3 E4-E5 CSS Pension

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    E4-E5 CSS Rev Date 03.08.11

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    E4-E5 UPGRADATION COURSE

    (CSS)

    Chapter 3

    Pension Rules

    Kailash RamCAO (P&A/Cash)

    +91941273938

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    PENSION

    Full pension is admissible for a qualifying service of not less than 33years.Now 20 years.

    Full pension = 50% of average emoluments ( pay+ non practicing allow.)

    Pension is payable only for those who have rendered min. of 10 yearsqualifying service (Prop.)

    Full pension is admissible for a qualifying service of not less than 33years.Now 20 years.

    Full pension = 50% of average emoluments (pay+ non practicing allow.) Payable only for those who have rendered min. of 10 years qualifying

    service (Proportionately)

    Qualifying Service

    Duty and periods treated as duty All kinds of leave with leave salary Deputation and Foreign Service Extraordinary leave on medical certificate Pre- appointment training followed immediately by appointment as Groups

    C and D employees.

    Non Qualifying Service

    Service rendered before attaining 18 Yrs. Service as apprentice except SAS Unauthorized absence treated as dies non Over-stayal of leave / joining time not regularized as leave with leave salary. EOL without Medical Certificate Suspension treated as such

    CLASS OF PENSION

    Superannuation Pension. Retiring Pension. Pension on absorption in PSUs or Companies owned or controlled by

    Central Govt, if absorption is permitted.

    Pension on absorption consequent upon conversion of a Govt. dept. in toPSU.

    Invalid Pension. Compensation Pension.

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    Compulsory retirement pension. Compassionate allowance. Minimum amount of any class of pension will be Rs.3500.00

    Retirement Gratuity/Death Gratuity

    Retirement Gratuity is payable on retirement from service after completionof 5 yrs. Of service.

    Amount: 1/4th of emoluments for every six monthly period of service Emoluments: Basic pay + DA + stagnation increments on the last day. Maximum: Rs.10 lakhs

    Death Gratuity

    Length of Service Rate

    Less than 1 Yr 2 times of emoluments

    1 yr & less than 5 Yrs 6 times of emoluments

    5 yrs & less than 20 yrs 12 times of emoluments

    20 yrs or more of emoluments for every

    six Monthly period subject toMaximum of 33 times of

    emoluments and 10 lakhsFamily Pension

    The family pension is admissible to the family of a deceased Govt. servantwhen he dies:

    o After completion of 1 yr service if not, he should have been medicallyexamined and declared fit for Govt. service

    o After retirement from service and was in receipt of pension. Uniform rate of 30% basic pay (including stagnation inc. & NPA) in all

    cases subject to (i) min. of Rs.3500.00 In the case of missing employees / pensioners, the family should lodge a FIR

    with the police and one year after the date of FIR, the family can apply forfamily pension with a certificate of non-traceable issued by the police

    authorities and family pension will be sanctioned at normal rate from the

    date of FIR. When death is conclusively established, action for sanctioning

    the difference of family pension will be taken by the Head of Office.

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    The family pension should be rounded off to the next higher rupee at thefinal stage.

    When both husband and wife are Govt. servants: On death of one of thespouses, the other will get family pension and on the death of the widow /

    widower, the eligible child will get two family pensions subject to amaximum of Rs.45,000 per month.

    Higher rate of family pension is admissible for 7 yrs or 67 yrs of age of theGovt. servant which ever is earlier.

    Higher rate: Double the normal family pension or 50% of the last pay orpension of the deceased which ever is less.

    If the Govt. servant has not put in 10 yrs of service (condition for grant ofpension) and died after retirement, the family will not get family pension butonly service gratuity at the rate of months emoluments for every six

    monthly period of service.

    This service gratuity is in addition to retirement gratuity (who retires aftercompletion of 5 yrs. Service).

    Commutation of Pension

    Eligibility Amount admissible: Not exceeding 40% of monthly pension including

    compassionate allowance but excluding family pension. If it results fraction

    of a rupee should be ignored.

    Commutation is permissible on the minimum of pension i.e Rs.3500 / whereactual calculation of pension is less than Rs.3500/.

    Lump sum payable: Amount of pension commuted * 12 * Commutationfactor.(Fraction of value is rounded off to next higher rupee)

    The reduction in the monthly pension as a result of commutation will takeeffect from the date of payment of commutation value.

    Dearness relief is paid on original pension. Restoration: after 15 years.

    Encashment of Earned Leave

    Allowed up to 300 days including the number of days for which encashmentwas availed along with LTC in case of (i) superannuation,(ii) death of

    employee (iii) premature retirement under FR 56(J),(iv) Voluntary

    retirement, (v) retirement under rule 39, (vi) retirement on invalidation ofpermanent employee and (vii) Compulsory retirement as a measure of

    punishment.

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    Calculation: (Pay + D.P+DA) x No. of days / 30 (Rounding off is done to the nearest rupee) For those who resign from service, encashment of EL is admissible to the

    extent of half of the earned leave up to 150 days at credit including the days

    for which encashment was availed along with LTC. Encashment of HPL is allowed only if it is beneficial. Encashment of leave may be sanctioned by the authority competent to

    sanction EL.

    Cash equivalent of leave salary is exempt from income tax under section 10-AA (i) of IT Act.

    Encashment of Earned Leave with LTC

    With effect from 07.10.1997, all employees are permitted to encash Earnedleave upto a maximum of 10 days at the time of availing LTC.

    equivalent duration is also availed of simultaneously During the entire service, 60 days can be encashed. A balance of 30 days should be at credit after encashment and as well as

    leave availed.

    The period of leave encashed should not be deducted (from 300 / 150 days)at the time of retirement or so.