Tuesday, May 7, 2013

Important facts about Pension & Gratuity


Pension :
1
The maximum limit for commutation has been raised to 40% w.e.f. 1.1.1996.A Government servant is now entitled to commute for a lumpsum payment up to 40% of his/her pension.
2
Provisional pension and provisional gratuity (up to 100%) should be sanctioned by the Head of Office if he were of the opinion that the Government servant is likely to retire before his pension or gratuity or both can be finally assessed and settled in accordance with the relevant rules.
3
In the case of a missing Government servant/pensioner, family pension can be paid after a period of six months from the date of lodging  an FIR with the police authorities.
4
A judicially separated spouse of the deceased Government servant with children can get family pension after the children cease to be eligible till his/her death/remarriage, whichever is earlier.
5
Dependent parents and widowed/divorced daughter/unmarried daughter are now included in the definition of family for the purpose of consideration for grant of family pension.
6
Family pension is also admissible to a posthumous child and also to children from the void or the voidable marriage as per the relevant provisions in the rules.
7
Normal family pension is now at a uniform rate of 30% of pay last drawn, subject to a minimum of Rs. 3500 (w.e.f. 1.1.2006).
8
Family pension is admissible to children from the void or voidable marriage in their own turn, after the legally wedded wife ceases to be the recipient of the family pension.
9
In the event of death of a family pensioner, the arrears of family pension is automatically payable to the eligible member of the family next in line. Succession certificate for payment of the arrears is required only in such cases where there is no family member eligible to receive family pension after the death of the family pensioner.
10
With effect from 1.1.2006, in case of a Government Servant retiring in accordance with the provisions of CCS(Pension) Rules after completing qualifying service of not less than ten years, the amount of  pension is calculated at fifty percent of emoluments or average emoluments whichever is more beneficial to him.
Gratuity :
11
The maximum limit of all types of gratuity has been raised to Rs. 10 lakhs w.e.f. 1.1.2006
12
Dearness Allowance admissible on the date of retirement/death is included in the emoluments for the purpose of computing all types of gratuity.
13
Interest (at the rate applicable to GPF deposits determined from time to time by the Government of India) is payable on delayed payment of DCRG, if it is delayed beyond three months from the date of retirement.
Qualifying Service :
14
Qualifying service of 3 months and above may be rounded-off into a completed six-monthly period for the purpose of computation of both pension and DCRG. The period of nine months would thus be considered as two half years.
15
Dismissal or removal of a Government servant from a service or post entails forfeiture of his/her past service
Miscellaneous :
16
PPO should be issued so as to reach the Government servant at least one month in advance of his date of superannuation.
17
No specific orders are necessary for retirement on due date.
18
Retirement benefits up to Rs. 10,000 can be paid through uncrossed cheque/demand draft.
19
Encashment of leave is a benefit granted under CCS (Leave) Rules and thus not a pensionary benefit. As per the current provision, no interest is payable on the delayed payment of leave encashment.
20
Payments under Central Government Employees Group Insurance Scheme (CGEGIS) are not terminal benefit and can not be withheld.  No Government dues can be recovered from the accumulation except the amount claimed by the financial institution as dues from the employee on account of loans taken for house building purpose.No interest is payable on account of the  delayed payments under this scheme.
21
Dues to Municipality (water and electricity charges etc.)  and Co-operative Societies  are not treated as Government dues, since Municipal Committees and Co-operative Societies are not considered as Government bodies/organizations.  No recovery of such dues can be made from the DCRG.
22
Only arrears of license fee can be recovered from dearness relief.

Source : http://pensionersportal.gov.in/douknow.asp