Pension Policy : Frequently Asked Questions (FAQs)

Pension Policy : Frequently Asked Questions (FAQs)


Pension : Frequently Asked Questions (FAQs)
Frequently Asked Questions (FAQs)
(Central Civil Services)
1. PENSION POLICY
Last Updated : 18.04.2018

(1.1) Which rules govern pension and gratuity to the employees retiring
from Central Government Civil Departments. 

 
Pension and gratuity of the employees retiring from Central Government
Departments is regulated by the Central Civil Services (Pension) Rules,
1972. There are separate rules regarding pension and gratuity of Railway
employees and Defence personnel. 
pension-policy-faq


(1.2) Is the date of voluntary retirement treated as duty?
 
Yes, the date of voluntary retirement is treated as duty (Rule 5). 
(1.3) Who is eligible for pension?
 
A Govt. servant appointed in a pensionable establishment on or before
31.12.2003 and retires from Government service with a qualifying service of
10 years or more is eligible for pension (Rule 2, 49). 
(1.4) How is pension calculated?
 
W.e.f. 1.1.2006, pension is calculated @ 50% of emoluments (last pay) or
average emoluments (for last 10 months), whichever is more beneficial to
the retiring Govt. servant (Rule 49). 

(1.5) What happens to the departmental proceedings instituted against a
Govt. servant during service and pending at the time of retirement? Can
pension/gratuity be paid to a retiring, Govt. servant if
Departmental/Judicial proceeding are pending against him at the time of
retirement?

 
Department proceedings pending at the time of retirement are deemed to be
the proceedings under Rule 9 and shall be continued and concluded by the
same disciplinary authority and in the same manner. Thereafter, authority
will submit a report recording its finding to the President. In such cases,
only provisional pension is paid and gratuity is withheld till the
conclusion of departmental proceedings and issue of final orders thereon by
the competent authority. 

(1.6) Can Departmental proceedings be instituted after retirement? 

 
Departmental proceeding can be instituted after retirement subject to
following conditions:-
(a) Sanction of the President shall be obtained before instituting such
proceedings;
(b) The proceedings shall not be in respect of any event which took place
more than 4 years such institution;
(c) Proceedings shall be conducted by such authority and in such place or
the President may direct and in accordance with rules applicable to
departmental proceedings in which an order of dismissal from service could
be made in relation to the Govt. servant during his service.

(1.7 ) When is departmental or judicial proceeding deemed to be
instituted? 

 
(a) Departmental proceedings shall be deemed to be instituted on the date
on which the statement of charges is issued to the Government servant or
pensioner, or is the Government servant has been placed under suspension
from an earlier dated, on such date;
(b) Judicial proceedings shall be deemed to be instituted-
(i) In the case of criminal proceedings, on the date on which the complaint
or report of a Police Officer, of which the Magistrate takes contingence,
is made, and
(ii) In the case of civil proceedings, on the date the plaint is presented
in the court. 

(1.8) Can the pension/gratuity be withheld on conclusion of
departmental/judicial proceedings? 

 
The President reserves to himself the right of withholding a pension or
gratuity, or both, either in full or in part, or withdrawing a pension in
full or in part, whether permanently or for a specified period, and of
ordering recovery from a pension or gratuity of the whole or part of any
pecuniary loss caused to the Government, if, in any departmental or
judicial proceedings, the pensioner is found guilty of grave misconduct or
negligence during the period of service, including service rendered upon
re-employment after retirement. Power to withhold/withdraw pension/gratuity
is with President and UPSC is required to the consulted before any final
orders are passed. 

(1.9) Which pay is reckoned as emoluments for pension and gratuity? 

 
The basic pay as defined in FR 9 (21) (a) (i) is reckoned as emoluments for
pension. However, Non- Practicing Allowance granted to Medical Officers is
also included in emoluments. For the purpose of Retirement/ Death gratuity,
Dearness Allowance admissible on the date of retirement/death is also
treated as emoluments. 

(1.10) Which pay is reckoned as emoluments for pension if the
Government servant is on leave, suspension or deputation at the time of
retirement? 

 
(a) If a Government servant immediately before his retirement or death
while in service had been absent from duty on leave for which leave salary
is payable or having been suspended had been reinstated without forfeiture
of service, the emoluments which he would have drawn had he not been absent
from duty or suspended shall be the emoluments for the purposes of this
rule. However, increase in pay (other than the increment) which is not
actually drawn shall not form part of his emoluments. 
(b) If a Government servant immediately before his retirement or death
while in service had been absent from duty on extraordinary leave or had
been under suspension, the period whereof does not count as service, the
emoluments which he drew immediately before proceeding on such leave or
being placed under suspension shall be the emoluments for the purposes of
this rule. 
(c) If a Government servant immediately before his retirement of death
while in service, was on earned leave, and earned an increment which was
not withheld, such increment, though not actually drawn, shall form part of
his emoluments. However, such increment should have been earned during the
currency of the earned leave not exceeding one hundred and twenty days, or
during the first one hundred and twenty days of earned leave where such
leave was for more than one hundred and twenty days. 
(d) Pay drawn by a Government servant while on foreign service shall not be
treated as emoluments, but the pay which he would have drawn under the
Government had he not been on foreign service shall alone be treated as
emoluments.
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(1.11) Can a pension be withheld/withdrawn on grounds of misconduct
after retirement? 

 
Future good conduct is the implied condition for grant/continuance of
pension. The appointing authority may, by order in writing, withhold or
withdraw a pension or a part thereof, whether permanently or for a
specified period, if the pensioner is convicted of a serious crime or is
found guilty of grave misconduct. 

(1.12) Can a pension, once authorized, be revised to the disadvantage
of pensioner on grounds other than misconduct under Rule 8 and 9. 

 
Except under Rule 8 and 9, pension once authorized after final assessment
shall not be revised to the disadvantage of the Government servant, unless
such revision becomes necessary on account of detection of a clerical error
subsequently. No revision of pension to the disadvantage of the pensioner
shall be ordered by the Head of Office without the concurrence of the
Department of Pension and Pensioners’ Welfare if the clerical error is
detected after a period of two years from the date of authorization of
pension. The question whether it is a case of clerical error or not would
be decided by the administrative Ministry. 

(1.13) What is the formula for revision of pension of pre-2006
pensioner/family pensioner? 

 
In terms of para 4.1 of OM No.38/37/08-P&PW(A) dated 1.9.2008, the
pension/family pension will be consolidated w.e.f. 1.1.2006 by adding
together (i) The existing pension/family pension, (ii) Dearness Pension,
where applicable, (iii)Dearness Relief 24% of basic Pension/Basic Family
Pension plus dearness pension as admissible vide OM
No.42/2/2006-P&PW(G) dated 5.4.2006 and (iv) Fitment weightage @40% of
the existing pension/family pension. Where the existing pension at (i)
includes the effect of merger of 50% of DR w.e.f. 142004, the existing
pension for the purpose of fitment weightage will be re-calculated after
excluding the merged DR of 50% from the pension. The amount so arrived at
will be regarded as consolidated pension/family pension w.e.f. 112006. 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 Govt. servant retired. The minimum of pay is the pay
band/pay scale is to be reckoned in accordance with DoPPW OM No.
38/37/08-P&PW dated 30.07.2015. 

(1.14) Whether all pre-2006 pensioners/family pensioners would get
benefit under Department of Pension and Pensioners’ Welfare O.M.
No.38/37/08- P&PW (A) dated 28.1.2013 (now OM dated 30.07.2015)? 

 
There will be no change in the pension of those pre-2006 pensioners whose
pension (as revised with effect from 1.1.2006) is already equal to or more
than this minimum limit mentioned in the OM dated 28.01.2013 and
30.07.2015. In the case of family pensioner also the minimum family pension
as mentioned in CoI.10 of the Annexure to the OM dated 28.1.2013 shall be
payable if the amount of family pension (w.e.f. 01.01.2006) is equal to or
more than this minimum family pension, the same family pension shall
continue to be paid. 

(1.15) What are the provisions regarding revision of pension of
pre-2016 pensioners after 7th CPC? 

 
Orders were issued vide OM No. 38/37/2016-P&PW(A) dated 04.08.2016 for
revision of pension of pre-2016 pensioners by multiplying the pre-revised
pension by a factor of 2.57. This was to be done by the Pension Disbursing
Authorities/ Banks. 
Further orders were issued vide OM No. 38/37/2016-P&PW(A) dated
12.05.2017. As per this OM, the revised pension/family pension w.e.f
01.01.2016 of all Central Civil Pensioners/ family pensioners, including
CAPF’s, who retired/died prior to 01.01.2016, shall be revised by
notionally fixing their pay in the pay matrix recommended by the 7 th CPC in the level corresponding to the pay in the pay scale/
pay band and grade pay at which they retired/ died. This will be done by
notional pay fixation under each intervening Pay Commission based on the
Formula for revision of pay. 
While fixing pay on notional basis, the pay fixation formulate approved by
the Government and other relevant instructions on the subject in force at
the relevant time shall be strictly followed. 50% of the notional pay as on
01.01 .2016 shall be the revised pension and 30% of this notional pay shall
be the revised family pension w.e.f. 01.01.2016 as per the first
Formulation. In this case of family pensioners who were entitled to family
pension at enhanced rate, the revised family pension shall be 50% of the
notional pay as on 01.01.2016 and shall be payable till the period up to
which family pension at enhanced rate is admissible as per rules. The
amount of revised pension/family pension so arrived at shall be rounded off
to next higher rupee. 
The pension/ family pension already revised in accordance with this
Department’s OM No. 38/37/2016-P&PW(A) (ii) dated 04.08.2016 or the
revised pension/ family pension as worked out in accordance with OM dated
12.05.2017 shall be granted to pre-2016 central civil pensioners as revised
pension/ family pension w.e.f. 01.01.2016. In cases where pension/ family
pension being paid w.e.f. 01.01.2016 in accordance with this Department’s
OM No. 38/37/2016-P&PW(A) (ii) dated 04.08.2016 happens to be more than
pension/ family pension as worked out in accordance with para 4 above, the
pension/ family pension already paid shall be treated as revised pension/
family pension w.e.f. 01.01.2016. 

(1.16) Is any ready reckoner available for revision of pension of
pre-2016 pensioners by notional pay fixation method? 

 
A Concordance Table for fixation of notional pay of pension/ family pension
of employee who retired/ died in various grades of Vth/ VIth CPC period has
been prepared and circulated on 06.07.2017. These Concordance Tables are
available on the website of this Department, i.e. doppw.gov.in and
pensionersportal.gov.in. 

(1.17) Is there any online calculator available for fixation/revision
of pension? 

 
A calculator for calculation/ revision of pension/ gratuity is available on
the website of this Department, i.e. doppw.gov.in and
pensionersportal.gov.in. 


1.18) What is the amount of minimum and maximum pension after Seventh
CPC? 

 
The pension shall not be less than Rs.9000/- (excluding the element of
additional pension to old pensioners) and shall not be more than 50% of the
highest pay in Government i.e Rs 1,25,000/- w.e.f. 01.01.2016. 

(1.19) From where can we download the pension /nomination Forms? 

 
All forms are available at the website of Department of Pension &
Pensioners Welfare. 

(1.20) When can a Government servant apply for voluntary retirement? 

 
Under Rule 48, a Government servant can apply for voluntary retirement
after completion of 30 years of qualifying service. Under Rule 48-A, he can
apply for voluntary retirement after completion of qualifying service of 20
years. Under FR 56 (k) he can apply for voluntary retirement an attaining
the age of 50 years (for Gr. A & B) and 55 years (in other cases).
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(1.21) Whether older pensioners will get higher rate of pension? 

 
Yes, from 1.1.2006, the quantum of pension/family pension available to old
pensioners/family pensioners has been increased as follows:- O.M.No.
38/37/08- P&PW(A) dated 2.9.2008 
Age of pensioner/family pensioner
Additional quantum of pension
From 80 years to less than 85 years 20% of revised basic pension/family pension
From 85 years to less than 90 years 30% of revised basic pension/family pension
From 90 years to less than 95 years 40% of revised basic pension/family pension
From 95 years to less than 100 years 50% of revised basic pension/family pension
100 years or more 100% of revised basic pension/family pension
(1.22) Is additional pension admissible to old family pensioners also? 
 
Yes, the rates related to additional pension as applicable in the case of
old pensioners hold good for family pensioners, as well. 

(1.23) Whether the provision of added years in qualifying service for
computation of pension is still in force? 

 
The benefit of added years of qualifying service for computation of
pension/related benefits has been withdrawn w.e.f. 01.01.2006. 

(1.24) Whether the provision of added years in qualifying service has
been withdrawn for calculating gratuity also?
 

 
Yes, w.e.f. 01.01.2006. 

(1.25) Whether the additional pension/family pension available to old
pensioners would be payable from the date of attaining age of 80 years
or above or from the first day of the month in which the date of birth
falls? 

 
The additional quantum of pension/family pension, on attaining the age of
80 years and above, would be admissible from the 1St day of month in which
his date of birth falls. For example, if a pensioner/family pensioner
completes age of 80 years in the month of August, 2008, he will be entitled
to additional pension/family pension w.e.f. 1.8.2008. Those
pensioners/family pensioners whose date of birth is 1St August, will also
be entitled to additional pension/family pension w.e.f. 1.8.2008 on
attaining the age of 80 years and above. 
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