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Pension and other Retirement Benefits

Pension and other Retirement Benefits. By: S.P. Jindal Deputy Director, (Pension). Various Retirement Benefits Available to Punjab Government Employees on Retirement. Pension Commutation of Pension Leave encashment Gratuity. General Conditions for Qualifying Service for Pension.

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Pension and other Retirement Benefits

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  1. Pension and other Retirement Benefits By: S.P. Jindal Deputy Director, (Pension)

  2. Various Retirement Benefits Available to Punjab Government Employees on Retirement Pension Commutation of Pension Leave encashment Gratuity

  3. General Conditions for Qualifying Service for Pension • Service Must be under the Government; • The employment must be substantive or permanent; • The service Must be paid by the Government;

  4. TYPES OF THE PENSION • Compensation Pension; • Invalid Pension; • Superannuation Pension • Retiring Pension

  5. 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.

  6. Invalid PensionRule 5.11 & 5.12 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. In case of partially incapacity he should be if possible, employed to a lower post so that expense on pensioning him be avoided. 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 The amount of normal pension sanctioned under this rule should not be less than the amount of normal family pension.

  7. No Invalid Pension 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. If the incapacity is directly due to his/her irregular or intemperate habits. 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.

  8. Superannuation Pension Rule 5.27 • Superannuation pension is admissible to an employee who retire at a particular age under rule 3.26 of Pb. CSR Volume-I, Part –I • Class IV Government employee retire at the age of 60 years. • Other Government employees retire at the age of 58 years.

  9. 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.

  10. Service not qualifying for pension Service not rendered under the Government. Foreign Service if Pension Contribution is not paid. Service adjudged as penalty if not asked for counting towards pension by the competent Authority. Over-stayal of Leave & Joining time. Boy Service. Period of Strike and willful absence if not regularized by the competent Authority. Extra-ordinary leave taken otherwise than on medical certificate. Period between suspension, dismissal, removal & premature retirement and subsequent re-instatement. Ad-hoc Service not followed by regularization and appointment should be against a regular post.

  11. Qualifying Service for Pension • Calculate the period from the date of joining the service and date of retirement. • Deduct there from the period which do not count for pension. • Count the period Balance period in half year-lies. • 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. • Maximum qualifying service for pension is 33 years or 66 Half-Years.

  12. Example Let the Length of Service is from: 24.04.1973 to 30.05.2009 Non 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.

  13. Calculation:

  14. Example-II

  15. Calculation-III

  16. Calculation-IV

  17. Minimum Service Required for Grant of pension 10 Years

  18. Death Gratuity to An Employee who dies in harness .

  19. No Gratuity: No Gratuity under these rules to an employee who is: Dismissed & Removed from Service on account of Misconduct, Insolvency or inefficiency Resigned from Service. Probationer Government employee discharged from Service for failure to pass the examination. Reemployed Pensioner

  20. 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

  21. Calculation of Average Emoluments:Rule 6.24 Average Emoluments: 1,77,220/10 = 17,722

  22. Calculation of PensionRule 6.16 50%of the Average Emoluments The Full pension if the Qualifying Service is 66 halfy-earlies or more Pension = 8861 If the qualifying service is less than 66 half-yearlies the pension so fixed will be reduced proportionately: Pension will be =( 8861x63)/66=8458.22= 8459 (Rounded to next higher-rupee)

  23. Emoluments for the Gratuity Shall Last Pay Drawn+DA If 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 Under rule 6.16AA The 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

  24. Gratuity Payment: to the Family members in case of Death 6.16-B • Family Shall include the following relatives: Gratuity shall be distributed equally: • Wife or wives including judicially separated wife or wives in case of male officer. • Husband including judicially separated husband in case of female officer • Sons including step children and adopted children. • Unmarried and widowed daughter. (except) • Brother below the age of 18 years unmarried or widowed sister including step brothers and sisters. • Father • Mother (including adopted parents if personal law permits. • Married daughter and • Children of the pre-deceased son.

  25. Terminal Gratuity If 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.

  26. Death Gratuity Family of a Temporary Government Employee who dies while in service is eligible for death gratuity as under: Death after completion of 1 year but <3 years= One Month’s Pay Death after completion of 3 year but <5 years= Two Month’s Pay Death after completion of 5 years or more 3 month’s pay or terminal gratuity as calculated above which ever is more.

  27. Family Pension: Rule 6.17 • 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:

  28. If an Employee dies in Harness: In case of Death of a Pensioner:

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

  30. Family for the purpose of Family Pension: • Wife in case of Male employee and Husband in case of female Government employee; • Judicially separated wife or husband, separation not being granted on the ground of adultery; provided the marriage took place before the retirement. • Sons up-to the age of 25 years • Unmarried, widowed, unemployed and divorced daughter no age limit. (3,& 4 will include adopted children)

  31. Further Pension will be admissible: • 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..

  32. Family Pension is not applicable: • Staff paid from contingencies. • Work Charged Staff. • Casual labour • Contract employees. • Employees who joined Government Service on or after 1.1.2004.

  33. Commutation of Pension • 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. • If pension is got commuted after one year he/she has to go for a medical examination. • The formula for commutation is: 40% of pension X Purchase Rate X 12

  34. Purchase Rates: Rule 11.5 (Annexure)

  35. Leave Encashment: Rule 8.21CSR –Vol-I, Part -I The 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.

  36. Calculation of Leave Encashment: (Last Pay +DA ) X Leave at credit subject to maximum of 300 days 30 Pay includes Pay+DP+IR+NPA(if any)

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