The retirement benefits mainly consist of the employees' leave encashment (employees are allowed to accumulate leaves and exchange them for cash on their retirement), retirement gratuity, and the amount that they were contributing to their provident fund account throughout their service.

1. SUBMITTED BY:-
ARUN KuMAr
B.Com (p)
Ramanujan college (university of delhi)

2. RETIREMENT
Period after you have permanently
stopped your job or profession

3. Types of retirement
Superannuation
Voluntary
Medical
Grounds
Premature
Compulsor
y

4. Superannuation
When an employee attains the age of
Retirement is called Superannuation which is:
 60 years for Non Teaching staff.
 65 years for Teaching staff.

5. VOLUNTARY RETIREMENT
1. An employee has the right to retire and get
pension & pensionary benefits by giving 3 month
notice.
• After attaining the age of 50 Years:
Group ‘A’ and ‘B’ officers who had entered service before attaining
the age of 35 years
•After attaining the age of 55 years
Groups ‘A’ & ‘B’ officers other than group ‘C’ employees.
•On completion of 30 years qualifying service
All employees
2. Employees have the option to retire voluntarily on
completion of 20 years qualifying service by giving 3
months notice

6. MEDICAL GROUNDS
A Central Government employee who
suffers on account of any bodily or mental
infirmity which permanently incapacitates
him for the service may retire from service
with pensionary benefits.

7. PREMATURE RETIREMENT
The Appointing Authority has the absolute right
to retire an employee from service if it considers
necessary to do so in public interest by giving
him notice of not less than 3 months.
COMPULSORY RETIREMENT
When the Appointing Authority forcefully retires
an employee as a penalty.

8. RETIREMENT
BENEFITS
In lieu of services rendered by a person the
employer/ the government rewarded a
person in different manner or by different
names.

9. Key points
 Pension & New Pension Scheme
 Gratuity
 Service Gratuity
 Death gratuity
 Provident Fund
 GPF, CPF
 Family Pension
 Group Insurance Scheme

10. PENSION or NEW PENSION SCHEME
 Person who are covered under CPF are not
entitled any pension
 The employees who are covered under GPF
cum gratuity cum pension cum family pension
scheme are entitled for pension subject to the
condition that in case of voluntary retirement
the qualifying service is 20 yrs & in case of
superannuation qualifying service is not less
than 10 years. Apart from that person joined
the service on or after 1 January 2004 are not
covered in CPF and GPF they have covered
under a new pension scheme.

11. GRATUITY
It is the sum of money paid by an
Govt./employer to an employee for services
rendered in the company. It is paid only to
employees who complete 5 year or more years
with the company.
SERVICE GRATUITY:
An individual who has not completed 10 years
of qualifying service is not entitled to get
Pension but In lieu of that he is entitled to get
service gratuity. It must be half of the
Emoluments.

12. RETIREMENT GRATUITY:
It is 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 a maximum of sixteen and half
times ,the emoluments’ or Rs. 10 Lakhs (from 1-
1-2006).
FORMULA
Length of service in complete year x BASIC
salary x no. of gratuity per year (subject to
maximum entitlement of 33 years & the amount
ceiling is Rs. 1000000/- )

13. DEATH GRATUITY:
It is admissible in the case of death in service
of an employee at following rates.
SR
.
LENGTH OF SERVICE DEATH GRATUITY PAYABLE TO
FAMILY
1. Less than 1 year… 2 times of ‘ emoluments
2. 1 year or more, but less than
5 years
6 times of ‘ emoluments’
3. 5 years or more, but less
than 20 years
12 times of ‘ emoluments’
4. 20 years or more Half of emoluments for every completed
6 monthly period of qualifying service,
subject to maximum of 33 times
emoluments or 10 Lakhs Rs.

14. PROVIDENT FUND
It is a form of social safety net into which
workers must contribute a portion of their
salaries & employers must contribute on
behalf of their workers. The amount credited
in individual PF a/c that is employees &
employer contribution + Interest there on.
It contains;
1. General Provident Fund (GPF).
2. Contributory Provident Fund (CPF).

15. GPF & CPF
 The GPF scheme was introduced in 1987 before that
all employees were covered in CPF then an option
was given to employees if they want to remain in CPF
they have to fill an option form to show their
willingness to remain in CPF scheme latest by 30-9-
1987 & in the absence of the option form they
automatically shifted to GPF scheme.
 Persons who joined the government service from
1-10-1987 to 31-12-2003 are covered under GPF
scheme.
 The person who join the service on 1-1-2004 will be
covered under the New Pension Scheme/New
Pension System. There is no CPF & GPF for them.

16. LEAVE ENCASHMENT
It is the amount payable for the employee’s
leave period , depending upon the earned
leaves & half pay leaves to the credit of the
employee’s a/c at the time of termination of
employment or at the time of encashing the
leaves, subject to overall limit of 300 days.

17. METHODS OF CALCULATION
(a) For Earned Leave-
Pay + DA admissible on the date of
cessation of service/30 x No. of days of
unutilized earned leave at credit subject to a
maximum of 300 days.
(b) For Half Pay Leave-
Half pay leave salary + DA on that date/30
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.

18. FAMILY PENSION
If a employee in service or a pensioner,
the family is entitled to get pension on
death in service/ after retirement.
The monthly family pension is based on
the ‘pay’ drawn on the date of death or
date of retirement, as the case may be, &
is admissible at a uniform rate of 30% of
pay last drawn, subject to a minimum of
Rs. 3500 p.m.
(For details please refer Family Pension
Rules)

19. GROUP INSURANCE SCHEME
It is compulsory for all central government
employees.
CATEGORY SUBSCRIPTION RISK COVERAGE
Group ’A’ 800 800000
Group ’B’ 400 400000
Group ’C’ 200 200000

20. THANK YOU