Retirement on Superannuation and other than Superannuation & Retirement Benefits |
Voluntary Retirement (FR 56(k) and FR 56(m)] |
An employee has right to retire and get pensionary benefits by giving three months notice to the Appointing Authority: (i) After attaining 50 years of age. (Group A and B officers who had entered service before attaining the age of 35 years).(FR 56(k)) (ii) After attaining the age of 55 years. ( All Group A, B, & C employees, other than above) (iii) On completion of 30 years qualifying service (FR 56(m)). ( All Group A, B, & C employees) 1. If a government employee retires under the scheme of voluntary retirement while he is on leave not due, without returning to duty, the retirement shall take effect from : Date of commencement of the leave not due. 2. Notice tendered by a Government Servant to retire voluntarily from service under Rule 48 of CCS (Pension) Rules 1972 : (i) Shall be precluded from withdrawing the notice even after the specific approval of such authority. (ii) Request of withdrawal shall be within the intended date of his retirement. 3. Appointing Authority is the authority competent to accept the notice for voluntary retirement tendered under Rule 48/48-A. 4. Voluntary retirement can be requested less than the prescribed notice period of three months giving reasons thereof. Competent authority may relax the requirement of notice of three months in case of Voluntary Retirement. Government servant shall not apply for commutation of his pension before the expiry of the period of notice of three months. 5. How long qualifying service must be completed by a government employee seeking voluntary retirement: 20 Years 6. Voluntary retirement is a right of Govt. servant if the government servant gives a notice of 3 months after rendering 30 years qualifying service. |
Premature Retirement |
The Appointing Authority has the absolute right to retire an employee from service if it considers necessary to do so in public interest by giving notice of not less than three months in writing or pay and allowances in lieu thereof, in the following circumstances: (i) After attaining 50 years of age. (Group A and B officers who had entered service before attaining the age of 35 years.(Rule 56j) (ii) After attaining the age of 55 years. ( All Group A, B, & C employees, other than above).(Rule 56j) (iii) On completion of 30 years qualifying service. ( All Group A, B, & C employees) (Rule 48) An employee should not be retired on the grounds of misconduct or as a short-cut to avoid formal disciplinary proceedings or for reduction of surplus staff. Normal pensionary benefits to be given to the employee. |
Other Points |
A Central Government Employee who suffers on account of any bodily or mental infirmity which permanently incapacitated him for the service may retire from service with pensionary benefits. He will be granted an invalid pension, retirement gratuity, encashment of leaves, and family pension to the members of his family in the event of his death. The condition to qualifying service of ten years for grant of invalid pension. |
Qualifying Service |
Qualifying service refers to the period of service that is taken into account while calculating the pension of a government servant upon retirement on superannuation. In the context of a government servant's retirement on superannuation, qualifying service includes the length of service rendered by the employee in the government or public sector, including periods of leave with full pay, extraordinary leave, leave on medical grounds, and military service that has been purchased. However, periods of absence from duty without leave or on suspension, and periods of service that have been excluded by the government, are not considered as qualifying service.The length of qualifying service is an essential factor in determining the amount of pension that a government servant is eligible for upon retirement on superannuation. The period of Deputation, Foreign Service,Previous service if applied through proper channel, SAS Apprentice, Probation, Suspension followed by minor penalty is counted towards qualifying service. Whereas, period as Apprentice (except SAS apprentice), suspension followed by major penalty, Unauthorised absence treated as ‘Dies Non’, EOL without medical certificate is not counted towards qualifying service. |
Classes of pension
Superannuation Pension |
| This type of pension is granted to employees who retire on attaining the age of superannuation, which is 60 years for most government employees. To be eligible for this pension, the employee should have completed a minimum of 10 years of qualifying service. |
Retiring Pension |
| This type of pension is granted to employees who retire prematurely from service, i.e., before attaining the age of superannuation. To be eligible for this pension, the employee should have completed a minimum of 20 years of qualifying service |
Invalid Pension |
| This type of pension is granted to the employees who retire on being declared by the competent medical authority to be permanently incapacitated for further service. |
Family Pension | ||||||||||||
In case of the death of an employee, a family pension is payable to their spouse or dependent children. The family pension will be paid at enhanced rate i.e. 50% of the pay last drawn if the employee died in service for a period of 7 years or until the age of 67 years, whichever is earlier. (Dependent parents are not eligible for enhanced family pension). Thereafter, family pension shall be paid at the rate of 30% of the pay last drawn. The family pension is payable for life to the spouse. Family pension is payable to the family of : i) A Govt. Employee who dies while in service. ii) A Govt. Pensioner who dies after retirement. Under revised pay structure (7th CPC), Family pension is 30% of basic pay subject to the Minimum Rs. 9,000 and Maximum Rs. 75,000/- Family pension is available under Rule 50 of the CCS(Pension Rules), 2021 but excludes : Dearness Relief
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Extra Ordinary Pension |
If an employee sustains injuries, diseases or dies due to attributes of government service, he/his family becomes eligible for the grant of an award under the CCS(Extraordinary Pension) Rules, 1939. Compensation payable for death or disability under different circumstances, the cases are categorised in five distinct categories as : Category A, Category B, Category C, Category D & Category E. Constant attendance allowance is granted to pensioners who retire on disability pension with 100% disability and are completely dependent on somebody for day to day function. Constant Attendance allowances is Rs. 6,750 p.m over and above disability pension. |
Compulsory Retirement Pension |
Compulsory Retirement Pension is a type of pension that is granted to government employees who are compulsorily retired from service in the interest of public policy or due to some other reasons such as lack of integrity or ineffectiveness in performance. In the case of Central Government employees, the applicable rules and regulations for Compulsory Retirement Pension are governed by the Central Civil Services (Pension) Rules, 1972. As per these rules, a government employee who has completed a minimum of 10 years of qualifying service may be compulsorily retired from service by the appropriate authority, after following the due procedure. If a government employee is compulsorily retired from service, he or she is entitled to receive a pension, which is calculated on the basis of the length of qualifying service rendered by the employee. The amount of pension that a government employee is entitled to receive in the case of Compulsory Retirement Pension is the same as that of the Superannuation Pension, i.e., 50% of the average emoluments drawn during the last 10 months of service, subject to a minimum of Rs. 9000 per month and a maximum of Rs. 1,25,000 per month. However, if the employee is compulsorily retired from service due to lack of integrity or ineffectiveness in performance, the pension amount may be reduced or forfeited, subject to the applicable rules and regulations. |
Gratuity | ||||||||||||
Gratuity for Central Government employees is governed by the Central Civil Services (Pension) Rules, 1972. As per these rules, Central Government employees are eligible for gratuity after they have completed a minimum of 5 years of qualifying service. The gratuity amount for Central Government employees is calculated as per the following formula: Gratuity Amount = (Basic Pay + Dearness Allowance) x 15 x Number of Years of Service / 26 In this formula, Basic Pay refers to the employee's last drawn basic salary, and Dearness Allowance refers to the dearness allowance that the employee is entitled to receive as per the applicable rules and regulations. The number of years of service is rounded off to the nearest full year. The maximum amount of gratuity that a Central Government employee is eligible to receive is Rs. 20 lakhs. However, this limit may be revised by the Central Government from time to time. Types of Gratuities: Retirement Gratuity: This is a gratuity payment made to a Central Government employee upon their retirement from service. The employee is eligible for this payment if they have completed a minimum of 5 years of qualifying service. Death Gratuity: This is a gratuity payment made to the nominee or legal heir of a Central Government employee who dies while in service. The amount of death gratuity is calculated as per the formula mentioned above, and it is usually tax-free up to a certain limit.
Service Gratuity: This is a gratuity payment made to a Central Government employee who resigns or is terminated from service after completing a minimum of 5 years of qualifying service. Commuted Gratuity: This is a portion of the gratuity amount that a Central Government employee can choose to receive in advance in a lump sum. The commuted gratuity is calculated based on the employee's age and the percentage of gratuity that they wish to commute. Note: Retirement Gratuity & Death Gratuity is Tax free under IT ACT, Section 10(10)1 |
Commutation of Pension | |
The employee can commute a portion of their pension, not exceeding 40% of their pension, into a lump sum payment at the time of retirement.If a government pensioner applies for commutation of his pension after his superannuation, within 1 year, the commuted value of pension becomes payable on the date of receipt of application by the Head of Office.The commutation factor is based on the age of the pensioner on Next birthday. Commutation portion of pension will be restored on the expiry of 15 years from the date of retirement, if the commutation amount is received in the First month of retirement.All pensioners applying for commutation after 1 year from the date of retirement, commuted their pension after Medical Examination.Benefits of Commutation of pension cannot be given to the family members if a pensioner dies before exercising the option. Calculation of Commutation Amount:
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Leave Encashment |
A lump sum cash equivalent of leave salary admissible for the number of days admissible of earned leaves and half pay leaves at the credit of the employee on the last day of his service, subject to a maximum of 300 Days. ( 6 times leave encashment maximum of 10 days at a time can also be availed at the time of LTC). Lump Sum consists of Leave salary and DA only. Calculation of Leave Encashment: [Basic Pay + Dearness Allowance)/30] * Number of EL in credit (Subjected to Max of 300 Leaves) |
Dearness Relief |
| Dearness Relief or DR is granted to all the pensioners and family pensioners w.e.f 01.01.2006. It is granted to compensate for the cost of living and is granted twice a year from 1st January and 1st July. Dearness Relief is provided at the same rate of Dearness Allowance. |
