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2. Pension

 

1

Pension

2

Superannuation Pension

3

Retiring Pension or Pension on Voluntary Retirement

4

Pension on Absorption in or under a Corporation or Government or Body

5

Invalid Pension

6

Compensation Pension

7

Compulsory Retirement Pension

8

Compassionate Allowance

9

Qualifying Service

10

Average Emoluments

11

Provisional Pension

12

Revision of Pension

 

2.1    Pension

Pension is a periodic payment made to public servants who have completed their service. The pension rules provide for various kinds of pension based on the nature of retirement, duration of service, and mode of retirement under statutory rules.

Future good conduct is an implied condition for  the grant   of pension or its continuance. Pension could be  withheld  or withdrawn  for conviction or serious crime  or grave misconduct of the  pensioner after  following certain formalities. (Rule 8). Pensioners  are prohibited to be member or associated with communal organisations as decided by Government  and the pension could be withheld or withdrawn.  (Rule 8A). Such reduction in pension shall not ordinarily  be made at  a  rate  exceeding one third of the pension  subject  to entitlement of minimum pension under Rule 43(5).

 

2.2   Superannuation Pension

 A Government employee is retired on superannuation on the afternoon of the last day of the month in which he or she attained the age of 58 years in case of superior service and 60 years in case of basic service, and the pension sanctioned is called superannuation pension. ( FR 56(a), Pension Rule 32 ) Based on the duration of service or qualifying service and average emoluments the pension is paid. Previously it was 33 years of qualifying service to get 50% of average emoluments as pension (G.O 57 Finance Dated 02.02.1980 and 1030 Finance 14.12.1987). From 1.4.2003, maximum qualifying service has been enhanced to 33 years from 30 years to become eligible for full pension and the pension is determined based on the average emoluments drawn during the last 10 months of service rendered. (G.O 71 Finance 19.03.2003)

 

2.3    Retiring Pension or Pension on Voluntary Retirement

A Government employee is permitted to retire voluntarily, if he has completed 20 years of qualifying service or 50 years of age ( FR 56(3), G.O.376 P & AR 11.12.1995 ) He should give 3 months notice and there is no provision for waiver of the notice period. He should join duty if he has gone on leave and then retire. If a bond was executed to serve the Government till a particular date, then he could not be allowed to go on voluntary retirement ( Letter 2514 / 84 – 10 P & AR 31.03.1985 ). Voluntary retirement notice can be withdrawn before the expiry of notice period with the approval of the appointing authority FR 56(3) (g). In cases of voluntary retirement, the employee is given additional weightage of service in addition to the actual service, which will add to the qualifying service for pension. ( G.O.412 P & AR 03.12.1996, G.O. 3 FIN 5.1.2000). 

Actual Qualifying 

Weightage  
in years

Age at date of  Voluntary Retirement 

 Weightage   
in
 Years

Service 

  Superior Service Basic Service

 

25 yrs & below

5

53 yrs & below

55 yrs & below

5

26 years 

4

54 years 

56 years

4

27 years

3

55 years

57 years

3

28 years

2

56 years

58 years

2

29 years

1

57 years

59 years

1

29 years

Nil

58 years

60 years

Nil

The other conditions for calculation of pension are the same as for Superannuation Pension.

 

2.4   Pension on Absorption in or under a Corporation or 
        Government or Body

When a Government employee is permitted to be absorbed in a Corporation or company owned or controlled by Government or autonomous body a Pro rata Pension shall be calculated with reference to his service under Government at the time of absorption. But the actual payment of pension will be made from the date of his actual retirement from the institution in which he was absorbed. In such cases there is no liability of Government to pay family pension in case of his death (Pension Rule34 ). In a few cases, Government allowed lump sum payment in lieu of monthly pension even prior to the date of  retirement like TANSI CASE in 1970’s. (Pension Rule 35).

 

2.5    Invalid Pension

If a Government employee has become permanently incapacitated for further service and declared so by an appropriate authority, he will be granted an invalid pension. Once invalidation is accepted, he cannot seek employment even if he produces a certificate of fitness at a later date. If he is on unearned leave on medical certificate and he is invalidated, then he need not join duty as per leave rule 15A. In addition to his pension and other benefits admissible under rules, one of his dependants may get appointment on compassionate grounds if the invalidated employee has not completed 53 years of age on the date. (Pension Rule 36).

 

2.6   Compensation Pension

If a Government employee is selected for discharge for owing to abolition of his permanent post, he has option either to accept another post offered to him or taking compensation pension to which he may be entitled for the service he has rendered. ( Pension Rule 38 ).

 

2.7    Compulsory Retirement Pension

A Government employee can be compulsorily retired by the competent authority in public interest, after giving him notice of not less than 3 months or 3 months salary in lieu of such notice after he has attained the age of 50 years ( 55 years in case of basic servants) or after he has completed 30 years of qualifying service.( FR 56 (2). Further, Rule 14(2) of C.C.A Rules provide for imposing a punishment of compulsory retirement as a result of disciplinary action. He will be entitled to the normal pension under rules, if he is compulsorily retired under FR 56(2). If he is retired as a result of disciplinary action as a penalty, an appropriate authority may  impose such penalty on Pension or Gratuity or both  and allow Pension and Gratuity not less  than two thirds and not more than full compensation entitlements. This will not be less than the minimum pension admissible under rule 43 (5) ( Pension Rule 39 ).

 

2.8    Compassionate Allowance

In case of Government employees dismissed, or removed from service, normally no pension or gratuity is payable. But the competent authority may in deserving case sanction Compassionate allowance not more than two third of pension or gratuity or both which would have been admissible, if he had retired on medical certificate subject to the minimum pension. Such allowance is not admissible in case of dismissal or removal under Proviso (c) to clause 2 of Article 311  of the Constitution of India for anti national activities. (Pension Rule 40 ).

 

2.9   Qualifying Service

To obtain pension, the employee must have qualifying service of prescribed duration. All regular pensionable service, temporary service excluding break, half of contingent service, work charged service, Central Government service before joining state service, Military service, Service in local body excluding break, service in State Government before absorption in undertakings, Extraordinary leave to go for higher studies, service prior to resignation to take up another appointment in State Government shall be treated as qualifying service.

Apprentice service, Extraordinary leave without medical certificate, suspension as penalty, boy service, over stayal of joining time, unauthorised absence, interruption in service, service in non pensionable post do not count for qualifying service (Pension rules 11 to 25) Resignation from service or post entails forfeiture of past service. For purpose of pension, the minimum qualifying service is 10 years ( 20 half years ) and maximum 33 years ( 66 half years ) The fraction of three months and more shall be taken as one half year and less than three months ignored ( G.O.24 Fin 13.01.1986 ).

To get full pension, the qualifying service required at various points of time were :

  Prior to 1960       30 years
From 01.06.1960  30 years G.O. 710 Fin 10.07.1960 *
From 02.10.1970 25 years 228 Fin 08.02.1971 *
From 01.01.1973 30 years   601 Fin 27.04.1974
From 01.10.1979 33 years 57 Fin 02.02.1980  #
From 01.07.1996 30 years      461 Fin 31.07.1996
From 01.04.2003 33 years      71 Fin 19.03.2003

* From 1.06.1960 the pension was admissible at 30/80 of average emoluments at the retirement age of 55 years.

# In case of 30 years of qualifying service addition of 3 years allowed G.O. 397 Fin 14.06.1984 from 01.10.1984.

 

2.10   Average Emoluments

The quantum of pension is based on the percentage of average emoluments drawn by the employee during the 36 months prior to date of retirement upto 31.05.1960, @ 50% ;  30 / 80 upto 25.02.1970 ; 12 months @ 30 / 80 upto 31.12.1973 ; 10 months @ 30 / 80 upto 30.09.1979  @ graded percentage of 50%, 45%, 40% from 01.10.1979 to 13.12.1987 and @ 50% of average emoluments of 10 months from 14.12.1987 to 30.06.1996 and @ 50% of average emoluments of 10 months or pay last drawn on the date of retirement whichever is advantageous from 01.07.1996.( Pension Rule 43, G.O.57 Fin 02.02.1980, G.O.1031 Fin 14.12.1987, 461 Fin 31.07.1996).  From 01.04.2003 onwards, the quantum of pension is based on the average emoluments drawn during the last 10 months of service. (G.O 71 Fin 19.03.2003).  Till 30.09.1984 there was a ceiling on maximum pension and from 01.10.1984 the ceiling was removed. G.O.1165 Fin 31.10.1985, 375 Fin 24.05.1988).

Example:  
Date of Birth                                       20.09.1942.  
Date of Commencement of Service   10.04.1965. 
Date  of  retirement                            30.09.2000
Qualifying Service                             30.09.2000-10.04.1965 = 35 years 5
                                                          months 20 days.
Non qualifying Service  Nil.

Emoluments from 1st July 1999, Pay Rs. 5875 + Special Pay Rs.50 + Personal Pay Rs.50.   From 1st July 2000,  Pay Rs. 6000 + Special Pay Rs. 50 + Personal Pay Rs.50 in the Scale of Rs.4500-125-7000. Pay last drawn Rs.6100/-.

Total pay for 7 months     :  5975 X 7    =    Rs. 41,825
Total pay for 3 months     : 6100 X 3     =    Rs. 18,300
Total pay for 10 months   :                         Rs. 60,125

Average emoluments is  Rs.6012.50/-.

2.11   Provisional Pension

The retired employee to whom the Accountant General’s authorisation is not received in time due to administrative reason, shall be sanctioned provisional pension and gratuity. (Pension Rule 66).  This can be allowed in the following cases also :

i) In respect of officers who are permitted to retire without prejudice to the pending disciplinary proceedings.

ii) Cases where pension could not be assessed for want of details of qualifying services and other particulars.

100% of pension admissible will normally be allowed as provisional pension. It can be sanctioned by Government in respect of head of department, by Head of department in respect of self drawing officers and by heads of offices in respect of other employees ( G.O. 14 Fin 05.01.1996 ) In addition to the Provisional pension, D.A. Medical allowance shall also be paid to the retired official. ( G.O.575 Fin 07.07.1994, 326 Fin 28.04.1995 ). The head of office shall draw provisional pension for a period of 12 months in the first instance and thereafter as extended by the Accountant General (Pension Rule 66). In respect of self drawing Gazetted Officers, the A.G. shall authorise anticipatory pension pending finalisation of pension proposals. (Pension Rule 59).

 

2.12    Revision of Pension

The Pension schemes were modified from time to time and in particular with every Pay Commission recommendation and various important changes are listed below

i) Till 31.05.1960 when the age of   retirement  was 55 years, the Pension was regulated at 50 % of average emoluments based on 36  months pay. There was no  gratuity scheme.

ii) With the Liberalised Pension Scheme introduced in 1960, pension was allowed for 10 years of service upto 30 years from 01.06.1960 @ 10 / 80 to 30 80 of average emoluments. Gratuity upto maximum of 15 months pay was allowed. (G.O.710Fin10.07.1960).

iii) From 02.10.1970 it was revised to have full pension for 25 years of service @ 15 / 80 for 10 years for qualifying service  and  30 / 80 for  25 years of qualifying service. (G.O.228 Fin 08.02.1971).

iv) The duration for calculating average emoluments was reduced from   36months to 12 months from 26.02.1970 and it was ordered to include D.A. as on 31.12.1966 for purpose of arriving average emoluments. Based on the court decision, the concession of adding D.A. for average emoluments was extended to those who retired prior to 26.02.1970 also. (G.O. 911 Fin 04.12.1991 and 511 Fin 20.07.1993).

v)  For those retired from 01.02.1975 to 31.03.1978, the D.A of Rs.55 up to the average emoluments of Rs.299 and Rs.70 for the emoluments of Rs.300 and above was treated as dearness pay and counted for average emoluments. (G.O.115 Fin 16.02.1975).

vi)  From 01.04.1978, the pension was revised based on the third pay commission as follows :

            Pension as on 31.03.1978 .
Add   DA and Ad hoc increase upto 31.03.1978.
5 % on pension subject to minimum of Rs.10 and maximum of Rs.25.  ( G.O.No.1050 Fin 05.10.1978, 228 Fin 20.02.1979).

vii) From  01.10.1979 , the quantum of  pension was regulated in slab system as 50% on  the first Rs.1000 of average emoluments, 45% on the next Rs.500 and 40% on the balance of  average emoluments.  To obtain fulI pension, the qualifying service was fixed  at  33 years (G.O.57 Fin 2.02.1980). The slab system was modified with uniform rate of 50% of average emoluments from 14.12.1987 in G.O.1030 and 1031 Fin14.12.1987. The existing pensioners with the pension fixed under the slab system were entitled for the benefits and the Accountant General was required to revise pension without any application form the pensioners.

viii) The liberalised pension  formula adopted in G.O.57 Fin 02.02.1980 was given effect to those retired on or  after 30.09.1979. Based on court decision, Government have extended the benefit of the formula   to all the pensioners and  the existing  pension of all  those retired prior  to 30.09.1979  were revised  with the monetary  effect from 01.10.1979. (G.O.397 Fin 14.06.1984)  with 4Groups of ready reckoner:

Pensioner    retired prior  to    01.07.1960

Pensioner    retired between    01.07.1960 to 25.02.1970

Pensioner    retired between    26.02.1970 to  31.03.1978

Pensioner    retired between    01.04.1978 to  30.09.1979.        

Based on further representation it was modified in G.O. 742 Fin 25.10.1988.

ix) Based on the fourth pay commission report, the pension was revised  as follows :-

Pension
Add  Adhoc increase Rs 20

Percentage increase: 
30 % for  those  retired  prior to 01.06.1960
15 % / 30% # from 01.06.1962 to 01.10.1970
10 %  from 02.10.1970 to 31.03.1978
 7 %  from 01.04.1978

D.A. at 528 points as on 01.05.1984 (G.O.690 Fin 09.10.1984).

This was given effect from 01.10.1984 G.O.562 Fin 10.06.1985, 110 Fin 29.02.1988 letter 135 483 / 87 – 3 Fin 30.03.1988 #

x) Based on the Fifth Pay Commission report, the pension was revised  as   follows   from   01.06.1988 :-

Pension 

Add D.A. at 608 points as on 01.05.1986 as per G.O.377 Fin07.05.1986 

Period 

Percentage of Increase

Pension of Rs. 500  Above Rs. 500 

Retired prior to 01.06.1960

60 % 50 %  Min. Rs. 300

Retired From    01.06.1960 to 01.10.1970 

50 % 40 %  Min. Rs. 250

Retired From    02.10.1970 to 31.03.1978

40 % 30 %  Min. Rs. 200

Retired From    01.04.1978 to 30.09.1984

35 % 25 %  Min. Rs. 175

Retired From    01.10.1984  to 30.09.1987

20 % 15 %  Min. Rs. 100

( G.O. 810 Fin 09.08.1989 )

In respect of those who retired after 01.06.1988, the following increases were allowed for purposes of reckoning Average   Emoluments :

 Pay                                                                       Increase
 
Upto Rs.3500                                                   13 % of pay
 
More than Rs.3500 and upto Rs.6000          9 %  of Pay   Min Rs.455 
 
More than Rs.6000                                            8 % of Pay     Min Rs.540
 
( G.O.810 Fin 09.08.1989 ).

xi)  Dearness Allowance has to be reckoned for purpose of pension and Gratuity.

          G.O.    911 Fin 04.12.1991, 511 Fin 20.07.1993.

xii)  From 01.01.1996 the pension was revised as follows :-

          Pension

Add   D.A. as on 01.01.1996

          Interim relief I & II

          40 % of Basic pension

           ( G.O. 174 Fin 21.04.1998 ) .

xiii) The revised pension  as on  01.01.1996 should  not  be less than 50% of the minimum of the revised scale of pay applicable to the post last held by the pensioner subject to the condition that he had put in 33  years of  qualifying service. If the service is less than 33  years then it  should be fixed on  pro rata basis or the actual fixation  under (xii) above which ever is higher.  with monetary effect from 01.04.1999 ( G.O. 200 Fin 18.05.1999).  In respect of  those who had full pension for qualifying service of  25 - 30  years a separate ready reckner was  issued in Letter 39376 /  92 –2 Fin 17.08.1999.

xiv) In respect  of those retired from 02.10.1970 to 31.01.1975 and from 01.04.1979 to 30.06.1988, the court ordered to treat the D.A. actually drawn by them for calculation of average emoluments and Government issued ordered in G.O.449 Fin 2.10.1999 incorporating a ready reckoner. The pensioners or the legal heir of the pensioners are eligible for arrears of the pension and gratuity consequent on  such revision. The authority which forwarded the pension proposals is the authority to revise the pension and gratuity and  intimate the pension disbursing officers. (GO449 Fin 12.10.1999 letter 78921 / 98 – 16 Fin 16.11.1999, 92752 / 99 – 1 Fin 22.02.2000).

xv)   Minimum and maximum pension:

Date

Minimum| Maximum

G.O.

 

Rs. Rs.

 

Upto 31.03.1982

100 1500

57 Fin 02.02.1980

01.04.1982  

125 1500

169 Fin 22.03.1982

01.10.1984

235 no ceiling

562 Fin 10.06.1985

01.04.1988

245 no ceiling

375 Fin 24.5.1988.

01.06.1988

375 no ceiling

 

01.01.1996 

1275 50% of highest pay scale

174 Fin 21.04.1998

xvi) Under section 11of the Pension Act 1971 the Pension cannot be attached by any Civil court order at the instance of a creditor for any demand against the pensioner.


 

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