Pension frequently asked questions

Central Government Employees Pension and Family Pension related Frequently Asked Questions (FAQ)

Frequently Asked Questions (FAQs)

(Central Civil Pensioners)

PENSION POLICY :

What happens  in  case  there  is  no  change  in  pension  under OM dated 28.1.2013?

Even where there is no change in pension/family pension as a result of the issue of OM dated 28.1.2013,  a revised authority for no change will be issued by the PAOs.

Is Personal Pension discontinued with effect from 1.1.1996 ?

Yes.

From where  can we download the pension /nomination Forms ?

All forms are   available at the website of Department of Pension   & Pensioners Welfare.

Is additional pension admissible to old family pensioners?

Yes, the rates related to additional pension as applicable in the case of old pensioners hold good for family pensioners, as well.

Whether  the  provision  of  adding  years  in  qualifying  service  has  been withdrawn for calculating gratuity also?

Yes, w.e.f. 01.01.2006.

Whether in the case of pensioners who are in receipt of more than one pension, the floor ceiling of Rs.3500/- will apply to the total of all pensions taken together?

It was clarified in Deptt. of Pension & PW’s OM No.38/38/02-P&PW(A) dated 23.4.2003 that in respect of civil and military pension, the floor ceiling taking the two pensions together will not apply and the individual pensions will be governed by respective pension rules. These instructions would continue to apply in the context of revised floor ceiling of Rs.3500/-p.m. Accordingly, the floor ceiling will apply individually in the civil and military pension. In case, a person is in receipt of pension as well as family pension, the floor ceiling of Rs.3500 will apply individually to such pension and family pension.

Whether  orders  dated  28.1.2013  are  applicable  in  the  case  of  those absorbee pensioners who had received 100% lump sum and are in receipt of one-third restored pension?

It has been clarified in the OM dated 3.4.2013 that the notional full pension of the absorbee pensioners would also be stepped up w.e.f 24.9.2012 in accordance  with  the  instructions  contained  in  the  aforesaid  OM  dated 28.1.2013.  No arrear of DR and additional pension on notional full pension would be payable for the period prior to 24.9.2012.

QUALIFYING SERVICE

Does  all leave period qualify for pension and gratuity?

All leave for which leave salary is payable qualifies for pension and gratuity. Extraordinary leave (EOL) on medical certificate (MC)   also qualifies for pension and gratuity.  EOL without MC qualifies only on account of inability to join duty on civil commotion or when granted for a higher scientific & technical study qualifies.

Is the benefit of counting of past service under Rule 19   available to ex- serviceman re-employed to civil service / post?

An ex-serviceman re-employed to the Civil   Post / service on or before 31/12/2003  is covered under the CCS (Pension) Rules, 1972.  Therefore the benefit of Rule 19 also becomes automatically available to him.   An ex- serviceman re-employed in civil service on or after 1/1/2004  is covered by the New Pension Scheme and is not covered under the CCS (Pension) Rules, 1972. Therefore the benefit of Rule 19 is not available to the ex- serviceman on re-employment on or after 1/1/2004.

What happens to  the past service of  a  Govt.  servant (appointed  before 1.1.2004) who resigns to take up, with proper permission, another appointment under the Govt.?

Under Rule 26 (2)   “A resignation shall not entail forfeiture of past service if it has been submitted to take up, with proper permission, another appointment, whether temporary or permanent, under the Government where service qualifies”.   This also applies to a Govt. servant who joined Govt. service before 1/1/2004 and takes up another appointment in the Govt., on or after
1.1.2004.

P.S.U. ABSORBEES

What are the terms and conditions of Central Govt. employees who are absorbed in Central Public Sector Undertaking /Central Autonomous Bodies?

The terms and conditions of Central Govt. employees who are absorbed in Central Public Sector Undertaking /Central Autonomous Bodies, are regulated as per the DOPT OM No.28016/5/85-Estt.(C) dated 31.1.86 and DOP&PW OM No.4(12)/85-P&PW dated 13.3.87.   The Administrative Ministries/Departments have already been delegated powers to deal with such cases of absorption without obtaining prior concurrences of this Department.

Those absorbed in Central Public Sector Undertaking are eligible for pension and retirement gratuity as admissible under relevant rules. Those absorbed in the Central Autonomous Bodies having pension scheme are required to exercise an option either

(i)  to receive pro-rata retirement benefits or to

(ii) to continue to have the benefits of combined service under the Government and in the autonomous body subject to the condition laid down in  the  D/o  Personnel  &  AR’s  OM  No.28/10/84-PU dated  29.8.84 and 12.9.85.

Such option should be exercised within 6 months from the date of absorption. In case no option is exercised within stipulated period, he will be eligible for pension based on combined service.

How  is  the  restored  1/3rd   commuted  portion  of  pension  in  respect  of Government servants who had drawn lump sum payment on absorption in Central Public Sector Undertakings/Central Autonomous Bodies required to be revised w.e.f.1.1.2006?

The   pension   of   Central   Government   pensioners   has   been  revised w.e.f.1.1.2006  vide  this  Department’s  OM  No.38/37/08-P&PW(A)  dated 1.9.2008.  Orders for revision of 1/3rd pension of those who had drawn lump-sum  payment on absorption were issued  vide DOP&PW’s OM No.4/30/2008-P&PW(A) dated 15.9.2008 read with OM dated 27.5.2009. Keeping in view the direction of Hon’ble CAT, Hyderabad Bench orders have been issued vide OM dated 11.7.2013 that 1/3rd  restored pension of those Government servants who had drawn lump-sum payment on absorption in PSU/AB and whose 1/3rd  pension was restored from a date before  1.1.2006,  the  pre-revised  1/3rd   restored  pension  will be revised w.e.f.1.1.2006 by multiplying the same by a factor of 2.26, if it is more beneficial than the amount of revised restored 1/3rd  pension arrived at in terms of  this Department’s OM dated  15.9.2008.   In the  case of  those absorbee pensioners in whose case the restoration of 1/3rd pension became due on or after 1.1.2006, the above formulation would apply with reference to notional 1/3rd restorable pension as on 31.12.2005.
Payment of  DR and additional pension to old pensioners (of the age of 80 years and above) shall continue to be on full pension as per the instructions issued from time to time. The benefit of revision of restored amount of 1/3rd commuted portion of pension shall be admissible w.e.f.1.1.2006 or from the date the commuted portion of pension is restored, whichever is later

Is DOP&PW OM No.38/37/08-P&PW(A) dated 28.1.2013 for stepping up of the pension of pre-2006 pensioners w.e.f. 24.9.2012 applicable to Government servants who had drawn lumpsum payment on  absorption in Central Public Sector Undertakings/ Central Autonomous Bodies and whose 1/3rd pension has been restored?

It has been clarified in the OM dated 3.4.2013 that the notional full pension of the absorbed pensioners would also be stepped up w.e.f 24.9.2012 in accordance  with  the  instructions  contained  in  the aforesaid  OM  dated 28.1.2013.  No arrear of DR and additional pension on notional full pension would be payable for the period prior to 24.9.2012.

PENSION PROCEDURE

What is to be done  in case the pension has not been fixed correctly?

The  Pay &  Accounts Officer  while  issuing  the  pension  authorization  will forward one copy of the pension calculation sheet (out of three received by him from the Head of Office) as certified by the Head of Office and countersigned by him (Pay & Accounts Officer) to the pensioner along with the intimation of his having sent the pension payment authority/PPO to the CPAO. In case it is found from the pension calculation sheet that pension has been fixed incorrectly, the matter may be taken-up with the Head of Office. PAO concerned, if necessary, will issue  an amendment authority letter to Central Pension Accounting Office for onward transmission to the CPPC to carry out necessary amendments in both halves of PPO.

PENSION DISBURSEMENT

Can a pension account be opened in any branch of any bank?

No, a pension account cannot be opened in any branch of any bank. There is a list of public sector and private sector banks in each State in which a pension account may be opened. For latest information about the list please visit the website of Central Pension Accounting Office, www.cpao.nic.in.

Can the excess payment, if any, credited to the pensioner’s account be recovered by the bank?

Before commencing payment of pension, the paying branch is required to obtain an undertaking in the prescribed form Annexure-XI of the Scheme from the pensioner. On the strength of this undertaking the excess payment, if any, credited to his/her account can be recovered by the paying branch.

What is to be done if a pensioner/family pensioner desires to get his pension payment account transferred?

Application for transfer of pensions may fall under the following two categories;

(i) transfer from one paying branch to another of the same Authorised Bank (AB) within the same station or at a different station; (ii) transfer from one AB to another AB

The pensioner/family pensioner may make request falling under both the categories above to either of  the Branches. The paying branch will forward the request along with the disburser’s   part of PPO, where applicable, to its CPPC for necessary action. Before forwarding the disburser’s  portion  of  PPO  to  the  new  paying branch/CPPC,  it  will  be ensured that the month upto which the payment has been made is invariably indicated in the disburser’s portion of PPO.   The receiving CPPC on receipt of the pension documents will ensure forwarding the PPO to the paying branch if it is for the same AB or to the concerned CPPC if for a different AB within three days and intimate the facts to the pensioner simultaneously. Necessary intimation of effecting such transfer will be sent to CPAO by the new as well as old CPPCs in the form as at Annexure XXI (page-49 Scheme Booklet) as well as the escroll  for keeping a note of change in their records. (b)    The   new   paying   branch   will   commence   the   pension   payment immediately on receipt of letter of the last payment certificate as above. Simultaneously, it will send an intimation to CPPC with full details of the commencement of the pension. (c)  Pension will be paid for three months on the basis of the photocopy of the pensioner’s PPO at transferee (New) branch, from the date of last date of payment made at the transferor (Old) branch. During this time, it will be the joint responsibility of both transferor (old) and transferee (New) bank branches  to  ensure  that  all  the  documents  under  the  procedure, are received by the CPPC within the period of three months.

E.10.4    To  avoid  the  risk  of  overpayment  at  the  time  of transfer,  the following certificate is required to be recorded on the Disburser’s portion of PPO by the paying branch of the AB:

Certified that payment of pension has been made up to the month —————– and that this PPO consists of ———————continuation sheets for recording disbursement.”

Except as provided above, the transfer of a pension account from one payment point  to another will not ordinarily be permitted.

What  is  the  procedure  for  switchover  of  pension  payment  from  Pay  & Accounts Office or treasury to Public Sector Bank?

  • The applications for switch-over to authorised banks by the existing pensioners will be made in the Form as given in Annexure IX of Scheme Booklet in duplicate to the Pension Disbursing Authority.
  • The pensioners should first draw pension which has already fallen due, before applying for transfer of their pension papers to the Authorised Banks.
  • Transfer applications in duplicate shall be forwarded immediately by the Pension Disbursing Authority along with the disburser’s copy of the PPO halves, duly authenticated and written up-to-date to the CPAO for transmission to CPPC of the AB for arranging payment after keeping necessary note in their records. Action will also be taken by Pension Disbursing Authority to update the entries of payment made in the pensioner’s portion of the PPOs, if not already done, before the transfer application is sent to the CPAO.
  • If a PPO (disburser’s portion) has got torn or mutilated, it will be renewed by the CPAO with the help of PAO, if necessary, before sending it to the CPPC.

FAMILY PENSION

Who is to authorize payment of family pension and death gratuity when a Govt. servant dies while on deputation ?

In the case of a Govt. servant who dies while on deputation to another Central Govt. Deptt., action to authorize family pension and death gratuity in accordance with the provisions of chapter IX of the pension Rules shall be taken by his Head of Office of the borrowing department.

In the case of a Govt. servant who dies while on deputation to a State Govt. or  while  on  Foreign Service,  action  to  authorize  the  payments of  family pension and death gratuity in accordance with the provisions of Chapter IX of the pension Rules shall be taken by the Head of Office or the cadre authority which sanctioned the deputation of the Govt. servant to the State Govt. or to his Foreign Service.

Whether family pension may be sanctioned to a disabled child/dependent parent/disabled sibling   during lifetime of a pensioner who has no wife or any other children.

Yes, family pension in certain cases may be sanctioned to a disabled child/dependent parents/disabled siblings. For further details, please refer to this department OM No. 1/27/2011-P&PW(E), dated 1st July, 2013, available at the website under the Circulars on Family Pension.

What is enhanced family pension and for what  period it is payable?

Ordinarily, family pension is paid @ 30% of the pay last drawn by the Government at the time of his retirement/death. However, in the following three cases, family pension is payable at the enhanced rate of 50% of the last pay drawn:

a) From 1.1.2006, where a person not governed by the Workmen’s Compensation Act dies while in service after rendering not less than seven years continuous service, the rate of family pension shall be equal to 50% of last pay drawn from the date of death of deceased Government Servant, payable for a period of ten years provided that the deceased employee had completed seven years of continuous service.

b) In case a Government servant had died while in service after 1.1.1999 and before 1.1.2006 and his/her family was being granted family pension at enhanced rates, i.e., period of 7 years of enhanced rate had not been completed on 1.1.2006, the family pension will be allowed to be paid till the completion  of  the  period  of  10  years  from  the  date  of  date  of  the Government servant.

c) In the event of death of Government Servant after retirement, the enhanced family pension shall be payable for a period of seven years or for a period up to the date the deceased would have attained the age of 67 years, whichever is earlier. In no case the amount of family pension exceed the pension authorised on retirement from Government.

After the lapse of the period of 10 or 7 years, as the case may be, the family pension is payable at the ordinary rate.

Is family pension available  to a spouse after remarriage ?

Family pension has now been made available even after remarriage to childless widow of the deceased employee subject to her earnings not exceeding the prescribed minimum family pension with DR. Family pension is not available to a childless widower after his remarriage.

Whether the period of 10 years for payment of enhanced family pension would also apply in the case of a Government servant who died before 1.1.2006 and in respect of whom the family was receiving enhanced family pension as on 1.1.2006 ?.

Yes. The period of 10 years for payment of enhanced family pension will count from the date of death of the Government servant. These orders will, however, not apply in a case where the period of 7 years for payment of enhanced family pension has already completed as on 1.1.2006.

EXTRAORDINARY PENSION

How the percentage of disability computed? To whom it is applicable?

The computing of percentage of disability is applicable only for the Government servants retiring under CCS (EOP) Rules. The extent of disability or functional incapacity is determined in the following manner for purposes of computing the disability element forming part of benefits:-

Percentage of disability assessed by Medical Board. Percentage   to   be   reckoned   for computation of disability pension
upto 50% 50%
More than 50 and upto 75% 75%
More than 75 and upto 100% 100%

Provided   that   the   above   broad   banding   shall   not   be   applicable to Government servants who are retained in service.

Whether  the  element  of  disability  pension  and  invalid  pension will  be combined or treated as separate identity?

The invalid pension is granted under Rule 38 of CCS(Pension) Rules, whereas disability pension is granted under CCS(EOP)  Rules. The CCS (COP) Rules provides that if a Government servant is boarded out of service on account of injury attributable to Government service he shall be granted disability pension   which includes service element as well as disability element. Invalid pension and disability pension cannot be combined.

Whether Dearness Relief will be admissible on Constant  Attendant Allowance?

No

Whether retirement gratuity/death gratuity, commuted value of the pension is taxable?

No. Death gratuity/retirement gratuity and commuted value of the pension are fully exempted from Income tax.

Whether 10% gratuity or whole of the Gratuity is to be withheld at the time of retirement of all Government Servants?

No. The Administrative  Deptt/Accounts Officer shall not withhold any gratuity unless the Head of Office

a)    Enclose instructions received from Directorate of Estate for withholding of 10% gratuity for outstanding license fee.

Or

b)       Informs of ongoing disciplinary proceedings.

COMMUTATION OF PENSION

What  has  the  pensioner  to  do  for  restoration  of  commuted portion  of pension? From what date is it restored?

Commuted portion of pension is to be restored after 15 years from the date of commutation. This restoration was introduced w.e.f. 1.4.85 i.e. those who completed 15 years on or after 1.4.85, their pension was to be restored. This period of 15 years is to be counted from date of discharge provided commutation  was  sanctioned simultaneously  with  service  pension  in  the same PPO.

However, where commutation was sanctioned subsequent to the date of discharge the restoration of commuted portion of pension will be done on completion of 15 years from the date from which the amount of capitalized value is paid or credited to the pensioner’s account. Every pensioner has to apply to his PDA (Pension Disbursing authority) through an application after completion of 15 years for restoration of commuted portion of pension.

Whether restoration of commuted portion of pension is admissible to those who were absorbed permanently in autonomous bodies/PSUs and have drawn 100% lump-sum payment in lieu of pension?

Yes. Only 1/3rd  portion of pension may be restored after 15 years from the date of commutation in terms of O.M. dated 6.9.2007, O.M. dated 15.9.2008 and 11.07.2013. Additional pension applicable to old pensioners (80 years and above) and dearness relief on full pension is also payable

What is reduce/residual/residuary pension?

Reduce/residual/residuary pension is the part of pension which is payable after deducting commuted portion of the pension.

From  which  date  the  reduction  in  pension  on  account  of additional commutation of pension will take effect?

Reduction in pension on account of additional commutation of pension will be in two stages as per the provisions contained in Rule 6 of the CCS(Commutation of Pension) Rules,1981.

A person with D.O.B. on first of month retires in the previous month. What will be the value to be taken for calculation from commutation table ?

The commutation of pension become absolute on the date following the ate of his retirement. The commutation value taken will be Age on 61st Birthday i.e. 8.194 in the present commutation table

If the commuted amount is paid in stages then what will be the date of restoration?

If the payment of commuted value is made in stages, the restoration will also be made in stages from the respective dates of payment.

NEW PENSION SYSTEM

The CCS(P) Rules are applicable to govt. servants appointed on or before 31.12.2003.Are the employees who joined pensionable establishments of Govt. of India after 31/12/2003 eligible for any benefits under these rules?

In accordance with DoP&PW O.M. No. 38/41/06-P&PW(A) dated 5.5.2009 such employees who joined after 31/12/2003 and/or their families may be given the benefit of  disability pension or family pension provisionally till the finalization   of   rules   under   the  National   Pension   System   (NPS)   on death/injury.

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