Retirement Benefits

 The minimum time period to receive pension benefits will be 10 years. The Central Government servant retiring in accordance with Pension Rules is eligible to receive a pension upon the completion of at minimum 10 years of qualified service.

If the pension is a Family Pension the widow can be eligible to receive family pension upon loss of the spouse upon the completion 1 year continuous service , or before the end of a year, in the event that the employee of the Government had passed a medical examination by the proper Medical Authority and declared fit to serve in the Government.

W.e.f 1.1.2006 1.1.1.2006, pensions are determined based on Emoluments (i.e.last regular payment) as well as average earnings (i.e. an average of the basic pay received in the final 10 months of service) or whichever is more profitable. Pension is equal to 50% of average or emoluments, depending on which is more beneficial.

The minimum pension currently is the amount of Rs. 9000 per month. The maximum pension amount is 50 percent of the top pay within India. Government of India (presently Rs. 1,25,000) per month. Pensions are paid until and including the anniversary of your death.

Commutation of Pension

The Central Government servant has an option of converting some of their pension that is not more than 40% to an amount that is lump sum. There is no medical exam required when you exercise the choice within a year after retirement. Should the right to exercise it after the expiration for a year the individual will be required to undergo a an examination for medical reasons by the authorized authority.

Lump amount due is calculated by an eye on the Commutation Table. The monthly pension will be reduced by the commuted portion and the portion commuted will be reinstated upon the expiration of 15 years from the date of the receipt of the commuted value pension. Dearness Relief will be calculated according to the pension originally paid (i.e. without reduction of the commuted portion).

The formula used to calculate the value of pension that is commuted (CVP) is

CVP = 40 % (X) Commutation factor* (X)12

* The commutation percentage will be determined by age on the date at which commutation is made absolute in accordance with the New Table annexed to the CCS (Commutation of Pension) Rules of 1981.

Death/Retirement Gratuity

Retirement Gratuity

This benefit is due to the government employee. An initial 5 years of qualifying service as well as the ability to be eligible for service gratuity/pension is necessary to qualify for this cash benefit. The amount of retirement gratuity is 1/4th of one Month's Basic Pay and Dearness Allowance, which is drawn at the time of retirement, for each six month period of service that qualifies as qualifying. There is no minimum amount on an amount that can be considered gratuity. The retirement gratuity that is payable to those who have served in the qualifying period that is 33 years old or more amounts to 16 1/2 times basic pay plus the DA up to a maximum amount of the amount of Rs. 20 lakhs.