PENSION AND ITS TYPES

Types/Classes Entitlements Formulas for Conditions

of pension calculations
Superannuation 50% of the average (1) 10 years minimum qualifying service
emoluments or the in a pensionable establishment and opted
last pay drawn for GPF. (2) Upon attaining the age of 60
whichever is more years or modified by the Government for
beneficial. certain category of employees. (3)
Retirement is effective from the afternoon
of last day of the month in which the
Govt. servant attains the age of 60 years.
In case date of birth is the first of a
month, retire from service on the
afternoon of the last day of the preceding
month. (3) *
-Rule – 35
Retiring Pension 50% of the average (1) Upon voluntary retirement on
or Pension on emoluments or the completion of minimum 20 years of
voluntarily last pay drawn service.(Rule 56 (k) of FR or Rule 48 or
retirement whichever is more Rule 48-A of CCS (Pension) Rule, 1972 .
beneficial. (2) Upon compulsory retirement as per
Rule 56 (j) of Fundamental Rules.
-Rule – 36
Pension on w.e.f. 01.01.2006 full pension after 50% of the average -Rule 37 & 37 A.
absorption in completing minimum 10 years of emoluments or the
PSU service as Govt. servant. last pay drawn
whichever is more
beneficial.
* Pension on pro-rata
basis calculated on
the length of
qualifying service.
Invalid Pension Medical certificate in form 23 Retirement upon permanent
from the Competent Authority incapacitation due to mental or physical
with full knowledge of the Head of infirmity.
Office - Rule – 38
Compensation If a Government servant is selected Pension granted on abolition of a
Pension for discharge owing to the permanent post held by the employee.
abolition of a permanent post, he - Rule 39
shall, unless he is appointed to
another post the conditions of
which are deemed by the authority
competent to discharge him/her to
be at least equal to those of his
own, have the option.
(a) of taking compensation pension
to which he may be entitled for the
service he had rendered, or
(b) of accepting another
 appointment on such pay as may
be offered and continuing to count
his previous service for pension.
Compulsory Pension granted to a Government
Retirement servant compulsorily retired from
Pension service as a penalty.
* Provided that the authority
competent to dismiss or remove
him from service may, if the case
is deserving of special
consideration, sanction
compassionate allowance not
exceeding two-thirds of pension or
gratuity or both which would have
been admissible to him if he had
retired on compensation pension.
Compassionate Pension granted to a Government Amount of Pension
Allowance servant on removal, if the case is not exceeding two-
deserving special consideration.
Extraordinary Extraordinary Pension in the form
Pension of Disability pension/extraordinary
family pension may be paid to the
Government servant/his family if
disablement/death (or the
aggravation of disablement/death)
of the Government servant, during
his service, are attributed to the
Not less than two- A Government employee can be
thirds and not more compulsorily retired by the competent
than full authority in public interest, after giving
compensation him notice of not less than 3 months or 3
pension or gratuity or months salary in lieu of such notice after
both. he has attained the age of 50 years ( 55
years in case of basic servants) or after he
a 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).
-Rule-40
In case of Government employees
dismissed, or removed from service,
third of pension or normally no pension or gratuity is
gratuity or both payable. But the competent authority may
which would have in deserving case sanction Compassionate
been admissible if allowance not more than two third of
retired on pension or gratuity or both which would
compensation have been admissible, if he had retired on
pension. 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).
-Rule-41
 Government service. For the award
of extraordinary pension, there
should thus be a casual connection
between disablement and
Government service; and death
and Government service, for
attributability or aggravation to be
conceded. The quantum of the
pension, however, depends upon
the category of the
disablement/death.

Government servants appointed on

or after 1.1.2004 are not covered
by the CCS (Extraordinary
Pension) Rules.
Provisional The retired employee, to whom the
Pension Accountant General’s authorization 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 authorize anticipatory pension
pending finalization of pension proposals.
(Pension Rule 59).
Family Pension Family pension is granted to the
widow / widower and where there
is no widow / widower to the
children of a Government servant
who entered in service in a
pensionable establishment on or
after 01/01/1964 but on or before
31.12.2003 or having entered
service prior to that date came to
be governed by the provisions of
the Family Pension Scheme for
Central Government Employees,
1964 if such a Government
servant-
(i) dies while in service on or after
01/01/1964 or
(ii) retired/died before 31.12.1963
or
(iii) retires on or after 01/01/1964
and at the time of his death was in
receipt of pension.
Family pension is payable to the
children up to 25 years of their
age, or marriage or till they start
earning a monthly income
exceeding Rs.9, 000/- + DA
admissible from time to time p.m.
whichever is earlier.
Widow daughter / divorced
daughter/ unmarried daughter of
deceased Government servant is
also entitled for the family pension
till her remarriage or up to life
time or starts earning a monthly
income exceeding Rs.9,000/- +
DA admissible from time to time
p.m. whichever is earlier.
Family pension is payable to
wholly dependent parents of the
deceased Government servants
w.e.f. 01/01/98, when he/she is not
survived by a widow or eligible
child. The family pension will be
payable to mother first , failing
which to the father.
If the son or daughter, of a
Government servant is suffering
from any disorder or disability of
The System of Family Pension was given
effect to from 01.04.1964. in a very
restricted way. As per pension rule 49(2)
(a) if the Government employee dies after
completion of not less than one year
continuous service at any time during his
service, the family of the deceased was
entitled to a family pension as follows
with effect from 1.04.1979
At least one year service 30% of pay min
Rs.100 Max Rs.500
In such cases D.A. was not allowed (G.O.
748 Fin 26.05.1979).
In respect of the persons who died prior to
01.04.1964 the family pension to the
surviving members of the family was
allowed from 01.04.1979 ( G.O. 748 Fin
26.05.1979).
ii) In the event of death of a Government
employee, while in service after having
put in not less than 7 years of continuous
service, the rate of family pension shall be
equal to 50 % of the pay last drawn or
twice the family pension admissible @
30% of pay last drawn or Rs.500 which
ever is less from the date following the
date of death of the employee, for a
period 7 years or for a period upto the
date on which the deceased employee
would have attained the age of 65 years
had he survived which ever is less. (Rule
49 (3) (a)).
iii) Family Pension is not admissible in
cases of family of an employee whose
services were regularized and any one of
the family was appointed under
Compassionate grounds if he died before
completion of one year of service
G.O.967 Fin 29.08.1989 Letter 64990/93-
2/Fin 26.10.1990 .
iv) In case of Unmarried Government
Employee, Family Pension is payable to
Father, failing which to the mother who
were dependent on the deceased
employee for support. Rule 49 (4)(d)
G.O.480 Fin 21.05.1977.
v) If an employee dies after having put in
 mind or is physically crippled or service of one year but less than 7 years,
disabled so as to render him or her and is not survived by a widow or
unable to earn a living even after widower but is survived by child or
attaining the age of 25 years, the children, such child or children are
family pension can continue to be eligible for family pension if it is higher
paid for life time subject than that sanction under Extraordinary
to conditions. Pension Rules, if any. Rule 49 (4)(c).
vi) If the Husband has another wife living
at the time of death of the female
employee, it is the same as remarriage and
the husband is not entitled for family
pension. If the minor child is alive, the
family pension could be paid through the
father as guardians of the child subject to
the recognition of his legal guardianship.
Letter 107397/83-4 Fin 02.02.1985.
vii) Provisional Family Pension : In the
case of death of a Government official
while in service, the Head of Office shall
sanction provisional family pension to the
eligible member of family without
insisting legal heir ship certificate to
whom the lump sum amount of Rs.5000/-
was paid for funeral expenses. It is
adjustable against the regular family
pension payable.
Commuted 40 % X Commutation
value of factor* X 12
Pension (CVP)
is CVP
Commutation Lump sum payable =
Amount Commutation factor x
12 x amount of
pension offered for
commutation

GRATUITY

Types/Clas Entitlements Formulas for calculations Conditions

ses of
pension
Service On rendering less than Last drawn salary (basic salary Service Gratuity is calculated as ½ months
Gratuity 10 years qualifying plus dearness allowance) X emoluments (Basic Pay + Non-practicing
service: A Government number of completed years of Allowance + DA) for every completed six
servant who retired on service (Qualifying Service) monthly period of qualifying service.
rendering less than 10 2
years of qualifying
service is not eligible for
 pension but is eligible
for Service Gratuity in
lieu of the Pension.
Retirement Retirement Gratuity is
Gratuity admissible to all
employees who retire
after completion of 5
years of qualifying
service at the rate of
‘one-fourth of
emoluments for each
completed six monthly
period of qualifying
service subject to
maximum of 16 ½ times
the emoluments or 20
lacks whichever is less.
Death Death Gratuity is paid
Gratuity to the family of a Govt.
servant who dies while
in service, at the rates
given
Residuary If a Government
Gratuity employee dies within 5
years from the date of
retirement from service
and become eligible for
service gratuity or
pension and received
gratuity, or pension or
commuted pension and
such amount received
is less than the amount
equal to 12 times of his
emoluments, his family
shall be eligible for a
residuary gratuity
equal to the deficiency.
-Rule 50(2)
Last drawn salary (basic salary
plus dearness allowance) X
number of completed years of
service (Qualifying Service)
4
(i) Less than 1 year = 2 times
of emoluments.
(ii) One year or more but less
than 5 years = 6 times of
emoluments.
(iii) 5 years or more but less
than 11 years = 12 times of
emoluments.
(iv) 11 years or more but less
than 20 years = 20 times of
emoluments.
(v) 20 years or more = Half of
emoluments x for every
completed six-monthly period
of qualifying service subject to
a maximum of 33 times of
emoluments.
If a Government employee dies If a Government employee dies within 5
within 5 years from the date of years from the date of retirement from
retirement from service and service and become eligible for service
become eligible for service gratuity or pension and received gratuity, or
gratuity or pension and pension or commuted pension and such
received gratuity, or pension or amount received is less than the amount
commuted pension and such equal to 12 times of his emoluments, his
amount received is less than family shall be eligible for a residuary
the amount equal to 12 times gratuity equal to the deficiency.
of his emoluments, his family
shall be eligible for a residuary
gratuity equal to the
deficiency.
 Interest for delay in
payment of Gratuity: If
the payment of Gratuity
is delayed beyond 3
months from the date of
retirement, interest at the
rate applicable to GPF
deposit is payable to the
pensioner.
-Rule 68

LEAVE ENCASHMENT

Earned Leave Basic pay + DA admissible on the date of

retirement from service x No. of days of un-
utilized earned leave at credit subject to a
maximum of 300 days
30
Half Pay Half of Basic pay + DA thereon admissible on -Rule 39 (2)
Leave the date of retirement from service x No. of
days of Half Pay Leave at credit subject to the
total of earned leave and HPL at credit not
exceeding 300 days
30

PROVISION OF RULES FOR REGULATION OF PAY

Type Case Illustrations

On Reduction to Case: 1
a lower stage in a The penalty of reduction to a lower
time scale. stage in the time-scale of pay by
one stage for a period of one year,
without cumulative effect and not
adversely affecting his pension is
imposed on a Government servant
w.e.f. 13.03.2013. The Government
servant was drawing Rs. 15440 + GP
Rs.4200 in Pay Band 2 (Rs.9300-
34800)
A. Pay when penalty imposed =Rs.15440+
4200 = 19640
B. Reduced Pay} = {(15440+4200) x 100/103 less (4200) rounded
off to next 10
In Pay Band} = 19067 -4200 = 14867 rounded off to Rs 14870
C. Reduced Pay w.e.f.13-3-2013
= Rs.14870 +GP Rs.4200 = 19070
Increment (notional) 1-7-2013 = 15440 + (19640 x 3%)
@@
+4200
= 15440+590@@ +4200
Pay after increment = 16030+4200=20230
@@
rounded off to next 10

D. Pay w.e.f. 13-3-2014 = Rs 16030+ 4200+ Rs.20230

E. Pay w.e.f. 1-7-2014 = Rs 16640+4200 = Rs 20840

Case: 2 A. Pay when penalty imposed = Rs.15440+ 4200 = 19640

The penalty of reduction to a lower B. Reduced Pay in Pay Band
 stage in the time-scale of pay by
two stages for a period of one year
is imposed on a Government servant
w.e.f. 13-03-2013. It is further
directed that the Government
servant Government servant would
earn increment during the period
and the reduction will not have the
effect of postponing future
increments of pay.
The Government servant was
drawing Rs. 15440 + GP Rs.4200 in
Pay Band 2 (Rs.9300-34800)
(same as in Case 1 but reduction by
2 stages)
Case: 2A
The penalty of reduction to a lower
stage in the time-scale of pay by
two stages for a period of one year is
imposed on a Government servant
w.e.f. 13-03-2013. It is further
directed that the Government servant
Government servant would not earn
increment during the period and the
reduction will not have the effect of
postponing future increments of pay.
The Government servant was
drawing Rs. 15440 + GP Rs.4200 in
Pay Band 2 (Rs.9300-34800)
(same as in Case 2 but no
increments during penalty period)
Case: 3
The penalty of reduction to a lower
stage in the time-scale of pay by one
stage for a period of two years,
without cumulative effect and not
adversely affecting his pension is
imposed on a Government servant
w.e.f. 13.03.2013. The Government
servant was drawing Rs. 15440 + GP
Rs.4200 in Pay Band 2 (Rs.9300-
34800)
Withholding of The penalty of Withholding of one
Step -1 First stage reduction
={ (15440+4200) x 100/103 less (4200) rounded off to next 10
= 19067-4200 = 14867 rounded off to Rs 14870
Pay= 14870+4200=19070
Step-2 Second stage reduction
={ (14870+4200) x 100/103 less (4200) rounded off to next 10
= 18514 -4200 = 14314 rounded off to Rs 14320
Increment (notional) 1-7-2013
= 15440 + (19640 x 3%) @@ +4200
= 15440+590@@ +4200
Pay after increment= 16030+4200=20230
@@
rounded off to next 10
D. Pay w.e.f. 13-3-2014 = Rs 16030+ 4200+ Rs.20230
E. Pay w.e.f. 1-7-2014 = Rs 16640+4200 = Rs 20840
A. Pay when penalty imposed = Rs.15440+ 4200 = 19640
B. Reduced Pay in Pay Band
Step -1 First stage reduction
={ (15440+4200) x 100/103 less (4200) rounded off to next 10
= 19067 -4200 = 14867 rounded off to Rs 14870
Pay= 14870+4200=19070
Step-2 Second stage reduction
={ (14870+4200) x 100/103 less (4200) rounded off to next 10
= 18514 -4200 = 14314 rounded off to Rs 14320
C. Reduced Pay w.e.f.13-3-2013
= Rs.14320 +GP Rs.4200 = 18520
No increments during the period of penalty
D. Pay w.e.f. 13-3-2014 = Rs 15440+ 4200+ Rs.19640
E. Pay w.e.f. 1-7-2014 = Rs 16030+4200 = Rs 20230
(Note: The Government servant has drawn Rs.15440 for six months
including broken periods)
A. Pay when penalty imposed = Rs.15440+ 4200 = 19640
B. Reduced Pay} ={ (15440+4200) x 100/103 less (4200) rounded
off to next 10 in Pay Band }
= 19067 -4200 = 14867 rounded off to Rs 14870
C. Reduced Pay w.e.f.13-3-2013
= Rs.14870 +GP Rs.4200 = 19070
Increment (notional) 1-7-2013 = 15440 + (19640 x 3%)
@@
+4200
= 15440+590 +4200
Pay after increment = 16030+4200=20230
@@
Increment (notional) 1-7-2014
= 16030+ (20230 x 3%)@@ +4200
= 16640+ 4200 =20840 @@ rounded off to next 10
D. Pay w.e.f. 13-3-2015 = Rs 16640+4200 = Rs.20840
E. Pay w.e.f. 1-7-2015 = Rs 17270+4200 = Rs 21470
Increment increment for a period of six months,
without cumulative effect and not
adversely affecting his pension is
imposed on an Government servant
on 13-03-2013. The Government
servant was drawing Rs. 15440 + GP
Rs.4200 in Pay Band 2 (Rs.9300-
34800)
On Reduction to The penalty of reduction to the post
a lower grade or carrying Grade pay of Rs 4200 for a
post or lower period of two years is imposed on
time scale. Government servant in Grade Pay
Rs.4600 w.e.f. 13.03.2013, with
further directions that the reduction
shall not postpone his future
increments and on the expiry of the
period he shall regain his original
seniority in the higher grade.
On 13.03.2013 the
Government servant was drawing Rs.
17540 + GP Rs.4600 in Pay Band 2
(Rs.9300-34800). The Government
servant had been promoted to the
post in Grade Pay Rs.4600 on 1-8-
2009. At that time his pay was
Rs.15070 + GP 4200 in Pay Band 2. 2. @@ One increment would be allowed on the Pre Penalty pay as
With-holding of
Increment with
cumulative
effect
With-holding of
Increment
without
cumulative
A. Pay when penalty imposed = Rs.15440+ 4200 = 19640
Increment (due) 1-7-2013 = 15440 + (19640 x 3%)@@ +4200
=15440+590 +4200
Pay after increment = 16030+4200=20230
@@
rounded off to next 10
This increment is to be withheld for six months i.e. from 1-7-
2013 to 31-12-2013
B. Pay w.e.f. 1.7.2013 to 31-12-2013 = Rs.15440+4200 =19640
C. Pay w.e.f. 1.1.2014 = Rs 16030 + 4200 = 20230
D. Pay w.e.f. 1.7.2014 = Rs 16640+ 4200 = 20840
In this case the pay in GP 4200 would need to be fixed w.e.f.
13.03.2013 to 12.03.2015 as if he had continued in GP 4200. Pay
would be regulated as under:
Date Pay in GP 4200 Pay in GP 4600
1-8-2009 15070+4200= 19270** 15650+4600= 20250
1-7-2010 15650+4200= 19850** 16260+4600= 20860
1-7-2011 16250+4200= 20450** 16890+4600= 21490
1-7-2012 16870+4200= 21070** 17540+4600= 22140
13-3-2013 16870+4200= 21070**
1-7-2013 17510+4200= 21710**
1-7-2014 18170+4200= 22370
13-3-2015 18210+4600=22810@@
1-7-2015 18900+4600=23500
Note:
1. **Notional pay in GP 4200 from 1-8-2009 to 12-03-2013
the Government servant would have drawn that pay for more than
six months as on 1-7-2013
3. In case the higher and lower grades are in different Pay Bands
then also the same method would be followed.
4. Under FR-28, the authority which orders the transfer of a
government servant as a penalty from a higher to a lower grade or
post may allow him to draw any pay, not exceeding the maximum of
the lower grade or post which it may think proper. Provided the pay
allowed to be drawn by a government servant shall not exceed the
pay which he would have drawn by the operation of FR 22 read with
clause (b) or (c) as the case may be of FR 26. This illustration is
where no such orders have been passed. Where the disciplinary
authority has specified the pay to be drawn in the lower post pay will
be drawn as per those direct.
effect