Central Government Employee? Know the error in ‘Know Your Retirement Benefits’ booklet

Central Government Employee? Know the error in ‘Know Your Retirement Benefits’ booklet

For the benefit of Government Employees who are nearing retirement, Department of Pension and Pensioners’ Welfare under the Ministry of Personnel, P.G. and Pensions had published a booklet titled ‘Know Your Retirement Benefits’ for general awareness of the retiring employees. The Department has recently come with a corrigendum about a rectification of an error in the booklet about the date of applicability for the pension.

The Department states that – “ It is noticed that a printing mistake has crept in on the first page wherein it is printed that:

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“Who is eligible for pension – A Central Government employee who joined in pensionable service prior to 01/04/2014. The date mentioned above should have been 01/01/2004.” This means, in place of April 1, 2014, the date should be read as January 1, 2004.

As per the rules, the minimum eligibility period for receiving a pension is 10 years. This means Central Government employee retiring in accordance with the Pension Rules is entitled to receive pension on completion of at least 10 years of qualifying service. In the case of Family Pension, the widow is eligible to receive family pension on the death of the spouse after completion of one year of continuous service or even before completion of one year if the Government employee had been examined by the appropriate Medical Authority and declared fit for Government service.

From 1.1.2006, Pension calculation is based on last basic pay or average emoluments (i.e. an average of the basic pay drawn during the last 10 months of the service) whichever is more beneficial. The amount of pension is 50 per cent of the emoluments or average emoluments whichever is beneficial.

For all Government employees joining Government service on or after 1-1-2004, the pension is based on the National Pension System which works on a defined contribution basis. While the monthly contribution by the government employee will be 10 per cent of the basic pay plus DA into Tier I, for the central government, it will be 14 per cent of the basic pay plus DA. If the Government employee contributes towards Tier-II of NPS, the benefit of Section 80C for deduction up to Rs. 1.50 lakh will be available to them provided that there is a lock-in period of 3 years.

The Government employees joining Government service on or after 1-1-2004 are not provided with Defined Benefit Pension, however, retirement gratuity and death gratuity would be extended to the central government employees covered under NPS on the same terms and conditions as applicable under CCS(Pension) Rules, 1972.

 

Source:- financialexpress

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