DEFENCE HQ TRAINING INSTITUTE

MINISTRY OF DEFENCE
NEW DELHI

PENSIONARY BENEFITS

2nd Aug 2022

Compiled by:

Ratnesh Bharati
DY. Director
 PENSIONARY BENEFITS
Defined Pension Scheme :Old Pension Rules
CCS (Pension) Rules, 2021
Contribution Based Pension Scheme:
New Pension System
CCS (Implementation of
National Pension System)
Rules, 2021
Applicability of CCS(Pension) Rules, 2021

Govt. Servants appointed on or

before 31st Dec 2003, including
Civilian Govt. Servants in the
Defence Services, appointed
substantively to civil services and
posts in connection with the
affairs of the Union (incl. UTs),
which are borne on pensionable
establishments,
Contd.
Applicability of CCS(Pension) Rules, 2021

Contd. from previous slide

Excluding –
Railway Servants;
Casual Employees/Daily Wagers/Contract employees;
Persons paid from contingencies;
Persons entitled to Contributory Provident Fund;
Members of the all India Services; and
Employees whose terms and conditions of service are
regulated by the provisions of the Constitution or any
other law for the time being in force.
 DCRG

It is a lumpsum amount payable to the GS on retirement or

to his/her family in case of his/her death and is
determined on the basis of length of Qualifying Service.
Following are the types of Gratuity:-

Service Gratuity - Granted in lieu of pension when QS is less than

ten years. Calculated at ½ month’s emoluments for every completed
SMPs of service. This is in addition to Retirement Gratuity, if any,
payable.
Retirement Gratuity – Permanent GS with a minimum QS of 5
years are eligible for RG. Temporary GS retiring on superannuation or
on invalidation having a
Contd.
 DCRG

Contd. From previous slide…

minimum QS of 10 years. Calculated on the basis of ¼th of
the emoluments for each completed SMP, subject to a
maximum of 16 ½ times of the emoluments or Rs. 20
lakhs (w.e.f 01.01.2006), whichever is less. Emoluments
will include D.A. drawn on the date of retirement.
Note : 1. Exempted from Income Tax
2. Exempted from Court Attachment
3. Shall lapse in the event of death after retirement
but before receiving Gratuity, if the GS
leaves behind no family; no nomination has
been made; none claims it with
production of Succession Certificate
from a Court of Law.
4. Interest @ prescribe for GPF is payable on delayed
 DCRG

• Death Gratuity: No minimum Qualifying service required

– QUALIFYING SERVICE DEATH GRATUITY

• i) Less than 1 year of service 2 x Emoluments.

ii) 1 yr but less than 5 yrs of service 6 x Emoluments.
iii) 5 yr but less than 20 yrs of service 12 x Emoluments.
• Iv) 20 Yrs and more ½ x Emoluments x SMPs
(Max
66 SMPS)

DCRG to be paid to the family after 6 months, in case official’s

where about are not known.
For the purpose of Nomination and
Gratuity
Family includes :
1. Wife or wives including judicially separated wife.
2. Husband, including judicially separated husband.
3. Sons including step sons, adopted sons.
4. Unmarried daughters, including step daughter,
adopted daughters.
5. Widowed daughters including step daughter and
adopted daughter.
6. Father, including adoptive father.
7. Mother, including adoptive mother.
8. Minor brothers including step brothers.
9. Unmarried/widowed sisters incl. step sisters.
10. Married daughters.
11. Children of a predeceased son.
 Person to whom Gratuity is Payable

• To the nominee.
If nomination was not done.
i). If there are one or more surviving members of the
family (1) to (4) to all such members in equal share.
ii) If no surviving member as in (i) above to all such survive
member from (5) to (11).
• If the G.S. dies after retirement but before receiving the gratuity the
same will be distributed in the above manner.
• The right of female member or of the brother of a G.S who dies while
in service or after retirement, to receive the gratuity shall not be
affected, if the female member marries or re-marries or the brother
attains the age of 18 years, after the death of the G.S. but before
receiving the gratuity.
• Share of the minors will be paid to the guardian.
 Pension

On completion of a minimum QS of 10 years (9 years and 9

months count as 10 years), pension is payable under the
following circumstances:-

1. Superannuation on attaining the age of 60 years.

2. Voluntary retirement by giving notice after completion of
20 years of QS under Rules 43 or under FR56(k).
3. Pre-mature retirement by the Govt. under Rule FR56(j).
4. Absorption in or under a Corporation/ Company or Body
controlled or financed by the Govt.
 Classes Of Pension
1) Superannuation Pension - On retirement from
service on attaining the age of superannuation.
2) Retiring Pension – When the GS retires or is retired
from service before superannuation under the
provisions of FR 56(k)/56(j) or Rule 43/42 of CCS
(Pension) Rules; Or the GS is declared surplus and
opts for voluntary retirement.
3)Invalid Pension – On being declared permanently
incapacitated for further service by a
competent medical authority.
Contd.
 Classes Of Pension

Contd. From previous slide

4) Compensation Pension – When the GS is discharged due to
abolition of permanent post and alternate employment of equal
status is not possible.
5) Compulsory Retirement Pension – When the GS is retired
compulsorily as a penalty, pension @ not less than 2/3rds and not more
than full Compensation Pension admissible on the date compulsory
retirement.
6) Compassionate Allowance – When the GS is dismissed or
removed from service and is not entitled to any pensionary benefits,
competent authority, may, on special consideration, sanction a
compassionate allowance not exceeding 2/3rds of compensation pension
subject to a minimum of Rs. 9000/- pm.
 Calculation Of Pension

From 1.1.2006, Full Pension is admissible

if the minimum qualifying service is not
less than 10 years. Pension will be 50% of
Emolument (E) last drawn or 50% of
Average Emoluments (AE) of the last 10
months, whichever is more beneficial to
the Govt. Servant.
Earlier, Pension used to be
= ½x Average Emoluments x No. of SMPs
66
 PENSION

• Minimum Pension = Rs. 9000/-

• Maximum Pension = Rs. 125000/-

• Pension/Gratuity will be rounded to the next higher

Rupee

• THREE months and above upto SIX months of qualifying

service will be treated as one SMP.
 Enhanced Pension

AGE OF PENSIONER ADDL. QUANTUM OF PENSION

From 80 yrs to less than 85 yrs.20 % of basic Pension.

From 85 yrs to less than 90 yrs.30 % of basic Pension.
From 90 yrs to less than 95 yrs.40 % of basic Pension.
From 95 yrs to less than 100 yrs50 % of basic Pension.
From 100 years and above. 100 % of basic Pension.
 FAMILY PENSION

• When a G.S. dies:-

• A) after completion of one year of continuous service or

• B) No minimum service requirement if he was appointed
after declaring medically fit by appropriate medical
authority
• C) After retirement he was recipient of any kind of
pension
the family of the G.S. shall be entitled of Family
Pension.
• Normal Rate = 30% of the Basic Pay.
• Enhanced Rate for a period of 10/7 years @ 50% of Pay
drawn at the time of retirement or amount of Pension
authorized, whichever is less.
 ENHANCED FAMILY PENSION

• In case of death in service:-

• For a period of 10 years from the date
of death, without any upper age limit.
• In case of death after retirement:-
• For a period of 7 years or upto the date
on which the GS would have attained
67 years, whichever is less.
• Higher rate of Family Pension is not
admissible to the dependent Parents.
 Family for Family Pension
• Category – I :-
• widow or widower, up to the date of death/remarriage.

• son/daughter (including widow daughter) up to the date of

his/her marriage/re-marriage or till 25 years of age or till the date
he/she starts earning, whichever is earliest.

• Category – II:-
• unmarried/widowed/divorced daughter, till the date of
remarriage/starts earning/till death, whichever is earliest.

• Dependent Parents till death, but only when the deceased G.S. had
left behind neither a widow nor a child.
 Family Pension contd.

• Physically/Mentally challenged children – till death or starts

earning.
• If more than one widows – equal share
• On death of such widow the same will pass to her children
• In case of no child to such widow, her share of Family
Pension will not lapse & shall be payable to other widow.
• In case of twin, the share will be equally divided
• In all other cases it will pass to next eligible member and
shall be payable to only one at a time.
 Dearness Relief On Pension

1. Like Dearness Allowance, Dearness Relief is

sanctioned as compensation against price rise and is
revised on 1st January and 1st July every year based on
the average Consumer Price Index.
2. Arrears of License fee alone can be recovered from
the Dearness Relief without consent of the GS.
3. Dearness Relief is calculated on the gross pension
before commutation even in cases where part of
pension has been commuted.
 Commutation Of Pension

It is a lump sum payment by commuting a portion of

pension subject to maximum of 40%.
During the pendency of departmental or judicial
proceedings commutation can not be applied.
Option for commutation can be submitted within one
year from the date of retirement, without medical
certificate. Commutation becomes absolute on the date
following the DOR or the date on which the application
is received by the HOD, whichever is later.
 Calculation Of Commutation Amount

It is arrived at by multiplying the part of pension to be

commuted by the commutation factor.
For example, if a GS retires on completion of 60 years of age
and applies for commutation of Rs. 5000/- out of the total
pension of Rs. 15000/-, the commutation amount will be-
Rs. 5000x12x8.194
Note :- 1. Commutation amount is not taxable.
2. Commuted portion is restored on completion of 15 years of
commutation.
NATIONAL PENSION SYSTEM

Thank You