retirement Gratuity’.

Note II: Temporary employees who retire voluntarily after 20 years of continuous

service are also eligible for ‘Pension’ and ‘Retirement Gratuity’.

(Rule 10 (1-B) of CCS (Temporary Service) Rules, 1965)

(B) Periods counting as Qualifying Service: (1) Duty and periods treated as ‘duty’. (2) All kinds of leave with leave salary. (3) Deputation and Foreign service. (4) Extraordinary leave on medical certificate; and Extraordinary leave without

medical certificate granted due to inability of the employee to join/rejoin duty on account of civil commotion or for prosecuting higher technical and scientific

studies. This period automatically counts as qualifying service without an express sanction for this purpose.

(5) Pre-appointment training followed immediately by appointment as Groups ‘C’

and ‘D’ employees. (6) Service on probation followed by confirmation. (7) Service as SAS Apprentice. (8) Suspension followed by minor penalty. (9) Suspension followed by major penalty; if the reinstating authority orders that it

shall count. (10) Contract service followed by regular appointment will qualify provided the

employee for go Government’s contribution in the CPF including any other compensation for that for that service.

(11) Half the service paid from contingencies will qualify if the employees are

subsequently appointed under regular establishment. (C ) Periods not counting as Qualifying Service: (1) Service rendered before attaining the age of 18 years. (2) Service as Apprentice except SAS Apprentice. (3) Unauthorized absence treated as ‘dies non’.

(4) Overstayal of leave /joining time not regularized as leave with leave salary.

(5) EOL without MC other than the circumstances as specified earlier.

(6) Suspension followed by major penalty; if the reinstating authority does not

order that it shall count as qualifying service.

Qualifying Service for pension/ gratuity is calculated and expressed in completed half-years. Fractions equal to 3 months and above shall be treated as one half year. Fractions of less than 3 months will be ignored. When a Government Servant complete 25 years of service or is within 5 years of retirement, the Head, of Office in consultation with the Account Officer will verify the service book, determine the qualifying service and communicate to the employee the period of qualifying service so determined.

(Rule 13 to 32) 5. EMOLUMENTS AND AVERAGE EMOLUMENTS (1) Amount of Pension is related to the last pay drawn or/and Average of the

‘Emoluments’ drawn by the employee during 10 months immediately preceding the date of retirement.

(2) Emoluments for pension include Basic Pay (Pay drawn in the prescribed Pay Band + applicable Grade Pay) Stagnation Increments, Dearness Pay and Non-Practicing Allowance.

(3) Emoluments for Service Gratuity/ Retirement Gratuity/ Death Gratuity will

include Dearness Allowance also on the date of retirement/Death.

(Rule 33) (4) 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 10 months of Service, otherwise than as penalty.

(Rule 50)

(5) If an employee 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 as ‘Emoluments’.

(6) Increments falling due, though not drawn, during Earned Leave not exceeding

120 days will be taken as ‘Emoluments’.

(7) If the employee had been under Suspension and subsequently reinstated in service without forfeiture of service, the emoluments which he would have drawn had he not been under suspension will be taken as ‘Emoluments’.

(8) 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.

(9) Pay drawn by a Government Servant while on Foreign Service shall not be

treated as emoluments, but the pay which he would have drawn under the Government had he not been on Foreign Service shall alone be treated as ‘Emoluments’.

(10) In calculating ‘Average Emoluments’, the period(s) of extraordinary leave, dies

non, overstayal of leave or joining time and suspension not counting for pension falling within the last ten months will be ignored and a corresponding period added before ten months.

(Rule 33 & 34)

6. PREPARATION OF PENSION PAPERS

(1) List of Government Servants due to retire within the next 24 to 30 months is to be prepared every 6 months that is on the 1st of January and the 1st July of each year by the Head of Department and the list is to be supplied to the Accounts Officer within one month.

(2) The work on preparation of pension papers in Form 7 by the Head of Office

concerned should commence 2 years before the date of superannuation of any employee.

(3) The verification of service making the good omissions in the Service Book and calculation of Average Emoluments and other related actions should be completed 10 months before the retirement of the Government Servant.

(4) Before 10 months to the date of Retirement, the Head of office has to furnish to

the Retiring Official a certificate showing the length of Qualifying Service proposed to be admitted for the pension and gratuity and also the Emoluments and Average Emoluments and the last pay proposed to be reckoned with for retiring gratuity and pension. The employee can verify this details and point out omissions if any, supported by relevant documents.

(5) The Head of Office should also furnish Form 4 and Form 5 to the Government

Servant, advising him to complete and submit the same not later than 8 months prior to the date of retirement.

(6) The Head of Office shall complete Part one of Form 7 not later than 6 months of

the date of retirement of the Government Servant and forward Form 5 and Form 7 with a covering letter in Form 8 along with the Service Book of the Government Servant duly completed up-to-date for the verification of the service. He should also prepare the Pension Calculation Sheet in the prescribed form in triplicate and forward it to the Accounts Officer along with the pension papers.

(7) The Head of Office will also ascertain from all concerned Departments like

Estate Management, Library etc., of Government dues if any to be recovered from the retiring employee and furnish the same to the Accounts Officer at least 2 months before the date of retirement. If any dues are outstanding, the same will be recovered from the gratuity before its payment is authorized. The Accounts Officer should give a copy of the Pension Calculation Sheet along with the intimation of his having sent the Pension Payment Authority/ PPO to the AG/PAO etc., to the pensioner.

(8) In the case of employees retiring other than on superannuation, the above

actions should be taken by Head of Office as soon as the fact of such retirement becomes known to him.

(9) In the case of superannuation employee, if the pension papers are not

completed before the date of retirement for any reason, he may be given Provisional Pension and Gratuity calculated on the basis of information available in the records and provided by the Employees.

(10) Such Provisional Pension will be paid for a period till the Final Pension Payment

Order is issued or for period of 6 months whichever is earlier. If Final Pension Payment Order could not be issued within a period of 6 months, the Provisional Pension and Gratuity will be treated as Final and Pension Payment Orders will be issued accordingly after the expiry of 6 months.

(11) If any excess/short payments in Provisional Pension occur, the same will be

adjusted in the Final Pension Gratuity authorized. However, excess payment if any, occurred in the Provisional Gratuity paid will not be recovered.

(12) Provisional Pension may also be granted for retiring employees in whose case

Departmental or Judicial Proceedings may be pending.

7. VOLUNTARY RETIREMENT (A) AN EMPLOYEE HAS THE RIGHT TO RETIRE and get pensionary benefits by

giving 3 months notice to the Appointing Authority-

a) After attaining the age 50 years: - Groups A & B Officers who had entered service before attaining the age

of 35 years. b) After attaining the age of 55 years: - Groups A & B Officers other than above - All Groups C & D Employees. (FR 56(K))

c) On completion of 30 years Qualifying Service: - All Employees.

(Rule 48(1)(a) CCS Pension Rules)

Retirement becomes effective on the expiry of notice period without awaiting appointing authority’s approval unless the Official is under suspension. (B) EMPLOYEES HAVE THE OPTION TO RETIRE VOLUNTARILY on completion

of 20 years Qualifying Service by giving 3 months notice, which requires acceptance by the Appointing Authority.

- retirement will take effect on expiry of notice period unless before expiry

thereon, permission for retirement is refused by the Appointing Authority (Rule 48 A, Pension Rules).

(C) GENERAL CONDITIONS

- request for reducing the notice period may be considered on merits for acceptance.

- Even in cases where the notice period is reduced, the employee can apply

for commutation of pension only after the expiry of 3 months notice period. - Request for withdrawal of the notice for voluntary retirement if made, before

the date of retirement can be considered by the Appointing Authority.

(D) Notice can be given before attaining the age specified or completing required years of qualifying service, but the effective date of retirement should be after attainment of prescribed age or completion of years of qualifying service. (Note to below FR 56)

(E) Employee should ascertain and satisfy that thy have completed 20 years

qualifying service while making a reference to the Appointing Authority before giving notice for Voluntary Retirement under Rule 48-A.

(F) Employee can avail leave standing to his credit along with the notice period.

(G) Temporary employees are also eligible to seek voluntary retirement on

completion of 20 years service.

8. PREMATURE RETIREMENT In public interest, the Appointing Authority has the absolute right to retire an employee from service by giving in 3 months notice or giving him pay and allowance in lieu thereon. This power can be exercised in the following circumstances:

a) After attaining the age of 50 years:

- Groups A & B Officers who had entered service before attaining the age of 35 years.

b) After attaining the age of 55 years:

- Groups A & B Officers other than the above.

- All Group C & D Employees (FR 56(j)).

c) On completion of 30 years Qualifying Service:

- All employees (Rule 48(1)(b)).

d) General Conditions: An employee served with a notice/order of premature retirement may appeal against it within 3 weeks for consideration.

e) Notice can be given earlier, but the premature retirement will take place

only after attaining the age specified or completing the required years of qualifying service.

f) The power to prematurely retire an employee should not be used:

(i) to retire an employee on grounds of misconduct or as a short cut to avoid formal disciplinary proceedings; or

(ii) for reduction of surplus staff or for effecting general economy without

following the instructions relating to retrenchment.

9. RETIREMENT BENEFITS The Retirement Benefits consists of: (1) A monthly recurring payment termed PENSION. (2) A lumpsum payment termed RETIREMENT GRATUITY. :PENSION: (1) No Monthly Pension is admissible to an employee who retires before completion

of 10 years qualifying service. Such persons are paid a lumpsum amount called Service Gratuity, at the rate of half months emoluments for every completed six monthly (half year) period of service.

(2) Full Pension is admissible on retirement after 10 years or more qualifying

service. The amount of pension will be 50% of the Average emoluments or 50% of the last pay drawn, whichever is more.

(3) The minimum of any pension including compassionate allowance granted should not be less than Rs.3,500/- per month. However, the amount of invalid pension should not be less than the amount of family pension at normal rates.

(4) The amount of pension should be rounded off to the next higher rupee.

A retiring Government Servant becomes eligible for: (a) Pension and Retirement Gratuity (10 years or more Qualifying Service) or (b) Service Gratuity and Retirement Gratuity (between 5 & 10 years Qualifying Service)

or (c) Service Gratuity (less than 5 years of Qualifying Service). GRATUITY: (1) Retirement Gratuity-

(a) retirement gratuity is admissible to a Government Servant, who retires from the service after completing 5 years of qualifying service.

(b) retirement gratuity is a lumpsum payment.

(c) the amount of retirement gratuity will be equal to 1/4th of the employees

emoluments for each completed 6 monthly period of qualifying service.

(d) retirement gratuity is subject to a maximum of 161/2 times the emoluments or Rs.10 lakhs whichever is less.

(e) emoluments for the purpose of gratuity include DA on the date of

retirement.

(2) Death Gratuity-

(a) death gratuity is admissible in the case of death in service of an employee.. It is payable to the nominee (s)/ eligible family members of the deceased employee at the following rates:

Length of Service Death Gratuity payable to family (i) Less than one year… 2 times of ‘emoluments’

(ii) One year or more, but less than 5 years… 6 times of ‘emoluments’.

(iii) 5 years or more, but less than 20 years 12 times of ‘emoluments’. (iv) 20 years or more… Half of emoluments for every completed

six-monthly period of qualifying service subject to a maximum of 33 times ‘emoluments’ of Rs.10 lakhs, whichever is less.

Emoluments include DA on the date of death. – Rule 50 and Rule 10(2), CCS(TS) Rules, 1965.

(b) emoluments for the purpose of retirement/ death gratuity means basic pay, stagnation increments, dearness pay, non-practicing allowances and dearness allowance on the date of retirement/death.

(c) the amount of gratuity should be rounded off to the next higher

rupee. (d) when there is reduction in the emoluments during the last 10

months of service, otherwise than as a penalty, gratuity may be calculated on average emoluments for the last 10 months instead of emoluments.

(e) Recovery from retirement gratuity/death gratuity of Government

dues is permissible without any consent. (f) no income tax on retirement gratuity and death gratuity. (g) gratuity is exempted from court attachments. (h) in the case of missing employees, retirement gratuity may be paid

to the family after one year, in case the officials’ whereabouts are not known.

(i) retirement/death gratuity benefits are available to the employees

subscribing to CPF also. (j) when a nominee is convicted for the murder or abetting in the

murder of the employee, he/she will be debarred from receiving his share of gratuity and the same will be payable to other eligible members of the family.

(k) where there is no nominee(s) and no family member(s), the gratuity will be paid to the person in whose favor a Succession Certificate has been granted by the court of law. Otherwise, the gratuity lapses.

(3) Service Gratuity-

(a) Admissible to permanent employees who retire before completion

of 10 years qualifying service in lieu of Pension. (b) This is a lumpsum payment. (c) Service Gratuity is calculated at the rate of half-months emoluments

for every completed six-monthly period of qualifying service. (d) Service Gratuity is in addition to retirement gratuity admissible to

those who have completed 5 years qualifying service.

(4) Residuary Gratuity-

If a Government servant dies within 5 years from the date of his retirement and the sums actually received by him at the time of his death on account of pension (including Dearness Relief on pension) or Service Gratuity and Retirement Gratuity (including commuted value of any portion of pension commuted by him), are less than 12 times of his emoluments at the time of retirement, the deficiency may be granted to the nominee(s) or heir(s). The deficiency paid is called ‘Residuary Gratuity’.

COMMUTATION OF PENSION:

(1) Every pensioner is eligible to commute a portion not exceeding 40% of his monthly pension for a lumpsum payment.

(2) Commutation of a portion of Compassionate Allowance is also admissible. (3) An employee or pensioner against whom department or judicial proceedings are

pending is not eligible for commutation of his pension till completion of such proceedings.

(4) In the case of employees eligible/ in receipt of superannuation pension,

retirement pension, compensation pension, commutation can be done without undergoing medical examination if, they apply for commutation within 1 year of the date of retirement.

(5) The following categories of pensioners can commute a portion of their pension

only after they have been medically examined and declared fit by the medical authority.

(a) retired on invalidation.

(b) retired compulsorily as a measure of penalty. (c) in receipt of Compassionate Allowances. (d) applying for commutation after 1 year from the date of retirement.

(6) Commutation amount is calculated on the basis of commutation value

contained in the commutation table brought out by the Government of India.

(7) The lumpsum commutation amount payable will be equal to:

Commutation Factor X 12 X Amount of Pension Offered for commutation. The product should be rounded off to the next higher rupee.

(8) The amount of pension offered for commutation will be reduced from the monthly pension payable to the employee for a period of 15 years.

(9) Commuted portion of pension will be restored on the expiry of 15 years from the

date of retirement, if the commutation amount is received in the first month of retirement or after 15 years from the date of receipt of commutation amount in other cases.

FAMILY PENSION:

1. Admissible to the family of an employee/ pensioner on his death in service/after retirement.

2. Normal family pension = 30% of pay last drawn, subject to a minimum of Rs.3,500/- per month.

3. Pay includes basic pay, stagnation increments, dearness pay and NPA.

4. Fraction to be rounded off to the next higher rupee.

5. In the case of employees rendered 7 years or more continuous service, family pension is admissible at a higher rate.

6. In the case of death while in service, the higher rate of Family Pension is payable

to the family for a period of 10 years from the date of death.

7. In the case of death after retirement, higher rate is payable only for a period of 7 years following the date after the date of death or upto the date on which the employee would have attained 67 years of age, whichever is less.

8. Higher rates are not admissible to dependant parents.

9. The higher rate in the case of death in service will be 50% of the pay last drawn.

10. In the case of death after retirement, the higher rate will be 50% of the pay drawn at the time of retirement of the amount of pension authorized on retirement, whichever is less. If pension authorized is less than the normal family pension, the normal family pension will continue without any change.

11. The family pension is payable to only one member of the family at a time. It is first payable to the surviving widow or widower till his/her death or remarriage, whichever is earlier and thereafter to children one by one in the order of their birth, irrespective of their sex.

12. In the case of dependant parents, if both parents are alive, family pension will be paid first to mother and after her death to the father.

13. In the case of judicially separated spouse, the family pension will first be paid to the eligible children. If the children ceased to be eligible for family pension, it will be paid to the judicially separated spouse till death or remarriage, whichever is earlier.

14. If the judicial separation is on the ground of adultery of which the surviving spouse was held guilty, such a spouse will not be eligible for family pension.

15. Children of void/voidable marriage are also eligible for family pension when their

turn comes. 16. PERIOD FOR WHICH FAMILY PENSION IS PAYABLE:

Order Period for which family pension is payable

(a) Widow or Widower Till date of remarriage or death, whichever is earlier. Pension is payable for the day of death also.

(b) Unmarried son/ daughter/ widowed/ divorced daughter

Till date of marriage/remarriage or date of attaining the age of 25 years or starts earning an amount of Rs.3500 + DA at Central rates p.m.

(c) Unmarried Son(s) suffering from disorder of disability of mind or physically crippled

For life or till he gets married or till he starts earning an amount of Rs.3500 + DA at Central rates p.m.

(d) Daughter(s) (including widowed/ divorced daughter(s) suffering from disorder of disability of mind or physically crippled

For life or till she gets married or till she starts earning an amount of Rs.3500 + DA at Central rates p.m.

(e) Dependent parent(s) Till death or starts earning an amount of Rs.3500 + DA p.m.

-- Rule 54 and GIDs (21) and (22) thereunder.

17. Exception to the General Rule:

a) when there are more than one window, the family pension will be allowed in equal shares.

b) in the case of twins, the family pension will be paid in equal shares.

18. A Government Servant/pensioner can draw family pension in addition to

salary/pension if due. 19. Children of deceased parents who were both Government Servants can draw

two family pensions. 20. If the Government servant dies while under suspension, the period of

suspension will be treated as duty for all purpose including payment of pay and allowances and family pension.

21. Family pension can be paid if the employee/ pensioner is missing for more than

1 year. 22. Family pension is admissible to post-retiral spouse/ children born or adopted

legally after retirement. 23. A posthumous child is also entitled for family pension.

24. The quantum of Family Pension payable to the eligible shall be increased when

their age advances, as follows:

Age of Family Pensioners Additional quantum of Family Pension From 80 years to less than 85 years 20% of Basic F.P From 85 years to less than 90 years 30% of Basic F.P From 90 years to less than 95 years 40% of Basic F.P From 95 years to less than 100 years 50% of Basic F.P 100 years or more 100% of Basic F.P

10. PAYMENT OF PENSION

(1) The Accounts Officer is responsible for issuing Pension Payment Order to the Pension Dispersing Authority from whom the pension/family pension is desired to be drawn monthly.

(2) Pension is dispersed through Treasuries, Pay and Accounts Officer, Post

Offices and selected Nationalized Banks.

(3) Monthly pension is payable on the last working day of the month to which it relates.

(4) If payment of gratuity is delayed beyond 3 months from the date of retirement,

interest at the rates applicable to GPF deposits will be paid to the retired

employee/ dependents. The amount of such interest will be recovered from the Official(s) responsible for delay.

11. DISABILITY PENSION UNDER CCS (Extraordinary Pension) Rules 1939 (1) Disability Pension is granted to employees sustaining injuries or diseases for

reasons attribute to or aggravated by Government Service. (2) Extraordinary Family Pension is granted to the family of the employee, whose

death is attribute to or by injuries/diseases aggravated by Government Service.

(3) These benefits are in addition to the Pension/ Gratuity payable under CCS

(Pension Rules).

(4) Disability Pension under Extraordinary Pension Rules can be granted only with the sanction of the President.

QUANTUM OF DISABILITY PENSION

Category A:

Disability due to natural causes not attribute to Government Service

Normal pension and gratuity admissible under CCS (Pension Rules). No disability pension.

Category B:

Disability due to causes which are accepted as attributable to or aggregated by Government Service.

Normal pension and Gratuity + disability pension equal to 305 of basic pay for 1005 disability. For lower percentage of disability, disability pension will be proportionately lower.

Category C:

Disability due to accidents in the performance of duties

NOTE: if the employee is retained in service, he shall not be paid Disability Pension monthly, but the capitalized value of the Disability Pension will be paid to him in lump.

Category D:

Disability attributable to acts of violence by terrorists, anti-social elements etc., whether in their performance of duties or otherwise.

Normal retiring pension and Gratuity (for full service) + Disability Pension equal to Normal Family Pension, calculated in such a way that the aggregate of the service and disability element shall not be less than 80% of the pay last drawn for 100% disability. For lower percentage of disability, disability pension shall be proportionately lower.

Category E:

Disability arising as a result of:

(a) attack by or during action against Normal retiring pension and gratuity (for full service) +

extremists, anti-social element, etc., and

(b) enemy action in international war or border skirmishes and warlike situations, including cases which are attributable to

(i) Extremists acts, exploding mines, etc., while on way to an operational area,

(ii) Kidnapping by extremists; and

(iii) Battle inoculation as part of training exercises with live ammunition.

Disability pension equal to the last pay drawn, subject to the condition that the aggregate of the service and disability elements shall not exceed the pay last drawn for 100% disability. For lower percentage of disability, the disability element shall be proportionately lower. 100% disability & dependent on someone for day to day functions, Canteen Attendant Allowance of Rs.3000/- p.m. in addition to disability Pension

12. EXTRAORDINARY FAMILY PENSION

Category A:

Death due to natural causes not attributable to Government Service.

Normal Family pension under CCS Family pension Rules

Category B:

Death due to causes which are accepted as attributable to or aggregated by Government Service.

(a) Where the deceased Govern., Servant was holding a pensionable post, 40% of basic pay subject to a minimum of Rs.4550/- (b) Where the deceased Govern., Servant was holding a pensionable post, 60% of basic pay subject to a minimum of Rs.7000/-

Category C: Death due to accidents in the performance of duties

Category D:

Disability attributable to acts of violence by terrorists, anti-social elements etc., whether in their performance of duties or otherwise.

(a) To widow (till death or remarriage) FP

equal to last pay drawn. (b) To children (under normal rules) 60% basic pay: Minimum Rs.7000/- (c) To Parents (in case of death of bachelor / widower Govt., servant) 75% for both parents: 60% if only single parent. Note I: Where Extraordinary Family Pension is allowed, no other Family Pension will be admissible. Note II: Govt., Departments/offices will have power to grant Disability/ Family Pension, if they are covered under the existing instructions. Note III: Extra-ordinary pension rules will not apply to Government Servant appointed on or after 1st January 2004.

Category E: Disability arising as a result of:

(a) attack by or during action against extremists, anti-social element, etc., and

(b) enemy action in international war or border skirmishes and warlike situations, including cases which are attributable to

(i) Extremists acts, exploding mines, etc., while on way to an operational area,

(ii) Kidnapping by extremists; and

(iii) Battle inoculation as part of training exercises with live ammunition

13. EX-GRATIA LUMPSUM COMPENSATION To families of employees who die in harness

Families of Central Government Civilian Employees, who die in harness in the performance of their bona fide official duties under various circumstances, shall be paid the following Ex.Gratia Lumpsum Compensation: (5)

Important Points:

(1) The compensation is intended to provide an additional insurance and security to employees, who are required to function under trying circumstances and are exposed to different kinds of risks in the performance of their duties.

(2) The concerned Administrative Ministry is competent to decide the admissibility

of the compensation. (3) The main condition is that, the death of the employee concerned should have

occurred in the actual performance of bona fide official duties. (4) The above compensation will not be paid to the employee-passengers, who

die in accidents to commercial aircrafts. However, this applies to death occurring in an accident while travelling on duty by service aircraft.

(5) The ex-gratia amount to be paid to Central Government Civilian Employees

killed in train accidents (6) The above ex-gratia compensation shall be admissible in addition to the

benefits of CCS (Extraordinary Pension) Rules, Liberalized Pensionary Awards Scheme, Central Government Employee’s Group Insurance Scheme, Provident Fund etc.

(7) The aggregate of tje ex-gratia compensation paid from different Government

sources (PM’s Relief Fund, CM’s Relief Fund etc.) shall not exceed Rs.20 lakhs in each individual Case.

(8) If any doubt arises in the interpretation of these rules, it shall be referred to

Department of Pension & Pensioners’ Welfare

(a) Death occurring due to accidents in the course of Performance of duties Rs.10 lakhs

(b) Death occurring in the course of performance of duties attributable to acts of violence by terrorists, anti-social elements, etc

Rs.10 lakhs

(c) Death occurring during (a) enemy action in international war or border skirmishes and (b) action against militants, terrorists, extremists, etc.

Rs.15 lakhs

(d) Death occurring while on duty in this specified high altitudes, inaccessible border posts etc on account of natural disasters, extreme weather conditions

Rs.15 lakhs

14. GENERAL (1) Commercial Employment Immediately After Retirement: a) A retired Group ‘A’ Officer is required to take prior approval of the Government

for accepting any Commercial Employment within one year from his date of retirement.

b) If he accepts such employment without the previous sanction, the Government

may withhold whole or a part of his pension.

c) Commercial Employment means an employment in any capacity including that of an Agent, under a Company, Cooperative Society, Firm or Individual engaged in trading, Commerce, Industrial, Financial or Professional business. It also includes a Directorship of such Company or Partnership of such firm.

Setting up practice as advisor or consultant in matters related to his official

knowledge or experience also comes under Commercial Employment.

d) Following employments re not treated as Commercial Employment:

(i) Employment under a body corporate, wholly or substantially owned or controlled by the Central/State Government. (ii) Employment with university.

(Rule 10)

(2) Employment After Retirement under a Foreign Government: a) A retired Group ‘A’ Officer should not accept any employment under any Government outside India without the prior Sanction of the Central Government. b) If accepted without prior permission, no pension is payable during the period of such employment or for a longer period as may be ordered by the Government (3) Limitation on number of Pensions: a) A Government Servant in not eligible for two pensions in the same service or

post at the same time or by the same continuous service. b) A pensioner receiving superannuation or retiring pension and re-employed

subsequently in not eligible for a separate pension and gratuity for the period of his re-employment.

c) Re-employment pensioner retired on Compensation Pension or Invalid pension

or Compensation gratuity or Invalid gratuity and re-employed military pensioner are entitled to draw pension/gratuity separately for their previous service. They have an option to stop drawing previous pension and count the benefits. If no option is exercised, they will draw pensions for both spells of service separately, once they complete 10 years Qualifying Service in the second spell.

(Rule 7, 18 & 19)

(4) Pension subject to future good conduct:

(1) Disciplinary proceedings against a pensioner can be initiated only with the sanction of the President

(2) Such proceedings shall not be in respect of any event, which took place more

than 4 years before initiation of such proceedings.

(3) Right of President to withhold or withdraw pension:

(4) Disciplinary proceedings against a pensioner can be initiated only with the sanction of the President.

(5) Such proceedings shall not be in respect of any event, which took place more

than 4 years before initiation of such proceedings.

(6) If the pensioner is found guilty of grave misconduct or negligence during period of service including during re-employment, in any departmental or judicial proceedings, the President can withhold pension or gratuity, or both, either in full or in part. The President can also withdraw pension in full or in part, whether permanently or for a specified period.

(7) The President can also order recovery from a pension or gratuity or the

whole or part of any pecuniary loss caused to the Government by the individual during his service.

(Rule 9)

(15) NEW PENSION SCHEME FROM 01/01/2004 GENERAL

(1) The Present Pension Scheme (Defined Benefit Pension System) and GPF will not be available to Central Government Savants appointed on or after 1/1/2004. They will be governed by a new scheme.

(2) The New Scheme is called Defined Contribution Pension Scheme. (3) The New Scheme has two tiers- Tier I and Tier II. (4) Contribution to Tier I which relates to Pension is mandatory. (5) Contribution to Tier II which is in place of GPF, is optional and at the discretion

of Government Servants. (6) Tier I is operative form 1/1/2004. Tier II will be operative from a date notified

later.

APPLICABILITY 1) Applicable to all Central Government Servants appointed on or after 1/1/2004. 2) Not applicable to Armed Forces, at present. CONTRIBUTIONS 1) Monthly contribution at the rate of 10% of (Pay drawn in the Pay Band + applicable Grade Pay + DA) for Tier I. 2) Contribution by recovery through salary bills. WITHDRAWAL 1) No withdrawal is admissible from Tier I Account. 2) Withdrawals are freely allowed from Tier II Account. PENSION 1) Exit from the scheme will be on attaining 60 years of age. The scheme provide

pension for lifetime of the employees and his/her dependant parents/spouse at the time of retirement.

2) It is mandatory to invest 40% of pension wealth in funds regulated by Life Insurance

Company on exit at the age of 60 or afterwards. 3) If the employee leaves the scheme before 60 years of age, 80% of Pension wealth

mandatory for investment. 4) Interest for the accumulation will be at the rat prescribed by the Government from

time to time. 5) The individual will receive a lumpsum of the remaining Pension Wealth, which he

would be free to utilize in any manner. 6) Employees will get annual statement containing details of opening balance, monthly

contribution, Governments matching contribution and interest earned.

7) There is a Central Record Keeping Agency.

8) Several Pension Fund Regulatory and Development (PFRDA) to regulate and develop the pension market.

9) Statutory Pension Fund manages to offer 3 categories of Schemes- A,B,C.

10) Provision for terminal payment in the event of leaving the service during the present interim period is yet to be decided by the Government.

11) As an interim measure, new pension scheme members who are discharged on invalidation/disablement/died during service since 1.1.2004 are entitled to the following benefits on provisional basis till further orders:-

(Taken from P-248 of Swamy’s Hand Book-2010)

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