Pensioners Hand Book

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Pensioners Hand Book2010Guidelines for

CENTRAL GOVERNMENT RETIRING OFFICIALS AND PENSIONERS (Including Rly.) Dedicated to Unsung Heroes who laid their lives serving the CountryCompiled & Edited by S.C.Maheshwari Former DEN C. Rly, Secretary (Rly) Bharat Pensioners Samaj General Secretary RREWA Gurgaon



Pensioners, even highly educated ones, suffer lot of hardship in getting fair deal at the hands of administration, more out of ignorance than indifference on the part of the latter. I have come across a case of a pensioner, retired at the level of Chief Engineer in a department of Union Government, whose pension was not fixed properly even at the time of the Fifth Pay Commission and its effect compounded now after the Sixth Pay Commission. There are innumerable cases of retirees who suffer untold misery particularly in the advanced age and poor health, in securing even small facilities they are eminently entitled to and have to run from pillar to post for the same. Retired Railway Employees Welfare Association (RREWA) has been rendering yeomans service in creating awareness amongst pensioners, not only from Railways but also from all the departments of Government, and interceding on their behalf with Department of Pension and Pensioners Welfare and other Ministries of the Union Government. The Association, under the able stewardship of Shri S C Maheshwari, has succeeded in securing relief to the pensioners in a number of areas in an effort to improve their lot. An attempt has been made in the present venture to bring together a large number of issues relevant to the retirement and the retired life. The Hand Book, very rightly, draws attention to the need for taking action well before the retirement to ensure not only trouble free transition from life during active service to peaceful retired existence but also to provide for an unfortunate situation of death in harness. Overview of the retirement benefits is quite comprehensive. Detailed coverage of the problems that can be encountered in the eventuality of the demise of the pensioner and advance planning for the situation can not be over emphasised. Coverage on End of Life Issues and a comprehensive note on the significance of will is very useful.

P C Sharma IRTS (Retd) Former Adviser Safety, Railway Board.


INTRODUCTION The Hand Book for PENSIONERS/Family Pensioners which is first of the series, give the salient features of the pension policy governing pre 01.1.2004 employees of the Central Government and attempts to highlight the basic rules, the procedures and regulations governing the sanctioning and disbursement of pension and retirement benefits, in the process all relevant aspects central to pension policy like qualifying service, record of service and operational aspects relating to processing of pension papers, nominations to be made have also been highlighted. This Pensioners/Family Pensioners guide also contains other relevant information on health, banking procedures, etc. that are relevant for pensioners. While the Handbook gives a genera! Overview on matters relating to pension, government servants and pensioners/Family Pensioners are advised to consult the original rules/orders if necessity arises, for more specific information. Pl. Visit the websites & The Handbook is being published for wider dissemination of information to bring about better awareness on pensionary & old age related matters. By giving a wide coverage, this Handbook& the referred web sites, it is felt will serve the needs of retiring officials, pensioners/Family pensioners in understanding the broad pension policy of the Central Government in case of pre 1.1.2004 entrants. Before bringing out the Handbook, to facilitate easy access publishers have made available at website all the relevant circulars and orders issued by the Department of Pension. Rly Board & other Govt. Agencies. Also the relevant rules and govt. policies on the subject are posted on to the website It will be our endeavor to keep the dissemination channel on the Internet online & up-todate for the benefit of Associations of Pensioners, Pensioners/Family pensioners and serving employees of the Government /Sr Citizens. Suggestions for improvement of the Hand book are welcome.

S.C.Maheshwari Former DEN. C.Rly Secretary (Rly.) Bharat Pensioners Samaj General Secretary, RREWA ,Gurgaon


ContentsPart I Basics for Retiring officials Page 5- 10

General; Retirement benefits ;Service records ;Qualifying Service, verification of Service; Nominations ;Will ;Occupation of Government accommodation, Point of Retirement ;Quantum of Retirement benefits ;Processing &finalizing pension paper; Provisional pension; Sanction of family Pension Part II Overview of Retirement benefits Page 10- 17

Entitlement and Quantity , Persons Eligible for Pension; When is pension given ;Classes of Pension ;Pension Constituents ;How Pensionary Benefits are worked out :-pension; Commutation of Pension ; Retirement Gratuity ;Dearness relief : Death Gratuity for family ; Family Pension ; Non Pensionary Retirement Benefits :-Provident Fund Account ; Central Government Employees Group Insurance scheme.; Travelling allowance etc ; Medical facilities for pensioners Part III Basics for Pensioners page 18- 26

Pension Disbursement :-Disbursement of pension by the Banks ;Disbursement of Pension to NRI pensioners ,Receipt of two pensions ;post retirement conviction/imprisonment :Know your PPO ,Post retirement changes in the Family ; Certificates required by a Bank from pensioners; Drawal of pension by infirm Pensioners ;Transfer of pension ; Restoration of commuted Portion of Pension ; Life time arrears ; Recovery of excess or wrong payment ; Issue of duplicate PPO ,Disbursement of Family pension, Procedure claiming Family Pension ; Certificates to be furnished by the family pensioner to the pension disbursing agency. Miscellaneous ; Grievance redressal. Annexure :Page 27- 80 Annexure I ; Commutation Table : Annexure II :- Forms : Annexure III End of life issues ; Annexure IV : Will ; Annexure V : Healthy ageing ; VI CGHS : VII RELHS Bibliography Page 81-82



SECTION 1 - GENERAL 1.1. You are a government employee and regularly interact with your office colleagues, the members of public in the discharge of your official duties. You have possibly served in different positions for over 30 years since the day you joined service. Time flies. Occasional farewell functions of your erstwhile colleagues sometimes do remind you of your own impending retirement but the thought of retirement vanishes as quickly as it comes. 1.2. In service, you had the unique opportunity to serve the country and the society. The service span spread over three decades or more looks infinite to begin with. Your office going becomes an addiction.-Time passes, and suddenly you realize that the day of retrospection and parting has arrived. The service was rewarding but also taxing. You are now entitled to a well-deserved peaceful and quiet retirement. To ensure that you are not caught unawares, and you and your family get all the retirement benefits in time, it is essential that you acquaint yourself and know in good time the basics of pensionery benefits and policy relating thereto. A careful perusal of this handbook will help you to achieve a smooth transition from the life of an active civil servant to a contented and informed pensioner. SECTION 2 - WHAT YOU SHOULD KNOW ABOUT RETIREMENT 1.3. Retirement benefits for pre 01-01-04 entrants comprises:(a) Pension with an option to commute a lump sum amount of upto 40% of the monthly pension;Or




Service gratuity in case total qualifying service is less than 10 years when no pension is admissible. (b) Retirement or Death Gratuity if you have rendered a minimum of 5 years qualifying service. (c) Family Pension for eligible spouse and children in the case of death of Government servant, while in service or after retirement. Dependent parents and siblings (i.e. Brother/sister) are also entitled to family pension when their turn comes 1.4. In addition, there are certain non-pensionary retirement benefits/payments, which include. (a) General Provident Fund, accumulations inclusive of interest thereon. (b) Encashment of earned leave to the credit of the retiring Government servant on the date of retirement subject to a maximum of 300 days. (c) Accumulated amount in the Saving Fund segment together with the interest under the C.G.E.G.I.S. (d) Insurance cover benefit under the Central Government Employees Group Insurance Scheme


(CGEGIS) to the family in the event of death of Government servant. (e) Traveling Allowance to the pensioner and his family, at the scale applicable to him while in service, for travel to the home place within India, as declared by him and entered in his service records, for post-retirement settlement.{In addition to traveling allowance Rly Retirees are also entitled to KIT/Cattle wagon passes/Transport allowance according to their status &date of appointment for shifting their belongings to the place of settlement within India } (f ) CGHS /RELHS/RCHS facilities or medical allowance, 1.5 The determination of your entitlement for service gratuity, pension and retirement/death gratuity is dependent inter-alia on the length of qualifying service. This information will be available in the Service Book/Service Record, being maintained by the administrative authorities for all employees on their rolls. 1.6. SERVICE RECORD a) A service book starts as soon as you enter service and contains records of all prominent events such as appointment, confirmation, promotion, grant of increments, grant o