Pension and other Retirement Benefits

Pension and other

Retirement Benefits

By: S.P. JindalDeputy Director, (Pension)

Various Retirement Benefits Available to Punjab Government

Employees on Retirement

1.Pension2.Commutation of

Pension3.Leave encashment 4.Gratuity

General Conditions for Qualifying Service for Pension

1.Service Must be under the Government;

2.The employment must be substantive or permanent;

3.The service Must be paid by the Government;

TYPES OF THE PENSION

a.Compensation Pension;b.Invalid Pension;c.Superannuation Pensiond.Retiring Pension

Compensation Pension Rule 5.2

Compensation Pension is granted to an employee selected to be discharged owing to abolition of his post unless he shall be appointed to another post which is at least equal to his own:• He may choose to take compensation pension or

gratuity on the basis of his service rendered.• Accept to be transfer to another establishment

even on the lower pay if offered and continuing to count his previous service for pension.

Invalid PensionRule 5.11 & 5.12

1. It is awarded to an employee on his retirement who is permanently incapacitated due to bodily or mental infirmity for the service to which he belongs or for public service.

2. In case of partially incapacity he should be if possible, employed to a lower post so that expense on pensioning him be avoided.

3. If there is no means to employing him than he should be admitted to pension but he should be considered for pension in view of his partially earning capacity

4. The amount of normal pension sanctioned under this rule should not be less than the amount of normal family pension.

No Invalid Pension1. If a Government employee is discharged from

service on the ground other than mentioned under rule 5.11 & 5.12, even though he has produced medical evidence of incapacity for service.

2. If the incapacity is directly due to his/her irregular or intemperate habits.

3. If such incapacity is not directly attributable to these habits but are aggravated by them, then the competent authority sanctioning pension may decide the amount of pension to be reduced.

Superannuation Pension Rule 5.27

1. Superannuation pension is admissible to an employee who retire at a particular age under rule 3.26 of Pb. CSR Volume-I, Part –I

1. Class IV Government employee retire at the age of 60 years.

2. Other Government employees retire at the age of 58 years.

Retiring Pension Rule 5.32

Retiring Pension is admissible to an employee who:

1. Who is either compulsory retired from service by the Government under Punishment and Appeal Rules.

2. Had himself seek retirement under pre-mature

retirement rules 1975.

SERVICE NOT QUALIFYING FOR PENSION

1. Service not rendered under the Government.2. Foreign Service if Pension Contribution is not paid.3. Service adjudged as penalty if not asked for counting

towards pension by the competent Authority.4. Over-stayal of Leave & Joining time. 5. Boy Service.6. Period of Strike and willful absence if not regularized by

the competent Authority.7. Extra-ordinary leave taken otherwise than on medical

certificate. 8. Period between suspension, dismissal, removal &

premature retirement and subsequent re-instatement. 9. Ad-hoc Service not followed by regularization and

appointment should be against a regular post.

Qualifying Service for Pension

1. Calculate the period from the date of joining the service and date of retirement.

2. Deduct there from the period which do not count for pension.

3. Count the period Balance period in half year-lies. 4. Balance Period shall be rounded to the nearest

half year i.e the period of three months and above shall be treated as a complete six-monthly period.

5. Maximum qualifying service for pension is 33 years or 66 Half-Years.

ExampleLet the Length of Service is from: 24.04.1973 to

30.05.2009Non qualifying service for pension is:Period of suspension : 3 Months 14 days.Overstayal of Joining time: 12 days.Boy Service: 1 Year and 20 days.Extra Ordinary leave 3 Months 5 days.

Calculation:Period Total Service Rendered Days Months Years

From 24/04/1975 to 31/05/09 312408

050401

20091975 34

Non Qualifying Service Days Months Years

Boy Service 20 00 1

Period of Suspension 14 03 0

Overstayal of Joining Time 12 00 0

Extraordinary Leave 05 03 0

Total Period 21 07 01

Qualifying Service for Pension Days Months Years

Total Service 08 01 34

Less non-qualifying Service 21 07 01

Qualifying Service 17 05 32 Say 65 Half Years

Example-IIPeriod Total Service Rendered Days Months Years

From 24/04/1973 to 31/05/09 312408

050401

20091973 36


Boy Service 20 00 1








Qualifying Service 17 05 34 Say 66 Half Years Maximum

Period Total Service Rendered Days Months Years

From 20/01/1975 to 31/05/09 312011

050104

20091975 34


Boy Service 20 00 1









Calculation-III

Calculation-IVPeriod Total Service Rendered Days Months Years

From 02/01/1975 to 31/05/09 310229

050104

20091975 34


Boy Service 20 00 1









Minimum Service Required

for Grant of pension 10 Years

Death Gratuity to An Employee who dies in harness .

Qualifying Service Amount of Gratuity (Max. 3,50,000)

Less than One Year 2 times the emoluments.

One Year or More but less the Five Years

6 times the emoluments.

Five Years and more up to 12 years.

12 Times the emoluments.

Above 12 Years Half of the emoluments for each completed six monthly period of qualifying Service subject to maximum of 33 times of the emoluments

No Gratuity:No Gratuity under these rules to an employee who is:1. Dismissed & Removed from Service on

account of Misconduct, Insolvency or inefficiency

2. Resigned from Service.3. Probationer 4. Government employee discharged from

Service for failure to pass the examination.

5. Reemployed Pensioner

Pension

Full Pension for a period of 33 years or more shall be equal to 50% of the average emoluments of the employee for the last 10 months.

If the service is less than 66 Half years the pension shall be reduced to the proportionate of number of half year service rendered.

Example if the service is 63 Half years the pension shall be:

( Full pension X 63) / 66

Calculation of Average Emoluments:Rule 6.24

Period From: To

Number of Months

Emoluments Drawn

( Pay+DP+IR+NPA)

Product:Column-II & Column-III

I II II IV1.4.2008 to 31.5.2008

2 10980 +5490+824

34,588

1.06.2008 to 31.1.2009

8 11320+5660+849

142,632

Total Emoluments for Last 10 months

1,77,220

Average Emoluments: 1,77,220/10 = 17,722

50%OF THE AVERAGE EMOLUMENTSTHE FULL PENSION IF THE QUALIFYING SERVICE IS 66

HALFY-EARLIES OR MOREPENSION = 8861

IF THE QUALIFYING SERVICE IS LESS THAN 66 HALF-YEARLIES THE PENSION SO F IXED WILL BE REDUCED

PROPORTIONATELY:

PENSION WILL BE =( 8861X63) /66=8458.22= 8459(ROUNDED TO NEXT HIGHER-RUPEE)

Calculation of PensionRule 6.16

Gratuity Under rule 6.16AAThe Gratuity Shall be 1/4th of the emoluments for each completed six monthly period of qualifying service subject to a maximum of 16.5 months (for Class I,II,III)and 17.5 Months for Class IV employees, further to the ceiling of 3,50,000

Emoluments for the Gratuity Shall

Last Pay Drawn+DAIf an Employee has rendered a

service of 62 half years, his Last Pay is 11,320 his amount of gratuity shall be:

Emoluments:

11320+5660+849+11410=29239

Amount of Gratuity: 29239X62/4=4,53,205

Restricted to 3,50,000/-

Gratuity Payment: to the Family members in case of Death 6.16-B

Family Shall include the following relatives: Gratuity shall be distributed equally:(i) Wife or wives including judicially separated wife or wives

in case of male officer.(ii) Husband including judicially separated husband in case of

female officer(iii) Sons including step children and adopted children.(iv) Unmarried and widowed daughter. (except)(v) Brother below the age of 18 years unmarried or widowed

sister including step brothers and sisters.(vi) Father(vii) Mother (including adopted parents if personal law permits. (viii) Married daughter and (ix) Children of the pre-deceased son.

Terminal GratuityIf a Government employee has completed 5 years service, and is discharged from service on account of retrenchment or declared invalid will be eligible for gratuity equal to 1/3rd of a month’s pay for each completed year of service.

Death Gratuity

Family of a Temporary Government Employee who dies while in service is eligible for death gratuity as under:

1. Death after completion of 1 year but <3 years= One Month’s Pay

2. Death after completion of 3 year but <5 years= Two Month’s Pay

3. Death after completion of 5 years or more 3 month’s pay or terminal gratuity as calculated above which ever is more.

A Government employee who joined in Government service if dies in harness or after retirement his family is eligible for family pension at the following rates:

Family Pension: Rule 6.17

Pay in revised Scales Rate of enhanced Family Pension per Mensum

Pay upto Rs. 4,500 40% of payPay Above Rs. 4,500 30% of pay subject to minimum

of Rs. 1,800

If an Employee dies in Harness:Pay in revised Scales Rate of enhanced Family

Pension per MensumPay upto Rs. 4,500 60% of payPay Above Rs. 4,500 50% of pay subject to minimum

of Rs. 2,700

In case of Death of a Pensioner:

No DA is admissible on Family Pension if any member of the family got employment on compassionate ground.

DA on Family Pension:

1. Wife in case of Male employee and Husband in case of female Government employee;

2. Judicially separated wife or husband, separation not being granted on the ground of adultery; provided the marriage took place before the retirement.

3. Sons up-to the age of 25 years4. Unmarried, widowed, unemployed and

divorced daughter no age limit. (3,& 4 will include adopted children)

Family for the purpose of Family Pension:

In case of widow or widower upto the date of death or re-marriage.

In case of son till he attains the age of 25 years or starts earning his livelihood.

In case of widow, divorced daughter till she got remarried or starts earning her livelihood.

Income criteria for earning livelihood will be Rs. 2620/- per mensem or more

If an employee get married after retirement his widow shall be entitled to family pension from the date of his death..

Further Pension will be admissible:

1. Staff paid from contingencies.2. Work Charged Staff.3. Casual labour4. Contract employees.5. Employees who joined Government

Service on or after 1.1.2004.

Family Pension is not applicable:

1. Upto 40% of the total sanctioned pension can be got commuted by an employee any time, without medical examination within one year of his/her retirement or superannuation.

2. If pension is got commuted after one year he/she has to go for a medical examination.

3. The formula for commutation is:40% of pension X Purchase Rate X 12

Commutation of Pension

Age next birth Commutation value expressed in the number of years purchase

Age next birth Commutation value expressed in the number of years purchase

52 12.66 61 09.8153 12.35 62 09.4854 12.05 63 09.1555 11.73 64 08.8256 11.42 65 08.5057 11.10 66 08.1758 10.78 67 07.8559 10.46 68 07.5360 10.13 69 07.22

Purchase Rates: Rule 11.5 (Annexure)

Leave Encashment: Rule 8.21CSR –Vol-I, Part -IThe Government employee on retirement or

superannuation or death can get his leave salary in lump some equal earned leave at credit on the date of death, retirement or superannuation as the case may be, subject to a maximum of 300 days.

(Last Pay +DA ) X Leave at credit subject to maximum of 300 days

30

Pay includes Pay+DP+IR+NPA (if any)

Calculation of Leave Encashment:

Date post:	23-Mar-2016
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Pension and other Retirement Benefits

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