The document discusses various types of pensions available for government employees in India. It outlines different pensions such as superannuation pension, voluntary retirement pension, pension on absorption in PSU, invalid pension, compensation pension, and more. It then describes the key factors used to calculate the amount of pension - qualifying service, emoluments, calculation of pension amount, retirement gratuity, death gratuity, commutation of pension, family pension, and dearness relief.

1. Various kinds of pension
.
Superannuation
pension
On retirement after superannuation
Retiring pension On voluntary retirement or premature retirement before
superannuation
Pension on absorption
in PSU
On absorption of the employee in PSU
Duly permitted by govt.
Pension on absorption
in PSU
On conversion of govt dept in to PSU and On absorption of
the employee in the PSU
Invalid pension On retirement after being declared by the competent
authority to be permanently incapacitated for further service
Compensation pension On selection for discharge owing to the abolition of his
permanent post
Compulsory retirement
pension.
On compulsory retirement as a measure of punishment.
Compassionate
appointment.
On dismissal or removal sanctioned by the competent
authority in a case deserving of special consideration.

2. VARIUOS COMPONENTS TO DECIDE PENSION
• Following are the various
components to decide the quantum
of pension.
• 1.Qualifying service.
• 2. Emoluments.

3. QUALIFYING SERVICE.
• 1.Qualifying service of a govt servant commences from the date he takes charge of the
post to which he is first appointed in a permanent capacity.
• 2.Temporary service immediately followed by regular appointment without
interruption will also qualify.
• 3.Following shall constitute qualifying service
• a)Duty and periods treated as duty.
• b) All kinds of leave with leave salary.
• c) Deputation and foreign service.
• d) Exol on MC.
• e) Pre appointment training immediately followed by appointment as Group C and
Group D.
• f) Service on probation followed by confirmation.
• g) Service as SAS apprentice.
• h) Suspension followed by reinstatement.
• i)Suspension followed by major penalty and absence from duty including suspension if
any ,ordered by the competent authority that it shall count as service.

4. QUALIFYING SERVICE
• Following shall not constitute qualifying service
• 1.Service rendered before attaching the age of 18
years.
• 2.Service as apprentice except SAS apprentice.
• 3.Unauthorised absence treated as Diesnon.
• 4.Over stayal of leave /Joining time not regularized
as leave with salary
• 5.EOL without MC
• 6.Suspension followed by major penalty and the
suspension period ordered not to be counted for
pension.

5. QUALIFYING SERVICE
• 1.Qualfying service so arrived will be
expressed in completed six monthly
periods.
• 2.Fractions equal to three months and
above shall be treated as one six monthly
period(SMP)
• 3. Fractions less than three months will
be ignored.

6. EMOLUMENTS.
• 1.Emoluments for pension include only Basic pay in
Pay band and Grade Pay and non-practicing
allowance.
• 2.Dearness allowance or any other allowance will not
be taken in to account.
• 3.For arriving at the basic pension, Emolument is
calculated based on the Last pay drawn (BP+GP).
• 4.’Average emoluments‘ mean the average of
emoluments that were drawn during the last ten
months.

7. EMOLUMENTS
• 5.If an employee immediately before retirement or death in
service had been on leave with salary, the emoluments which
he would have drawn had he not been on leave will be taken
as emoluments.
• 6.If under suspension and subsequently reinstated in to
service without forfeiture of service the emoluments which
he would have drawn had he not under suspension will be
taken as emoluments.
• 7.If on EXOL emoluments drawn immediately before
proceeding on such leave will be taken as emoluments.
• 8.While calculating average emoluments the period of
extraordinary leave, dies non, overstayal of leave or joining
time and suspension not counting for pension falling within
the last ten months will be ignored and a corresponding
added before ten months.

8. CALCULATION OF PENSION
• 1After arriving at the net qualifying service and
Emoluments pension is calculated.
• 2.The amount pension will be 50% of last pay drawn on
the date of retirement or 50% of average emoluments
which ever is more beneficial.
• 3.The pension arrived so shall not be less than
Rs.3500/-.
• 4.The amount of pension should be rounded off to the
next higher rupee.
• 5.Pension is admissible to an employee with minimum
qualifying service of not less tahn10 years .

9. RETIREMENT GRATUTITY
• 1.Retirement gratuity is admissible to all
employees who retire after completion of 5 years
of servcie.
• 2.RG is calculated at the rate of 1/4 th of
emoluments for each completed six months
service.
• 3.For this purpose emolument means Basic pay
+GP+DA.
• 4.RG is subject to a maximum of 16.5 times of the
emoluments or 10,00,000/- whichever is less.
• 5.The amount of gratuity is rounded off to the
next higher rupee.

10. DEATH GRATUTITY
• On the death of a government servant in
service death gratuity is payable as follows.
LENGTH OFSERVICE DEATH GRATUTITY PAYABLE
Less than one year. 2 times of emoluments.
One year or more but less
than 5 years.
6 times of emoluments.
5 years or more but less
than 20 years.
12 times of emoluments.
20 years or more Half of emoluments for every
completed six monthly period of
qualifying service subject to a
maximum of 33 times of
emoluments or Rs.10,00,000/-

11. COMMUTATION OF PENSION
• 1.Every pensioner is eligible to commute a portion of his
pension for a lumpsum payment
• 2.An employee or a pensioner against whom any
deptl/vig/judicial case is pending ,is not eligible for
commutation .
• 3.A maximum of 40% monthly pension can be commuted.
• 4.A person in receipt of Superannuation pension retiring
pension or compensation pension can commute up to a
maximum of 40% of pension without medical examination
if he applies for the same within a period of one year from
DOR.

12. COMMUTATION OF PENSION
• 5.If an official is retired on invalidation/retired
compulsorily as a measure of penalty or in receipt of
compassionate allowance then he can commute
pension only after medical examination.
• 6.All other pensioners if they apply for commutation
after one year from the DOR then they will have to
undergo medical check up.
• 7.The commutation amount will be rounded off to
the next higher rupee.

13. CALCULATION OF COMMUTATION
• Commutation amount payable is caculated as follows.
• Commutationfactor X 12 X amount of pension
offered for commutation.
• Example; Official retired on 60 years of age with LPD
(16000+4000) Rs.20,000/-
• Basic pension Rs.10,000.
• Mxm commutation 40% on Rs.10,000=4,000/-
• Comn factor for 61 years of age =8.194
• Comn amt = 8.194 X 12 X 4000 =3,93,312/-
• Commutation payable is Rs. 3,93,312/-

14. REDUCTION IN PENSION
• 1.The reduction in the amount of pension on
commutation will become operative from the
date of receipt of commuted value by the
pensioner or at the end of three months after
issue of authority for payment.
• 2.If an official retires on superannuation and
applies for commutation before the date of
retirement the reduction will take effect from
the day following the day of retirement and
reduction becomes effective from same date.

15. RESTORATION OF REDUCTION
• The reduced portion of pension on account of
Commutation will be restored on the expiry of 15 years
from the date of retirement if the commutation is
received in the first month of retirement.
• In other cases , the commutation portion of pension
will be restored after 15 years from the date of receipt
of commutation amount.
• If the commuted value of pension is paid in two
instalments due to revision of pension the date of
restoration will also be the same as for original
commutation.

16. FAMILY PENSION
• 1.Family pension is payable to the family of an employee/pensioner
on his death in service/
after retirement.
• 2.Family means
• i) Widow or widower up to the date of death or remarriage
whichever is earlier.
• ii) Son/Daughter(including widowed daughter) up to the date of
his/her marriage/remarriage or till the date he/she starts earning or
till the age of 25 years whichever is the earliest
• iii) Parents who were wholly dependent on the govt servant when
he/she was alive provided the deceased employee had left behind
neither a widow nor a child.
• Iv) Dependant son/daughter with disabilities as also dependant
brother/sisters with disabilities

17. CALCULATION OF FAMILY PENSION
• 1.The family pension is calculated on the LPD on the
date of death or retirement.LPD includes Basic pay
+GP+NPA.
• 2.Normal family pension is admissible at the rate of
30% of LPD subject to a minimum of Rs.3500/-pm.
• 3.The family pension is rounded off to the next
higher rupee.
• 4.Enhanced family pension is payable as follows.

18. ENHANCED FAMILY PENSION
In the case of death in service ;
1.Payable for a period of 10 years from the date of death
of a government servant without any upper age limit.
2.The enhanced family pension is payable at the rate of
50% of the LPD.
In the case of death after retirement;
1.Payable for a period of 7 years from the date of death
of a pensioner or up to the date on whish he would
have attained the age of 67 years had he survived
which ever is less
2. 2.The enhanced family pension is payable at the rate of
50% of the LPD or the amount of pension authorized
which ever is less.

19. DEARNESS RELEF ON PENSION / FAMILY PENSION
• 1.Dearness relief is admissible to pension and
family pension.
• 2.While calculating DR on pension the same
will be calculated on the original pension
without deducting commuted portion of
pension.
• 3.Dearness relief is sanctioned at the same
rate as applicable to DA on pay and alloeaces.