Retirement Benefits

 The minimum period of eligibility for receiving pension of 10 years. An Central Government servant retiring in conformity with the Pension Rules is eligible to receive pension upon the having completed at minimum 10 years of qualified service.

For Family Pension widows are entitled to receive family pension upon loss of the spouse upon the expiration the one-year period of uninterrupted service or prior to the completion of a year, when the government employee has passed a medical examination by the proper Medical Authority and declared fit to serve in the Government.

W.e.f 1.1.2006 The pension is calculated based on Emoluments (i.e.last base salary) as well as average earnings (i.e. an average of the basic pay received in the final 10 months of service) which is the more advantageous. The pension amount is 50% of average or emoluments, depending on which is the most beneficial.

The minimum pension currently is at present Rs. 9000 per month. The maximum pension amount is 50 percent of the top pay for India. Government of India (presently Rs. 1,25,000) per month. Pensions are payable up to and including anniversary of your death.

Commutation of Pension

The Central Government servant has an option of converting the pension portion up to 40% in an amount that is lump sum. There is no medical exam required in the event that you exercise the choice within a year after retirement. When the choice is exercised after the expiration within one calendar year the individual must undergo a medical examination conducted by the appropriate authority.

Lump amount due is calculated by in reference to Commutation Table. The monthly pension is diminished by the amount commuted and the portion commuted will be reinstated upon the expiration of 15 years after the date of receipt of the commuted value pension. Dearness Relief will be calculated in accordance with the pension amount originally received (i.e. without reduction of the commuted portion).

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

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

* The commutation amount will be based on age on the date at which commutation is made absolute, as per the New Table annexed to the CCS (Commutation of Pension) Rules of 1981.

Death/Retirement Gratuity

Retirement Gratuity

The benefit is payable to the retired Federal employee. An initial 5 years of qualifying service as well as the right to receive a pension or service gratuity is required to receive this cash benefit. The amount of retirement gratuity is 1/4th of one month's basic pay plus Dearness Allowance. It is calculated on the day 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 amount of retirement gratuity for service that qualifies as qualifying that is 33 years old or more equals 16 1/2 of Basis Pay plus DA with a maximum limit of 20 lakhs. 20 lakhs.