E1-E2

FOR CSSS PA/PS

RETIREMENT BENEFITS

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 INTRODUCTION

• Pension is the series of periodic money

payments to a person who retires from service
on completion of the agreed span of service.
The payment continues for the rest of natural
life of the recipient and sometimes to a widow
of the survivor.

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 Principles Governing Pension

• Various rules relating to conditions, and regulation of

amounts of pension etc., are contained in C.C.S (Pension)
Rules 1972.
• The above rule is revised and modified as per 6th CPC
and its applicability to the Govt. employees absorbed in
BSNL is conveyed by DOT vide letter No.F.No.40-31/2008-
Pen(T) dated 12th August 2009

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 Principles Governing Pension

• Emoluments : The emoluments for the purpose of all

pensionary benefits (other than gratuity) shall be equal
to Basic pay Plus Dearness Pay(wherever applicable).
• Qualifying Service: Rates of gratuity have been
prescribed with reference to the number of six-monthly
periods of qualifying service. Under Rule 49(3) of
CCS(Pension) Rules read with GID(2) there under, the
period of three months and above will be reckoned as
one completed half-year.

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Principles Governing Pension

This means that the fraction of a year consisting

of—

Less than 3 months to be ignored

3 months and above .one completed six

but less than 9 monthly or
months. Half year period
9 months & above. Two completed six
monthly or
half year periods.

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 Average Emoluments

• Average Emoluments=
• Total of last 10 months emoluments
10
• Emoluments = Basic Pay, DP, NPA., &
Stagnation Incrmt.

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 PENSION:

• The minimum eligibility period for receipt of

pension is 10 years & above.
In the case of Govt. Servant retiring
1. after completing qualifying service of not less
than 20 years,
2. before completing the qualifying service of 20
years but after completing 10 years of qualifying
service the amount of pension will be 50% of the
pay or average emoluments(AE) whichever is
more subject to the minimum of Rs.3500/= and
maximum of Rs.45000 per month (w.e.f
1.1.2006)
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 PENSION:

Pension =Pay or A E whichever is more.

2
3.Before completing qualifying service of 10 years are not
eligible for pension. However they will be entitled for
lump sum payment termed as Service Gratuity calculated
@ half emoluments for each completed 6 monthly
period. Emoluments for Service Gratuity = Basic Pay, NPA,
Stagnation Increment + DA

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 GRATUITY

Retirement Gratuity
• Government Servants retiring after completing 5 years of qualifying
service, Gratuity shall be calculated at the rate of 1/4th of emoluments
for each completed six monthly period subject to a maximum of 16 ½
times of emoluments or Rs. 10 lakhs whichever is less.(w.e.f. 1.1.2006)
• Emoluments for this purpose shall be last pay drawn or Average
Emoluments, which of BSNL only
• ever is higher plus DA on the date of retirement on Average Emoluments /
Last Pay.
• Last Pay / Average Emoluments = Basic Pay, NPA & Stagnation Increment.

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 GRATUITY

• Death Gratuity
This is a one-time lump sum benefit payable to the
widow/widower or the nominee of a permanent or a
quasi-permanent or a temporary Government servant,
including CPF beneficiaries, dying in harness. There is no
stipulation in regard to any minimum length of service
rendered by the deceased employee. Entitlement of
death gratuity is regulated as under:

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 GRATUITY

Qualifying Service Rate

Less than one year 2 times of basic pay
One year or more but less 6 times of basic pay
than 5 years
5 years or more but less 12 times of basic pay
than 20 years
20 years or more Half of emoluments for every
completed 6 monthly period of
qualifying service subject to a
maximum of 33 times of
emoluments.
Maximum amount of Death Gratuity admissible is
Rs. 10 lakhs w.e.f. 1.1.2006

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 GRATUITY

• ServiceGratuity

A retiring Government servant will be entitled to receive service

gratuity (and not pension) if total qualifying service is less than 10
years. Admissible amount is half month’s basic pay last drawn for
each completed 6 monthly period of qualifying service. There is no
minimum or maximum monetary limit on the quantum. This one
time lump sum payment is distinct from and is paid over and above
the retirement gratuity.

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 Commutation of Pension

• A Central Government servant has an option to commute a

portion of pension, not exceeding 40% of it, into a lump sum
payment with effect from 1.1.1996.
• No medical examination is required if the option is exercised
within one year of retirement.
• If the option is exercised after expiry of one year, he/she will
have to under go medical examination by the specified
competent authority.
• Lump sum payable is calculated with reference to the
Commutation Table constructed on an actuarial basis.

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 Commutation of Pension

• Monthly pension will stand reduced by the portion commuted and the
commuted portion will be restored on the expiry of 15 years from the
date of receipt of the commuted value of pension. Dearness Relief,
however, will continue to be calculated on the basis of the original
pension (i.e. without reduction of commuted portion).
The formula for arriving for commuted value of Pension (CVP) is
CVP = 40 % (X) Commutation factor* (X)12
* The commutation factor will be with reference to age next birthday
on the date on which commutation becomes absolute as per the New
Table as Annexure to this Deptt's O.M. No. 38/37/08- P&PW(A) dated
2.9.2008

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 Family Pension

• In the case of Family Pension the widow is eligible to receive pension

on death of her spouse after completion of one year of continuous
service or before even completion of one year if the Government
servant had been examined by the appropriate Medical Authority and
declared fit for Government service.
• RATES OF FAMILY PENSION: 30 % of Basic Pay
• Minimum: Rs.3500/- p.m.
• Maximum: 30% of highest pay in Govt. (Rs.90000/- since
1.1.2006)

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ENHANCED RATES OF FAMILY PENSION:
• Enhanced family pension under Rule 54(3)(a)(i) shall be
payable to the family of a Govt.servant who dies in
service from the date of death of the Govt.servant for a
period of ten years, without any upper age limit.
• A higher rate of family pension is payable for a period of
7 years from the date following the date of death or for a
period up to the date on which the deceased
Government Servant would have attained the age of 67
years

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 General Provident Fund and Incentives

As per General Provident Fund (Central Services) Rules,

1960, all temporary Government servants after a continuous
service of one year, all re-employed pensioners (Other than
those eligible for admission to the Contributory Provident
Fund) and all permanent Government servants are eligible
to subscribe to the Fund. A subscriber, at the time of joining
the fund is required to make a nomination, in the prescribed
form, conferring on one or more persons the right to receive
the amount that may stand to his credit in the fund in the
event of his death,

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 General Provident Fund and Incentives

• before that amount has become payable or having become payable

has not been paid. A subscriber shall subscribe monthly to the Fund
except during the period when he is under suspension. Subscriptions
to the Provident Fund are stopped 3 months prior to the date of
superannuation. Rates of subscription shall not be less than 6% of
subscriber’s emoluments and not more than his total emoluments.
Rate of interest on GPF accumulations with effect from 1.4.2008 is 8%
compounded annually and the rate of interest will vary according to
notifications of the Government. The Rules provide for drawal of
advances/ withdrawals from the Fund for specific purposes.

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 General Provident Fund and Incentives

• Under the GPF Rules, on the death of subscriber, the

person entitled to receive the amount standing to the
credit of the subscriber shall be paid an additional
amount equal to the average balance in the account
during the last 3 years immediately preceding the death
of the subscriber subject to certain conditions provided
in the relevant Rule. The additional amount payable
under that Rule shall not exceed Rs. 60,000/-. To get this
benefit, the subscriber should have put in at least 5 years
service at the time of his/her death.

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 Leave Encashment

Encashment of leave is a benefit granted under

the CCS (Leave) Rules and not a pensionary
benefit. Encashment of Earned Leave standing at
the credit of the retiring Government servant is
admissible on the date of retirement subject to a
maximum of 300 days. There is no provision under
the Rule for payment of interest on delayed
payment of Leave Encashment.

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 BSNL GSLI

Introduction of ‘BSNL GSLI Scheme’ w.e.f. 20-8-2005, in replacement of

CGEGIS for all ex-DOT/DTS/DTO employees absorbed in BSNL and
also the employees directly recruited by BSNL
(i) Every member shall pay a monthly contribution according to his
category at the rate as under. The contribution shall commence on
the ‘Entry Date’ and continue until the ‘Terminal Date’ or otherwise
as specified in these Rules.
(ii) Recovered from the salary of July 2005
(iii) No recovery in the month of cessation of membership
(retirement/death) as Recovery is being made in advance.

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 BSNL GSLI

CATEGORY IDA PAY MONTHLY BREAK UP OF PREMIUM SUM

SCALE CONTRIBUT LIFE SAVING DOUBLE ASSURED
ION COVER S FUND ACCIDENT
BENEFIT
I – Executives 14500- 525 150 350 25 500000
350-18700
& beyond
II-Executives Upto 315 90 210 15 300000
13000-
350-18250
III- Non executives All Gr “C” 105 30 70 5 100000
& “D”

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 Central Government Employees Group
Insurance Scheme
• Applicable to officers/officials on deemed deputation and Non
absorbed employees in BSNL.
• A portion of monthly contributions paid while in service is credited in a
Saving Fund, on which interest accrues. A Government servant while
entering service has to apply in Form No. 4 of the above Scheme to the
Head of Office, who shall issue a sanction for the payment of
subscriber’s accumulation in the Savings Fund segment together with
interest and arrange for its disbursement, soon after retirement.
Payments under this Scheme are made in accordance with the Table of
Benefit which takes in to account interest up to the date of cessation of
service. Insurance cover benefit under this Scheme is available to the
family in the event of death of the subscriber. No interest is payable on
account of delayed payments under this Scheme.

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 Employees Provident Fund

• Applicable only in cases of official/officers

recruited after becoming BSNL (after
01.10.2000) and is being covered by The
Employees' Provident Fund and Miscellaneous
Provisions Act 1952.

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 Contribution

Employee Employer
EPF contribution 12% of 12% of emoluments
emoluments Pension PF
fund contribution
8.33% 3.67%
Employees' 0.5%
Deposit Linked
Insurance Scheme
Administration 1.1%
charges on PF
Administration 0.01%
charges on DLI

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The Employees’ Pension Scheme, 1995

• Minimum 10 years’ Contributory Service is

required for entitlement to Pension
• Normal Superannuation Pension is payable on
attaining the age of 58 years

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 Pensionable Service

• Total actual service shall be rounded off to the

nearest year (service less than 6 months
ignored)
• Weightage of 2 years in case of
superannuation on attaining the age of 58
years or after rendering a service of 20years
or more.
• Pensionable salary:- Average of 12 months
preceding the date of exit
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 Kinds of Pension

• Superannuation Pension:-
Served 20 years or more & retired on attaining
the age of 58 years.
• Retirement Pension:-
Served 20 years or more & retired before
attaining the age of 58 years.
• Short Service Pension:-
Served 10 years or more but less than 20 years

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 Kinds of Pension

Monthly Pension= Pensionable salary x Pensionable

service /70
• Pension for Permanent & Total Disablement during the
service, no minimum service is fixed. Minimum Pension
Rs.250/-
• Commutation of Pension
Maximum: - 1/3rd of Pension
Commuted Value: - Portion of Pension to be commuted x
100

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 Kinds of Pension

WIDOW PENSION
(Till death or remarriage whichever is earlier)
Death in Service Pension calculated up to death or
Rs.450 or Table C Whichever is
more
Retired before 58 years & Pension calculated up to exit or
eligible for pension but dies Rs.450 or Table C whichever is
before commencement of more
pension
Died after commencement 50% of Pension (Minimum
of Pension Rs.450)

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 Kinds of Pension
• CHILDREN PENSION (in addition to widow pension)
• Each child 25% of Widow Pension (Minimum Rs.150) (up to 25
years of age, Maximum 2 children at a time)
• Children pension or orphan pension to Total & Permanently
disabled children for life ( in addition to children pension )
• At t he time of death No Widow or after death of widow -
• Children eligible to Orphan Pension:- 75% of Widow Pension
• Minimum Orphan Pension for each child Rs.250/- (Maximum
2 children at a time)
• If no spouse/child, the official can nominate nominee to
receive monthly widow pension

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 Payment of Pension

• At the time of death of the official, no spouse/no

child/no nomination, widow pension to Dependent
Father. Afterwards to Dependent Mother.
• Payment of pension: The claims, complete in all respects
submitted along with the requisite documents shall be
settled and benefit amount paid to the beneficiaries
within 30 days from the date of its receipt by the
Commissioner.

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For Internal Circulation of BSNL only