CCS (Pension) Rules, 1972

A Treatise on the benefits available to Central Govt. Employees on cessation of service on superannuation and on other grounds

V KUNHIRAMAN FORMER SR HEAD, PGA, ISRO HQ CONSULTANT, DEPT. OF SPACE, GOVERNMENT OF INDIA; CONSULTANT, CMTI; CONSULTANT, JNP; BANGALORE

WE PROCEED FROM HERE-

(1)

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

(2)

Pension is calculated on the basis of QUALIFYING SERVICE AND AVERAGE EMOLUMENTS

Max Pension : 50% of The emoluments last drawn or 50% of the Average Emoluments for the last ten months whichever is more beneficial to the employee, for 10 years of Qualifying service. Max Gratuity : 16½ times of Emoluments last drawn subject to Max Rs.10 lakhs.

LET US UNDERSTAND THESE TERMS AND GO TO FURTHER DETAILS

. cash.1. TYPES OF RETIREMENTS Retirements on which pension is admissible: 1. ‘Foreign Service’ means service in which Government Servant receives his pay with the sanction of the Government from any source other than the Consolidated Fund of India / a State or Union Territory. (1) SCOPE CCS (Pension) Rules apply only to Central Government Employees and Employees of Union Territories appointed on or before 31/12/2003. Effective from the afternoon of the last day of the month in which the superannuation age is attained. Physical presence of the Officer in the office is not compulsory for relinquishment on holiday. If the day of Superannuation is a holiday. Day of Superannuation is a working day. (FR 56 and GOI decision) b) c) d) e) . These rules do not apply to: (i) (ii) (iii) (iv) CPF Optees Railway Employees All India Services Casual / Contingent / Contract Workers (2) (3) No distinction between permanent and temporary employees in the application of Pension Rules. stores etc. (RULE 2 and GOI decisions) (4) 2. made over by the Retiring Officer on the previous working day. (DPT OM dated 28/03/1988) For the purpose of Pension Rules. may be. An employee whose date of birth is the first of the month shall retire on the afternoon of the last day of the preceeding month. RETIREMENT ON SUPERANNUATION a) Prescribed age for superannuation is 60 years for all Central Government Employees. Relinquishment of charge in the prescribed form should be on the last day of service only.

. notice period can be waived or reduced by the Appointing Authority. Commutation of Pension can however be applied only after 3 months notice period. VR notice under (d) requires acceptance by the Appointing Authority. On Completion of 20 years qualifying service – All Employees. The day of Voluntary Retirement will be treated as a ‘Non-Working Day’. While Voluntary Retirement Under (a). Notice can be given before attainment of age/qualifying service but retirement date should be only after attainment of the same. 48 and 48A and GOI decisions) (iii) (iv) (v) (vi) III. but the effective date of retirement should be after attainment of age/qualifying service. Normal Pensionary benefits based on Qualifying Service completed. Notice can be given before attaining the age or qualifying service. with the permission of the Appointing Authority. (FR 56. After attaining the age of 55 years – All Employees. Pension Rule 5. On Completion of 30 years qualifying service – All Employees. Notice can be withdrawn before retirement. 3 months notice or pay & allowances in lieu there of. (b) (c) (d) POINTS TO NOTE: (i) (ii) Three months notice to the Appointing Authority necessary in all cases.2. (b) & (c) is a right of the employee. PRE-MATURE RETIREMENT a) b) c) d) Retirement ordered after FR 56 (j)/Rule 48 (1)(b) Review. On request. who entered service before attaining the age of 35 years). VOLUNTARY RETIREMENT (a) After attaining the age of 50 years (only for Group A & B Officers.

ETC. (Pension Rule 37) b) . Invalid Pension and Gratuity. All Group ‘C’ & ‘D’ employees (erstwhile Group-D). should not go below 2/3rd of Compensation Pension. After attaining the age of 55 years Groups ‘A’ & ‘B’ Officers other than (a) above. RETIREMENT ON MEDICAL GROUNDS a) b) c) On being permanently incapacitated. (b) (c) APPEAL: An employee served with notice/order of premature retirement can appeal within 3 weeks.CIRCUMSTANCES: (a) After attaining the age of 50 years Groups ‘A’ & ‘B’ Officers who entered service before attaining the age of 35 years. COMPULSORY RETIREMENT As a penalty under CCS (CCA) Rules/DOS (CCA) Rules. (FR 56. a) Employee is deemed to have retired from service from the date of absorption. On the basis of examination and report of appropriate medical authority. DEEMED RETIREMENT ON ABSORPTION IN AUTONOMOUS BODIES/ PUBLIC SECTOR UNDERTAKINGS. On completion of 30 years Qualifying Service All Employees. If reduced. (Pension Rule 40) V. Pensionary benefits normally based on Qualifying Service completed. Pensionary benefits on the basis of Qualifying Service completed. (Pension Rule 38) VI. Pension Rule 48) IV.

a Government Servant whose Date of Birth is the first of a month shall retire from service on the afternoon of the last date of the preceding month. As an exception. Retirement pension is also granted to surplus employees opting for Voluntary Retirement in accordance with the provision of Rule 29 of CCS Pension Rules. Such pension or gratuity or both will not be less than two-thirds or not more than full compensation pension or gratuity or both admissible on the date of compulsory retirement. Gratuity is based on length of Qualifying Service. (1) - CLASSES OF PENSION Superannuation Pension: On retirement after Superannuation. who are retiring or retired under Rule 48 or 48-A of CCS Pension Rules or Rule 56 of the Fundamental Rules. (GOI orders) b) (3) - Compulsory Retirement Pension: on compulsory retirement as a penalty. (Rule 36) a) Retirement pension is granted to employees. (Rule 35) a) Retirement on the afternoon of last date of the month in which superannuation falls. Superannuation Pension is admissible if 10 years of Qualifying Service is completed. for 10 years of Qualifying Service.3. admissible on the date of compulsory retirement. Maximum Gratuity is 10 lakhs. . Maximum Pension is limited to 50% of the emoluments last drawn or 50% of the average emoluments for the last 10 months whichever is more beneficial to the retiring employee. No specific orders are necessary for retirement on due date. (Rule 40) a) Compulsory Retired Employees are ordinarily granted the full compensation pension and retirement gratuity. unless extension is granted before that date. (GOI orders) b) c) d) (2) - Retiring Pension: On voluntary or pre-mature retirement before superannuation.

(Rupees Eight thousand only). A lady doctor should be included as a member of the Medical board when woman employee is to be examined. 3500/. efforts may be made to provide such post even in a lower grade. A compulsory retirement pension shall not be less than Rs. (Rule 38 & GOI orders) b) c) d) e) f) g) h) . If the Medical Authority reports that the Employee is fit for further service of less laborious character. The Head of Office will then refer the Government Servant to a Medical Board or Civil Surgeon etc. The Invalid Pension is sanctioned only after a Medical Certificate of incapacity from the appropriate Medical Authority is received. 8000/. UPSC has to be consulted whenever the President passes an order awarding the pension less than the full Compensation Pension. Otherwise. the same may be made within the limits either in the retirement gratuity or in the pension or in both. as the case may be. if the employee is willing to accept it. The Invalid Pension and the disability pension are distinct and should not be added together for deciding the minimum limit. the amount of disability pension and Invalid Pension should not exceed the last pay drawn. (Pension Rule 40 & GOI decisions) c) d) (4) - Invalid Pension: on retirement after being declared by the competent medical authority to be permanently incapacitated for further service.b) Whenever a reduction is considered absolutely necessary.. he may be admitted for invalid pension. (Rule 38) a) A government servant is required to apply for retirement on invalid grounds to the Head of Office.(Rupees Three thousand five hundred only). However. The appropriate Medical Authority is a Medical Board in the case of a Gazetted Government Servant and of a Non-Gazetted Government Servant whose basic pay exceeds Rs. The invalid pension is admissible only if 10 years of qualifying service is completed.

Such Government servants shall be deemed to have retired from service from the date of absorption. the employee has no abolition to accept the alternate employment offered or to take the Compensation Pension. (GOI orders) b) c) d) (6) - Compensation Pension: On selection for discharge owing to the abolition of his permanent post and provision of alternate employment of equal status is not possible or offer of a lower post is not accepted. If there is a pension scheme in operation in the Autonomous Body / Statutory Body/ PSU etc. Compensation Pension will be admissible if 10 years of Qualifying Service is rendered till the date of discharge.) (GOI orders) a) Applies to all Government Servants who joins Central Government/ State Government/ Joint Sector/ Autonomous/ Statutory Bodies/ PSUs on immediate absorption basis. The retirement benefits will be based on the length of service under the Government till the date of absorption.(5) - Pension on absorption in Autonomous bodies/PSUs etc: Monthly pension and retirement gratuity if completed 10 years of qualifying service on the date of permanent absorption.. the absorbed employee will have an option to count the Government service for pension in that body. Commutation of pension is admissible (without MC if application is made within one year of date of absorption. (Rule 39) a) b) c) d) e) f) . pay and allowances may be given for the period by which the notice falls short of 3 months. the pension which he would be finally receiving should not be less than the Compensation pension to which he would have been eligible if he had opted for the same. If the notice period fall short of 3 months. Notice of at least 3 months should be given to permanent Government servants before their service are dispensed with abolition of permanent posts. Compensation Pension will not be given for a period in respect of which an employee receives pay and allowances in view of notice. If the employee eligible for Compensation pension accepts instead another appointment under the Government. (Rule 39) On abolition of his permanent post.

Compassionate Allowance will be permissible only if the employee is otherwise eligible for pension.90.(7) - Compassionate Allowance: on dismissal or removal. Unmarried son/daughter/widowed/divorced daughter. (Rule 41) Sanctioned only in cases of dismissal or removal from service deserving special consideration. The relief’s in pension announced from time to time would be admissible to a former Government servant who is in receipt of Compassionate Allowance. MAXIMUM AMOUNT will be 50% of the highest pay in the Government (Highest Pay in the Government as per VI PC Rs.3500/. Age of Pensioners From 80 years upto 85 years From 85 years upto 90 years From 90 years upto 95 years From 95 years upto 100 years 100 years or more Additional amount 20% of basic pension 30% of basic pension 40% of basic pension 50% of basic pension 100% of basic pension (8) Family Pension: Family pension is payable to the family of the employee/pensioner on his/her death in service/after retirement. Each case has to be examined on its merits. Commutation of Compassionate Allowance. The Authority who ordered dismissal/removal is Competent Authority to decide admissibility of Compassionate Allowance. Even in deserving cases. if permissible. Family for the purpose of Family Pension means the deceased pension’s (a) (b) Widow or Widower.000/-) (DPT OM Dt 15/3/2004) (+VI PC Orders) a) b) c) d) e) f) g) The amount of pension payable to the pensioner increases as their age increases as follows. This is also pension but the amount should not exceed two–thirds of pension or gratuity or both which would have been admissible to him if he had retired on compensation pension. sanctioned by the competent authority in a case deserving special consideration.per month. (GOI orders) MINIMUM AMOUNT of any class of Pension will be Rs. as in the case of other pensions. . The Head of Office shall process the Compassionate Allowance papers without waiting for an application from the dismissed/removed employee and put up for approval of the Competent Authority.

rules rates per month.3500 + DA at Central Govt. Daughter(s) (including widowed/divorced daughter(s)) suffering from disorder or disability of mind or physically crippled.(c) (d) (e) (f) Unmarried Son(s) suffering from disorder or disability of mind or physically crippled. All kinds of leave with leave salary. the service rendered by him under the State Government will also qualify. Deputation and Foreign service. When a State Government servant on deputation to Central Government is absorbed in the Central Government. Extraordinary leave on medical certificate. 1965) Note II: (B) (1) (2) (3) (4) Periods counting as Qualifying Service: Duty and periods treated as ‘duty’. (Rule 13-32 CCS Pension Rules) Note I: Temporary employees who retire on superannuation or invalidation with not less than 10 years of service are eligible for ‘Pension’ and ‘Retirement Gratuity’. (Rule 54) 4. The service of a Central Government Servant shall not qualify unless his duties and pay are regulated by the Central Government. Temporary employees who retire voluntarily after 20 years of continuous service are also eligible for ‘Pension’ and ‘Retirement Gratuity’. (Rule 10 (1-B) of CCS (Temporary Service) Rules. (A) (1) (2) (3) (4) (5) QUALIFYING SERVICE Qualifying Service: Pension is admissible to permanent employees who retire or are retired with a qualifying service of not less than 10 years. Qualifying service of a Government Servant commences from that date he takes charge of the post to which he is first appointed in a permanent capacity. Dependent parent(s) The income criteria for dependency will be that their earning is not more than Rs. Temporary service followed by confirmation in the same or another post without interruption will also qualify. and Extraordinary leave without medical certificate granted due to inability of the employee to join/rejoin duty on account of civil commotion or for prosecuting higher technical and scientific .

determine the qualifying service and communicate to the employee the period of qualifying service so determined. Overstayal of leave /joining time not regularized as leave with leave salary. Fractions equal to 3 months and above shall be treated as one half year. (1) EMOLUMENTS AND AVERAGE EMOLUMENTS Amount of Pension is related to the last pay drawn or/and Average of the ‘Emoluments’ drawn by the employee during 10 months immediately preceding the date of retirement. EOL without MC other than the circumstances as specified earlier. Suspension followed by minor penalty. (6) (7) (8) (9) (10) (11) (C ) (1) (2) (3) (4) (5) (6) Qualifying Service for pension/ gratuity is calculated and expressed in completed half-years. Suspension followed by major penalty. (Rule 13 to 32) 5. of Office in consultation with the Account Officer will verify the service book. Half the service paid from contingencies will qualify if the employees are subsequently appointed under regular establishment. if the reinstating authority does not order that it shall count as qualifying service. Service on probation followed by confirmation. Service as SAS Apprentice. the Head. This period automatically counts as qualifying service without an express sanction for this purpose. Unauthorized absence treated as ‘dies non’. Fractions of less than 3 months will be ignored. if the reinstating authority orders that it shall count. Suspension followed by major penalty. .studies. Periods not counting as Qualifying Service: Service rendered before attaining the age of 18 years. (5) Pre-appointment training followed immediately by appointment as Groups ‘C’ and ‘D’ employees. Contract service followed by regular appointment will qualify provided the employee for go Government’s contribution in the CPF including any other compensation for that for that service. When a Government Servant complete 25 years of service or is within 5 years of retirement. Service as Apprentice except SAS Apprentice.

(Rule 33 & 34) (6) (7) (8) (9) (10) 6. (Rule 50) (5) If an employee immediately before retirement or death in service had been on leave with leave salary. the period(s) of extraordinary leave. overstayal of leave or joining time and suspension not counting for pension falling within the last ten months will be ignored and a corresponding period added before ten months. For the period of leave with leave salary while officiating in a higher post. otherwise than as penalty. Dearness Pay and NonPracticing Allowance.(2) Emoluments for pension include Basic Pay (Pay drawn in the prescribed Pay Band + applicable Grade Pay) Stagnation Increments. Retirement/Death Gratuity will be based on the Average Emoluments. If the employee had been under Suspension and subsequently reinstated in service without forfeiture of service. though not drawn. the emoluments drawn in the higher post will be taken as ‘Emoluments’ only if it is certified that he would have continued to officiate in the higher post but for proceeding on leave. Emoluments for Service Gratuity/ Retirement Gratuity/ Death Gratuity will include Dearness Allowance also on the date of retirement/Death. dies non. (2) . if the Emoluments have been reduced during the last 10 months of Service. In calculating ‘Average Emoluments’. Pay drawn by a Government Servant while on Foreign Service shall not be treated as emoluments. (1) PREPARATION OF PENSION PAPERS List of Government Servants due to retire within the next 24 to 30 months is to be prepared every 6 months that is on the 1st of January and the 1st July of each year by the Head of Department and the list is to be supplied to the Accounts Officer within one month. the emoluments which he would have drawn had he not been under suspension will be taken as ‘Emoluments’. However. (Rule 33) (3) (4) Service/Retirement/Death gratuity is based on the Emoluments drawn at the time of Retirement/Death while in service. The work on preparation of pension papers in Form 7 by the Head of Office concerned should commence 2 years before the date of superannuation of any employee. during Earned Leave not exceeding 120 days will be taken as ‘Emoluments’. Increments falling due. the Emoluments which he would have drawn had he not been on leave will be taken as ‘Emoluments’. but the pay which he would have drawn under the Government had he not been on Foreign Service shall alone be treated as ‘Emoluments’.

The Accounts Officer should give a copy of the Pension Calculation Sheet along with the intimation of his having sent the Pension Payment Authority/ PPO to the AG/PAO etc. In the case of superannuation employee. the same will be adjusted in the Final Pension Gratuity authorized. he may be given Provisional Pension and Gratuity calculated on the basis of information available in the records and provided by the Employees. However. The Head of Office shall complete Part one of Form 7 not later than 6 months of the date of retirement of the Government Servant and forward Form 5 and Form 7 with a covering letter in Form 8 along with the Service Book of the Government Servant duly completed up-to-date for the verification of the service. advising him to complete and submit the same not later than 8 months prior to the date of retirement. Such Provisional Pension will be paid for a period till the Final Pension Payment Order is issued or for period of 6 months whichever is earlier. if the pension papers are not completed before the date of retirement for any reason.. If any dues are outstanding.(3) The verification of service making the good omissions in the Service Book and calculation of Average Emoluments and other related actions should be completed 10 months before the retirement of the Government Servant. the Head of office has to furnish to the Retiring Official a certificate showing the length of Qualifying Service proposed to be admitted for the pension and gratuity and also the Emoluments and Average Emoluments and the last pay proposed to be reckoned with for retiring gratuity and pension. of Government dues if any to be recovered from the retiring employee and furnish the same to the Accounts Officer at least 2 months before the date of retirement. If Final Pension Payment Order could not be issued within a period of 6 months.. supported by relevant documents. the above actions should be taken by Head of Office as soon as the fact of such retirement becomes known to him. The Head of Office will also ascertain from all concerned Departments like Estate Management. excess payment if any. Library etc. Before 10 months to the date of Retirement. occurred in the Provisional Gratuity paid will not be recovered. If any excess/short payments in Provisional Pension occur. the Provisional Pension and Gratuity will be treated as Final and Pension Payment Orders will be issued accordingly after the expiry of 6 months. The employee can verify this details and point out omissions if any. In the case of employees retiring other than on superannuation. The Head of Office should also furnish Form 4 and Form 5 to the Government Servant. to the pensioner. (4) (5) (6) (7) (8) (9) (10) (11) (12) . Provisional Pension may also be granted for retiring employees in whose case Departmental or Judicial Proceedings may be pending. the same will be recovered from the gratuity before its payment is authorized. He should also prepare the Pension Calculation Sheet in the prescribed form in triplicate and forward it to the Accounts Officer along with the pension papers.

(E) (F) (G) . Employee can avail leave standing to his credit along with the notice period. before the date of retirement can be considered by the Appointing Authority.7. (D) Notice can be given before attaining the age specified or completing required years of qualifying service. retirement will take effect on expiry of notice period unless before expiry thereon. b) After attaining the age of 55 years: Groups A & B Officers other than above All Groups C & D Employees. but the effective date of retirement should be after attainment of prescribed age or completion of years of qualifying service. Pension Rules). (C) GENERAL CONDITIONS request for reducing the notice period may be considered on merits for acceptance. (A) VOLUNTARY RETIREMENT AN EMPLOYEE HAS THE RIGHT TO RETIRE and get pensionary benefits by giving 3 months notice to the Appointing Authoritya) After attaining the age 50 years: Groups A & B Officers who had entered service before attaining the age of 35 years. which requires acceptance by the Appointing Authority. permission for retirement is refused by the Appointing Authority (Rule 48 A. Request for withdrawal of the notice for voluntary retirement if made. (Note to below FR 56) Employee should ascertain and satisfy that thy have completed 20 years qualifying service while making a reference to the Appointing Authority before giving notice for Voluntary Retirement under Rule 48-A. Temporary employees are also eligible to seek voluntary retirement on completion of 20 years service. (FR 56(K)) c) On completion of 30 years Qualifying Service: All Employees. Even in cases where the notice period is reduced. (B) EMPLOYEES HAVE THE OPTION TO RETIRE VOLUNTARILY on completion of 20 years Qualifying Service by giving 3 months notice. the employee can apply for commutation of pension only after the expiry of 3 months notice period. (Rule 48(1)(a) CCS Pension Rules) Retirement becomes effective on the expiry of notice period without awaiting appointing authority’s approval unless the Official is under suspension.

c) On completion of 30 years Qualifying Service: All employees (Rule 48(1)(b)). This power can be exercised in the following circumstances: a) After attaining the age of 50 years: Groups A & B Officers who had entered service before the age of 35 years. Full Pension is admissible on retirement after 10 years or more qualifying service. The amount of pension will be 50% of the Average emoluments or 50% of the last pay drawn. A lumpsum payment termed RETIREMENT GRATUITY. d) e) General Conditions: An employee served with a notice/order of premature retirement may appeal against it within 3 weeks for consideration. (2) . Notice can be given earlier. but the premature retirement will take place only after attaining the age specified or completing the required years of qualifying service. f) 9. Such persons are paid a lumpsum amount called Service Gratuity. at the rate of half months emoluments for every completed six monthly (half year) period of service. All Group C & D Employees (FR 56(j)). whichever is more.8. PREMATURE RETIREMENT In public interest. the Appointing Authority has the absolute right to retire an employee from service by giving in 3 months notice or giving him pay and allowance in lieu thereon. :PENSION: (1) No Monthly Pension is admissible to an employee who retires before completion of 10 years qualifying service. RETIREMENT BENEFITS The Retirement Benefits consists of: (1) (2) A monthly recurring payment termed PENSION. The power to prematurely retire an employee should not be used: (i) (ii) to retire an employee on grounds of misconduct or as a short cut to avoid formal disciplinary proceedings. attaining b) After attaining the age of 55 years: Groups A & B Officers other than the above. or for reduction of surplus staff or for effecting general economy without following the instructions relating to retrenchment.

(c) GRATUITY: (1) Retirement Gratuity(a) retirement gratuity is admissible to a Government Servant. but less than 20 years 20 years or more… (iv) Emoluments include DA on the date of death.10 lakhs. retirement gratuity is a lumpsum payment.3. Length of Service (i) (ii) (iii) Less than one year… One year or more. 1965. .10 lakhs whichever is less.(3) The minimum of any pension including compassionate allowance granted should not be less than Rs. retirement gratuity is subject to a maximum of 161/2 emoluments or Rs. the amount of retirement gratuity will be equal to 1/4th of the employees emoluments for each completed 6 monthly period of qualifying service. The amount of pension should be rounded off to the next higher rupee. who retires from the service after completing 5 years of qualifying service. the amount of invalid pension should not be less than the amount of family pension at normal rates. times the (b) (c) (d) (e) emoluments for the purpose of gratuity include DA on the date of retirement. 12 times of ‘emoluments’. (2) Death Gratuity(a) death gratuity is admissible in the case of death in service of an employee.. CCS(TS) Rules. – Rule 50 and Rule 10(2). However. whichever is less. (4) A retiring Government Servant becomes eligible for: (a) (b) Pension and Retirement Gratuity (10 years or more Qualifying Service) or Service Gratuity and Retirement Gratuity (between 5 & 10 years Qualifying Service) or Service Gratuity (less than 5 years of Qualifying Service). but less than 5 years… 5 years or more. Half of emoluments for every completed six-monthly period of qualifying service subject to a maximum of 33 times ‘emoluments’ of Rs.500/.per month. It is payable to the nominee (s)/ eligible family members of the deceased employee at the following rates: Death Gratuity payable to family 2 times of ‘emoluments’ 6 times of ‘emoluments’.

when a nominee is convicted for the murder or abetting in the murder of the employee. Otherwise. in the case of missing employees. Service Gratuity is calculated at the rate of half-months emoluments for every completed six-monthly period of qualifying service. otherwise than as a penalty. the amount of gratuity should be rounded off to the next higher rupee. retirement gratuity may be paid to the family after one year. . (4) Residuary GratuityIf a Government servant dies within 5 years from the date of his retirement and the sums actually received by him at the time of his death on account of pension (including Dearness Relief on pension) or Service Gratuity and Retirement Gratuity (including commuted value of any portion of pension commuted by him). the gratuity will be paid to the person in whose favor a Succession Certificate has been granted by the court of law. The deficiency paid is called ‘Residuary Gratuity’. the gratuity lapses. no income tax on retirement gratuity and death gratuity. Service Gratuity is in addition to retirement gratuity admissible to those who have completed 5 years qualifying service. when there is reduction in the emoluments during the last 10 months of service. (c) (d) (e) (f) (g) (h) (i) (j) (k) (3) Service Gratuity(a) (b) (c) (d) Admissible to permanent employees who retire before completion of 10 years qualifying service in lieu of Pension. he/she will be debarred from receiving his share of gratuity and the same will be payable to other eligible members of the family. are less than 12 times of his emoluments at the time of retirement. Recovery from retirement gratuity/death gratuity of Government dues is permissible without any consent. gratuity may be calculated on average emoluments for the last 10 months instead of emoluments.(b) emoluments for the purpose of retirement/ death gratuity means basic pay. in case the officials’ whereabouts are not known. dearness pay. This is a lumpsum payment. gratuity is exempted from court attachments. the deficiency may be granted to the nominee(s) or heir(s). non-practicing allowances and dearness allowance on the date of retirement/death. stagnation increments. retirement/death gratuity benefits are available to the employees subscribing to CPF also. where there is no nominee(s) and no family member(s).

(8) (9) The amount of pension offered for commutation will be reduced from the monthly pension payable to the employee for a period of 15 years. if the commutation amount is received in the first month of retirement or after 15 years from the date of receipt of commutation amount in other cases. An employee or pensioner against whom department or judicial proceedings are pending is not eligible for commutation of his pension till completion of such proceedings. family pension is admissible at a higher rate. Fraction to be rounded off to the next higher rupee. Pay includes basic pay. compensation pension. (4) (5) (a) (b) (c) (d) (6) (7) The product should be rounded off to the next higher rupee.COMMUTATION OF PENSION: (1) (2) (3) Every pensioner is eligible to commute a portion not exceeding 40% of his monthly pension for a lumpsum payment. The lumpsum commutation amount payable will be equal to: Commutation Factor X 12 X Amount of Pension Offered for commutation. Commuted portion of pension will be restored on the expiry of 15 years from the date of retirement. dearness pay and NPA.3. . 4. In the case of employees eligible/ in receipt of superannuation pension. The following categories of pensioners can commute a portion of their pension only after they have been medically examined and declared fit by the medical authority. in receipt of Compassionate Allowances. Commutation amount is calculated on the basis of commutation value contained in the commutation table brought out by the Government of India. retired on invalidation. Normal family pension = 30% of pay last drawn. 3. FAMILY PENSION: 1. Commutation of a portion of Compassionate Allowance is also admissible. 5. stagnation increments. In the case of employees rendered 7 years or more continuous service.500/per month. commutation can be done without undergoing medical examination if. applying for commutation after 1 year from the date of retirement. they apply for commutation within 1 year of the date of retirement. 2. retired compulsorily as a measure of penalty. retirement pension. subject to a minimum of Rs. Admissible to the family of an employee/ pensioner on his death in service/after retirement.

3500 + DA at Central rates p. Pension is payable for the day of death also. 7.m. 14. it will be paid to the judicially separated spouse till death or remarriage. 9. physically crippled Till death or starts earning an amount of Rs. 8. In the case of judicially separated spouse. In the case of death after retirement. PERIOD FOR WHICH FAMILY PENSION IS PAYABLE: Order (a) Widow or Widower (b) (c) Period for which family pension is payable (d) (e) Till date of remarriage or death. It is first payable to the surviving widow or widower till his/her death or remarriage. 16. 13. 15. the higher rate will be 50% of the pay drawn at the time of retirement of the amount of pension authorized on retirement. 12.6. In the case of dependant parents. whichever is less. whichever is less. such a spouse will not be eligible for family pension. 10. family pension will be paid first to mother and after her death to the father. Unmarried Son(s) suffering from For life or till he gets married or till he starts disorder of disability of mind or earning an amount of Rs. Daughter(s) (including widowed/ For life or till she gets married or till she starts divorced daughter(s) suffering from earning an amount of Rs. if both parents are alive.3500 + DA at Central disorder of disability of mind or rates p. Higher rates are not admissible to dependant parents.Rule 54 and GIDs (21) and (22) thereunder. the normal family pension will continue without any change. In the case of death while in service. If the judicial separation is on the ground of adultery of which the surviving spouse was held guilty.m. whichever is earlier. In the case of death after retirement. . The higher rate in the case of death in service will be 50% of the pay last drawn. irrespective of their sex. the family pension will first be paid to the eligible children.3500 + DA at Central physically crippled rates p. whichever is earlier.3500 Dependent parent(s) + DA p. higher rate is payable only for a period of 7 years following the date after the date of death or upto the date on which the employee would have attained 67 years of age.m. The family pension is payable to only one member of the family at a time. -. If pension authorized is less than the normal family pension. Children of void/voidable marriage are also eligible for family pension when their turn comes. Till date of marriage/remarriage or date of Unmarried son/ daughter/ widowed/ attaining the age of 25 years or starts earning an divorced daughter amount of Rs.m. whichever is earlier and thereafter to children one by one in the order of their birth. 11. the higher rate of Family Pension is payable to the family for a period of 10 years from the date of death. If the children ceased to be eligible for family pension.

Pay and Accounts Officer. interest at the rates applicable to GPF deposits will be paid to the retired (2) (3) (4) . 22. Family pension is admissible to post-retiral spouse/ children born or adopted legally after retirement.P 10.P 40% of Basic F. as follows: Age of Family Pensioners From 80 years to less than 85 years From 85 years to less than 90 years From 90 years to less than 95 years From 95 years to less than 100 years 100 years or more Additional quantum of Family Pension 20% of Basic F. 23. If payment of gratuity is delayed beyond 3 months from the date of retirement. b) in the case of twins. Family pension can be paid if the employee/ pensioner is missing for more than 1 year. (1) PAYMENT OF PENSION The Accounts Officer is responsible for issuing Pension Payment Order to the Pension Dispersing Authority from whom the pension/family pension is desired to be drawn monthly. Exception to the General Rule: a) when there are more than one window. the period of suspension will be treated as duty for all purpose including payment of pay and allowances and family pension. 24. A posthumous child is also entitled for family pension. The quantum of Family Pension payable to the eligible shall be increased when their age advances. 20. 18.P 50% of Basic F. 19.P 100% of Basic F. 21. the family pension will be paid in equal shares. the family pension will be allowed in equal shares. A Government Servant/pensioner can draw family pension in addition to salary/pension if due. Monthly pension is payable on the last working day of the month to which it relates. Pension is dispersed through Treasuries. If the Government servant dies while under suspension. Children of deceased parents who were both Government Servants can draw two family pensions.17.P 30% of Basic F. Post Offices and selected Nationalized Banks.

calculated in such a way that the aggregate of the service and disability element shall not be less than 80% of the pay last drawn for 100% disability. Normal pension and gratuity admissible under CCS (Pension Rules). but the capitalized value of the Disability Pension will be paid to him in lump. (1) DISABILITY PENSION UNDER CCS (Extraordinary Pension) Rules 1939 Disability Pension is granted to employees sustaining injuries or diseases for reasons attribute to or aggravated by Government Service. Category C: Disability due to accidents performance of duties in the For lower percentage of disability. The amount of such interest will be recovered from the Official(s) responsible for delay. anti-social elements etc. he shall not be paid Disability Pension monthly. 11. disability pension shall be proportionately lower. No disability pension. whether in their performance of duties or otherwise. Normal pension and Gratuity + disability pension equal to 305 of basic pay for 1005 disability. disability pension will be proportionately lower. NOTE: if the employee is retained in service. (2) (3) (4) QUANTUM OF DISABILITY PENSION Category A: Disability due to natural causes not attribute to Government Service Category B: Disability due to causes which are accepted as attributable to or aggregated by Government Service. whose death is attribute to or by injuries/diseases aggravated by Government Service. Disability Pension under Extraordinary Pension Rules can be granted only with the sanction of the President.employee/ dependents. For lower percentage of disability. Category E: Disability arising as a result of: (a) attack by or during action against Normal retiring pension and gratuity (for full service) + . These benefits are in addition to the Pension/ Gratuity payable under CCS (Pension Rules).. Normal retiring pension and Gratuity (for full service) + Disability Pension equal to Normal Family Pension. Category D: Disability attributable to acts of violence by terrorists. Extraordinary Family Pension is granted to the family of the employee.

while on way to an operational area. servant) 75% for both parents: 60% if only single parent.3000/. and (iii) Battle inoculation as part of training exercises with live ammunition.. anti-social element. the disability element shall be proportionately lower. Departments/offices will have power to grant Disability/ Family Pension. Category C: Death due to accidents in the performance of duties (a) Where the deceased Govern. anti-social element. 40% of basic pay subject to a minimum of Rs. 100% disability & dependent on someone for day to day functions. etc. etc. Servant was holding a pensionable post.. Canteen Attendant Allowance of Rs. 60% of basic pay subject to a minimum of Rs. subject to the condition that the aggregate of the service and disability elements shall not exceed the pay last drawn for 100% disability. For lower percentage of disability. if they are covered under the existing instructions.. Category B: Death due to causes which are accepted as attributable to or aggregated by Government Service..4550/(b) Where the deceased Govern. while on way to an operational area. etc. (ii) (iii) Kidnapping by extremists. Note I: Where Extraordinary Family Pension is allowed. (b) To children (under normal rules) 60% basic pay: Minimum Rs. and (b) enemy action in international war or border skirmishes and warlike situations. Disability pension equal to the last pay drawn.. Note II: Govt. exploding mines.. Note III: Extra-ordinary pension rules will not apply to Government Servant appointed on or after 1st January 2004. EXTRAORDINARY FAMILY PENSION Category A: Death due to natural causes not attributable to Government Service. exploding mines.. and (b) enemy action in international war or border skirmishes and warlike situations. in addition to disability Pension 12. no other Family Pension will be admissible.extremists..m. (ii) Kidnapping by extremists.7000/Normal Family pension under CCS Family pension Rules Category D: Disability attributable to acts of violence by terrorists. . etc. and Battle inoculation as part of exercises with live ammunition training (a) To widow (till death or remarriage) FP equal to last pay drawn.7000/(c) To Parents (in case of death of bachelor / widower Govt. including cases which are attributable to (i) Extremists acts. Category E: Disability arising as a result of: (a) attack by or during action against extremists. whether in their performance of duties or otherwise. including cases which are attributable to (i) Extremists acts.. Servant was holding a pensionable post. anti-social elements etc.p.

20 lakhs in each individual Case.10 lakhs Rs.13. The concerned Administrative Ministry is competent to decide the admissibility of the compensation. it shall be referred to Department of Pension & Pensioners’ Welfare (2) (3) (4) (5) (6) (7) (8) . who die in accidents to commercial aircrafts. terrorists. CM’s Relief Fund etc. However. inaccessible border posts etc on account of natural disasters. etc. extreme weather conditions (5) Rs.15 lakhs Rs. who die in harness in the performance of their bona fide official duties under various circumstances.Gratia Lumpsum Compensation: (a) (b) Death occurring due to accidents in the course of Performance of duties Death occurring in the course of performance of duties attributable to acts of violence by terrorists. etc Death occurring during (a) enemy action in international war or border skirmishes and (b) action against militants. If any doubt arises in the interpretation of these rules.15 lakhs (c) (d) Important Points: (1) The compensation is intended to provide an additional insurance and security to employees. who are required to function under trying circumstances and are exposed to different kinds of risks in the performance of their duties. extremists. The main condition is that. Liberalized Pensionary Awards Scheme. Provident Fund etc. the death of the employee concerned should have occurred in the actual performance of bona fide official duties.10 lakhs Rs. shall be paid the following Ex. this applies to death occurring in an accident while travelling on duty by service aircraft. The aggregate of tje ex-gratia compensation paid from different Government sources (PM’s Relief Fund.) shall not exceed Rs. Central Government Employee’s Group Insurance Scheme. Death occurring while on duty in this specified high altitudes. The above compensation will not be paid to the employee-passengers. The ex-gratia amount to be paid to Central Government Civilian Employees killed in train accidents The above ex-gratia compensation shall be admissible in addition to the benefits of CCS (Extraordinary Pension) Rules. anti-social elements. EX-GRATIA LUMPSUM COMPENSATION To families of employees who die in harness Families of Central Government Civilian Employees.

they will draw pensions for both spells of service separately. Employment with university. wholly or substantially owned or controlled by the Central/State Government. A pensioner receiving superannuation or retiring pension and re-employed subsequently in not eligible for a separate pension and gratuity for the period of his re-employment. It also includes a Directorship of such Company or Partnership of such firm. If no option is exercised.14. Commerce. no pension is payable during the period of such employment or for a longer period as may be ordered by the Government (3) a) Limitation on number of Pensions: A Government Servant in not eligible for two pensions in the same service or post at the same time or by the same continuous service. under a Company. (1) a) GENERAL Commercial Employment Immediately After Retirement: A retired Group ‘A’ Officer is required to take prior approval of the Government for accepting any Commercial Employment within one year from his date of retirement. They have an option to stop drawing previous pension and count the benefits. (Rule 7. Firm or Individual engaged in trading. If he accepts such employment without the previous sanction. b) If accepted without prior permission. 18 & 19) b) c) . the Government may withhold whole or a part of his pension. (Rule 10) (ii) (2) Employment After Retirement under a Foreign Government: a) A retired Group ‘A’ Officer should not accept any employment under any Government outside India without the prior Sanction of the Central Government. Setting up practice as advisor or consultant in matters related to his official knowledge or experience also comes under Commercial Employment. Cooperative Society. b) c) d) Following employments re not treated as Commercial Employment: (i) Employment under a body corporate. Financial or Professional business. once they complete 10 years Qualifying Service in the second spell. Industrial. Commercial Employment means an employment in any capacity including that of an Agent. Re-employment pensioner retired on Compensation Pension or Invalid pension or Compensation gratuity or Invalid gratuity and re-employed military pensioner are entitled to draw pension/gratuity separately for their previous service.

They will be governed by a new scheme. (4) Contribution to Tier I which relates to Pension is mandatory. either in full or in part. which took place more than 4 years before initiation of such proceedings. The President can also withdraw pension in full or in part. . or both. The President can also order recovery from a pension or gratuity or the whole or part of any pecuniary loss caused to the Government by the individual during his service. (6) Tier I is operative form 1/1/2004. (5) Contribution to Tier II which is in place of GPF. the President can withhold pension or gratuity.(4) (1) Pension subject to future good conduct: Disciplinary proceedings against a pensioner can be initiated only with the sanction of the President Such proceedings shall not be in respect of any event. Such proceedings shall not be in respect of any event. Tier II will be operative from a date notified later. Right of President to withhold or withdraw pension: Disciplinary proceedings against a pensioner can be initiated only with the sanction of the President.Tier I and Tier II. If the pensioner is found guilty of grave misconduct or negligence during period of service including during re-employment. (Rule 9) (2) (3) (4) (5) (6) (7) (15) NEW PENSION SCHEME FROM 01/01/2004 GENERAL (1) The Present Pension Scheme (Defined Benefit Pension System) and GPF will not be available to Central Government Savants appointed on or after 1/1/2004. whether permanently or for a specified period. (2) The New Scheme is called Defined Contribution Pension Scheme. is optional and at the discretion of Government Servants. in any departmental or judicial proceedings. which took place more than 4 years before initiation of such proceedings. (3) The New Scheme has two tiers.

new pension scheme members who are discharged on invalidation/disablement/died during service since 1. monthly contribution. As an interim measure. CONTRIBUTIONS 1) Monthly contribution at the rate of 10% of (Pay drawn in the Pay Band + applicable Grade Pay + DA) for Tier I.2004 are entitled to the following benefits on provisional basis till further orders:(Taken from P-248 of Swamy’s Hand Book-2010) ******** 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) . at present.A. Employees will get annual statement containing details of opening balance.1. Withdrawals are freely allowed from Tier II Account. If the employee leaves the scheme before 60 years of age. Provision for terminal payment in the event of leaving the service during the present interim period is yet to be decided by the Government. 80% of Pension wealth mandatory for investment. Interest for the accumulation will be at the rat prescribed by the Government from time to time.APPLICABILITY 1) 2) Applicable to all Central Government Servants appointed on or after 1/1/2004. PENSION 1) Exit from the scheme will be on attaining 60 years of age. The individual will receive a lumpsum of the remaining Pension Wealth.C. The scheme provide pension for lifetime of the employees and his/her dependant parents/spouse at the time of retirement. Statutory Pension Fund manages to offer 3 categories of Schemes. Contribution by recovery through salary bills. which he would be free to utilize in any manner. It is mandatory to invest 40% of pension wealth in funds regulated by Life Insurance Company on exit at the age of 60 or afterwards. Not applicable to Armed Forces. Several Pension Fund Regulatory and Development (PFRDA) to regulate and develop the pension market.B. Governments matching contribution and interest earned. 2) WITHDRAWAL 1) 2) No withdrawal is admissible from Tier I Account. There is a Central Record Keeping Agency.

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