For Restricted Circulation DEPARTMENT OF ATOMIC …Rule 35 of CCS (Pension)Rules,1972 2. Retiring...

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HANDBOOK FOR PENSIONERS /FAMILY PENSIONERS

For Restricted Circulation

DEPARTMENT OF ATOMIC ENERGY

PRINCIPAL ACCOUNTS OFFICE

Disclaimer:

Utmost care has been taken to compile the information given in this

Hand Book on the basis of extant Rules and Orders. This Hand Book is for

the general information and not to be quoted as the ultimate authority for

grant of any benefit which is not envisaged in the rules.

PENSIONER / FAMILY PENSIONER

5.

1. Name

2. Designation

3. Unit

4. Residential address

Telephone Number (Residence)

Mobile No.

E-mail ID

PPO Number

Bank Account Number

Branch Name & Code

BSRCode

Bank Address

Phone No. of CPPC

10. lmportant dates to remember

(a) Payment of Pension

(b) Life Certificate

(c) Date of Restoration of

commuted pension

(d) Due date for Filing

lncome Tax Return

(e) 7 CPC expected

(0

11. DR Rate as on,

01.01 .201401.07.201401.01 .201501.07.201501.01 .201601.07.2016

100o/o

107o/o

: Last working day of the month

: November of every year

: 31st July of every year

: 2016-2017

6.

7.

8.

9.

INDEX

PageNo.

lntroduction 1

Chapter '.- 1 - Pension & other Retirement benefits 4

Chapter .- 2 - Pension Payment Order ( PPO ) 14

Chapter :- 3 - Procedure to be followed with Bank 19

Chapter '.- 4 - Grievance Redressal Mechanism 25

Chapter :- 5 - Family pension & other entitlements 27

Annexures -

1 Model Calculation Sheet 40

2 Form 1 Application for commutation of pension afterretirement but before one year.

42

3 Table of Commutation Value 44

4 Table containing G.P.F. lnterest Rates since01.04.1982

45

5 Form of Application to be submitted for endorsementof post-retiral spouse in Pension Pay Order

46

6 List of CPPC and contact details of Authorised Banks 48

7 Life Certificate 55

8 Circular dated 30.06.201 1 from CPAO on submissionof Life Certificate Procedure for getting Digital LifeCertificate

56

I Procedure for getting Digital Life Certificate 58

10 Specimen letter of undertaking to be given to theBank by the Pensioner.

59

11 Form 5 : Particulars to be obtained by the Head ofOffice from retiring Government servant

60

12 Pension Payment Processing Timelines 62

13 Application for Restoration of Commuted Portion ofPension

63

14 Form 3 : Details of Family 64

15 Form 14 . Application for Family Pension 65

16 OM No.412512008-P&PW(D) dated 19.11.2014-Enhancinq Fixed Medial Allowance to { 500/- p.m.

67

17 lnvestment options and lncome Tax 68

lntrod uction

This handbook is an attempt to empower the retiring employees

governed by pension rules and pensioners / family pensioners with the

relevant information about their entitlements, rights and privileges.

Chapter one gives an overview of the eligibility for pension, different

kinds of pension, relevance of Qualifying Service in the matter of calculation

of pensionary benefits etc. An important change regarding verification of

service rendered in another Department, issued vide Notification dated

29.08.2014 is incorporated in Para 5. The various retirement benefits

available to eligible employees (GPF subscriber), including a model

calculation (Annexure-1) are included in this chapter. The applicability of

income tax on pension, exemption available to the lumpsum payment of

retirement benefits etc. is given in Para 18.

Chapter two covers all aspects relating to Pension Payment Orders

(PPO). The PPO is an important document for the pensioners. The PPOs

are issued in two parts one for the pensioner and the other for the Pension

Disbursing Bank. The manner of issue of duplicate PPO and amendments to

PPO are given in Paras 23 and 24 respectively. The PPO number is a 12

digit number. The 12 digit PPO number has to be quoted by the Pensioner /

Family Pensioner in all their correspondence with the Authorities.

Banks are the Pension Disbursing Authority. The role of bank and the

dealings with the bank in the matter of pension payment is elaborated in

Chapter three. The monthly pension along with the Dearness Relief is

credited to the account of the pensioner by the bank. Every year in

November pensioner is required to submit a Life Certificate to the Bank. The

procedure for submission of Life Certificate is given in Para 26. Government

has recently introduced, vide OM dated 14.11.2014 Diqital Life Certificate for

the convenience of the Pensioners/Family Pensioners.

Due to the simplifications of procedure introduced by the Government of

lndia, vide OM dated 7.5.2014, the pensioner need not visit the bank to

collect the pensioner's portion of PPO and submit an undertaking

(Annexure- 10) to activate the first payment of pension (Para 27). Facility is

also available for the pensioner for transfer of the pension account from one

branch/bank to another (Para 28). Procedure for restoration of commuted

pension is given in Para 31.

Various Grievance redressal mechanisms available to the pensioner is

given in Chapter four. Attempt has been made to compile the current contact

details of the Central Pension Processing Centres (CPPC) of all banks. The

details may be seen at Annexure-6.

Chapter five covers all the entitlements of the family in case of death of

employee / pensioner. One of the focus area of the Government is the

welfare of the family. Various measures have been taken to simplify the

procedures and extend the family pension benefits to the more needy

members of the family like unmarriedlwidowed/divorced daughter, disabled

child ren/siblings and parents.

The Form 3 for submission of details of family has been revised to

include all the members of family likely to be eligible for family pension. The

names of unmarried/divorcedlwidowed daughter/parents disabled sibling, can

be added in PPO even when eligibility occurs after the issue of the PPO. For

this, pensioner/spouse may intimate the details of such family members to

Pension Sanctioning Authority. The criteria of eligibility of each family

member is described in para 38. Procedure for claiming family pension is

given in Para 39. On the death of the pensioner on submission of an

application in plain paper, payment of family pension to spouse will

commence, provided the pensioner had a joint account with the spouse and

undertaking/personal particulars have already been fonrvarded along with the

original P.P.O.

3

Ghapter 1 - Pension & other Retirement Benefits

Eliqibilitv:Employees appointed on pensionable establishment on or before

31.12.200A and subscribing to the General Provident Fund (GPF) on

completion of 10/20 years of qualifying service, are eligible for full pension as

per CCS (Pension) Rules, 1972.

2. Different kinds of pension:

st.No

Types ofPension

Conditions upon whichpavable

Amount & Authority(Rule)

1. Super-annuationPension

(1) 10 years minimum qualifyingservice in a pensionableestablishment and opted forGPF.(2) Upon attaining the age of 60years or extended further byGovt. for certain category ofemployees.(3) Retirement is effective fromthe afternoon of last day of themonth in which the Govt. Servantattains the age of 60 years. AGovt. servant whose date of birthis the first of a month, shall retirefrom service on the afternoon ofthe last day of the precedingmonth on attaining the age of 60years.

50o/o of the averagebasic pay of last 10months or the lastmonth basic paywhichever is morebeneficial.

(Basic pay includespay in Pay Band +

Grade Pay + NPAwhere applicable).

Minimum: t 3500 pmMaximum: {45000 pm

Rule 35 of CCS(Pension)Rules,1972

2. RetiringPension

(1) Upon voluntary retirement oncompletion of minimum 20 yearsservice.

50o/o of the averagebasic pay of last 10months or the lastmonth basic paywhichever is morebeneficial.

Minimum: { 3500 pmMaximum:t45000 pm

(2) Upon compulsory retirementas per Rule 56 of FundamentalRules.

4

3. Pension onConversionof a Govt.Department

into aCorporation

orabsorptionfrom Govt.

into aCorporation

w.e.f. 01.01.2006 full pensionafter completing minimum 10years of service as Govt. Servant.

Rule 36 -50% of theaverage basic pay oflast 10 months or thelast month basic paywhichever is morebeneficial.

Minimum: t 3500 pm

Maximum: t45000 pm

As per DP&PWclarification dated17.6.2011.

Pension on pro-ratabasis calculated onthe length of qualifyingservice.Rule 37 & 37 A.

Before 01.01.2006 pro-ratapension after completingminimum 10 years qualifyingservice as Govt. Servant.

4. lnvalidPension

Retirement upon permanentincapacitation due to mental orphysical infirmity.

Minimum: ( 3500 pm

Maximum: t45000 pm

As per Rule 38 of CCS(Pension) Rule 1972.

5. Compen-sationPension

Pension granted on abolition of apermanent post held by theemployee.

Minimum: t 3500 pm

Maximum: t45000 pm

As per Rule 39 of CCS(Pension) Rule 1972.

6. CompulsoryRetirementPension

Pension granted to GovernmentServant compulsorily retired fromservice as a penalty.

Rule 40 - Not less thantwo-third and not morethan full compensationpension or gratuity orboth.

7. Compa-ssionateAllowance

Pension granted to a dismissedGovernment servant, if thecase is deserving specialconsideration.

Rule 41 - Amount ofPension not exceedingtwothird of pension orgratuity or both whichwould have beenadmissible if retired oncompensation pension.

5

3. Qualifvinq service for Pension & Gratuitv: Commences from the

date on which the Government servant takes charge of the post to which he

is first appointed either permanently or in an officiating capacity or temporary

capacity. Temporary service followed by confirmation without interruption will

also qualify. For calculating the length of qualifying service, fraction of a year

equal to three months and above shall be treated as a completed one half

year. The maximum qualifying service taken for the purpose of calculation of

Gratuity is 33 years.

4. Verification of service rendered in another Office / Department: lf the

service rendered in another office or Department could not be verified, the

Head of Office shall refer the said period to the Head of Office in which the

government servant is shown to have served during that period.

On receipt of the communication, the Head of Office in that Office or

Department shall verify the portion of service and send necessary

certification to the referring Head of Office within two months from the date of

receipt of reference.

lf no response is received within two months, the said period shall be

deemed to qualify for pension. lf any time thereafter it is found that the Head

of Office and other concerned authorities had failed to communicate any non-

qualifying period of service, responsibility shall be fixed.

6

\

5. Retirement benefits available to DAE emplovees eliqible forpenqion:

The following are the various retirement benefits available:

( *Model Calculation Sheet enclosed as Annexure - 1 )

6. Gommutation of pension: Every pensioner is eligible to commute a

percentage of monthly pension not exceeding 40%.

Application in Form 1-A to be submitted in duplicate at least three

months before the date of superannuation, so as to facilitate payment by the

Accounts Officer.

7

Sr.No.

RetirementBenefits

Authority / Documents

1 Monthlv Pension Pension Payment Order (PPO)

2 Commutation ofpension

Sanction issued by Head of Office and paid byPAO (or) paid by the Pension Paying Branch.- " can be verified from Calculation Sheet.

(see para 6 for details )

3 RetirementGratuity

Sanction issued by Head of Office and paid byPAO. - * can be verified from Calculation Sheet.

(see para 7 for details)4 Leave

encashmentSanction issued by Head of Office and paid byPAO. - * can be verified from Calculation Sheet.

(see para 10 for details)5 General

ProvidentFund.

On the basis of application submitted by theemployee to the PAO through Head of Office forfinal withdrawal. (see para 14 for details).

6 Central Govt.EmployeesGroup lnsuranceScheme 1980

Sanction issued by Head of Office and paid byPAO(see para 11 for details).

7 T.A. for settlementat a station afterRetirement.

Sanction issued by Head of Office and paid byPAO.

8 C.H.S.S. benefits. As per the CHS Scheme prevailing in theDepartment. (see para 15 for details).

I Fixed MedicalAllowance

Rs.500/- p.m. is paid along with pension whereCHSS benefits are not opted.(see para 16 for details)

After the date of retirement but within one year of retirement, if

pensioner is submitting his application for commutation, Form t has to be

submitted (enclosed as Annexu re 2).

When the commutation amount is paid after the date of retirement by

the Bank, then the full pension has to be paid by the bank till the

commutation amount is paid. Once the commuted value is paid the reduced

pension will become payable.

Amount of commutation- Percentage of pension opted for commutation xCommutation factor as per commutation table x12

Commutation factor table is enclosed as Annexure- 3

7. Retirement Gratuitv: A Government servant who has completed

minimum five years of qualifying service, on his retirement, shall be granted

retirement gratuity equal to Tlh of emoluments for each completed six

monthly period (SMP) of qualifying service, subject to a maximum of 16%

times the emoluments.

The maximum amount of gratuity - Rs. 10 lakh

Emoluments for gratuity - Basic Pay + Dearness Allowance(Pay in Pay Band + Grade Pay is the basic pay)

Retirement Gratuity = Tax emoluments x completed SMPs.

8. Service Gratuitv: A Government Servant retiring before completing

qualifying service of 10 years is not eligible for pension. lnstead, service

gratuity at the rate of half month's emoluments for every completed six

monthly period of service is payable.

8

9. lnterest for delav in pavment of Gratuitv: lf the payment of Gratuity is

delayed beyond 3 months from the date of retirement, interest at the rate

applicable to GPF deposit is payable to the pensioner.

10. Leave Encashment: Cash equivalent of Leave Salary is admissible as

per Rules 39 of CCS Leave Rules for the number of days of earned leave

and half pay leave at the credit on the last date of service subject to overall

limit of 300 days.

The half pay leave component cannot be commuted fully to make up for

the shortfall in earned leave. The cash equivalent of leave salary is

calculated as follows:

(1) For Earned Leave:-

(2)

Basic pay+DA admissibleon the date of retirement from service

x*

ln case EL credit is falling short of 300Leave can be availed for the difference.

For Half Pay Leave--

Half of basic pay+DA thereonon the date of retirement

30x

No.of days of unutilizedearned leave at credit subjectto a maximum of 300 days

days, encashment of Half Pay

No. of days of half pay leave at creditsubject to the total of earned leave andHPL at credit not exceeding 300 days.

11. Central Govt. Employees Group lnsurance Scheme (CGEGIS) 1980:

The scheme is compulsory for all Central Government employees joining

service after 1.11.1980 and optional for those entered service before

'l .1 1 .1980. lt provides for the Central Government employees the benefits of

low cost insurance cover to help the families in the event of death while in

service and a lumpsum payment on retirement, resignation, etc.

9

Rates of monthly subscription -

Group to which the employeesbelongs

Monthly rate ofsubscription

RateRs.

(A) Up to December. 1989Group'A' 80GrouP'g' 40Group'C' 20Group'D' 10

(B) From Januarv, 1990Group'A' 120Group'B' 60Group'C' 30GrouP'P' 15

12. Benefits payable on Retirement:

Lumpsum amount of accumulation in the Saving Fund is paid as per

the Table of Benefits issued by the Ministry of Finance every year based on

the Group held by the Government servant from time to time.

13. T.A. on retirement: Admissible when retired employees settle in a

station other than the last station of duty. The entitlements are as applicable

in case of transfer. The concession should be availed within 1 year of

retirement.

For settling down at a station not more than 20 km from the last station of

duty, the following are the entitlements -

(a) Self and family Actual cost of conveyance notexceeding the road mileage allowanceadmissible for transfer.

(b) Personal effects Actual cost of transportation not exceedingthe amount admissible for transfer.

10

(c) Transportation ofConveyance

An allowance at the rates prescribedby the Director of Transport for journey bytaxi / auto-rickshaw, as the case may be.Where the above allowance is claimed, nomileage will be admissible for self. lf thefamily also travels by the same conveyance,they will also not be entitled to mileageallowance.

(d) Composite TransferGrant

Amount equal to Ts of the basic pay plusNPA, if applicable.

14. General Provident Fund: Subscription to the GPF shall be stopped

during the last 3 months before superannuation. On retirement, the

accumulation in GPF along with interest as per Rule 11 of GPF Rules is paid.

Rate of interest for the years from 01 .04.1982 to 31 .03.2014 is given in the

Annexure-4 for information. GPF accumulation paid is exempt from lncome

Tax.

15. Gontributory Health Service Scheme (CHSS) Benefits:

(a) The retiring employee has an option to retain the CHSS benefits

available at stations where CHSS is operated.

The benefit is admissible only to the employee and spouse.

Employee should pay the contribution in advance for a minimum period

of one calendar year with reference to the pay drawn prior to retirement.

This needs to be renewed. Else, employees have an option to pay "one

time contribution" of 10 years to be eligible for life long registration.

The rate of contribution is 1o/o of basic pay per month.

The reimbursement of any claim for treatment under CHSS after

retirement will be made by the Pay & Accounts Officer (PAO) of the office

from where the pensioner retired. The bank account details may be

provided to the PAO for direct remittance of the payment into the bank

account.

(b)

(c)

(d)

(e)

11

(f) Option is also available to join the scheme any time after retirement

subject to payment of one time contribution for life long registration or

arrears of contribution from the date of retirement. Employees retired

from non CHSS station settled at a CHSS station can also become a

member.

16. Fixed Medical Allowance (F.M.A): Option for CHSS benefits or Fixed

Medical Allowance is available to the retiring employee. lf fixed Medical

Allowance is opted an amount of Rs.300/- p.m. is payable with effect from

0'1.09.2008. The amount of Fixed Medical Allowance has been enhanced to

{ 500/- p.m. vide OM No.4/25I2008-P&PWD dated 19.11.2014 (enclosed as

Annexure-16).

17. Additional Pension:

(a) Additional pension is admissible from 80 years to 100 years of age as

detailed below:

Aqe of Pensioner Additional quantum of pension80 vears to less than 85 years 20o/o of basic pension

85 vears to less than 90 years 30% of basic pension

90 years to less than 95 years 40% of basic pension

95 years to less than 100 years 50% of basic pension100 years or more 100% of basic pension

(b) Payment of additional pension is automatic.

(c) Pensioners may like to check up with the Paying Branch upon attaining

the eligible age as per the table.

18. Income Tax and Exemptions: The following lumpsum payments are

exempted from payment of lncome Tax under Section 10 of the lncome Tax

Act:

12

(a) Commuted value of pension(b) Gratuity(c) Leave encashmeft(d) CGEGrs(e) Provident Fund

lncome Tax pavable on monthlv Pension / Familv Pension:

Monthly pension is taxable like salary.

(a) If the total pension receivable in a year is more than the exempted

amount as stipulated in lncome Tax Act, tax will be deducted at

applicable rates by the Pension Disbursing Authority (bank).

(b) lf the pensioners have made investments eligible for tax exemption (

under 80C, 80CCC, 80D, 80DD, 80DDB,80E, 80G, etc.), the saving

particulars should be furnished to the Pension Disbursing Authority

(PDA) (Bank) for getting exemption/rebate of lncome Tax.

19. Tax Benefits to Senior Gitizens (60 vears) / Super Senior Citizens(8O

vears):

(a) lndividuals attaining 60/80 years of age at any time during the financial

year are eligible for the benefits of Sr. Citizens/Super Senior Citizens

respectively.

(b) Sr. citizens/ Super senior citizens are provided concessions as per the

lncome Tax Act. The income tax exemption limit for Sr.

Citizen/Super Senior Gitizen during the assessment year 2015-16 is

Rs.3.00 lakh and Rs.S lakhs, respectively.

Banks are also providing higher rate of interest on investments / deposits to

Senior Citizens. Pensioners may like to avail of such facilities provided by

the bank. Return on investment of the retirement dues by way of interest,

etc. would also be liable for income tax as per the lncome Tax Act.

13

Ghapter 2 - Pension Payment Order (PPO)

20.Pension Payment Order: The Pension Payment Order (PPO) is in two

parts, one for the pensioner and the other for the pension Disbursing Authority

(PDA), i.e. the authorised bank. PPO is issued by the Pay & Accounts Officer

under special seal. The PPO in Form CAM 52 contains the following

information:

(i) PPO number and date

(ii) Class of pension

(iii) Name of pensioner

(iv) Details of Family ( Name, Age, Address, etc. )

(v) Department / Ministry in which the pensioner was last serving

(vi) Accounts Officer issuing the PPO with PAO Code Number

(vii) Date of retirement of pensioner

(viii) Date of commencement of pension

(ix) Gross amount of monthly pension

(x) Gratuity(paid/payable)

(xi) Commutation of pension (paid/payable)

(xii) Reduced amount of monthly pension on account of commutation

(xiii) Fixed MedicalAllowance, if payable.

(xiv) Family pension at normal / enhanced rate admissible to the family, etc.

Part IV of Form CAM 52 has been introduced vide correction slip dated

7.1.2014 for co-authorisation of family pension of permanently disabled

children/sibling and dependent parent.

Every PPO is given a distinct Pension Payment Order number. PPO

numbers are allotted by CPAO. The PPO number is to be quoted in all

correspondence with PAO, CPAO and Bank. Each PPO number comprises

12 digits, the first five digit indicate the code number of PPO issuing PAO,

Admin

Typewritten Text

14

next two digits indicate the year of issue, next four digit indicate the

sequential number of the PPO and the last digit is a check digit for the

purpose of computer. The status of PPO and amendment can be tracked in

the Central Pension Accounting Office (CPAO) website (www.cpao.nic.in) by

entering the PPO number.

21. Role of Gentral Pension Accounting Office (GPAO): The Central

Pension Accounting Office (CPAO) was established on 1.1.1990 for payment

& accounting of Central (Civil) pension. The CPAO receives the PPOs

/ submitted by the PAOs and issues Special Seal Authority (SSA) to the

authorised banks. The CPAO also register the grievances of the pensioners

(www.cpao.nic.in).

22. Provisional pension (for reasons other than Departmental judicial

proceedings): ln spite of following the procedure laid down in Rule 59, if it is

not possible to assess the pension and gratuity and settle before the date of

retirement of the employee, Head of Office shall determine and authorise

provisional pension and provisional retirement gratuity. The payment of

provisional pension shall not continue beyond six months. lf the final amount

of pension and gratuity have not been determined by the Head of Office

within a period of six months, the Accounts Officer shall treat the provisional

pension and gratuity as final and issue Pension Payment Order immediately

on expiry of the period of six months.

15

23. Issue of Duplicate PPO :

24. Amendment to PPO: Amendment to PPO can happen due to revision

of pension, changes in the family particulars etc.

sr.No.

Nature of lssue Procedure

1. lf both the halvesof a PPO arereported to havebeen lost in transitbeforecommencement ofpayment ofpension.

The paying branch will address to the concernedPay & Accounts Office through the usual channeli.e. Link Branch, CPAO etc. requesting for issueof a duplicate PPO in favour of the concernedpensioner. Before initiating action in this behalfthe paying branch will, however, verify from theregister of payment of pensions that no paymenthas already been made to the pensioner andconfirm this fact to the PAO while writing for aduplicate PPO.

2. Pensioner'sportion of the PPOis lost, worn or tornand it is sought tobe renewed.

The paying branch will forward the request of thepensioner, along with both halves of the PPO tothe CPAO through the Link Branch for renewal in

terms of the provisions of rules. ln order thatpayment of pension is not unnecessarily delayedin such cases in the absence of disburser'sportion of the PPO, care may be taken to sendthe connected documents to the CPAOimmediately after payment for a month is made,so as to leave sufficient time with the CPAO to dothe needful and return the documents by the timepayment for the next month becomes due. TheCPAO will also be reminded by the payingbranch in cases where the return of thedocuments is unduly delayed.

3. ln case wheredisburser's portionof PPO is lost bythe Paying branchofthe bank.

The Paying Branch will report the matter to theconcerned Pay & Accounts Office through theusual channel, i.e. Link Branch, CPAOrequesting for issue of duplicate disburser'sportion of PPO. For this purpose, the PayingBranch will fonruard the photocopy of thepensioner's portion of PPO duly attested by theBank Manager and certificate indicating themonth upto which the payment has been madeto the pensioner. CPAO will send this informationto the concerned PAO for issue of duplicateDisburser portion of PPO.

16

24.1 Revision of Pension: After issue of the PPO, revision of authorised

pension may be required due to the following:-

1. Retrospective revision of pay due to stepping up, promotion etc.

2. Retrospective Upgradation of pay scales

3. On lmplementation of new Pay Commission recommendations.

4. Govt. orders relating to change in effective date of up-gradation /revision, etc.

The Head of Office/PAO may be contacted for providing information

required for revision. An amendment for carrying out corrections on both the

halves of the PPO will be issued by PAO under special seal. The corrections

on the PPO will be carried out under the attestation of Branch Manager.

Pensioners are advised to visit the Branch to ensure that the amendment is

carried out.

24.2 Change of Address & Contact details: When the contact details and

address for correspondence changes, the same may be intimated to the

Head of Office for issue of suitable amendment to the PPO. This will also

facilitate contacting the pensioner by the office for any revision related issue.

24.3 Endorsement of family pension entitlement of post retiral spouse

in the PPO: An application in the proforma (enclosed as Annexure - 5) along

with stipulated documents to be submitted to Head of Office. The Head of

Office after due verification will forward the papers to the Pay and Accounts

Officer for issue of corrigendum to PPO.

17

The payment of family pension will be subject to the provisions of clause

(b) of Sub Rule (7) of Rule 54 of CCS (Pension) Rules, 1972. When the

pensioner does not have any children from previous marriage, if any, the post

retiral spouse shall be eligible for full family pension. Where the pensioner

has any eligible child from another wife who is not alive, the family pension

payable to the post retiral wife and the child/children from the previous

marriage will be in equal share. When the shares of family pension payable

to the widow or child ceases to be payable, such share shall not lapse but is

payable to the widow or child.

24.4 Payment of family pension to eligible children: As far as children,

including those borne after retirement, a fresh PPO will be issued as and

when the turn of each child for receipt of family pension arise.

18

Ghapter 3 - Procedure to be followed with Bank

25. Payment of Monthly Pension / Family Pension: Pension / Family

Pension will be credited to the bank account of Pensioner / Family pensioner

on the last working day of every month except in the case of March which will

be credited on the 1't working day of April. ,

(a) The amount of pension is the basic pension minus the pension

commuted, if any. ln case of Family Pension, there is no concept of

cornmutation. ln addition, Dearness Relief (DR) on basic pension is

payable. DR as on 01 .07.2014 is 1O7o/o which is revised w.e.f. 1't

January/July of each year.

The order for revision of DR is issued by Department of Pension &

Pensioners Welfare (DP&PW).

Copies of the orders are made available on the DP&PW Website

(www. persmin. nic. in /pension).

(d) ln case Pension / Family Pension is not credited to the account,

pensioner may approach the Central Pension Processing Centre

(CPPC) of the concerned bank or the toll free number of the bank. The

address and contact details of CPPC of all authorised Banks are

enclosed as Annexure - 6.

26. Life Certificate to be furnished by the Pensioner/ Family Pensioner

to the Bank :

(a) The Pensioner / Family Pensioner is required to furnish a Life Certificate

in November each year in the form stipulated (enclosed as Annexure-7).

(b)

(c)

Admin

Typewritten Text

19

Officers of the RBI and authorised banks are authorised to give Life

Certificate for this purpose.

(b) ln case Pensioner / Family Pensioner is unable to obtain a Life Certificate

from an authorised bank officer on account of serious

illness/incapacitation etc. intimation to this effect supported by a Medical

Certificate about his inability to appear in person may be sent to the

Officer- in-Charge of the paying branch so that the latter may nominate

an officer to visit the Pensioner / Family Pensioner at his/her

residence/hospital for the purpose of recording the Life Certificate.

(c) A pensioner who produces a Life Certificate signed by any person

stipulatedinCPAooMdated30.06.2011(enclosedasArcE)is

exempted from personal appearance. The Pensioner / Family Pensioner

can also submit the certificate to any Branch of the Bank through which

pension is being disbursed.

(d) Digital Life Gertificate - Government has introduced Digital Life

Certificate based on Aadhar Biometric Authentication. The detailed

process for getting Digital Life Certificate is enclosed as Annexure-9.

.

27. Simplification of pension procedure to avoid personal visit of the

Pensioner to the Bank :

(a) As per the scheme for payment of pension through Authorised Banks, an

undertaking (enclosed as Annexure - 10) is to be submitted by the

retiring Govt. ServanUPensioner to the Disbursing Bank before

commencement of pension. By this undertaking, the pensioner

undertakes to refund any excess payment paid by the bank.

Admin

Typewritten Text

20

(b) ln order to simplifo the procedure and to avoid delay in commencement

of pension, it has been decided vide OM No.112712011-P&PWE dated

7.5.2014 that the required undertaking may be obtained by the Head of

Office from the retiring Govt. servant along with Form 5 (enclosed as

Annexure - 11) and other documents, before his retirement. This

undertaking shall be forwarded to the pension disbursing bank along with

the PPO by the Accounts Officer.

(c) The pensioner would no longer be required to visit the bank to activate

the first payment of pension. The PAO, after ascertaining that the Bank's

copy of the PAO has been despatched by the CPAO, may hand over the

pensioner's copy of the PPO along with retirement dues at the time of

retirement. This procedure should be feasible in all cases where the

Government Servant had submitted pension papers within the time limits

stipulated in the CCS (Pension) Rules, 1972 (time schedule enclosed as

Annexure -12).

(d) An employee posted at a location away from the Head of Office or for

any other reasons desire to receive his copy of PPO from the Bank may

exercise the option in writing to Head of Office while submitting the

pension papers (as per the existing practice).

28. Procedure for Transfer of Pension / Family Pension from one

Branch/ Bank to another: For reason of convenience etc. a

pensioner/family pensioner can change the Pension Paying Branch or even

the Bank by following the procedures given below:

21

(a) Transfer from one paying branch to another of the same bank within

the same station or at a different station - Request for this may be

entertained by the bank itself. ln case transfer is at the same station,

Link Branch will make necessary entries in the register maintained by

them and fonrvard the Disburser's portion of PPO to the paying Branch at

which payment is desired under intimation to the Central Pension

Accounting Office and the Pensioner. ln case the transfer is at different

station, Link Branch after keeping the requisite note will fonruard

Disburser's portion of the PPO to the Link Branch at new station for

arranging payment through the new paying branch. Necessary intimation

of affecting such transfer will be sent to CPAO by the new as well as old

link Branches for keeping a note of change in their records under

intimation to the pensioner. The receiving Link Branch on receipt of the

pension documents will ensure forwarding the PPO to the paying branch

within three days and intimate the pensioner simultaneously.

(b) Transfer from one bank to another within the same station (such

transfers to be allowed only once in a financial year) &

(c) Transfer from one bank to another bank at a different station

When a pensioner applies for transfer on a simple sheet of paper the old

bank (paying branch) will send a letter duly signed by its Branch Manager

to the Branch Manager of the new paying branch, wherever located,

along with photocopy of the pensioner's PPO showing the last payment

made.

22

This will be sent by Speed-posUCourier/Regd. post to the new paying

branch at the new location, along with a copy each to the pensioner, CPAO

and for information to the Link Branch of the old paying branch.

Simultaneously, the old paying branch will send the Bank's copy of the PPO

to its Link Branch, duly completing all entries for transmission to the new Link

Branch. However, pensioner's copy of PPO will be retained by pensioner

and produced at the new paying branch.

The new paying branch will commence the pension payment immediately

on receipt of letter of the last payment certificate. Simultaneously, it will send

intimation to its Link Branch with full details of the commencement of the

pension. The old paying branch and its Link Branch will ensure that the

bank's copy of PPO is transmitted to the new paying branch through its Link

Branch.

Pension will be paid for 3 months on the basis of the photocopy of

the pensioner's PPO at transferee (New) branch, from the date of last date of

payment made at the transferor (Old) branch. During this time, it will be the

joint responsibility of both transferor (Old) and transferee (New) bank

branches to ensure that all the documents are received by the transferee

(New) branch within the period of 3 months.

With the introduction of CBS and implementation of CPPC the

pensioner has the option of putting a request at either the Old Branch or the

New Branch.

Except as provided above, the transfer of a pension from one

payment point to another will not ordinarily be permitted.

23

29. Payment of pension to N.R.l. Pensioners / Family Pensioners: In

case where the pensioner has become non-residents, facility is provided for

converting the account of the pensioner to non-residents ordinary account on

following stipulated conditions and the pension will be credited to the NRI

account.

30. Joint bank account by pensioner with spouse: lt is permitted to credit

pension to joint account operated by pensioner with spouse in whose favour

an authorisation for family pension exist in PPO. The joint account will enable

spouse to receive family pension without applying in Form-14( Form for

applying for Family Pension ).

31. Restoration of commuted pension: The pension commuted will be

restored after 15 years. The date of restoration is indicated in the PPO in

case of superannuation where the commuted value was paid by the PAO.

For restoration of the pension commuted, the pensioner has to apply in the

proforma (enclosed as @g-tg-13) to the pension disbursing bank. lf the

pension commuted is not restored on due date, the pension paying branch

may be contacted or the grievance redressal mechanism as given in

Chapter- 4, may be followed.

24

Chapter 4 - Grievance Redressal Mechanism

32. Grievance Redressal: Pensioners/Family Pensioners have the

following option for registering their grievances. The PPO Number has to

be quoted in all their correspondence with the authorities.

(a) A grievance redressal portal is exclusively available for Pensioners /

Family Pensioners in Department of Pension & Pensioner's Welfare

Website (www.persmin.nic.in/pension). The link'CPENGRAMS' in the

web site, provide facility for lodging pension related grievances and

knowing the status of the grievances.

(b) Central Pension Accounting Office website (www.cpao.nic.in) also

provides facility for Pensioners & Family Pensioners for lodging

grievance and check status of grievance settlement.

(c) Toll Free Telephone No. of CPAO is 1800-1 1-77-88. (9 am to 5.30 pm)

on all working days for registrations of grievance and obtain registration

number.

(d) ln DAE Website (www.dae.nic.in) on clicking the image link "Pensioner

Portal" 'DAE Pensioners Corner' will be opened. This Handbook will be

available in the 'DAE Pensioners Corner' and changes pertaining to the

information contained in this Hand Book will be updated in the e-

Handbook.

(e) Contact details of Central Pension Processing Centres (CPPC) of various

Banks are enclosed as Any Grievance relating to payment

of pension, non-payment of DR etc. the concerned CPPC of the Bank

may be contacted.

25

(0 SBI has also pensioner grievance redressal portal( www.sbi.co.in ).

(g) The Nodal Officer for DAE for pension matter is Joint Controller (F&A).

The contact details of JC(F&A), DAE is given below:

Joint Controller (F&A)Department of Atomic EnergyAnushakti Bhavan,C.S.M. Marg,Mumbai - 400 001.

e-mail lD : [email protected]

Phone No. (022) 2286267 O

(h) The Pensioner/Family Pensioner can take up their grievance with their

Head of Office/PAOs as the case may be.

26

Ghapter 5 -Other

Family PensionEntitlements

&

33. Entitlements of the family of the deceased employee dying while in

service:

Please see para 38 for the entitlement of family pension to the family

members, the order of priority and the other conditions of eligibility.

Sr.No.

Entitlements Authority

1 Monthly FamilyPension

Pension Payment Order ( see para 35 to 39 fordetails).

2 Death Gratuity Paid by PAO based on sanction issued by Headof Office (see para 41 for details).

3 LeaveEncashment

Paid by PAO based as per sanction issued byHead of Office ( see para 42 for details ).

4 Central Govt.Employees GrouplnsuranceScheme, 1980

Paid by PAO based on sanction issued by Headof Office ( see para 43 for detaild ).

5 General ProvidentFund

On the basis of application submitted by thenominee. (see para 44 for details ).

6 T.A. for settlementat a station afterRetirement.

Paid by PAO based on sanction issued by Headof Office.( see para 45 for details).

7 Deposit linkedlnsuranceScheme


I ResiduaryGratuity


I lmmediate Relief Paid by PAO based on sanction issued by Headof Office.(see para 50 for details ).

10 DAE Employees'Family ReliefScheme

Paid by Treasurer as per the Scheme(see para 51

for details).

11 C.H.S.S. benefits As per the CHS Scheme prevailing in theDepartment.( see para 47 for details ).

27

34. Details of Familv to be given bv the Govt. servant : A Government

Servant shall give details of family in Form-3 (enclosed as Annexure- 14). In

the Revised Form-3, details of spouse. all children and parents and disabled

siblinqs ( brothers & sisters ) whether eligibie for family pension or not may

be given. Please also see para 52for changes in the composition of family

after retirement.

Family members eligible for family pension as per GCS (Pension) Rules

1972 z

Familv -

Family pension will be given in the orO", given below:

First categorv:

1. Spouse2. Children upto the age oI25 years of age

Second category:

1. Mentally/physically disabled children above 25 years for life2. Unmarried/widowed/divorced daughter.3. Parents who are wholly dependent on the Govt. servant.4. Dependent disabled brothers or sisters.

35. Eligibility for family pension:

a. After completion of one year continuous service.

b. Before completion of one year provided already medically examined andfound fit.

c. After retirement from service and was on the date of death is in receipt ofpension.

28

36. Amount of Family Pension:

Minimum Normal Family Pension : ( 3500 p.m.

Maximum Normal Family Pension , 1 t 27000 p.m.

37. Dearness Relief: Applicable Dearness Relief will be credited by the

bank along with pension.

DR as on 0110712014 : 1o7o/o

Revision of DR : 1't January/July of each year

38. Griteria of eligibility for family members for family pension:

Norma! rate Enhanced rate

30% of basic payPayable when the govt. servant has rendered not lessthan 7 years of service.Death while in service: Amount of Family Pension ispayable 50% of pay last drawn for 10 years from thedate, following the date of death.Death after retirement: 50% of pay last drawn orpension authorised whichever is less. Payable for aperiod of seven years or upto the date on which hewould have attained 67 years had he survived.

Sr.No

FamilyMembers

Period of payment & conditions Income criteria

1.

Spouse(Husband/

Wife)

Upto the date of death or remarriage,whichever is earlier.

Not applicable

(a) Childlesswidow

ln case of childless widow even afterremarriage subject to lncome Criteria.

The minimumfamily pension i.e.

T 3500 plus DRthereon.

Declarationregarding incomeis to be given to

disbursingauthority every six

months.

(b) Judiciallyseparated

spouse withno child

Judicially separated spouse with nochild is eligible. Not eligible if judicialseparation is granted on the ground ofadultery and the spouse was heldguilty of committing adultery.

(c) Judiciallyseparated

spouse withchildren

Judicially separated spousechildren will get family pensionthe children cease to be eligible.

withafter

29

2. Son/Daughter

Upto the age of 25 years or untilmarriage or starts earning, whicheveris earlier. Payable in the order of birth.Younger will become eligible after theelder become ineligible.


{ 3500 plus DRthereon.

3. Disabledchildren

above2Syears

Eligible after the turn of last minorchild is over.lf more than two children sufferingfrom disorder, family pension ispayable in the order of birth.The younger one will be eligibleafter the elder cease to be eligible.ln case of twin children family

pension shall be paid to both ofthem in equal shares.Eligibility has to be certified by

competent med ical authority.Payable even after marriageCertificate to be furnished to bankabout income.As and when the disabilitymanifests itself in a child whichmakes him/her unable to earnhis/her living, Heads of Office shallbe notified supported with medicalcertificate.

1

67


< 3500plus DR thereon.

4. Unmarried/widowed/divorceddaughter

1 . Effective from 1 .1 .1998. Eligible ifshe is not earning her living.

after issue ofif alive, or the

widowedintimatepension

2. lf eligibility occursPPO, the spouse,unmarried/divorced/daughter can themselvesthe details to thesanction i nq authority.

The minimumfamily pension i.e.{ 3500 plus DR

thereon

5. Parents 1. Wholly dependent on the govt.servant when alive.

2. Payable at normal rates only.3. lf both parents are alive, first, mother

qets familv pension.

The minimumfamily pension i.e,{ 3500 plus DR

thereon

6. Disabledsiblings

unable toearn their

livinq

Following the same criteria as laiddown for disabled children.

The minimumfamily pension i.e.{ 3500 plus DR

thereon

30

Note : Family pension admissible to a beneficiary in respect of one

deceased employee/pensioner is not to be counted aS income for the

purpose of determination of etigibility for another family pension, which is

admissible in connection with another deceased employee/beneficiary.

However, any other income/earning of the beneficiary under consideration

will be counted towards income for deciding eligibility for family pension.

39. Procedure for grant of familv pension:

The following are the steps td ne taken for grant of family pension:

Death after retirement Death while in serviceOn submission of an application on plainpaper along with death certificate thepayment of family pension to spouse willcommence from the date following thedate of death provided:

(a) the pensioner had a joint bankaccount with the spouse.

(b) the specimen signature, personalmark of identification, left handthumb impression, proof of age/dateof birth and undertaking for recoveryof excess payment have beenobtained by Head of Office andforwarded along with the PPO.

lf a & b are not complied with applicationin Form-14 (enclosed as Annexure 15)has to be submitted to Bank.

The Head of Office will obtain aclaim in Form-14. The Head ofOffice shall assess andauthorise family pension &death gratuity in Form-18 withina month of receipt of claim. Toavoid delay in payment of familypension and other retirementbenefits, Head of Office shouldinitiate action to process thecase immediately on receipt ofintimation without waiting forreceipt of formal deathcertificate.

31

The family pension at the rate indicatedln the PPO will commence.Separate PPO need not be issued forpayment of family pension to spouse.

Separate PPO need not be issued incase disabled children/sibling andparents where already authorised in thePPO and there are no prior eligibleclaimant.

ln case of other eligible family members,Form-14 has to be submitted to theHead of Office.

40. Additional Pension: Applicable from 80 years and above at the rate

indicated in para 17.

41. Death Gratuity: When a government servant dies while in service, the

amount of gratuity payable shall be as indicated below:-

Sl. No. Lenqth 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 vears6 times of 'emoluments'

( iii) 5 years or more, butless than 20 vears

12 times of 'emoluments'

(iv) 20 years or moreHalf of emoluments for every completedsix monthly period of qualifying servicesubject to a maximum of 33 times'emoluments' or t 10 lakhs.

The maximum amount of gratuity - t 10 lakh

Emoluments for gratuity - Basic Pay + Dearness Allowance(Basic Pay = pay in Pay Band+Grade Pay)

42. Encashment of Leave : Admissible as in the case of retirement details

given at para 10.

32

43. Gentral Govt. Employees Group lnsurance Scheme:

It provides for the Central Government employees the benefits of low

cost insurance cover to help the families in the event of death while in

service.

Rates of monthly subscription and amount of lnsurance cover -

Group to which the employeesbelongs

Monthly rate ofsubscription

Amount oflnsurance

coverRatet {

(A) Up to December, 1989Group'A' 80 80,000GrouP'g' 40 40,000Group'C' 20 20,000Group'D' 10 10,000

(B) From January, 1990Group'A' 120 1,20.000Group'B' 60 60,000Group'C' 30 30,000Group'D' 15 15,000

Benefits payable on Death while in service:

a. Amount of appropriate insurance cover as indicated above.

b. Lumpsum amount of accumulation in the Saving Fund as per theTable of relevant year.

44. General Provident fund: Balance at credit at the time of death is

payable to the Nominee / Family. The rate of interest rate applicable during

the past years is given in Annexure-4.

45. Travelling Allowance for settlement of station: Travelling allowance

as admissible in the case of retirement. Details given at para 13.

33

46. Deposit Linked Insurance Scheme: On the death of a GPF subscriber

(while in service) after five years service an additional amount equal to the

average balance in the account during the 3 years immediately preceding the

death is payable to the nominee/family subject to the following conditions:

(a) The balance at the credit of such subscriber shall not at any time during

the three years preceding the month of death have fallen below the limits

indicated in column 2 of the table:

lf the subscriber was drawing Minimum monthlybalance during the

PeriodGrade Pay of < 4,800 p.m. or more 25,000

Grade Pay of < 4,200 p.m. ormore but less than ( 4,800 p.m.

15,000

Grade Pay of { 1,400 p.m. ormore but less than t 4,200 p.m.

10,000

Grade Pay less than t 1,400 p.m. 6.000

(b) the additional amount payable under this rule shall not exceed ( 60,000/-

47. CHSS benefits: The spouse of a deceased employee and other family

members registered under the CHS Scheme can continue to avail of the

benefits provided the deceased employee had completed a minimum of one

year's service in the Department and spouse pays the contribution last paid

by the deceased employee. The eligibility is further subject to the conditions

that the spouse and other members of the family are othenruise eligible.

48. Medical Allowance: Family pensioner not opted for CHSS is entitled to

medical allowance of { 500/- per month.

34

49. Residuary Gratuity: Payable to the nominee/family of an employee

who dies within five years after retirement. lf the amount already received

towards pension & gratuity is less than 12 times of the emoluments drawn at

the time of retirement, the difference is granted to the nominee/family as

Residuary Gratuity.

Amount of Pension/Gratu ityalreadv paid

Amount to be deducted

(a) Pension/Service q ratu ity 12 times the emolumentsdrawn at the time of retirement(b) DR on Pension

(c) Retirement gratuity(d) Commutation amount

Total

50. lmmediate Relief to the Familv of an emplovee who die while in

service: ln case a Government Servant dies while in service, the family will

be eligible for relief in the shape of an advance. Amount of advance is

limited to two month Basic Pay or Rs.8000/- whichever is less. The advance

will be adjusted against arrears of Pay & Allowance or any other payment

due in respect of deceased Govt. Servant.

51. DAE Employees Family Relief Scheme (DAEEFRS): Membership of

the Scheme is voluntary. The Scheme is open to all the employees of all the

Units of Department of Atomic Energy except Bhabha Atomic Research

Centre. Separate similar scheme is available for the employees of BARC.

Person joining one of the participating Units of DAEEFRS on transfer from

Bhabha Atomic Research Centre and vice-versa would automatically become

a member of the DAEEFRS or Bhabha Atomic Research Centre Employees

Family Relief Scheme unless specifically opted out.

35

51.1 Gontribution: The contribution is Rs.251-per month, forall employees

with effect from 01 .11.2012.

51.2 Quantum of Relief: The amount of relief payable to the family of the

deceased employee is Rs.1,00,000/-. The relief amount is payable to the

family of the member nominated under the GPF/CPF/New Pension Scheme

as the case may be. lf no nomination has been made by a member,

payments under the scheme shall be made to the person to whom the

amount under GPF/CPF/NPS is payable.

51.3 Payment of Relief: Within sixty days as far as possible from the date

of receipt of a communication from the Head of the Unit regarding the name

of the nominee to whom PF dues are payable. The Secretary of the Scheme

shall write to the Treasurer in this regard within seven days from the date of

receipt of information by him from the Head of the Unit.

52. lnclusion of names of the widowed or divorced or unmarried

daughter/parents/disabled siblings after the issue of PPO: In order to

avoid undue hardship/delay/denial of rightful claim of eligible family

members, it is clarified vide DP&PW OM No.1/6/08-P&PWE dated

22.06.2010, that

(a) in case where the eligibility of the above mentioned family members

occurs after the issue of PPO, the pensioner or spouse may intimate the

details/names of such family members to the Pension Sanctioning

Authority and obtain acknowledgement.

(b) in case where the pensioner or spouse has expired, the widowed or

divorced or unmarried daughter/parents/dependent disabled siblings can

themselves intimate such details to the Pension Sanctioning Authority.

Admin

Typewritten Text

36

(c) However, the production of an acknowledgement will not be a pre-

condition to the processing of claim for family pension. Family pension

can be processed by the pension sanctioning authority even without such

intimation/ acknowledgement, if sufficient proof of entitlement is produced

by the claimant and all other conditions for grant of family pension are

fulfilled.

53. Family pension to chitdren when both Father and Mother are Govt.

Servants: lf husband and wife are government servants, when one of them

dies, family pension is payable to the surviving husband or wife. The children

are eligible for family pension in respect of both parents subject to the limits

specified below:

(i) lf two family pensions are payable at enhanced rates, maximum amount

of both the family pensions shall be restricted to Rs.45,000/- per month.

(ii) lf one family pension at enhanced rate and the other at normal rate, the

maximum amount of both family pension will be restricted to Rs.45,000/-

per month.

(iii) lf both family pension are payable at normal rate, maximum amount is

restricted to Rs.27,000/- per month.

54. Two Family pension allowed: Sub Rule - 13A & 13B of Rules 54 of

CCS (Pension) Rules are omitted vide Notification dated 27.12.2012.

Accordingly, two family pensions are allowed where the pensioner drew

is drawing or may draw two pension i.e. for Military and or Civil employments.

37

55. Procedure for automatic payment of family pension for permanently

disabled children/siblings and dependent parenh: Considering the

difficulties being faced by the old parents and disabled children /siblings after

the death of pensioner/family pensioner, the following procedures are laid

down vide OM No.112712011-P&PWE dated 1.7.2013.

(a) Disabled children/siblins: The employee/pensioner/family pensioner may

at any time before or after retiremenUdeath of employee, make a request

to the Appointing Authority seeking advance approval for grant of family

pension for life to a permanently disabled child/siblings in terms of Rule

54 of CCS (Pension) Rules.

(b) Parents: A request for advance approva! to the grant of family pension to

the parents may be made to the Head of Office.

(c) On acceptance of such a request Head of Office will immediately issue a

sanction order for grant of family pension to such

ch ild ren/sib I i ng/dependent parents on thei r tu rn.

(d) The names of permanently disabled child/children/siblings and or

dependent parents may be added to the PPO issued to the retiring Govt.

Servant. If there is no other eligible prior claimant for family pension

other than the spouse, no PPO need to be issued in such cases and the

family pension will be payable by the bank in the following order:

(a) Spouse(b) Permanently disabled child(c) Dependent parents(d) Permanently disabled sibling

38

(e) Where there are other eligible prior claimants to family pension, the

names of permanently disabled child/sibling/dependent parents will be

added to the PPO issued to the preceding eligible family pensioner.

The Bank will start disbursing the family pension to the permanently

disabled child/sibling or dependent parents after the death of the

pensioner/spouse/other family members. On the basis of the PPO/revised

PPO approval of the appointing authority and the death certificates and self-

certificate for income.

ln order to facilitate the Bank to promptly sanction the family pension,

bank account may be opened for such children/siblings/parents and intimated

to Head of Office for inclusion in the PPO/revised PPO.

39

Annexure-1

Model Galculation - Superannuation

1. Name : ABC2. Designation : CAO3. Pay Band and GP of the post last held : t 15600-39100

GP < 76004. Date of Birth : 01-11-19545. Date of Entry in Govt. service : 21-06-19746. Date of Ending Service : 31110/2014 AN7. Total length of Gross Service : Year/Month/Days

40,04,10(i) Total length of non-qualifying service : 00,00,00

(Year, Month, Days)(ii) Total Iength of qualifying service : 40,04,10(iii) Qualifying service in half years : 81 SMPs (Restricted to

max. 66 SMPs)8. Emoluments drawn during 10 months period :

and those reckoned for calculation of AverageEmoluments

Pay From Pay UptoPay in thePay Band+Grade Pay

Total

01-01-2014 30-06-2014 39550 23730001-07-2014 31-10-2014 40740 1 62960

TOTAL 400260

9. Average Emoluments for Pension : t 4002610.Pay last drawn : 7 4074011. Emoluments for Retirement : < 40740 + DA (100%) 40740

Gratuity : = 81480a) Amount of Retirement : = 81480x66 = 1344420

Gratuity (subject to max. of : 4( 10,00,000/-) < 1000000(Restricted)

12. Details of deductions / :

adjustments

NET GRATUITY PAYABLE : t 100000013. Calculation of Pension : SOYo of average emoluments

i.e. t40026x50% = 200'13OR

5Oo/o of pay last drawn i.e.7 4O740x5Oo/o

= 20370whichever is more beneficial

40

a) Amount of monthly pension : ( 20370admissible before communication

b) Date of commencement of pension : 01-11-2014

c) Percentage / amount of pension : 4Oo/o

commuted =20370x40o/o= 8148

d) Commuted value payable : 8148 x 12 x8.194 = 801177

e) Reduced monthly pension : = 20370-8148 = 12222after commutation

g) Restoration of commuted : On completion of 15 yearsportion of pension

14. MedicalAllowance

DETAILS OF SPOUSE :-

Family Pension:-L At enhanced rate :

(a) 50% of pay last drawn or : t 20370(b) pension authorised : ( 20370

(a) or (b) whichever is less : upto 3111012021

ll At normal rate '. < 12222 from 01-11-202130% of < 40740

Bank Account Details:-BankAccount No. : xxxName ofBank : SBIBranch & Code No. : xxx.BSR Code : xxxLocation : xxxDistrict : MUMBAIStatePin Code

: { 5001 p.m. or CHSS benefits

Name Relationship with the Govt.Servant

Date of Birth

ABC WIFE 1 8-05-1 957

Head of Office

41

PAO

Annexure - 2

F&R.&,g IFGR.},q OF AFFLTC.AT{SN F'GR COh{h{U'[AT'{ON GF A

PERC E}iT,A.GE CIF FEh" SION IV{THGU T &?E &TCAL EXA&,ISNi ATTG}i(To be subniitted in iir"iptricate afier retirement bi:t rvithin one year

of the date of reiirei:ier:t)PART i

(F{ere indicate the designation and fi:li address of t}re Head of Office

Subject:- Con-lmutation of pension rvithout sredical exarnimaticn.

Sir.

I dcsirc to commrite a percentage of my pensicn as lndicalecl belcrv in accordance u'ith the

provisions of the Central Civil Senices (Commutation of Pension) Rules. 1981. The ilecessary

parliculars are fllmished belorv -

1" Name (in tslock Letters)2" Father's name {also husband's narne in the case

of a fernale Govemment sen'ant)

3. Designation at the time of retirement .". ...

4. Name of OlficeiDepartment/Ministry in u'hichemployed

5. Date of birth (by Ciuistian era)

6. Date of reiirement7 . Class of pension on rvhich retired

8. Arnount of pension atithorized. lln case finalamount of pension has not been authorized.indicate the amount of provisional pensionsanctian under Rule 64 of the Central Cir.ilSen,ices {Pension) Rules, 1972]

9. " Percenta-{e of pension proposed to be

commuted

i0. Designation of the Accounts Officer whoauthorized the pension and the No. and date ofthe Pension Payrnent Order. if issued

I l. rDisbursing anthority for payment of pension -

(a) Treasury/Sub-Treasuly {Naure andcomplete address of the Treasury/Sub-Treasi:ry to tie indica'red)

(b) (i) Branch of the Nationaiized Bank rvithcomplete postal address

(ii)Bank Account No. to u,hich rnonthlypension is being cledited each montir

(c) Accourrts OtEce of theMinistryiDeparlmentl0 lEce

To

Tire

42

Place : Sigirature

Date : Postal Address* The applicant shor.rid indicate riie percentage of tire amount of the monthly pension subject to

maximuin of ,1091o theleof i.r.hich he desiles and not ttrre amollnt in Rupees.

i Scole out which is not applicable.

PAR.T {tr

ACiL-NOIVLEDGE&{EF{T

Received from Shri... ..(name)..... .. (fonrrer designatir:n) application in Part

i of Fonn I for the commutation of a percentage of pensir:n without medical exalninatiou.

Piace :

Date :

Flace :

Date:

}{OTE. - This acknou,ledgement is to be signed. stamped and dated and is to be detaclted tiomthe Fonn and handed over to the app[cant. If the fonn has been received by the post, it i]as to

be acknorvledged on the same day and the acknowledgement sent rinder registered covcl".

Pr\RT {lI

Fonvarcled to tire Accounts Officer....... .(here indicate the adclress and

designation) rvith the remarks that -

(i) tire parliculars fuinished by the appiicant in Part I havebeen verified and are coffiect :

{ii} the applicant is eligibie to get a percentage of hispension commuted without medical examination ;

(iii) tlie courmuted vaiue of pension detemrined w'itirref'erence to the Table applicable at present comes toRs.............

(iv) the amorrlt of residuary pension aftel con-unutationwill be Rs...."....,.......,

2. lt is reciuested that further action to authodze the palment of the arnount of commuted

value of pension may be taken as in Rule l5 of the Cenn'al Civil Ser.rices (Commutation ofPension) Rules. 198L

3. Tiie receipt of Part I olthe For:n has heen acknorvledged in Part II which has been

tbrwarded separately to the applicant on..............

4. The cornmuted value of pension is debitable to Head of Account -----.

Signature

Head of Office

Signatu'eHead of Otfice

,,

Admin

Typewritten Text

43

?',

Annexure - 3

(]o;\,tN{U.l A.rIoN \IALI.]E FoR A P[.]NS|ON (}Ii lte'l PliR ANNt]l\,1

IBasis: l.l(' (()4=9(i] tJltinrate Tablcs and 8'(]0*]f intcrcstl

.', ' 1*;-,1;"1Ji r' -'r, ?, r-l! a rr(J-rr.,\' );irilii,i,

(lotunrtt t:rtiott1,:ll lt ('

cxll'cssctl :ts

nunrhct'of!'€itrrs'purcltase.

Agcruettbirthd:tr'

( .ortrttttttittttlttvaluccrglt't'.';sctl:tsrtuurhcr ttl'

)'ear'sDurcltlst:

Agcrucxt

birthtlav

(lonrmutatiotlvirlttcc)(prci-scd as

rrunrber of!'eal''$purcltase

Agerrextbirttrdal'

2() 9.lBit 4l 9.075 62 li.()el

9.059 6l 7.e82lr 9.1 87 42

2l 9.t86 +-) 9.()40 (r4 l.ii(t:

44 9.()19 65 ?.7i I-) 9.t851 ..1

().184 45 ii.()9(t (r(l f')l67 i.+.) I')<. 9.1 83 46 u.e7l

l(r e.t82 47 8.943 (r8 126)

?1 9.1 80 48 8.9 r3 (r9 r'.(),\.i

l8 9.1 78 4<) E.881 1(t (l.S() i

l9 9.17(r 50 li.E.l(r 1l (t .i ( l-i

t() q.t7l 5r 5.9{)ii 7l (t. )o

rl 9.1.69 52 8.7(Ij (r.l'1(,

jl 9. t04 53 IJ.7l4 1..tt+ (r.()85

-1 -) 9.1 59 54 8.678 75 -5.871

j4 9.152 55 8.627 7tt 5.(r57

35 9.1 45 5(r 8.5 72 77 5.44.r

^)o 9.13(r 57 8.5 rl 78 5 .l l')9.126 5ti li.rt46 7r) 5.() I fi

_li 9.I l(r .5q 8.171 3()1(, 1'l-t.(l l-

l,) 9.t0l (r0 E.]Si 8l -[.(r I I

4() 9.090 6l 8. tr)4

44

',,9$'i,o'r\'

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

u.a4.2013

01.04.2012

u.a4.2011

01.04.2003

01.04.2002

01.04.2001

01.04.2000

01.04.1988

01.04.1985

01.04"1984

01.04"1983

01.04.'1983

01.04.1982

8.7%

08.80%

08.60%

08.00%

09.00%

09.50%

11.00%

12.jQo/o

10.50%

10.a00/o

09.50%

09.00%

08.00%

Annexure-4

GPF INTEREST RATES

(lncentive 1o/o for no withdrawal forprevious 3 years)

(lncentive 1o/o for no withdrawal forprevious 3 years)

(Balance upto t 20,000/-)

(Balance above { 20,000/-)

11.

12

13.

45

@xure - S

Plto F*R}"{A

Fom of,application til be submitted b,v Pensioters tbr ertdorsetnent of particulai:s of spLruse t.lix.post-retiral niarriage and children bom after retirement in tire PPO. _ * . -(To be fiileii in triplicate and s,,rbmitted to Head of Office, \vho processed pensicru papers initiai!-y-.i

Sir,I aru to siate that I have marriedr'remaried on..... ........ i gile

beiou, the reqiiisite particuiars* ol m-y sponse for necessary etdorsernet'tt or: rt:iy PPO.

i also enclose -1 copies of passpori size-fcir"rt piiotcgraph rvith my spouse duly aitested fi:rnecessary action.

1, Na'une of lire Pensioner {as recorded in PPO)

2. Fuil present Address

3. Date of Retirerneat

4. (i) PPO l{o. ct Daie

{ii) Name of PPC lssr"ring Authorit-v

5. Narne of 1lre Pensior: Disbursing Ar,rthoritl

(i) Station

{il) Treasury,/DPDO,'PAO/PSB, as the case may ire

(iii) Bank Branch u,it-l-r fuli Address and SBICA/A;c. No.

6. (a) De tails of family (as recorded in PPO)

i.No Name(s) and Adddess of members offamiiy

Relationshipwith thePensioners

VlariialStatus incase ofdaughter

\trtiethei thechildlChildrenph,vsicallyhandicaored

(b) ilihe application is for inclusion of post retiralspouse, the date of deattvdivorce of the prcvioussporise (Attesteri copies of ileath ce$ificate,'divcrcedecree to be enclosed)

1 . Partlculal of spouse from post-retiral marriage -

46

(i) Nante

{ii) Date of n-larriage u,ith the pensioner.

iPiease attach attested copy of r.narriage certif-icate)

(iii) -loint Pliotosraph of tlre pensioner and the spouserefened to ar Item (a) above duly attested.

8. Pafiicuiars ol Children bom after retirement

9. Verificaiion

tr certify that the particulars furnished above ale coil'ect. Attested by :

Signature ofPensioner(il,ith naure in Block letters u,ith address)

1. Sigrralure

Name

Address

2. Signature

Name

Address

Place

Date

S.

NoNamets) lnd rrddrc:s olpost i-r'riral famiiy

Relationshipwith thepensioner

Date ofBirth

Whether the Child (ren) rsi

are physically handicapped

Admin

Typewritten Text

47

Annexure - 6

LIST CENTRAL P CENTRES BANKS

sl.No.

Name of Bank Address Phone/Fax No.

1Allahabad

Bank

Asst. General Manager

Centralized Pension Processing Centre

3d, floor, Zonal Office, New Building

HazratGanj, Lucknow

Pin-226001, (UP)

0522--2286 6378

0522-2286489

Mob. No.9956277766

[email protected]

2 Andhra Bank

Senior Manager

Head Office


Andhra Bank Building

Sth floor, Koti, Sultan Bazar

Hyderabad - 500195 (Andhra Pradesh)

040-24757153(Fax)

a40-247s7828

Mob. No.0666{49852

[email protected]

3 Axis Bank

Axis Bank Ltd.


Settlement Cell, 4th floor,

Gigaplex Builidng No.1, Plot No.l.T.5,

Airoli Knowledge Park, Airoli,

Navi Mumbai - 400708

Debraj Saha(AVP)-01 1 -43506532

P H : 022-24253687 I 27 1 31 263

[email protected]

[email protected]

4 Bank of Baroda

The Chief Manager

13th floor, Building 16,

Parliament Stret,

New Delhi - 110001

01 1 -23441 355, 23441 348, 23441 347

Fax : 01 1-23441343

cppc.telecom@ban kofbaroda.com

[email protected]

ob.del hitobankofbaroda.com

5 Bank of lndia

Chief Manager


87-A, 1st floor, Gandhibaug,

Nagpur,

Maharashtra - 440001

022-66684471150

Fax-022-66684494

PH : 07 1 2-27 64341 127 64091 -95

cppc.naqpurl @bankofindia.co.in

[email protected]

headoffi ce. ssy@ba-!-kof! ndta€oi-E

6Bank of

Maharashtra

Dy. General Manager


1177, Budhwar Peth, Janmangal,

Bajirao Road, Pune(Maharashtra)

Pune - 411002

020-24467937138

9850434779

boml 407 @mahabank. co.in

vi n ita.va idya@ma h aba n 8.c9.ln

48

7 Canara Bank

Sr. Manager

Canara Bank


86, Spencer Towers, Sth floor,.

M.G.Road, Banglore (Karnataka),

PrN - 560001

080-25596693

080-25580778

cooctOcanarabank.com

8Central Bank of

lndia

Chief Manager


Central Office, 2nd floor,

Central Bank Building, M.G.Road,

Hutatma Chowk, Fort,

Mumbai - 400001.

022-22703216117

FAX - 22703218

cmcppc@central bank.co.in

cooc(@central bank.co, in

9Corporation

Bank

The General Manager

Corporation Bank


Pandeshwar, Mangaladevi TemPle

Road, Post Box No.88

Manqalore - 575001 (Karnataka)

0824-24414251

2426532

9818244077

[email protected] n

hopension@corPbank'co.in

10 Dena Bank


Gentralized Pension Processing Centre

Mumbai Main Office, lstfloor,

17-8, Horniman Circle, Fort,

Mumbai - 400001.

022-22690tr9112

obd(Odenabank.co.in

cppcdena@denabank'co.in

11 H.D.F.C.

Dy. Vice President


1st Floor, A-lll, Sector4

Noida - 201 301 (U.P.)

01204894258159

su [email protected] n

oension hel pdesk@-hrlfE[agf, 'cs!0

12 lClCl Bank

lClcl Bank Ltd.


lGlCl Bank tower,

Chandivali Farm Road, Powai

Mumbai - 400072.

8527690537

13 IDBI



lDBl Bank Ltd., Govt.Business Operations

Unit No.2, Corporate Park

Sion Trombay Road

Near Swastik Chambers

Chembur, Mumbai - 400071'

Ms. Pradnya(Mgr)-022'66908489

PH:022-66908405

[email protected]

[email protected]

v [email protected]

49

14 lndian Bank

The General Manager

Centralized Pension Procsesing Centre

66, 4th floor, Rajaji Salai,

chennai {Tamilnadu) - 600002

044-25210317

25231756125231757

[email protected]

15lndian

Overseas Bank

Chief Manager

Centralized Pension Procsesing Centre

Central Office, 763, Anna Salai,

Chennai (Tamilnadu) - 6Q!q9?-

044-28889383/28889384

2851 9433

cooc(Oiobnet.co.in

16Oriental Bankof Commerce

The General Manager


Oriental Bank of Commerce

Corporate Office, Plot No.5,

lnstitutional Area, Sect-32,

Gurqaon (Haryana)' 1220!1-

o 1 24 41 26379 (AG M) ( FAX)

4126527(DGMI

01244126248

17Punjab

National Bank

Dy. General Manager

Centratized Pension Processing Centre

1st Floor, Gurudwara Road, Karol Baug,

New Delhi - 110008.

011-882692744

28751702 I 6703

287s7840(FAX)

[email protected]

[email protected]

bo4421(donb.co.in

18Punjab & Sind

Bank

H.O.P&DDePartment


A-25 (First Floor) Community Gentre

Jwala Heri, Paschim Vihar

Now l)alhi - {'l 0063

o 1 1 -2527 1 585125281 21 0

cnoc@Psb'co,in

0141-222775815172259

[email protected]

[email protected]

19State Bank of

Bikaner &Jaipur

Chief Manager


State Bank of Bikaner & JaiPur

2nd floor, S.M.S. HighwaY

Jaipur - 302005 (Rajasthan)

2AState Bank of

Hyderabad

Dy. General Manager


1st floor, Methodist ComPlex,

Opp. Chermas, Abids,

Hrrdarahad-O1

o 40 -23387 41 4 I 2338288 1 -882

Fax-040-23387562

[email protected]

0824 -221 617 3 I 22',1 41 7 3

22',18775

Fax-221517321

State Bank ofMysore

Genera! Manager


Manjusha Building, 2nd floor, Bejai,

Mangalore,

Karnataka - 575004

Admin

Typewritten Text

50

22State Bank ofPatiala

General Manager

State Bank of Patiala


rPlot No.l14. Urban EstateI

I Phase-ll, Patiala' 147002, Punjab

0175-23028171I

228332212280272

2280448

Fax-2201144

!nfocppc@sbP-co'in

94460671 36/

0471-2326525

0471-2324217

[email protected]

State Bank ofTravancore


State Bank of Travancore

Chembikalam Buildings

3rd floor, VazhuthacaudI

lTrivandrum - 695014

24 Syndicate Bank



Central Accounts Dept, Syndicate Bank

2nd floor, HO: ManiPal

Karnataka-574104

0820-2575402

257119612574075

svndcPPc@svnd icatebank'co.in

033-44557964

Fax-033-44557352\.

Mob.07387226663

25 UCO Bank

General Manager

UCO Bank, CPPC DePartment

Mint Road, NagPur '444000

26Union Bank of

lndia

3hief Manager


Government Banking Division,

PBOD, 12th floor, Union Bank Bhavan

239, Vidhan Bhavan Marg

Nariman Point

Mumbai - 400021

022-228966771781

22020242-/RJ'

22896600t22838824

nkramachandran

@unionbankofindia'com

qovtbusiness@unionbankofindia'com

puneetrai@unionbankofindia'com

bansal@unionbankofindia'com

cppccivil@unionbanko

27United Bank of

lndia

Chief Manager


4th floor, Head Office-11,

Hemanata Basu Surani,

Kolkata - 700 001(West Bebgak)

033-22622549

Fax-033-22422196

22133217

homail@unitedbank'co.i n

[email protected]

28 Vijaya Bank

Sr. Manager


Merchant Banking Division,

7th floor, Head Office, 41l2,M'G. Road,

Trinity Circle, Bangalore - 560001

080-25584644/066

cmm bd@vi iavabank.co.i r

m bddgm@vi iavabank.co'i r

mbd.pension@viiavabank'co'ir

mobi lebankinq@viiavabank'co'ir

Admin

Typewritten Text

51

079 -23245s11 - 15

[email protected]

General Manager

State Bank of lndia,

Centralised Pension Processing Centre

6th floor, Gandhi nagar Zonal Office

Opp. New SachivalaYa, Sector - 10'8,

Gandhi Nagar(Gujarat)

[email protected]

General Manager



12t13, LakshmaYYa LaYout'

Ganganagar (North)

Banqlore (Karnataka) - 560024

Banglore(Karnataka)

075542067 45 / 2600836 / 37General Manager



Gavindpura Branch Premises,

Govindpura, BHEL,

Near Working Women's Hostel,

Bhopal (M.P.) - 462011

Bhopal(M.P.)

067 4-2s72950 (FAX ) t 2572170

cmcPPc'zobhu@sbi'co.in

General Manager

Stdte Bank of lndia,

Centralised Pension Processing Gentre

1611162, CSD Building'

Bomikhal,

Puri-Cuttack Road

Bhubaneswar(Odissa)

0172-4569231 I 2570755 ( FAX )

CentraJised Pension Processing Centre

Administrative Office Building,

2nd floor, Plot No.1/2, Sector - 5,

Panchkuta (Haryana) - 1341q9-

Panchkula(Haryana)

044 - 23772754 / 55 / 50 (FAX)

9445865707 (AGM)

9444441634 ( Manager )

General Manager



11214, Kalimman Koli Street,

Virugambakkam, Chennai - 600092

Chennai

52

35 New Delhi

General Manager



SBI Chandani Chowk Branch Premises,

2nd floor, Chandani Chowk,

Delhi - 110006

23888324, 23888301 (AGM)

23888327, 23888309 I 302

[email protected]

36Guwahati(Assam)

General Manager



6th floor, SethiTrust Building, G.S.Road,

Bhangagarh, Dist - Kamrup Metro,

Guwahati (Assam) - 781005

PH:0361 -2463104

9869451442

9435309683

[email protected]

37 Hyderabad

General Manager



1171387, GNR Heights, 1st floor,

Murshidabad Main Road,

Op.p. Guru Nanak Care Hospital,

Hvderabad - 520020

040-27 67 01 49 ; 27 61 01 48

[email protected]

38 Kolkata

General Manager (NW-1)



2nd floor, 83-1/A, Vivekananda Road,

Kolkata (West Benqal) - 700006

PH :033-22570827

[email protected]

39 Lucknow (U.P.)

General Manager (NW-1)



Near Sahara State, Sector - 1,

Jankipuram, Lucknow (U.P.) - 226021

PH:0522-6542211

AGM (Mob.) -941s220752

0522-27350752 I 742;

27350762 (FAXI

40 NaviMumbai

Chief Manager



5th floor, premises no. T-651 &T-751,

l.T.C.Belapur,

CBD Belapur Railway Station Complex,

Navi Mumbai - 400 614

022-41613200/3208

(fax) 27580963

Ms. Alka - 8454047004

cppc.m um [email protected]

53

\

0612-26775701645General Manager (NW-1)



floor, Administrative Building,

Patna (Bihar)

Dy. General Manager (NCM-1)


ised Pension Processing Centre

Thiruvananthapuram (Kerala) - 695014

54

41

[email protected]'in

42 Kerala

0471-2326986187

[email protected]

Annexure '7 i'

44.

ANNEXURE.XVII(See para 15.1 Page 1l)

LIFE CERTIFICATE(lo be submitted by Pensioner once a year in November)

certifiedthatlhaveseenthepensionerShri/Smt./Ms(Name of Pensioner)

holder of Pension Payment Order No. and that he/she is alive on this date.

Name

Place:

Date:

Designation of Authorised Officer

Seal

55

J

Annexure - 8

:.!t)-'1 ..:l::: .:.r..:, .l

tJa i i: "3--* !*r si i d a i'' ;

Ga*n FanchaYat oi- ai.l

cf legrslatu;-eS Cf r. rnion

*sverfim*nt of EnejieMi*istrY *f Fin*n**

**Pertr:t*mt *{ HxP*sldituc-*{er:tr*i Fensisr: &ee**::ting *ffie*

T"rike*t*E3. &?"tikali {ema F$eeeF{*w *elffit

{F&& jEeahl Gni*v* ;?€*Svi 3S 3*- A g I SB 1

Ta

Ari i G*:-reiai i"1a riaqerl.iccai ciiicer

g!gss"3.#i

S,-:i:;eci: S,nr*nqln:erTE t6 F*ra e5,? { F-tl *f Sci'ls*:t* ffi**ki*tet* fdit!+n' 3'd

m**.e**e}*S".*b::tiss!c'r:*fLlfeCertif:*ate-regerriir:g

Reierenre is invile,i tc Fara 15.2 0f scheme Bcoklel foi- suk''misEi*n of

iiie cri-lific=Ie i;'l l!*vernber each yeer 5r7 the pensii:ne:" in *r-der t': iaciiitaie

su*mission cf Ljfe cs€ificat* by peirsicners, Pai'a 15,2 is being an:end*c l':

lnciude prcvisii,-nS *f Rule 343 cf, ce;-;iral Tr*a:r;ry R'';icsr,c;R) ic ne rea'j a9

?ara i5.2ir;

ParaL52i,islates: - ,-^--ir^^r,^-*A **nsi*;r*;" v,,h* pao{ilJC*s * iife c*riifi;at* ir: ih* pr*s*:-ibed l*i'r':"i in

Arir:*Xr:re *XVll siSn*cI by ar:,r: p€rscil specifi*d her*i";nder, !rfiivevei"' is exernpieci

fi'on: persc:iai apPearance- -

iilApei'scnex*rcis!ngthefe)+ierscfal-'4agisirateund*rlheCrirnin*l Pr*cedure cnde ;

(ii) A Regisirar ar Sub-Regislrar appointsd un*e:' lnciiai': R*grstrati*n Acl;

{iii) A Gazetted G*vern;:ient se:"vant; --,^.- ,- ^k--*.r r.ii;ri A p,.--rtic* Officer *+t b*icy.r the i'a::i< cf 5ub-ins*eclol- i1i *chaig* oi a

Fo!ice Slati0n;(u-ii A f-iass-I offlrer *f the Reserl,e *ank cf Inciia, ar: afficer- (inc!ucling eraiie

iI oflic*t-i *f th* 5t*te Sank- of indra *r al iis s''tbsidiary;

{viil *. pe:rslcndd *ff;i*r wh*, before relir*merii. exeriiseci the psrvers cf a

magisfrate;(viii; A iusiire of P*ac*;'ii=lAtsiockDevel*pm*ntCfficer,{tlu;"::if,T*hsiidai"cr.

ir:' .A lieacj *f Viilag* Fenchay*t, Gran"r Fa*chayai'fxecui:ve C*r*mjttee *f a Viiiaqe;

i xii

(xii)

A l'4tn-:ber *i Farlia:irei:t. cf State ieglsi*ir-ir*s +;"-i

e r- r-i i,-: ry G * r,' * rn m e n t s i Ad ; n ! n i s i ra l i o n s'Treasur'1r Clfficer.

in the$ect*r Ear-rk

S*ctar *ank.hi: pensiol':

ca5€r:fapens!+n*rd;'*uvinghispensi*r'':l*rougi-railui':lici*e iife c*rLiiicai* may be l:6n*'* b"; ai: *ffjce;" cf * P*i:iic

Inth*casecfap*nsiun*ri-e:icling'=br'**iias:ddr"axin!thr*ugl"r '=ni: *iher bani< lnci*rJe* in i:ir* **cor':* Slhedi;i*:

56

'ffi=1

_.-r,

io ihe F.e.sene Bank fit'India Act, lgl4.officr,:r of lhe Bank, A pensioner qetsubjcct to producticn of Life Certiiicatec,f tl-tr: ban k.

lhe lifr ceriificf,iil nray h:e srgni:rl by arrexempli".il'r fr*m persr:nal appearancesignecJ hy lhe abo,rs nrenti*ned officer

A pensioner not resident in India in respect oF rryhom his ciulyauthorlzed agent produces a life certificate signe<i by a Magistrale, a Nolary, aBar"rker or a Diplomaiic Reprg59n63tive of India is exempteci frorr speriala ppears nce.

"lhe cori.enls cf ti-rt,r Para L5.1 iP- Ll rf Srhein* B,:-,ckii.ri .xir' 'l,iiiicn, 3 '

iir:c 20il,I ) slanrJs unalierecl .

il is reqi.resleLl that rriCe pr_i biiciiy ancl cir-ciLiaiicn i-li: gi',,en'J t-a r.' C i't e :j O i y.; u r- ba n k l'l; i- S t.i Ct CO rrr p I i a n Ce.

Tiris [ias thr concr.trrence cf S/O Controller General ofvicle uts {J.0.No.t.(7}(4)lzOt */TA/t.?1 dared t$il, A,prit }oL:t"r{c. 1 { 7 } I CPAO/Schenre Book/ 2CI05/TAl 254 dr. eg.o6"Zs 1 1

"

li: alt t-he

Accountsanci t-,1 .O,

" 1

(H.Atheii)0c/. {$ntrolIer of Accounts

ffi

57

Annexule - 9

:

Process of getting digital life cerlif icate i!sued for Pensioners

Srep 1 : Pensioner needs to have an Aadhaar number for BettinB digital Life certificate

issued.

Step 2 : Pensioner needs to enrol and biometrically authenticate himself/herself using one of

the following methods

a) Download application prepared for generating digital life certificate from

jeerranpramaan,gov.inonanvAndroidTab|et/SmartphoneorV/inco.',;sPC.

Procure a low cost finger print scanner/iris scanner frorn the market and plu6 it

onUSBportoftheTablet/Smartphone/PC'Usingtheaboveapplication,pensioner will be abte to enrol and bio-metrically authenticate in real time from

the comfort of their homes by giving his/her Aadhaar number and other detalls

related'to their pension bank account'

b) Pensioner can visit a nearby cSC center, Bank Branch or any Government office

whose details are provided under "locate cente/' orr jeevanpramaan.gov'in a'nd

bio-metiically authenticate in real time by Eiving his/her Aadhaar number and

other pension details related to their pension bank account'

c)lfthepensionerisalreadyenrolledontheSYstem,nexttimehegiveshisAadhaar number, he would only be required to authenticate his bio-metric for

updating date of his digital life certificate'

step 3 : After successful submission of digital life certificate, pensioner will be sent d ims on

his/her mobile giving the transaction ld. Pensioner will be able to download

cornputer generated life certificate from jeevanpramaan-gov'in using this transaction

id for their records.

Step 4: Bank Branch can be fnformed about submission of your digital life cenif icate in one

of the followlng waYs

a) Bank can login on ieevanparmaan-gov.in and.can search mantrally for

pensione/s life certificate eithdr by giving AadhEar number, Bank Account

number or Transaction ld

b) core Banking Systems of Banks will be abte to automaticallY download life

certificate details frorn the digital life registratlon repository and update life

status in Pensione/s bank account'

c) pensioner's dtgitat Life certificate can be sent to ieSpective branch of the Bank

bysendinganemailorforwardingthelinkthroughsmstodownloadlifecertificate from the website.

Reminders through sms will be sent to the pensioners enrolled on

jeevanpramaan.gov.in for timely submission of their digital life certificates'

58

Annexure - 10

SFffifiIffiEN LETTER *F ijruOEF-T&Ki&*G BY THffi PHNSiCITER

Date

ToThe Branch Manager

{Banki

(Branch & addressi

Dear Sir,

Payment of pension under AJC No. througlr your ftank.

ln consideration of your having, at my request, agreed to make payment of pension

due to me every month by credit to my account with ycu, I the undersigned agree and

undertake to refund or make good any amount to which I am not entitled or any amount which

may be credited to my account in excess of the amount to which I am or would be entitled- I

further hereby undeftake and agree to bind myself and my heirs, successor, executors and

administrators to indemnify the bank from and against any loss, suffered or incurred by the

bank in so crediting my pension to rny account under the scheme and to forthwith pay the

same to the bank and also irrevocably authorise the bank to recover the amount due by debit

to my said account or any other account/ deposits belonging to me in the possession of the

bank.

Yours taithfully,

Signature:

Name:

Address:

Witnesses:

Signature:

Name:

Address:

Date:

Signature:

Name:

Address:

Date:

r1) (2)

qo

Annexure - 11

FORVI 5

f See rtles 59 ( 1) (c) & 6lt i )liAlso see nries 5 (2). 12. 13 (3)" 1-tr ( i l iin{i l5 (3) olCentlal Civil Ser-l'ices: {Commutitticn o1'Petrsioni }iules-

te81l

Particuials to be obrained b,v the Head oi Ofiice fi'otr. tlie retiring Govt'nuueui sci.i'ant sir rnrr:rths befotthe date of his retirement

1. Name

2. (a) Permanent Account Nuurber fbr lncome Tax {PAN)(b) Aadhaar No., if available

3. Speci$ a fe,,v marks of iclenti{ication, not less than two, if possible(i)(ii)

4. Height

5. Address after retirement/penlanent address for future correspondence:

6. tsank Accorint lr[o. to .,vhich pension is to be credited:(Joint account, either or survir,'or, rvith the spouse)(ln case tire Head of Office is satisfied that it is not possible for the retiring Govemment servant icopen a joint account for reasons beyond lris/her control, this requirement may be relaxed).

7. Name olihe Branch of Banii through which pension is to be drarvn(a) BSR code of the branch(b) IFSC code ofthe branch

8. Indicate whether farnily pension is also adinissible from any othei' source - Militarv or State

Govemment and/or a Public Sector Undefiaking/Autonomous bodyil-ocal Fund under the Centraior a State Goveniment -

9. i desire to conxrrute .. ",/" {up to 409ui,) of my superannuation pension in accordance u:ith thc

provisions of the Central Civil Seryices (Commutation of Pension) Rules, 1981.

I atr arvare that frtu?e good conduct of the pensionerlfamily pensioner shall be an iilpliedcondition for every grant of pensiorllamily pension and its continuance.

Enclosures as per checklist are enciosed. Signature:

Designarion:Place : MinistrylDepartment/Office:

I\lobile No.:Date: Email iD:

Note 1: Commuration of pension is optional. ltem 9 rrray be siuck off if the retinng Government serr,'ant

does not desire to com-mute a percentage of pension.Note 2: A separate apphcation for commutation of superannuation pension in Fonn I -A of Central CivilServices (Coumutation of Pension) Rules, 198 1 is required to be submitted in case the tetirir:gGovenrment senant desires to apptl'for Commutation of Pension after submission of this fonn butthree months before retirement.Note 3: It is in ihe itterest oltire Gcvenrment senant to pror,ide E-mail ID anrl \4obile number, ',lhichfbcilitates futrire con espondence.

AA

Check List of Docriments to be submitted alor:g r,vith Form 5

S.No. Description of documents to be enclosed Whetherenclosed

1.ta)

(b)

Trvo specimen siglratLrres (to be fumished in a separate sheet)

Additional infbrmation (Only in case of an iiliter"ate or disabledGovenrnrent ser^vant.):-Two slips each bearing the lett hand thumb and finger impressions diiiyattested may be furnisired l:y a person ra,ho is not literate and cannot signiris name. If sticir a Govemmeilt servant on account of physical disabiiityis unable to _qive left hand thumb and finger impressions he may givethumb and finger inrpressions of the right iiand. Where a Govenunentservant has lost both rhe hands, he inay give his toe impressions.Impressions should be duly attested by a Gazelted Government seriiant.

2. Thlee copies of passport size j oint photograph with wife or husband.Where it is not possible lor a Govemnlent servant to submit a photographwith his r,vife or her husband. he or she may submit separate photographs.The photoglaphs shall be artested by the Head of Otfice.Thr-ee copies of passporl size photograph of disabledchildlsiblings/dependent parents, if applicable. (To be attested by theHead of OfIice)

J. Details of the farnily in Form 3.

4. Undertaking in Fomr 26, for tirose who served in Secutity-relared orIntelligence Organisations refemed to in rule 8 of the CCS (Pension)Rules. 1972

5. Written statement for coiurting of period of service under rule 59(1) (a).if any

6. Underlaking for reiunding any excess payment made by the pensiondisbursing Bank

7. Nourination ibr granriry, CGEGIS and GPF itr Corun,rn NominationFonn

8. Nomination tbr arrears of pension and cornmuted value of pension (ifappiied for commutation of pension) in Common Nomination Form

61

Annexure - 12

retiring Govt. Servants

SL.NO

ACTTVITY DUE DATE AUTHORITYRESPONSIBLE

1. Verification of qualifying service andissue of certificate (Rule 32)

On completion of 18years of service and 5

vears before retirement

Head of Office

2. Preparation of list of Govt. Servantsdue to retire within the next 12 to 15

months (Rule 56).

1't January/1" April/1"t July and 1't october

Head ofDepartment

3. Preparatory work on pension papers(Rule 58)

One year before thedate of retirement

Head of Office

4. Furnish to the retiring Govt.Servant a certificate regarding thelength of qualifying service and

emoluments/average emolu ments.(Rule 59)

8 months prior to thedate of retirement

Head of Office

Direct the Govt. Servant to furnishreasons for non-acceptance within 2months

5. Foruvard to the retiring Govt.Servants form 5 for comPletion and

return (Rule 59)


Head of Office

6. Completion of pension papers Part-1 of Form-7 (Rule 60)


Head of Office

7. Forwarding the pension PaPers tothe Accounts Officer (Rule 61)

4 months prior to thedate of superannuation

Head of Office

8. lssue of P.P.O. (Rule 65) One month before thedate of retirement

Accounts Officer

9. lntimation to the Directorate of Estatesfor issue of NDC in respect of period

preceding 8 months before the date ofretirement. (Rule 57)

One year before I Head of Officethe date of I

retirement I

10. lntimation regarding recovery ofLicence Fee from allottee in respect ofthe period prior to eight months ofretirement (Rule 7 2({1)

2 rnonths before I Directorate ofthe date of I Estateretirement I

11. lssue of No Demand Certificate(Rule 72X7)

t /ittrin 1+ days I Directorate offrom the actual I Estate

date of vacation of IGovt. I

accommodation I

I

oz

Annexure - 13

PRG FCIRMAI see Decision(Z], Rule 10 I

Subiect :- Restcration olcomtnrited poilion of pensions after i5 years -

Impiementation of the judgment of the Supreme Coul't.

Sir.

Kindly restore my cornmuted portion of pension in terms of Ministry of Personnei. Public

Grievances and Pensions. Department of Pension and Fensioners'Weifare, O.it4. No. 34.2186-

P. & P.W., dated the 5th h4arch. 1987.

Requisite pafiici:1am are given belou,-1. I{ame in Block letters

2. Date of retirement3. PC,PPO NO,

4. Amount of original pension

5. Amount of pension commuted (if any)

. Nanre of the Acconnts Officer, r,iz., the authorit.v r,vhou' issued PC/PPO

, Name of the TreasuryiPosi Office/PP&{r'othei: pension

disbursing agency

Signature of Pensioner

Date:Postal address :

Particulars verified.Signatr:re

Rubber Stamp ofPension Disbursing

Authority'

63

l1

Annexure - 14THF- C;\ZETTE OF INDi;\ : EXTRAOITDIN,{R1' lP,\Rr ll-Sr,.. .1ii)l

"FORr,t 3

i5-.: rul*.tj 1l:)j*si;ii ls,:ri Fii:r-lih'

i. Naine of the Gorenli:ii':1t -i.i1'aitt). DesigraLirn3. Date of birth-1. Detaiis of iirt" r-nembers of llurtili' as on-----------------------:

S.

\oNii:.tres ol the

menbeLs ol tirmill'Date oi

birtirReii,.tionship

rvith theotTicer

Maritalsliitus

Renraiks Datedsignaiuleol Headof Oitlct'

t) l i _1\ (4) (5) i al ) (7)

1

1..

-1.

4.

5.

6.

1.

8.

9.

10.

I hereb,r,undenatr<e ro keep rhe above particulars up-to-date b1' notilfing 10 the Head L.f thiOltiie anr ltlditi;.n oi rirelrtion.

Signature ol Govemtnent ser..,ali

Place : Date :

Note 1., The or-iginai Form submitted b-v the Government. seiy,lnt is to L'e retained. Alladditionslalterations are to be recorded in this Ft:nn under the signature r.rfHr-ad olOflice in Clol 7. Nonerv Form u,ili substitute the original Fonr, Horvcver- the rctirins Covel:rment. seiTant should subnitthe detziils oi iamiiv afresh along rvith Fon-n 5^

Note 2, - The dstails of spouse. all children and parsnts (u'hether eligible fi'rr fiur.iiil' pension or notiand disabied siblings (brothers alrd sistels) niay be given-

Note 3. - Thc. Head of Office shall indicate the date of receipt of communication regadin-q addition oralteraiion in the firmil-v in the 'Remarks' column. The lact regalding disability or change of maritalstatus of a far.lily member should also be indicated in the 'Rernarks' column.

Note.1. - Wif'e and husband shall include judicially separated u,itt and hushand.

64

.l (')

Annexure - 15

[Pnnr II-Sac. 3(il]THE GAZETTE OF INDIA: FXTRT\ORDINARY

FORh,I 14

[See rules 77 (3) anct 81 (?)J

Form of application for famil3' peusioll on de;lth of a Covernmeni servailllirensiolterrtrnlilr' trttlsii,l:ci'

1 {i) l{ame of the Got,errimenl sei'Yant in resped cf. whom taraiiy pension is being claimed

(ii) OfficeiDep:utnte*t/illinistry sen ed last

{iii) Date of retirement of Govertinenl servant(iv) Date of death of Goventment sen antipensroner/

fanrill pensioner

(v) PPO No. of Government sen antlpensionei/famiil pensitiner

2 Name and other detaiis of claimant-

Name Date of Relatioirstrip with Postal Adciress

birth the deceasedGovernme*t servant

3. fn case the claimant is minor or sufferin-r fron: disoi'der or disabiljty of mind, includiir-q menial

retardation, detail s of guardian/nominee, wherer,,er applicable-Name Date of Relationship i,vith Relationship Postai Address

birth the minoil u,ithmentaliv disabled the deceased

.iai*arrt Govenunentser\/ant

4. Details o[ surviving u,idorv/u,idower, chiidren. dependent palents antl disabletl siblings o1'the

deceased Governrlent ser\rant / pensioner ale enclosed in Form 3.

5. Account No., nan-re and BSR code of Branch of Bank to which family pension is to be credited:

6. Other source of family pension - h,{ilitary or State Government andlor a Public Sector Undertaking/

Autonomous body/Local Funp under the Central or a State Government, if an1'-

I am aware that future good conduct of the claimtrnt/famiiy pensioner shall be an implied conditiottfor every -qrant of famiiy pensicin and its continuance.

Encl: As per the check-list.Signature or left hand thumb impression of the claimant/guardian

tuIobile/Telephone No.Permanent Account Number tbr Incorne Tax (PAN).

Aadhar No., if avaiiableSignatures of t*'o \tr/itnesses w'ith names and full addresses:

(i)

(ii)Note: Form i4 is not to be tilled if the spouse had a ioint account with the deceased pensioner. In such

cases, family pension shall be alio..red by the Pension Disbur'sing Authority on the basis t--f an

application on plain paper. The permanently disabled chiidren/siblings and depenilent parents ro

r.r,,hom tamii.v* pension has been authorised in the PPO of the pensioner will submit this Fonx to ihe

Pension Disbursing Authority.

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tqTr ll-ra',]s I ii)l allId El {I-d'q>l : 3I{lTEf{-u]

Cireck List of Documents ro be subnlitted u,ith Fomt l4

1 Turo specimen signatures cf claimant (ro be furnishecl in a separate sheet)dlliy attested by a Gazetted Government servant.

(Tlvo slips each bearing the leti hand thurnb and finger impressions dulyattested may Lre iurnished by, a person who is uot literate tc sign his name.If such all on aL-count of physical disability is unabie to give reft handthumb and finger impressions helshe may give tlrrinib anci fin_eerimpressions of the riglrt hand. where a Government servant has lost boththe irands. he/she may -eir,e toe implessions. Impressions sirouki be ciuiyattested b1,' a Gazetted Gor.enlment servant.)

2. Tr,vo copies of passport size photograpirs ol tlie ciaimant, duly aftested

3. Trvo slips showilrg the particnlars ofmad<s duly attested by a Gazetred Govt.

heiglit and personal identitication

4. Details of the family in Form 3.

5. Certificateis) of age shor,ving the dates of birth of the children. Thecertiticates should be fiom the Municipal atithorities or from the localpanchayat rlr trorn the head of a recognized school err Central/State Boardof Education.

6. Undertaking lbrdisbursing Bank

refunding any excess paymenr made by the pension

7, specimen signature or ieft hand thumb ant-l finger impressions ofguardian duly attested, in rhe case of the guardian who is not lirerateenorigh to sign his or her irame

8. Trvo attested copies of passpofi size ptrotograph of tt .gualdian/nominee

L Descriptir.e roll of the griardianlnominee. shorving the particuleu.s ofheight and identiiication marks^ dul1, attested"

1CI. Copy of PFO of previoris pensionerlfamily pensioner

lt Proof of permanent address of the guardian.

12, Copy of death cerrificare of rhe deceasecl ;iliplcyeepensioner/pLel,ious tarnily pensioner, if applicable_

or

1J. Copy of document regarding ineligibiliry of previous farrilypensioner, if applicable.

Admin

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Annexure - 16

N* _4 / 2*/ 7A*8-rr& PW{n}Government of lndia

Ministry *f P*rs*nn*l, Publi* *ri*va*ce* &?exxi*x*. {Se partment cf Pension & P*nsian*rs' Weifare}

3rd Floor, Lok Nayak Bharvan, Khan Market,{rtew Oelhi1'10 003, Dated the 19th N*vemb*r,2*14.

orFrcE MF.lYrqRANpUM

$ub.|e*t: Granl *f Fixerl Medieal *,ll*w**** {ff'/r}'} l* ih* fentrai GovernmentPensioners res,ding in areas not covered undcr CGHS

The undersign*d is dir*cted i* say thai al presenl Fixed tJedlcatr hll*wan*e isgranted to the Contral G*yernn"len? pen*i*n*r*l{amtly p*nxian*rx r*$rding ril areas not*av*r*d und*r esntral S*ver*ment Health $cheme adnrinistered by the Mini*try afHaalth & Yar*ily Wellare and corruspcnrirng h*alth schcme* sdminlslered by *l**rMinislrieslDepartmentx for lherr retrred emplay**x f*r *:e*ting *xp*nditt:rc rn theirday-la-day n'l*dic*l expenses l*al d* R*t r*quiro hospitfilixa{irn. Ard*rx w*rc lssu*dvirJe this Departrn*nt's 0.M. *l *v*n nc" daled 26 05.20i0 for enhane*rn*nt of theamount of FixeO lr4edicalAllorvance from Rs. 100i- to Rs. 300r-p m. vr.e f. "1 09 2008.

2. Th* dxrnan* fsr f*rth*r ***an**m*nl *l f\t14, has lleen xnd*r ***sid*rali*n *tthe G*vernm*nt f*r s*mc tinx: past. $an*tion of lh* Pr*sidenf is h*reby conveyed forenhancement of the amount of trxecl Medical Allo'ry,:nce from Rs 3001 to Rs.500'" permonlh, ?he cther crnditi*ns t*r granl *f Fixed M*dical &ll*wa*c* shall contrnue to beas contained in thrs Dcpartments Olvls l"ilc 45'57/37-P&PW(C) dated 19.12.97,24898301298and18899

3. Thes* ard*r* wlll taise ef{qrlfr*m dal* *l is*ua *f this *.?'/t.

4. Thes* *rd*r* are i*sued wit* th* q*t1ru{r*r\r* *f th* b"li*islqr of Frnance (Deptt.of Exp*ndil*r*j vid* their l D r'.Jote No 588llt Vl2t114 dated 223*"ZAM and irc*n*ultali*n with the Coriptroller rr;'icl /rucirtor Senrral *t lrtdia vida their U0 Na. 174Staff(Rules)r02-2y 'l dateo 12 112C14

5. l'{incii v*rsirn will {ali*ve .

*,.['*ruu

(Hariit$ingh)Depilty &**r*lxry to the fi*a,t. of lndia

TO

Al I M i * is1 ri** I * *parl:ra*nls {ax p *r r:: *i I i n g l1xt}

fcpy tr:1. Chiet C**lroller, Cenlral Pensron Acca*nNinrS Offic*. Trikaot-li, Bhik*ji Cama

Plase" New Delhi- 11* *6& wiih the r€quest that suitable inslru*li*ns may beissu*d i* P*nniun Faying *a*ks t* impiement lh* abrve rrdar.

2. NlC. far publi*hi*g *n **?&?\ft'* W*bsite Ww!!.p*"UFtqnaIspoflelrrq&,tn underhead circulars sr-rb head 'Fixeci lJedical A,towance'.

3. Hirtdr Section. Deptr oi Personne l and Trainrng I.rorth Btcck for Hindi version.

Admin

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Annexure-17

'VARIOUS INVESTMENT AND INCOME TAX SAVING OPTIONS

Mutual Funds

A Mutual Fund is a professionally managed type of collective investment

scheme that pools money from many investors and invests in stock, bonds, short

term money market instruments and other securities. Mutual funds have a fund

manager who invest the money on behalf of the investors by buying / selling

stocks, bonds etc.

Mutual fund in lndia follow a 3 tire structure. The sponsor who thinks of

starting a mutual fund is the first tier. The sponsor creates a public trust as per

the lndian Trust Act, 1882 and the Trust is the second tier. The Asset

Management Company (AMC) which manages the investors' money is the third

tier.

New Fund Offer (NFO) : Once the three $rg structure is in place the AMC

manages new schemes under the name of the trust after getting approval from

the Trustees and Securities and Exchange Board of lndia (SEBI). The launch of

a new scheme is known as New Fund Offer (NFO).

Equity Funds: Equity funds are those funds which invest at least 65% of their

corpus in lndian equity. Equity Funds can either be open ended or closed ended.

An Open Ended Scheme allows the investors entry and exit any time. Whereas

the closed ended scheme restricts the freedom of entry and exit.

Long Term Capital & Short Term Gapital Asset: An equity mutual fund

scheme held by the investor for more than 12 months is long term capital asset

and held for not more than 12 months is short term capital asset.

Long Term & Short Term Capital Gains : Capital gains means any profit or

gains received on sale/transfer of a capital asset. Capital gain on sale/transfer

of a long term equity mutual fund (held for more than 12 months) is exempt from

income tax. lnvestors in all other schemes have to pay capital gains tax either

short or lonE term. At the time of exiting the investor will have to bear security

transactions tax @ 0.25% of the value of seiling price.

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Capital gains on sale / transfer of short term equity scheme is taxable at

the marginal rate i.e. the capital gains are added to their income and the total

income is taxed as per their applicable tax slab. Long term capital gains made

by the investor in non-equity schemes, Tax is to be paid @ 10o/o or 20o/o

depending on whether investors opt for indexation benefit or not.

Equity Linked Saving Scheme ( ELSS ) : These" are Open Ended

Schemes but have a lock in period of 3 years. This scheme serves the purpose

of equity investment as well as Tax Planning.

They may be low on safety but score full points on all other parameters.

Here returns are high, income is tax free, investor is free to alter the time and

amount of investment, the lock-in period of three years is the shortest among

all tax-saving_investments ( like PPF where the Lock-in is for 7 years, Tax-

Saving Bank FDs- 5 years, etc. ) and the cost is only 2-2.5o/o ayear. Liquidity is

higher if opted the 'Dividend' option and the cost gets lower if one go for the direct

plans of these funds.

ELSS is a MF Scheme which invests at least 65% of its corpus in Equity.

An individual investor can invest ( with min. Locking period of 3 years ) upto

Rs.1.5 L each year via the ELSS route to avail Tax benefits uiSection-80CC of lT

Act. According to Value Research Data, while funds from several other MF

categories have given higher returns than the ELSS over a 5 year period, they

carry higher risks.

FAQs on Mutual Fund -

Question 1 :- Whether to invest in a fund with a lower NAV (Net Asset Value).

Answer - Many investors feel that the NAV of a MF is similar to market

price of stocks and therefore, buying funds at low NAV is better. They believe

that because the NAV is low, they can buy more units and hence, there is ahigher potential for appreciation, as compared to a fund with a higher NAV. lnreality, a MF's NAV represents the market value of all its investments. Any

appreciation in the NAV will depend on the price movement of its portfolio ofcompanies. Say, investor invest Rs.1 0,000 each in fund A (whose NAV is Rs.1 0)

& Fund B (whose NAV is Rs.25). He will get 1000 units of Fund A & 400 Units of

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Fund B. Assume, both schemes have invested their entire corpus in exacflysame stocks in same proportions. lf these stocks combined together appreciate

by 10o/o, the NAV of the two schemes willalso rise by 1o%to Rs.11 and Rs.27.5,

resp. The reason why Fund B's NAV is higher than Fund A's, could be merely

because, it was taunched much earlier than Fund A. Any subsequent rise and

fall in the NAVs of both these funds will depend on how the underlying securitiesperform.

Hence, the level of a scheme's NAV should not be considered at the time

of purchase.

Question 2 :- Dividends are an extra income. A Scheme that pays dividends isbetter than a scheme that doesn't.

Answer - When MF announces dividend, the NAV is adjusted accordingly.

lf investors opt for the dividend option, a part of the profits made by the scheme

are distributed to lnvestors. The dividend is substracted from the NAV which

drops down forthwith. So, a Fund which pays dividend is in no way better or

worse than one that doesn't pay.

Question 3 :- Do one need to open a demat account or online account to start

investing in a mutualfund?

Answer - To invest in a MF, one do not need any demat account. One needs

to be KYC compliant.'Then all one need to do is fill up the relevant application

form, attach a cheque of the amount one wish to invest and submit it at the MF

office directly or through advisor. Once it's done, investor will get a statement

showing details of investments.

Question 4 :- MF invest only in Equities.

Answer - lnvestors need to understand that there are various kinds of MFs.

While some invest their corpus in equity, others invest into debt schemes and

money market instruments, such as, Govt. bonds, Bonds issued by companies

& Financial lnstitutions, etc. MFs, therefore, invests in all kinds of instruments

and do not confine themselves to equity.

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Question 5 :- Markets are at a peak, one should defer the investment.

Answer - Research shows that any time is good to invest, provided one

invest for the long term. lnvestor could also invest using SIP (Systematic

lnvestment Plan) method which helps investor accumulate units in good bull and

bear markets thereby optimizing his returns over a long period of time and

creating wealth for him.

Question 6 :- Mutualfunds with good performance in last 1 year are best choice.

Answer - This a common misconception among the MFs investors. People

believe that if ABC mutual fund has given 50% return in past year and XYZ has

given 30% return, the ABC is a better fund to invest in. Past performance is one

of the things to look at performance across market cycles and for longer

durations of 7-10 years or even more and not just recent past. ln addition,

investors should also consider the fund manager's experience, his track

record and the fund house's track record.

Unit Linked lnsurance Plans ( ULIP ) - An ordinary ULIP is still a costly

proposition for a buyer. But the online avatar of these market-linked insurance

plans is a low-cost option far removed from what was mis-sold to investors a few

years ago. The lnvest plan from HDFC Life, for instance, charges only 1 .35% a

year for fund management. ULIPS can be used as a rebalancing tool by a savvy

investor. He can switch from equity to debt and vice versa, without any tax

implication. lnvestor can buy a ULIP only if he can pay the premium for the full

term. Also, the investor can take a plan for at least 15 years. A short-term plan

may not be able to recover the high charges levied in the initial years.

Pubic Provident Fund ( PPF ) - Budget2Ol4 also hiked the annual investment

limit in Public Provident Fund or PPF. Risk-averse investors can now stock away

more in the ultra-safe scheme. PPF scores high on safety, taxability and costs

but returns are not so attractive and liquidity is not very high. The scheme will

give 8.7% this year, but may not guarantee in the following years. The interest

rate on small savings schemes such as PPF is linked to the Government bond

yield and is likely to come down in the coming years.

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senior citizens' savings scheme - The senior citizens, saving scheme(SCSS) is an ideal tax-saving option for people above 60. The money is safe andthe returns & liquidity are reasonably good. However, the interest incomereceived form the scheme is fully taxable. lnterest rate is linked to Governmentbond yield. lt is one percentage point higher than the five-year Government bondyield. Unlike in the case of PPF, interest rate will remain unchanged till theinvestment matures.

Bank FDs, NSCs - Bank Fixed Deposits (FDs) and National Savings Certificates(NSCs) score high on safety, flexibility and costs, but the tax treatment of incomedrags down the overall score. lnterest rates are slightly higher than what thePublic Provident Fund, or PPF, offers but the income is fully taxable at the slabrate applicable to the individual. FDs and NSCs suit taxpayers in the 10% bracket(taxable income of less than Rs.5 lakh a year)" The big advantage is that theseare widely available. Just walk into any bank branch and invest in its tax-savingfixed deposit.

Pension Plans - Pension plans from insurance companies remain coslyinvestments that are best avoided. lnstead, it may be a better idea to go for theretirement fund offerings from mutualfunds. They give the same tax benefits butdon't force the investor to annuitise the corpus on maturity. She/he is also freeto remain invested bdyond the age of 60. Tilt now, all the pension plans weredebt-oriented balanced schemes.

lnsurance Plans - Traditional insurance plans are the worst way to save tax.

They require a multi-year commitment and give very poor returns. The insurance

regulator has introduced some customer-friendly changes but these plans still

don't qualify as good investments. The only good thing is that the income is tax-free" But then, so is the income from the Public Provident Fund, or ppF, and tax-

free bonds. Another positive feature is that you can easily get a loan against suchpolicies, which gives some liquidity to the policy holder.

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Exempt - Exempt - Taxable ( EET ) Rule :-

1. Three elements are taxable in a tax saving investment - The Amount

being invested, the lncome on lnvestment & Redemption of amount

invested in the future.

PPF is EET - The Investment is eligible for Tax Deduction, the lncome is

exempt from Tax, and Redemption proceeds are not added to lncome in

that year.

NSCs and 5 year bank deposits are EET. lnvestment is eligible for

deduction, but the interest is taxable and redemptions have to be added

back to taxable income.

Tax Saving Schemes of mutual funds are EET. lnvestment is deductible,

dividend income is exempt, but redemption proceeds are taxable.

The interest and redemption proceeds that are taxable, calt, however, be *

used to make 80C investments in the year in which they are received to

enjoy tax deduction benefits.

2.

3.

4.

5.

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