Pension benefits to Central Government employees of India

The 6th central Pay Commission constituted by Government of India to suggest recommendations for facilities, allowances and pay structures to its existing employees and pensionary benefits to retired or to be retired employees. Most of the recommendations made by 6th CPC has been accepted by the Govt. of India. The Pay Commission has recommended considerable increase in the aging employees keeping in view the needs of these employees. Here is given a gist of major recommendations accepted by the Govt. It has issued the memorandum for implementation of these recommendations on September 2, 2008. Details are available at the National Portal.

• Effective date for implementation of revised pension structure is january 1, 2006.
• Arrears of the pension will be paid in cash in two installments (40% in 2008-09 & remaining in 2009-10)
• Old pensioners will get an increase of 20, 30, 40, 50 and 100% after attaining the age of 80, 85, 90, 95 and 100 years, respectively
• Employee completing 20 years of service will get pension equal to 50% of either the pay last drawn or average of emoluments received during the past 10 month, whichever is more beneficial.
• Requirement of completing 33 years of service to get full pension has been removed. However, recommendation regarding payment of full pension on completion of 20 years of qualifying service will take effect prospectively

• Now onwards, employee may get Rs 10 lakh subject to admissibility as the maximum pecuniary limit of Rs 3.5 lakh on payment of gratuity is raised to Rs 10 lakh

• If a govt. employee dies during service , family pension will be paid at enhanced rates to the family for a period of 10 years

• Commutation of pension will be done as per revised table (provided in the govt. memorandum) and will be applicable to all future cases

• Old pensioners receiving family pension will get similar quantum of higher pension as applicable to old pensioners.

• Constant attendant allowance will be provided to civilains as provided to defence personal with 100% disability.
• Ex-gratia will be paid @ Rs 10 lakh to the family of an employee if employee dies on duty and Rs 15 lakh if the employee dies at high altitude or inaccessible border posts due to natural disasters or extreme weather conditions.
• Fixation of pension shall be based on a multiplication factor of 1.86 i.e. basic pension + dearness pension (if applicable) +dearness releif of 24% as on 1-1-2006, instead of 1.74
• For purpose of nomination, widowed daughters will be placed in first category
• Continuance of family pension to childless widow of deceased employee even after her remarriage with fullfilling prescribed conditions.

Updates:

Revision of pension of pre-2006 pensioners

The important provisions:

• The pension/family pension of existing pre-2006 pensioners/family pensioners will be consolidated with effect from 1.1.2006 by adding together:-

1. The existing pension/family pension.
2. Dearness Pension, where applicable
3. Dearness Relief @ 24% of Basic Pension/Basic family pension plus dearness pension
4. Fitment weightage @ 40% of the existing pension/family pension.

The existing pension in (1) includes the effect of merger of 50% of dearness relief w.e.f. 1.4.2004, the existing pension for the purpose of fitment weightage will be re-calculated after excluding the merged dearness relief of 50% from the pension. The amount so arrived at will be regarded as consolidated pension/family pension with effect from 1.1.2006.

• The fixation of pension will be subject to the provision that the revised pension, in no case, shall be lower than 50% of the minimum of the pay in the pay band plus the grade pay corresponding to the pre-revised pay scale from which the pensioner had retired. In the case of HAG+ and above scales, this will be fifty percent of the minimum of the revised pay scale.

• The commuted portion will be deducted from the said amount while making monthly disbursements.

• The upper ceiling on pension/family pension has been increased from Rs. 15000/- and Rs. 9000/- to 50% and 30%, respectively of the highest pay in the Government (Rs. 90,000 since 1.1.2006)

• The quantum of pension/family pension available to the old pensioners/ family pensioners shall be increased depending on the age of pensioners as stated above (20 -100% additional quantum) and shown distinctily.
• Where the consolidated pension/family pensionabove works out to an amount less than Rs. 3500/- the same shall be stepped upto Rs. 3500/-. This wilt be regarded as pension/family pension with effect from 1.1.2006. In the case of pensioners in receipt of more than one pension, the floor ceiling of Rs. 3500/- will apply to the total of all pensions taken together.

Pensioners retired on or after 1.1.2006

• A Government servant retiring before completing qualifying service of ten years shall not be entitled to pension but he shall continue to be entitled to gratuity

• Once a Government servant has rendered the millimum qualifying service of twenty years, pension shall be paid at 50% of the emolument or average emoluments received during the last 10 months, whictlever is more beneficial to him.

• The government servants who have retired on or after 1.1.2006 but before the date of issue of this O.M. will continue to be governed by the Rulesj orders which were in force immediately before coming into effect of these orders.

• The amount of pension shall be subject to a minimum of Rs.3500j- and maximum upto 50% of highest pay in the Government (Rs. 90,000 since 1.1.2006)