RTI JammuPension Entitlements1 INTRODUCTION TO PENSION

RTI Jammu Pension Entitlements 2 Pension-Introduction Pension is an important post-retirement benefit for employees. Much more important for Government Servants as it is the only significant source of sustenance for them in their post retirement years.

RTI Jammu Pension Entitlements 3 Session Overview During this session we will cover: Introduction to pension entitlements; Evolution of rules and regulation relating to pension entitlements to Central Government employees over the years.

RTI Jammu Pension Entitlements 4 Learning Objective At the end of this session the trainees will be able to state introduction to pension entitlements and evolution of rules and regulations governing pensionary benefits.

RTI Jammu Pension Entitlements 5 What is pension-Its value in life Two main schemes of retirement benefits for the Central Government employees: Pension scheme; Contributory Provident Fund Scheme. Pension is the more important of the two.

RTI Jammu Pension Entitlements 6 Pension-Its value in life Non-industrial staff in the departments of Central Government are governed by the pension Scheme. The industrial staff in these departments, persons appointed on contract for specified periods as also scientific and technical personnel entering Government service at a relatively advanced age are generally covered by Contributory Provident Fund Scheme.

RTI Jammu Pension Entitlements 7 Pension-Its value in life An employee gets a recurring monthly payment for life and a lump sum gratuity at the time of his retirement, both determined with reference to the length of his service and the pay drawn by him. Pension is not only compensation for loyal service rendered in the past, but it also has a broader significance,

RTI Jammu Pension Entitlements 8 Pension-Its value in life in that it is a measure of socio- economic justice which ensures economic security in the fall of life when physical and mental prowess is ebbing out corresponding to ageing process.

RTI Jammu Pension Entitlements 9 Pension-Its value in life The term has been judicially defined as a stated allowance or stipend made in consideration of past service or a surrender of rights or emoluments to one retired from service. Thus, the pension is earned by rendering long and efficient service and can be said to be a deferred portion of the compensation for service rendered. In the event of his death, his spouse gets a monthly payment for life.

RTI Jammu Pension Entitlements 10 Pension-Its value in life The Pensionary system in India seems to have originated about the middle of the last century as a non-contributory system on the lines prevalent in the UK.

RTI Jammu Pension Entitlements 11 Pension is not deferred pay Pension is regarded in many quarters as deferred pay. The Government have not accepted this concept. An employee is not eligible for pension unless the qualifying service is paid for and in rendered in a post under the Government.

RTI Jammu Pension Entitlements 12 Pension is not deferred pay In the recent past, provision was made for grant of pension to the employees who did not hold substantive appointment at the time of retirement; but had rendered not less than ten years of service if they retire on superannuation or invalidation or rendered not less than twenty years and retire voluntarily.

RTI Jammu Pension Entitlements 13 Pension is not deferred pay Future good conduct of the pensioner is an implied condition for every grant of pension and its continuance in future. If the pensioner is convicted of a serious crime or is found guilty of grave misconduct, the appointing authority can withdraw the pension in full or in part, either permanently or for a specified period.

RTI Jammu Pension Entitlements 14 The value of pension A pension has in essence the character of a conditional entitlement and the root of the idea of pension lies in a long-term relationship between the employer and the employee of a service normally spanning an employee's whole working life, followed by the annuity for the rest of his life. Pension is an objective and a cherished goal one works up to and looks forward to.

RTI Jammu Pension Entitlements 15 The value of pension It is the culmination of the long journey in one's service career. Once a man has earned his pension after hard labour of several years, he can afford to relax and start enjoying the fruit as long as he is gifted to live. Pension is valuable in the sense that it is secure.

RTI Jammu Pension Entitlements 16 The value of pension The Supreme Court has held that pension is a valuable right vested in a Government servant and that the right to receive pension is property under Article 31 (1) of the Constitution and if it is denied to an employee, a writ of mandamus could be issued to the State to properly consider the claim; of the pensioner for payment of pension according to law.

RTI Jammu Pension Entitlements 17 The value of pension Thus, Courts will not allow refusal, reduction, forfeiture of pension unless there are genuine grounds for doing so, and the employees can also seek redress in the Courts of law, whenever they feel that justice has been denied to them.

RTI Jammu Pension Entitlements 18 The value of pension Only misconduct of the gravest character can lead to forfeiture of a pension once sanctioned. Pension is also secure against attachment, seizure or sequestration by process of any Court of Law.

RTI Jammu Pension Entitlements 19 The value of pension Amounts owed by the pensioner to Government though undisputed cannot be recovered by deduction from pension except with his express consent. Pension is thus a sacrosanct and a protected possession and is, therefore, greatly valued.

RTI Jammu Pension Entitlements 20 PENSION RULES-A Retrospect The Pension Rules for Central Government servants were mostly included in the Civil Service Regulations and the Superior Civil Service Rules until April Liberalized in 1950 through a memorandum issued by M/o Finance. The liberalization in 1950 not in the form of amendment to rules, nevertheless came to be referred to as ‘Liberalized Pension Rules’.

RTI Jammu Pension Entitlements 21 PENSION RULES-A Retrospect Family Pension Scheme, 1964 introduced by Finance Ministry vide O.M. No. 9 (16)-e. V/63, dated the 31st December, 1963, which was also amended by a number of Office Memoranda issued thereafter.

RTI Jammu Pension Entitlements 22 PENSION RULES-A Retrospect To facilitate easy reference and proper comprehension, the provisions were brought out by the Government at one place in the form of statutory rules titled, "The Central Civil Services (Pension) Rules, 1972", which came into force with effect from 1st June, 1972.

RTI Jammu Pension Entitlements 23 PENSION RULES-A Retrospect Henceforth, the grant of pensionary benefits to the Central Government employees are governed by the provisions contained in these rules. No changes were, however, made in the quantum of monetary benefit, viz., Pension and Death-cum-Retirement Gratuity entitlements.

RTI Jammu Pension Entitlements 24 PENSION RULES-A Retrospect The Central Civil Services (Pension) Rules 1972 are applicable to all permanent Central Government servants including civilian Government servants in the Defence services borne on pensionable establishments, appointed on or before 31st day of December, 2003, but are not applicable to: Railway Employees; Members of All India Services (viz., IAS, IPS & IFS).

RTI Jammu Pension Entitlements 25 Changes after Vth CPC Emoluments No change in the definition of the term 'Emoluments' for the purpose of pension. Will include and shall continue to mean basic pay as defined in FR 9 (21) (a) (i), and will include non-practising allowance and stagnation increments. Special Pay and personal pay hitherto reckoned as

RTI Jammu Pension Entitlements 26 Changes after Vth CPC The 'Average Emoluments' shall be determined with reference to 'emoluments' drawn by a Government servant during the last ten months of his service. For the purpose of Service/Retirement/Death Gratuity, 'emoluments will include, besides basic pay, dearness allowance admissible on the date of retirement/death while in service.

RTI Jammu Pension Entitlements 27 Changes after Vth CPC Pension shall continue to be 50% of average 'emoluments'. However, the minimum pension enhanced from Rs 375 per month to Rs 1,275 per month and the maximum pension has been enhanced from Rs 4,500 per month to Rs 15,000 per month

RTI Jammu Pension Entitlements 28 Changes after Vth CPC Retirement/Death Gratuity enhanced from Rs 2.5 lakh to 3.5 lakh.

RTI Jammu Pension Entitlements 29 Changes after Vth CPC Age of retirement on superannuation enhanced from 58 years to 60 years with effect from 13th May 1998.

RTI Jammu Pension Entitlements 30 Changes after Vth CPC A new defined contributory pension scheme has been introduced for Central Government employees appointed on or after 1st January 2004.

RTI Jammu Pension Entitlements 31 Changes after Vth CPC From 1st April 2004 Dearness Allowance equal to 50 % of the Basic Pay merged with the Basic Pay and shown distinctly as 'Dearness Pay (DP)' and will count as 'emolument' for the purpose of pension/family pension.

RTI Jammu Pension Entitlements 32 Changes after Vth CPC The Dearness Pay will be deducted from Dearness Allowance. Pension and Family Pension will be calculated at 50% and 30% respectively subject to a minimum of Rs 1,913 and a maximum of 50% and 30% respectively of the highest pay (Rs 30,000) plus DP in the Government.

RTI Jammu Pension Entitlements 33 THANKS