1. Pension and other Retirement Benefits
By: S.P. Jindal
Deputy Director, (Pension)

2. Pension Commutation of Pension Leave encashment Gratuity
Various Retirement Benefits Available to Punjab Government Employees on Retirement
Pension
Commutation of Pension
Leave encashment
Gratuity

3. General Conditions for Qualifying Service for Pension
Service Must be under the Government;
The employment must be substantive or permanent;
The service Must be paid by the Government;

4. Compensation Pension; Invalid Pension; Superannuation Pension
TYPES OF THE PENSION
Compensation Pension;
Invalid Pension;
Superannuation Pension
Retiring Pension

5. Compensation Pension Rule 5.2
Compensation Pension is granted to an employee selected to be discharged owing to abolition of his post unless he shall be appointed to another post which is at least equal to his own:
He may choose to take compensation pension or gratuity on the basis of his service rendered.
Accept to be transfer to another establishment even on the lower pay if offered and continuing to count his previous service for pension.

6. Invalid Pension Rule 5.11 & 5.12
It is awarded to an employee on his retirement who is permanently incapacitated due to bodily or mental infirmity for the service to which he belongs or for public service.
In case of partially incapacity he should be if possible, employed to a lower post so that expense on pensioning him be avoided.
If there is no means to employing him than he should be admitted to pension but he should be considered for pension in view of his partially earning capacity
The amount of normal pension sanctioned under this rule should not be less than the amount of normal family pension.

7. No Invalid Pension
If a Government employee is discharged from service on the ground other than mentioned under rule 5.11 & 5.12, even though he has produced medical evidence of incapacity for service.
If the incapacity is directly due to his/her irregular or intemperate habits.
If such incapacity is not directly attributable to these habits but are aggravated by them, then the competent authority sanctioning pension may decide the amount of pension to be reduced.

8. Superannuation Pension Rule 5.27
Superannuation pension is admissible to an employee who retire at a particular age under rule 3.26 of Pb. CSR Volume-I, Part –I
Class IV Government employee retire at the age of 60 years.
Other Government employees retire at the age of 58 years.

9. Retiring Pension Rule 5.32
Retiring Pension is admissible to an employee who:
1. Who is either compulsory retired from service by the Government under Punishment and Appeal Rules.
2. Had himself seek retirement under pre-mature retirement rules 1975.

10. Service not qualifying for pension
Service not rendered under the Government.
Foreign Service if Pension Contribution is not paid.
Service adjudged as penalty if not asked for counting towards pension by the competent Authority.
Over-stayal of Leave & Joining time.
Boy Service.
Period of Strike and willful absence if not regularized by the competent Authority.
Extra-ordinary leave taken otherwise than on medical certificate.
Period between suspension, dismissal, removal & premature retirement and subsequent re-instatement.
Ad-hoc Service not followed by regularization and appointment should be against a regular post.

11. Qualifying Service for Pension
Calculate the period from the date of joining the service and date of retirement.
Deduct there from the period which do not count for pension.
Count the period Balance period in half year-lies.
Balance Period shall be rounded to the nearest half year i.e the period of three months and above shall be treated as a complete six-monthly period.
Maximum qualifying service for pension is 33 years or 66 Half-Years.

12. Example
Let the Length of Service is from: to Non qualifying service for pension is: Period of suspension : 3 Months 14 days. Overstayal of Joining time: 12 days. Boy Service: 1 Year and 20 days. Extra Ordinary leave 3 Months 5 days.

13. Calculation: 17 05 32 Period Total Service Rendered Days Months Years
From 24/04/1975 to 31/05/09 31 24 08 05 04 01
2009
1975 34
Non Qualifying Service
Days
Months
Years
Boy Service 20 00 1
Period of Suspension 14 03
Overstayal of Joining Time 12
Extraordinary Leave 05
Total Period 21 07 01
Qualifying Service for Pension
Days
Months
Years
Total Service 08 01 34
Less non-qualifying Service 21 07
Qualifying Service 17 05 32
Say 65 Half Years

14. Example-II 17 05 34 Period Total Service Rendered Days Months Years
From 24/04/1973 to 31/05/09 31 24 08 05 04 01
2009
1973 36
Non Qualifying Service
Days
Months
Years
Boy Service 20 00 1
Period of Suspension 14 03
Overstayal of Joining Time 12
Extraordinary Leave 05
Total Period 21 07 01
Qualifying Service for Pension
Days
Months
Years
Total Service 08 01 36
Less non-qualifying Service 21 07
Qualifying Service 17 05 34
Say 66 Half Years Maximum

15. Calculation-III 20 08 32 Period Total Service Rendered Days Months
Years
From 20/01/1975 to 31/05/09 31 20 11 05 01 04
2009
1975 34
Non Qualifying Service
Days
Months
Years
Boy Service 20 00 1
Period of Suspension 14 03
Overstayal of Joining Time 12
Extraordinary Leave 05
Total Period 21 07 01
Qualifying Service for Pension
Days
Months
Years
Total Service 11 04 34
Less non-qualifying Service 21 07 01
Qualifying Service 20 08 32
Say 65 Half Years

16. Calculation-IV 08 09 32 Period Total Service Rendered Days Months
Years
From 02/01/1975 to 31/05/09 31 02 29 05 01 04
2009
1975 34
Non Qualifying Service
Days
Months
Years
Boy Service 20 00 1
Period of Suspension 14 03
Overstayal of Joining Time 12
Extraordinary Leave 05
Total Period 21 07 01
Qualifying Service for Pension
Days
Months
Years
Total Service 29 04 34
Less non-qualifying Service 21 07 01
Qualifying Service 08 09 32
Say 66 Half Years

17. Minimum Service Required
for Grant of pension 10 Years

18. Death Gratuity to An Employee who dies in harness .
Qualifying Service
Amount of Gratuity
(Max. 3,50,000)
Less than One Year
2 times the emoluments.
One Year or More but less the Five Years
6 times the emoluments.
Five Years and more up to 12 years.
12 Times the emoluments.
Above 12 Years
Half of the emoluments for each completed six monthly period of qualifying Service subject to maximum of 33 times of the emoluments

19. No Gratuity: No Gratuity under these rules to an employee who is:
Dismissed & Removed from Service on account of Misconduct, Insolvency or inefficiency
Resigned from Service.
Probationer
Government employee discharged from Service for failure to pass the examination.
Reemployed Pensioner

20. Pension
Full Pension for a period of 33 years or more shall be equal to 50% of the average emoluments of the employee for the last 10 months.
If the service is less than 66 Half years the pension shall be reduced to the proportionate of number of half year service rendered.
Example if the service is 63 Half years the pension shall be:
( Full pension X 63) / 66

21. Calculation of Average Emoluments: Rule 6.24
Period
From: To
Number of Months
Emoluments Drawn
( Pay+DP+IR+
NPA)
Product:
Column-II & Column-III I II IV to 2
34,588 to 8
142,632
Total Emoluments for Last 10 months
1,77,220
Average Emoluments: 1,77,220/10 = 17,722

22. Calculation of Pension Rule 6.16
50%of the Average Emoluments
The Full pension if the Qualifying Service is 66 halfy-earlies or more
Pension = 8861
If the qualifying service is less than 66 half-yearlies the pension so fixed will be reduced proportionately:
Pension will be =( 8861x63)/66= = 8459
(Rounded to next higher-rupee)

23. Emoluments for the Gratuity Shall Last Pay Drawn+DA If an Employee has rendered a service of 62 half years, his Last Pay is 11,320 his amount of gratuity shall be: Emoluments: =29239 Amount of Gratuity: 29239X62/4=4,53,205 Restricted to 3,50,000/-
Gratuity Under rule 6.16AA
The Gratuity Shall be 1/4th of the emoluments for each completed six monthly period of qualifying service subject to a maximum of 16.5 months (for Class I,II,III)and Months for Class IV employees, further to the ceiling of 3,50,000

24. Gratuity Payment: to the Family members in case of Death 6.16-B
Family Shall include the following relatives: Gratuity shall be distributed equally:
Wife or wives including judicially separated wife or wives in case of male officer.
Husband including judicially separated husband in case of female officer
Sons including step children and adopted children.
Unmarried and widowed daughter. (except)
Brother below the age of 18 years unmarried or widowed sister including step brothers and sisters.
Father
Mother (including adopted parents if personal law permits.
Married daughter and
Children of the pre-deceased son.

25. Terminal Gratuity
If a Government employee has completed 5 years service, and is discharged from service on account of retrenchment or declared invalid will be eligible for gratuity equal to 1/3rd of a month’s pay for each completed year of service.

26. Death Gratuity
Family of a Temporary Government Employee who dies while in service is eligible for death gratuity as under:
Death after completion of 1 year but <3 years= One Month’s Pay
Death after completion of 3 year but <5 years= Two Month’s Pay
Death after completion of 5 years or more 3 month’s pay or terminal gratuity as calculated above which ever is more.

27. Family Pension: Rule 6.17
A Government employee who joined in Government service if dies in harness or after retirement his family is eligible for family pension at the following rates:

28. If an Employee dies in Harness:
Pay in revised Scales
Rate of enhanced Family Pension per Mensum
Pay upto Rs. 4,500
60% of pay
Pay Above Rs. 4,500
50% of pay subject to minimum of Rs. 2,700
In case of Death of a Pensioner:
Pay in revised Scales
Rate of enhanced Family Pension per Mensum
Pay upto Rs. 4,500
40% of pay
Pay Above Rs. 4,500
30% of pay subject to minimum of Rs. 1,800

29. DA on Family Pension:
No DA is admissible on Family Pension if any member of the family got employment on compassionate ground.

30. Family for the purpose of Family Pension:
Wife in case of Male employee and Husband in case of female Government employee;
Judicially separated wife or husband, separation not being granted on the ground of adultery; provided the marriage took place before the retirement.
Sons up-to the age of 25 years
Unmarried, widowed, unemployed and divorced daughter no age limit. (3,& 4 will include adopted children)

31. Further Pension will be admissible:
In case of widow or widower upto the date of death or re-marriage.
In case of son till he attains the age of 25 years or starts earning his livelihood.
In case of widow, divorced daughter till she got remarried or starts earning her livelihood.
Income criteria for earning livelihood will be Rs. 2620/- per mensem or more
If an employee get married after retirement his widow shall be entitled to family pension from the date of his death..

32. Family Pension is not applicable:
Staff paid from contingencies.
Work Charged Staff.
Casual labour
Contract employees.
Employees who joined Government Service on or after

33. Commutation of Pension
Upto 40% of the total sanctioned pension can be got commuted by an employee any time, without medical examination within one year of his/her retirement or superannuation.
If pension is got commuted after one year he/she has to go for a medical examination.
The formula for commutation is:
40% of pension X Purchase Rate X 12

34. Purchase Rates: Rule 11.5 (Annexure)
Age next birth
Commutation value expressed in the number of years purchase 52
12.66 61
09.81 53
12.35 62
09.48 54
12.05 63
09.15 55
11.73 64
08.82 56
11.42 65
08.50 57
11.10 66
08.17 58
10.78 67
07.85 59
10.46 68
07.53 60
10.13 69
07.22

35. Leave Encashment: Rule 8.21 CSR –Vol-I, Part -I
The Government employee on retirement or superannuation or death can get his leave salary in lump some equal earned leave at credit on the date of death, retirement or superannuation as the case may be, subject to a maximum of 300 days.

36. Calculation of Leave Encashment:
(Last Pay +DA ) X Leave at credit subject to maximum of 300 days 30 Pay includes Pay+DP+IR+NPA (if any)