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Pension & Other Retirement Benefits

भारत सरकार
Government of India
सिचवालय िश ण तथा ब ध सं थान
Institute of Secretariat Training & Management
(आईएसओ 9001:2015 सं था / An ISO 9001:2015 Institution)
कािमक एवं िश ण वभाग / Department of Personnel & Training
शासिनक लाक ,ज.ने. व .प#रसर (पुराना)/Administrative Block, JNU Campus (OLD),
ओलोफ पा'मे माग ,नई (द'ली - 110067/ Olof Palme Marg, New Delhi – 110067
Telephone: 011-2618 5308, Telefax: 26104183
Website: www.istm.gov.in

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TABLE & CONTENTS

CHAPTER Topic PAGE NO.

1. Pension Rule 3 – 28

2. Central Government Employees’ Group 29 – 34


Insurance Scheme, 1980
3. Leave Encashment 35 – 37

4. General Provident Fund (Central Services) 38 – 49


Rules, 1960
5. Travelling Allowance Admissible on 50 – 53
Retirement
6. New Pension Scheme 54 – 77

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Chapter – 1
Central Civil Services (Pension) Rules,1972

1. Introduction

1.1 As a model employer, the Government of India looks after the welfare of its functionaries
not only during service but also after retirement. The interests of the families of Govt. servants
who die during service or after retirement are also looked after. All this is achieved by invoking
the provisions of the Central Civil Services (Pension) Rules, 1972, as amended from time to
time.

1.1.2 Pension interests not only those who are nearing retirement; it is also of vital importance
to Establishment Officers who have to administer cases relating to retirement benefits with
utmost care, sympathy, imagination and expedition. It hardly needs to be emphasize that even
early events in one’s service, if not properly taken care of, may lead to difficulties in the
settlement of pension cases. The problems areas mainly pertain to improper maintenance of
service documents resulting in loss of qualifying service. In order that there are no delays in
settling pension cases, it is imperative that all concerned are properly educated, trained and
motivated about their roles so that the shortcomings can be minimized and all the retirement
benefits can be paid as and when they become due.

1.2 The Normal Retirement Benefits

(i) Pension: - A recurring monthly payment for life determined on the basis of pay
drawn at the time of retirement and subject to a minimum qualifying service of 10
years.

(ii) Retirement Gratuity: A lump sum amount, not exceeding Rs.20 lakhs w.e.f.1-1-
2016, which is to be increased by 25%, whenever the dearness allowance
increases by 50% determined on the basis of length of service and last pay drawn
or average emoluments, (In 6th CPC it was Rs.10 lakhs) whichever is higher.

(iii) Service Gratuity: Amount payable in lieu of pension in case net qualifying service
is less than 10 years. Service Gratuity is in addition to Retirement Gratuity.

(iv) Commutation of Pension: A lump sum payment in lieu of portions of pension, not
exceeding 40% of the basic pension, surrendered by the pensioner.

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(v) Encashment of Earned Leave: Cash equivalent of leave salary admissible for the
EL/HPL available in the leave account of the pensioner subject to a maximum of
300 days.

(vi) Group Insurance Scheme (CGEGIS): Accumulations in the Savings Fund under
Central Government Employees’ Group Insurance Scheme, 1980.

(vii) General Provident Fund: Accumulations in the fund inclusive of interest thereon.

(viii) Travelling Allowance: At par as admissible on transfer, to the intended place of


residence.
(ix) Medical Facility available after retirement.

1.3 Benefits admissible on Death

(i) Death Gratuity: A lump sum amount, not exceeding Rs.20 lakhs w.e.f.1-1-2016,
which is to be increased by 25%, whenever the dearness allowance increases by
50% determined on the basis of length of service and last pay drawn or average
emoluments, (In 6th CPC it was Rs.10 lakhs) whichever is higher.

(ii) Family Pension-(Enhanced Family Pension/Normal Family Pension)

(iii) Amount of Insurance plus accumulations in Savings Fund under CGEGIS along with
interest thereon.

(iv) TA to family to intended place of residence.

(v) Benefits under Deposit Linked Insurance Scheme available in GPF Rules
(Maximum up to Rs. 60,000).

1.4 Applicability of CCS (Pension) Rules, 1972

1.4.1 These rules apply to all Central Govt. servants joining service on or before 31.12.2003,
including civilians paid from Defence Services Estimates, appointed substantively to civil
services and posts which are borne on pensionable establishments. These rules, however, do
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not apply to the staff paid from contingencies or on daily wages, and persons employed on
contracts, etc.

1.5 Eligibility for Pension

1.5.1 A Govt. servant is entitled to get pension benefits if he is confirmed before retirement. As
per rule, a temporary employee who has completed 10 years of qualifying service before
retirement on superannuation/invalidation is entitled to pension admissible to him. If he wants to
retires voluntarily under Rule 48-A of CCS (Pension) Rules, 1972 then the required minimum
qualifying service is different. However, since the confirmation has been delinked from the
availability of the permanent vacancy in the grade, an officer who has successfully completed
the probation is considered for confirmation. It may thus be seen that since all the persons who
completed probation in the first appointment will be declared as permanent, the present
distinction between permanent and temporary employees for grant of pension and other
pensionary benefits will cease to exist.

1.5.2 Families of temporary employees who die in harness are also allowed the same death
benefits as admissible to families of permanent employees under these rules.

1.5.3 In a nutshell, for a Govt. Servant to be eligible for pensionary benefits as a matter of
right, the following conditions must be fulfilled: -

(i) The Govt. Servant must have retired or deemed to have been retired,

(ii) The Govt. Servant must have entered service on or before 31-12-2003

2. Classes of Pension

2.1 Superannuation Pension

2.1.1 This is granted to a govt. servant who is retired on his attaining the age of
superannuation i.e. 60 years in the case of all categories of employees. A govt. servant retires
on the afternoon of the last day of the month in which he attains the age of 60. In case his date
of birth falls on the 1st of the month, then he will retire on the last date of the previous month in
which he attains the prescribed age (Rule 35).

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2.1.2 Pension is calculated at 50% of the average emoluments or last emolument
whichever is beneficial irrespective of the length of service provided the service becomes
pensionable (minimum 10 years of qualifying service). The amount of pension finally
calculated is expressed in whole rupees by rounding the fraction to the next higher rupee. Basic
pension is subject to a minimum of Rs. 9000/- p.m. and maximum of 50% of Maximum Basic
Pay, i.e. Rs.1,25,000 p.m. whereas, in 6th CPC the Minimum Pension was Rs.3500/- and
maximum of Rs. 45,000/- per month. For instance, if a Govt. servant retires with Rs.60000/- as
the higher of the last emolument and average emolument, pension payable will be calculated as
under:-

60000 X 50
Pension = ---------------- = Rs. 30,000/- per month +DR
100

2.2 Retiring Pension

2.2.1 It is available to a Govt. servant who retires or is retired in advance of the age of
superannuation. Date of retirement is usually on the expiry of notice period which need not
necessarily synchronize with the last date of the month. Rule 48 and FR 56 contemplate
situations for voluntary retirement as well as for pre-mature retirement, where Govt. can retire its
personnel on completion of the age of 50/55 years or on completing 30 years of service.

2.3 Voluntary Retirement after 20 yrs. of Qualifying Service

2.3.1 A Govt. servant may seek voluntary retirement after completion of 20 years of qualifying
service with a notice of minimum three months (Rule 48A). Date of voluntary retirement will be a
working day for the Govt. Servant.

2.4 Invalid Pension

2.4.1 This is granted on the request of the government servant who is permanently
incapacitated either physically or mentally. The Govt. servant has to get a medical certificate on
the prescribed form (Form 23) from the competent medical authority with full knowledge of the
Head of Office (Rule 38).

2.5 Compensation Pension

2.5.1 This is granted when the permanent post of a Govt. servant is abolished and it is not
possible to appoint him in any other post the conditions of which are deemed to be equal to the
one held by the govt. servant and he does not opt for another appointment on such pay as may
be offered to him (Rule 39).
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2.6 Pension on absorption in Public Sector Undertakings

2.6.1 This is granted a to Govt. servant who has been permitted to be permanently
absorbed by the PSUs or Autonomous Bodies. Such a Govt. servant shall be deemed
to have retired from service from the date of such absorption shall be eligible to receive
retirement benefits, if any. (Rule 37).

2.7 Compulsory Retirement Pension

2.7.1 This is admissible to a govt. servant who is retired as a measure of penalty by the
competent authority. The amount of this pension or gratuity or both shall not be less than two-
thirds and more than full compensation pension that could be sanctioned to a govt. servant on
the date of such retirement. Date of retirement is the date on which penalty becomes effective
(Rule 40).

2.8 Compassionate Allowance

2.8.1 This is available to a govt. servant who is dismissed or removed from service and forfeits
his pension and gratuity. The authority competent to dismiss or remove him from service may in
consideration of deserving cases, sanction a compassionate allowance not exceeding two-thirds
of pension or gratuity or both which he would have got had he retired on compensation pension
and should not be less than Rs. 9,000/- (Rule 41).

3. Basic Factors Governing Pension/Grauity


3.1 The payment of Pensionary Benefits depends on the following: -
(i) Qualifying Service
(ii) Emoluments or Average Emoluments.

3.2 Qualifying Service (QS)

(i) QS is service rendered while on duty or otherwise which shall be taken into account
for the purpose of determining the amount of pension and gratuity.

(ii) Service qualifies only when the duties and pay are regulated by GOI and paid from
the Consolidated Fund of India administered by GOI.

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(iii) QS commences from the date GS takes charge of the post (i.e. Date of joining) and
ends on the date of death or date of retirement.

(iv) Various types of service and whether it qualifies for pension/gratuity.

Period rendered on/in Is it reckoned as Conditions(if any)


QS

Probation(R-15) YES If followed by confirmation in the


same or another post.
Training (R-22) YES There should be no interruption
(Immediately before except joining time
appointment)
(In service) YES --
State Govt. Service YES There should be no interruption
(R-14) except joining time.
Autonomous body Option with GS Subject to certain conditions
(R-14)
Service on contract Option with GS Subject to certain conditions.
(R-17)
Military Service before Option with GS Subject to certain conditions
re-employment (R-19).

(v) Periods spent on leave (R-21)

All leave with leave salary Counts as QS


Extra-ordinary leave
a) With medical certificate Counts as QS
b) Without medical certificate
i) Due to civil commotion Counts as QS
ii) For higher scientific or Counts as QS
technical studies
iii) Other grounds (i.e. other Does not count as QS
than (i) and (ii) above

NOTE:

In case (iii) above, a definite entry is to be made in the service book to the effect that the
EOL without MC is on grounds other than (i) and (ii) above or that the period of EOL will
not count as QS. All spells of EOL without MC not covered by such definite entry
will be deemed as QS.

(vi) Unauthorized absence (over-stayal) in continuance of authorized leave of absence is


to be disregarded while computing QS.

(vii) Periods of suspension


If GS is under suspension and enquiry results to: -
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i) If fully exonerated -- Counts as QS
ii) If suspension is held
wholly unjustified -- Counts as QS
iii) If proceedings end
with minor penalty -- Counts as QS
iv) Other cases -- Does not count as QS (if specific entry)

Note:
Competent authority must declare whether and to what extent period of suspension will
count as QS. In the absence of specific entry, all period of suspension shall count
towards QS. [Rule 23]

(vii) Resignation, removal or dismissal entails forfeiture of past service. [Rules 24].

How to calculate QS?:


To work out the net QS to be reckoned for the purpose of calculating pension and gratuity

Years Months Days

Gross Service i/c past service, if any -- -- --


LESS period of Non-QS -- -- --
Net QS -- -- --
NET QS in SMPs

Note: “Month” means “Calendar month” and Year means calendar year.

Rounding off of Qualifying Service

QS is expressed in completed six monthly periods (SMPs). It is subject to a maximum of


66 SMPS. Broken periods of years are to be reckoned as follows:

Fraction of a year Number of SMP

Less than 3 months Nil


3 months and above but less than 9 months One
9 months and above Two

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3.3 Average emoluments/Emolument (R 33 & 34)

3.3.1 Emoluments and Average Emoluments

(i) Emoluments. Emoluments are used for purposes of calculating pension,


gratuities and Family Pension and other retirement benefits. The term
emoluments is last pay drawn and last pay means the basic pay as per Pay
Matrix (earlier Band Pay plus Grade Pay) as defined in FR 9(21)(a)(I), which a
Govt. servant was receiving immediately before his retirement or on the date of his
death. Non-practicing Allowance also counts towards Emoluments. If a Govt.
servant had been on leave with leave salary or been suspended but later
reinstated without forfeiture of past service, the emoluments which he would have
drawn had he not been absent from duty or suspended, will be reckoned as
emoluments. An increment falling due during EL not exceeding 120 days, even
though not actually drawn, counts as emoluments. When a govt. servant
proceeds on Foreign Service, the pay which he would have drawn under Govt. but
for proceeding on Foreign Service will be treated as emoluments.

(ii) With effect from 1st January 2016, for the purpose of calculation of all kinds of
gratuities (retirement, death, service), Last Pay drawn means pay so fixed in Pay
Matrix plus Dearness Allowance as admissible on the date of retirement will be
taken as ‘Emoluments’. For calculating Encashment of Leave also dearness
allowance on the last pay drawn is taken into account.

(iii) If a Govt. servant dies while under suspension before the disciplinary proceedings
are concluded, the period between the date of suspension and his date of death
shall be treated as duty for all purposes. Pay in such a case would mean
emoluments to which he would have been entitled but for the suspension.

(iv) Average Emoluments (A.E). Average Emoluments (A.E) is used for the purpose
of calculation of Pension. A.E means Emoluments drawn by a Govt. servant
during the last 10 months of his service. In the event of being on EOL or under
suspension during these 10 months, that period will be ignored and equal period
before 10 months will be included for calculation of average emoluments. Pension
will be calculated on Average Emoluments or Emoluments whichever is
beneficial.

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(v) Any reduction in pay drawn during the last ten months of service otherwise than
as a penalty, average emoluments shall be treated as ‘Emoluments’ for the
purpose of determining Retirement Gratuity/Death Gratuity.

Emolument for Emolument for Gratuity Emolument for Family


Pension Pension

Emolument means Last pay drawn or AE (Total Emolument of Last ten


months/10), whichever is beneficial
Pay Means Pay Means Pay Means

Basic Pay as per Basic Pay as per Pay Matrix Basic Pay as per Pay
Pay Matrix +NPA +NPA Matrix +NPA
Plus DA at the time of
retirement/death

Note:

1. Dearness Allowance is reckoned in calculation of ‘Emolument’ only for the


purpose of Gratuities (RG, SG or DG) and NOT for other purpose.
[Rule 33 read with FR 9(21) (a) (i) and DPPW’s OM dated 19-10-93]

2. Do not round off the AE.

3.4 Pension

How to calculate Pension?

50
Formula: Pension = ----- X AE or LPD, whichever is more
100
[Rule 49(2)]
subject to minimum of Rs.9000/- per month
[Rule 48(4)]

3.5 Service Gratuity (In Lieu of Pension)

i. A lump-sum payment payable in lieu of pension.


ii. Admissible to GS who retires from service before completion of 10 years
QS.
iii. How calculated: ½ x E x SMPs (Max. 66)
iv. A GS who has completed 5 years QS and has become eligible for SG or
Pension, on retirement, is eligible for Retirement Gratuity also.

[rule 49(1) & 50(1)

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3.6 Retirement Gratuity

i. Payable to GS on retirement.
ii. Admissible in addition to SG or Pension
iii. How Calculated: ¼ x E x SMPs (Max. 66)
iv. Subject to a maximum of 16 ½ times emoluments provided RG does not
exceed Rs. 20 Lakhs only.
v. Minimum service required is five years.

[Rule 50(1)(a) & first proviso thereto]


3.7 Death Gratuity

i. Payable to the family of the deceased GS


ii. How calculated:

Length of QS Rate of DG

i) Less than 1 year 2 times E


(Provided medically examined)
ii) One year or more but less than 5 6 times E
years

iii) 5 years or more but less than 11 12 times E


years
iv) 11 years more but 20 years less 20 times E
than
v) 20 years of more ½ X E X SMPs (Max. 66)
Provided does not exceed Rs. 20 lakhs
only.

3.8 Residuary Gratuity

i. Payable to the family of the deceased GS


ii. Conditions:
a. GS should be eligible for SG or pension; and

b. If Pensioner has died within 5 years from date of retirement.

c. How calculated: Difference between 12 times emoluments at the time of


retirement and the amount(s) actually received by the GS at the time of death
(SG or pension plus RG plus commuted value of a portion of pension plus
Dearness Relief on pension).
[Rule 50(2)]

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SG, DG or Residuary is paid in whole of a rupee. A fraction of a rupee is rounded off to
the next higher rupee.
3.9 Family for gratuity:

3.9.1 For the purpose of Gratuity, family means –


Category I (i) to (iv)

i. Wife or wives including judicially separated wife or wives in case of male GS,
ii. Husband including judicially separated husband in case of female GS,
iii. Sons including stepsons and adopted sons,
iv. Unmarried daughters including steps-daughters and adopted daughters,

Category II (v to xi)

v. Widowed daughters including step-daughters and adopted daughters,


vi. Father | including adoptive parents in case,
vii. Mother | GS’s personal law permits adoption,
viii. Brothers including step-brothers Below 18 Years Age,
ix. Unmarried sisters and Widowed sister including step-sisters,
x. Married daughters, and
xi. Children of a pre-deceased son.

3.9.2 In case of no nomination or if nomination made does not subsist.

a) Payable to the surviving members of the family as at I to IV in Equal shares.

[Rule 51(b)(1)]

b) In case of no surviving member as at I to IV above payable to the surviving


members of the family as at V to XI in Equal shares.
[Rule 51(b)(ii)]

c) In case there is no family or surviving member of the family, payable to the


person in whose favour a Succession certificate is granted by a Court of Law.
[Proviso to Rule 52]

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3.10 Debarring

3.10.1 A person charged with the offence of murdering or abetting the offence shall be debarred
from receiving the gratuity, unless acquitted of the charge.
[Rule 51(a)]
3.11 Lapse of RG/DG
3.11.1 In the absence of the possibilities given above RG/DG will lapse.

3.12 Family Pension


3.12.1 Admissible to the family of a deceased GS if he dies:

i. After completion of not less than one year’s continuous service; or

ii. Before completion of one year’s continuous service, provided the deceased GS,
immediately prior to his appointment was medically examined and declared fit for
Govt. service; or

iii. After retirement, was in receipt of pension on the date of death.

3.13. Family for the purpose of family pension:

3.13.1 For the purpose of Family Pension, the ‘Family’ shall be categorized as under:-

Category-I
i. Widow or widower, up to the date of death or re-marriage, whichever is earlier; if
the widow is issueless and remarries, her pension will not stop, but as soon as
her income from any source becomes Rs. 9000/- or more it will stop.
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 year
whichever is the earliest.
[Rule 54(14)(b)]
Category-II
i. Unmarried/Widowed/Divorced daughter, not covered by Category I above, upto
the date of marriage/re-marriage or till the date she starts earning or upto the date
death, whichever is earliest.

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ii. Parents who were wholly dependent on the Government servant when he/she
was alive provided the deceased employed had left behind neither a widow nor a
child. Family pension to dependent parents unmarried/divorced/widowed
daughter will continue till the date of death.
Family pension to unmarried/widowed/divorced daughters in Category II and
dependent parents shall be payable only after the other eligible family members in
Category I have ceased to be eligible to receive family pension and there is no
disabled child to receive the family pension. Grant of family pension to children in
respective categories shall be payable in order of their date of birth and younder
of them will not be eligible for family pension unless the next above him/her has
become ineligible for grant of family pension in that category.

3.13.2 The dependency criteria for the purpose of family pension shall be the minimum family
pension along with dearness relief thereon.

3.14 To whom payable

i. Family pension is ordinarily payable to only one person at a time in the following
order:

i) Widow/widower Up to the date of death or re-marriage, whichever is earlier. In


the case of childless widow, remarriage is not a bar. She is
eligible for FP until her independent income from all sources
becomes equal to Rs.9000/- pm or more.
ii) Sons Up to the age of 25 years or marriage or till he starts earning
Rs. 9000/- or more, whichever is earlier.
iii) Unmarried/Widow For life or marriage/ re- marriage or till she starts earning
ed daughters Rs.9000/- or more, whichever is earlier..
iv) Mother/Father Only if the deceased govt. servant/pensioner had neither left
behind widow nor children. Available up to death, first to
mother.

ii. Family pension to children shall be payable in the order of their birth and the younger
of them will not be eligible unless the elder next above him/her has become ineligible
for grant of family pension.

iii. Mentally or physically disabled children, who are unable to earn their own livelihood,
will get family pension for life.

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iv. Life time family pension to disabled children or unmarried/divorced/widowed
daughters only after other members have become ineligible.

v. Family Pension to disabled son admissible ever after his marriage and till he starts
earning Rs.9000/- or more.

vi. If there is unmarried/divorced/widowed daughter above the age of 25years and a


disabled child only to receive the FP then FP shall be payable to the disabled child
first and then to the daughter. (DoP &PW OM dated 11-9-2013)

3.15 Normal rate of family pension - Determined as given below

30% of emoluments subject to minimum Rs.9000 /- and maximum Rs. 75000/- p.m.

3.16 Enhanced rate of family pension

3.16.1 If the Government Servant dies while in service, the enhanced family pension under Rule
54(3)(a)(i), shall be payable to the eligible member of the family for a period of ten years. If any
pensioner dies, then the enhanced family pension under Rule 54(3)(a)(i) shall be payable to the
eligible member of the family for a period of seven years after the retirement or up to the
period the pensioner would have attained the age of 67 years had he been alive, whichever
is earlier. The enhanced rate of family pension is 50% of the emoluments or the amount of
pension authorized at the time of retirement. After the expiry of the period given above the family
pension will be payable at normal rate.

3.17 Eligibility of family pension to children from a void or voidable marriage.

3.17.1 The share of children from illegally wedded wife in the family pension shall be payable to
them in the manner given under sub-rule 7(c) of CCS(Pension) Rule, 1972, along with the legally
wedded wife. (O.M. No.1/16/1996-P&PW(E) vol.II dated 27 November 2012.)

3.18 Revision of Pension:

3.18.1 Pension formulation for the civil employees including CAPF personnel, who retired before
1-1-2016: -

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i) All the civilian personnel including CAPF who retired prior to 1-1-2016 shall first be fixed
in the Pay Matrix, on the basis of the Pay Band and Grade Pay at which they retired, at
the minimum of the corresponding level in the matrix. This amount shall be raised, to
arrive at the notional pay of the retiree, by adding the number of increments he/she had
earned in that level while in service, at the rate of three percent. Fifty percent of the total
amount so arrived at shall be the revised pension.
ii) The second calculation to be carried out is as follows. The pension, as had been fixed at
the time of implementation of the VI CPC recommendations, shall be multiplied by 2.57 to
arrive at an alternate value for the revised pension.
iii) Pensioners are given the option of choosing whichever formulation is beneficial to them.

Illustration on fixation of pension based on recommendations of the Seventh CPC.


Case I:
Pensioner ‘A’ retired at last pay drawn of Rs. 79,000 on 31st May, 2015 under the VI CPC
regime, having drawn three increments in the scale Rs. 67,000 to 79,000:
Amount in Rs.
1. Basic Pension fixed in VI CPC 39,500/-

2. Initial Pension fixed under Seventh CPC (using a 1,01,515/- Option 1


multiple of 2.57)
3. Minimum of the corresponding pay level in 7 CPC 1,82,200/-

4. Notional Pay fixation based on 3 increments 1,99,100/-

5. 50 percent of the notional pay so arrived 99,550 /– Option 2

6. Pension amount admissible (higher of Option 1 1,01,515/-


and 2)

Case II:
Pensioner ‘B’ retired at last pay drawn of Rs. 4,000 on 31 January, 1989 under the IV CPC
regime, having drawn 9 increments in the pay scale of Rs. 3000-100-3500-125-4500:
Amount in Rs.
1. Basic Pension fixed in IV CPC 1,940/-
2. Basic Pension as revised in VI CPC 12,543/-
3. Initial Pension fixed under Seventh CPC (using a 32,236/- Option 1
multiple of 2.57)
4. Minimum of the corresponding pay level in 7 CPC 67,700/-
5. Notional Pay fixation based on 9 increments 88,400/-
6. 50 percent of the notional pay so arrived 44,200/- Option 2
7. Pension amount admissible (higher of Option 1 and 2) 44,200/-

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3.19 Commutation of Pension

3.19.1 Commutation of pension means conversion of a portion of pension into lump sum
amount. Govt. servant who surrenders a portion of his monthly pension receives a lump sum
payment in lieu of such surrender. Lump sum payment is calculated in accordance with the
table of pension values prescribed by the govt. Not more than 40% of Basic pension is allowed
for commutation. Commutation is not allowed when judicial/departmental proceedings are
instituted against a Govt. servant. The formula for calculation of the commuted value is:-

Amount offered for commutation X 12 X Commutation factor.

The commutation table is shown at Annexure ‘A’.

An example of commutation in the case of an employee who retires at the age of 60


years: -

Average Emoluments Rs. 60,000

Qualifying Service 33 years

Superannuation pension 60000 X 50


---------------- = 30000
100
Amount commuted 40% 12000
Residual pension 30000 – 12000 = Rs.18000 p.m.
(Plus dearness relief on full basic pension of Rs.30,000,
presently 0%, may be 2% from July, 2016)
Amount of commuted Value of P. 12000 X 12 X 8.194 = Rs. 11,79,936/-

Commuted portion of pension is restored to pensioners on completion of 15 years from


the date of commutation.

Note: - Additional Pension/Family Pension is allowed to the pensioners/family pensioners on


their attaining the age of 80, 85, 90, 95 and 100 years at the rate of 20%, 30%, 40%, 50% and
100% respectively will be as under.. Dearness Relief is also available on the additional pension.

Age of Pensioner / family Additional quantum of pension


pensioner
80 years to less than 85 years 20% of Basic pension
85 years to less than 90 years 30% of Basic pension
90 years to less than 95 years 40% of Basic pension
95 years to less than 100 years 50% of Basic pension
100 years or more 100% of Basic pension

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Rule 49(2-A)
This benefit of additional pension will be admissible from the 1st day of the month in which the
pensioner reaches the above age.

3.20 Procedure for authorization of amounts of pension and gratuity

3.20.1 Departmental Heads have been made accountable for issuing pension payment and
gratuity orders on or before the date of an employee’s retirement.

3.20.2 Every Head of Department prepares a list every three months on 1st of January/ April /
July/ October each year of all government servants who are due to retire within the next 12 to 15
months. A copy of such list is to be sent to the Accounts Officer.

3.21 Preparation of Pension Papers


3.21.1 This job is undertaken two years before the date of retirement. Service Book has to be
scrutinized, certificates of verification for entire service are recorded and unverified portion, if
any, is required to be verified. For any unverifiable service, the Govt. servant is asked to file a
statement on plain paper and the declaration is taken as truth. All omissions, imperfections and
deficiencies with regard to qualifying service are also made good at this stage.

3.21.2 For calculation of average emoluments, the Head of Department verifies from the Service
Book the correctness of emoluments drawn/to be drawn during the last 10 months of service.

3.21.3 All the actions have to be completed 6 months before the retirement and pension papers
complete in all respects are sent to the Accounts Officer 4 months before the date of retirement.

3.21.4 Pension Process Map and Time Frame for processing Pension cases is shown in a table
at the end of this chapter.

3.22 Authorization of Pension and Gratuity


3.22.1 The Accounts Officer Issues Pension Payment Order not later than one month before
the date of retirement of a Govt. servant. The amount of gratuity is drawn and disbursed by the
Head of Dept. after adjusting any outstanding dues.

3.23 Provisional Pension

19
3.23.1 In case the Accounts Officer is not in a position to issue Pension and Gratuity Order, the
Head of Office will, on the basis of information available in his office records, issue Provisional
Pension Payment Order and Provisional Gratuity. The payment of provisional pension shall not
continue beyond the period of six months from the date of retirement and the provisional
pension/gratuity will become final after six months.

A- Rule 64

Provisional Pension is allowed when:

: Head of office could not forward pension papers 6 months prior to Retirement.
: Accounts officer has raised observation which is likely to delay timely processing.

B-Rule 69

: Where Departmental or Judicial Enquiry is pending against Govt. servant.

In case A
: HOD will authorize provisional pension / RG under intimation to Accounts Officer.
: Provisional Pension is for six months.
: Within six months’ final pension orders are to be issued.
: If not, provisional Pension/Gratuity will be the final.
: If provisional pension is more than final, excess will be recovered from addl. gratuity
if due, otherwise by short payment of pension.
:If Provisional Gratuity more than Final Gratuity; no recovery.
In case B
: Only provisional pension will be authorized by Accounts officer
: No gratuity authorized before conclusion of proceedings.
: Service will be taken up to the date of retirement, if not suspended.
: Service will be taken up to date prior to suspension, if suspended.
: After proceedings are over, final pension orders to be issued.
: No recovery on account of excess pension payment.

3.24 Nominations

3.24.1 The settlement of pensionary benefits is delayed mainly due to non-availability of proper
nominations in service records. This adds to the sufferings to the families of the deceased Govt.

20
servant. To claim the dues, in the absence of nominations, a long procedure has to be
undergone through by obtaining a Succession Certificate. Government servants are entitled to
change our nominations whenever priorities change. Nominations in the case life time arrears of
pension are to be filed before retirement along with the application for pension. Subsequent
modifications to the nominations can also be filed by the pensioners with the respective pension
disbursing authorities. Existence of this nomination will facilitate payment of arrears of pension
to the nominees. Pensioners can also avail of nomination facilities with their bankers.
.
3.24.2 A bachelor at the time of making a nomination nominates his father to receive the gratuity
amount in the event of his death. He may provide that this nomination shall become invalid in
the event of his subsequently marrying. If he does not make this contingency provision in the
nomination and dies after getting married, the payment of gratuities will be made to the nominee
(i.e. his father) and his wife cannot get any share.

3.25 General

3.25.1 All pensions/gratuities and dearness relief are payable in rupees. Pension/family
pension is payable up to and including the date on which its recipient dies.

3.25.2 Grant of Pension and its continuance is subject to future good conduct of the pensioners.
Pension finally authorized cannot be revised to the disadvantage of the pensioner except to
correct a clerical error.

3.25.3 Pension cannot be attached, seized, etc. for any demand against a pensioner; nor can a
pensioner make any assignments etc. in anticipation of pension. But, if a pensioner is convicted
of a serious crime or is found guilty of grave misconduct or negligence, pension may be withheld
or withdrawn fully or partly for a specified or indefinite period after following the prescribed
procedure which inter-alia requires an opportunity being given to the pensioner to show cause
against the action proposed to be taken.

3.26 Interest on Delayed Payments of RG / DG.

3.26.1 Pensioners are entitled to receive interest on Retirement/Death Gratuity if its payment is
delayed due to administrative lapse.
Gratuity becomes payable following the date of retirement:-
- Interest will be paid if delayed by more than 3 months in case of Superannuation.
21
- 6 months in case of retirement other than superannuation.
- 6 months from the date of death in service.

If enquiry instituted: -
- Exonerated: - Gratuity falls due from DOR and interest admissible if payment delayed
beyond 3 months’ period.
- Death: Case dropped. Gratuity falls due on date following death. Hence interest will be
paid beyond 3 months from date of death.
- Not exonerated: If gratuity allowed, falls due on date following the order. Hence interest
beyond 3 months from date of order.

3.27 Check list for settlement of pension cases

i. Application Form for Assessing Pension & Gratuity, in triplicate.


ii. Head of Office to obtain from the govt. servant – particulars of self, family, joint
photographs, in triplicate.
iii. Covering letter in the prescribed form.
iv. Service Book duly completed including Leave Account portion (Date of retirement
to be indicated in Service Book). Certificate of service verification to be
recorded.
v. Statement of Govt. dues, for recovery, if any.
vi. No demand certificate
vii. Nomination for Gratuity
viii. Three copies of specimen signature duly attested.
ix. Three copies of passport size photographs duly attested
x. Certificate to the effect that no disciplinary/vigilance case is
pending/contemplated against the official.
xi. Bank option in triplicate/ Bank detail.
xii. Certificates regarding receipt of leave salary/pension contribution in cases where
the employee remained on Foreign Service (This may be recorded in the
Service Book).
xiii. Medical Certificate of incapacity from competent authority (if the claim is for
Invalid Pension).
xiv. Two slips showing the particulars of height and identification mark, duly attested.
xv. Application for Commutation of Pension.

22
xvi. Aadhar card detail/ number.
3.28 Check list for settlement of Family Pension cases
i. Application form for Family Pension, duly completed.
ii. Service Book (date of death to be indicated in Service Book).
iii. Three specimen signatures of the applicant duly attested.
iv. Three copies of passport size photographs duly attested.
v. Two slips bearing left hand thumb and finger impression of the applicant duly
attested in case the applicant is not literate enough to sign his/her name,
identification, etc.
vi. Descriptive Roll of the applicant duly attested indicating height, personal marks of
identification, etc.
vii. Death Certificate.
viii. Nomination for payment of gratuity.
ix. Bank option in triplicate.
x. Details of Family in the prescribed Form.
xi. Aadhar card details / number.

3.29 Pension paper processing schedule and time frame

S.NO. PROCESS AUTHORITY TIMEFRAME RULE


CONCERNED
1. LIST PREPARATION HEAD OF 1ST OF 56(1)
12-15 MONTHS BEFORE DEPTT. JAN./APRIL/JULY/OCTOBER
RETIREMENT
2. SENDING LIST TO A.O. H.O.D. 31ST OF 56(2)
JAN./APRIL/JULY/OCTOBER
3. SENDING LIST TO HEAD OF 12 MONTHS BEFORE 56(4)
DTE. OF ESTATES OFFICE RETIREMENT
4. VERIFICATION AND HEAD OF 12 MONTHS BEFORE 59(A) & (B)
DETERMINING Q.S. AND OFFICE RETIREMENT
A. E.
5. COMMUNICATION OF HEAD OF 8 MONTHS BEFORE 59(C)
FACTS TO THE EMPLOYEE OFFICE RETIREMENT
6. SUBMISSION OF THE EMPLOYEE 6 MONTHS BEFORE 59(C)(III)
PAPERS BY EMPLOYEE RETIREMENT
7. PRESENTATION OF HEAD OF 4 MONTHS BEFORE 61(4)
PAPERS TO ACCOUNTS OFFICE RETIREMENT
OFFICER
8. CHECKING AND BY AO ACCOUNTS 1 MONTH BEFORE THE 65
AND FORWARDING PPO OFFICER RETIREMENT
TO PENSION PAYING
AUTHORITY
9. DESPATCH OF PPO TO ACCOUNTS ON THE LAST WORKING DAY
CPAO OFFICER OF MONTH PRECEDING THE

23
MONTH OF RETIREMENT

10-A DESPATCH OF BANK HALF CPAO BY 20TH OF THE MONTH OF


OF THE PPO TO CPPC OF RETIREMENT
AUTHORISED BANK
10-B HANDING OVER OF HEAD OF DATE OF RETIREMENT
PENSIONERS HALF OF OFFICE
PPO TO THE RETIRING
EMPLOYEE
11. COMPLETION OF ALL CPPC / PAYING LAST DAY OF THE MONTH.
FORMALITIES AND BRANCH
CREDITING THE PENSION
TO THE PENSIONER’S
ACCOUNT

COMMUTATION TABLE

Age Factor Age Factor Age Factor


20 9.188 41 9.075 62 8.093
21 9.187 42 9.059 63 7.982
22 9.186 43 9.040 64 7.862
23 9.185 44 9.019 65 7.731
24 9.184 45 8.996 66 7.591
25 9.183 46 8.971 66 7.431
26 9.182 47 8.943 68 7.262
27 9.180 48 8.913 69 7.083
28 9.178 49 8.881 70 6.897
29 9.176 50 8.846 71 6.703
30 9.173 51 8.808 72 6.502
31 9.169 52 8.768 73 6.296
32 9.164 53 8.724 74 6.085
33 9.159 54 8.678 75 5.872
34 9.152 55 8.627 76 5.657
35 9.145 56 8.572 77 5.443
36 9.136 57 8.512 78 5.229
37 9.126 58 8.446 79 5.018
38 9.116 59 8.371 80 4.812
39 9.103 60 8.287 81 4.611
40 9.090 61 8.194 - -

24
How is the percentage of disability computed? To whom is it applicable?

3.30 The computing of percentage of disability is application 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 Percentage to be reckoned for


Medical Board computation of disability pension
Up to 50% 50%
More than 50 and up to 75% 75%
More than 75 and up to 100% 100%

3.30.1 Provided that the above broad banding shall not be applicable to Government servants
who are retained in service and are grated lump sum compensation.

3.31 How disability pension is different from Invalid Pension?

3.31.1 The invalid pension is granted under Rule 38 of CCS (Pension) Rules when the
Government servant seek invalidation from service for any bodily or mental infirmity whereas
disability pension is granted under CCS (EOP) Rules. The CCS (COP) rules provided 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.

3.32 Revised quantum of ex-gratia lump sum compensation to Civilian employees who
die in performance of their bona fide official duties.

3.32.1 In modification of Dept. of Pension & PW’s OM No.45/55/97-P&PW(C) dated 11.91998


and DoPT letter No. 14021/4/2016-AIS(II) dated 1st September, 2016 the ex-gratia lump sum
compensation to Civilian employees who die in performance of their bona fide official duties,
have been revised.

3.33 Issue of Identity Card to Pensioner

3.33.1 The office from which a government servant is retired will issue an identity card to the
pensioner. The pensioners’ identity card contains the details regarding address, telephone
number, date of birth, post held at the retirement, PPO / PRAN No., Aadhar card No. etc.

25
3.33.2 The Identity card to pensioners retiring from the Central Govt. offices in Delhi and other
Metropolitan cities / big cities may be printed as Plastic Cards with the help of PVC thermal
Printer with 600 DPI resolutions. Incase such facility for printing of Plastic card is not available in
the office from where the employee is retiring, the Pensioners Identity card may be got printed
locally from the market.

3.34 SANKLAP

(i) Department of Pension and Pensioners Welfare Government of India such started an
initiative in which a platform is provided for the pensioners to access opportunities available for
use interventions in society. It also facilitates the organizations working in these areas to select
appropriate skill and expertise from the available pool of volunteer pensioners. Another key
element of the initiative is to conduct Pre-retirement Counseling Workshops to help the retiring
employees to transit smoothly into their 2nd inning.

Who can be registered under SANKLAP?

(ii) Pensioners, Pensioner’s Association and Non-Government Organizations can be


registered under SANKLAP

What is the essential requirement for the registration of pensioners?

(iii) 12 digit pension payment order (PPO) for central government civil Pensioners and
service number, rank and record office for retired defence personnel. In addition, date of birth,
date of superannuation, designation, department, PAN number and mobile number are essential
for registration of pensioners under SANKLAP.
Method of registration with SANKLAP.

(iv) Pensioners can submit the pensioner registration form on line website, i.e.
http://pensionersportal.gov.in/Sanklap. Also, a self-attested copy of the 12 digit PPO is to be
sent to the DOP&PW. After verification , they are registered and provided login id and password
through which they can log in.

Will a pensioner will get salary / honorarium for his said work?

26
(v) DOPPW only provides a platform where pensioners can access opportunities to work
/ contribute towards on voluntary basis and organizations / Associations can select appropriate
skill and expertise from the available pool of human resources.

3.35 Jeevan Pramaan

3.35.1 Digital life certificate for pensioner’s scheme of the Government of India is known as
Jeevan Pramaan. It seeks to address the problem of pensioners by digitizing the whole process
of securing the life certificate. Every year in the month of November the pensioners has to
provide life certificates to the authorized pension disbursing agencies like the bank, for
continuous crediting of pension to their account. In order to get this life certificates the individual
drawing the pension is required to either personally present himself / herself before the Pension
Disbursing Agency or have a Life Certificate issued by authority where they have served earlier
and have it delivered to the disbursing agency. It has been observed that it causes a lot of
hardship and unnecessary inconvenience particularly for the aged and infirm pensioners who
cannot alas be in a position to present themselves in front of the particular authority to secure
their life certificate. In addition to this a number of pensioners decide to choose to move to other
countries either to be with their family or other reasons, and getting a life certificate becomes a
huge logistical issue.

3.35.2 “Jeevan Pramaan” aims to streamline the process of getting this certificate and making it
hassle free and much easier life for the pensioners. On introduction of this system the
pensioners need not physically present him / herself in front of the disbursing agency or
certification authority. He or she may submit life certificate from home on his computer which
will also be acceptable to bank.

Procedure for on line submission of Life Certificate through Jeevan Pramaan.

3.35.3 Pensioners desirous of using the Jeevan Pramaan Facility has to first enroll their
Aadhaar number in their pension account. Once seeding has been completed, pensioner can
download the software from https://jeevanpramann.gov.in

3.35.4 Pensioner’s information like Pension Aadhaar number, Pensioner Name, PPO Number,
Bank Account detail, Address, Mobile number etc. are fed into the system through web
based/client interface and finally pensioners personal information are authenticated using the

27
Aadhaar number and pensioner has to put his finger on to the finger print scanner or eye on the
Iris scanner.

3.35.5 After successful authentication of Pramaan ID, the transaction number is displayed on
the screen and same is sent to Pensioner’s mobile as SMS from the portal. The portal generates
Electronic Jeevan Pramaan for the successfully authenticated pensioner and it is stored in the
central life Certificate Repository Database. The disbursing Bank can access and get the Jeevan
Pramaan Certificate from the portal for his pensioners through the electronic data transfer
mechanism created between the portal and bank server.

3.35.6 Pensioner has to inform the Bank that his Jeevan Pramaan has been generated through
online registration from Jeevan Pramaan Portal.

3.36 Medical Facility Available to Pensioners

3.36.1 In case the pensioners are using the CGHS facility then they are entitled to continue to
seek treatment from selected dispensary for treatment by depositing a lump sum amount at the
time of retirement according to their pay.

3.36.2 Where the pensioner is residing in areas not covered by CGHS, and if they are not using
CGHS facility for OPD treatment from a CGHS dispensary in the nearest city, then they are
entitled for fixed medical allowance @ Rs.500/- p.m.

********

28
Chapter – 2
Central Government Employees’ Group Insurance Scheme, 1980

I. Features

1. Date of effect: Scheme was notified on 1st November, 1980 and effective from 1st
January 1982.

2. Objective: To provide the following twin benefits at a low cost on wholly


contributory and self financing basis:

i. An insurance cover to help their families in the event of death in service.


ii. A lump-sum payment to augment their resources on retirement.

3. Application: To all Central Government servants including those in the


Railways, Posts & Telecom and Defence except members of Armed and Para
Military Forces and All India Service Officers who have separate schemes of their
own.

4. Membership: The scheme is compulsory for all the employees who entered
central government service after 1.11.80. Those who were already in service on
or before 1.11.80 had an option to opt out of the scheme by 31.1.81 and those
who did not exercise an option to opt out of existing scheme by that date were
deemed to have become members of scheme.

From 1.1.1982 one Unit was Rs.10. However, w.e.f. 1.1.1990 the Unit was
enhanced to Rs.15. Those who were in service as on 31.1.1989 could opt for
continuing in old rates of Rs.10/-. For all others i.e. (who submitted no option or
those entering Service w.e.f. 1.2.1989, they are deemed to have opted for
enhanced rates i.e. 1 unit = Rs.15 w.e.f. 1.1.1990.

Employees will be enrolled as member of the scheme only from the 1st
January every year. However, from the actual date of entry into service till the
end of that year, he/she will be entitled to an insurance cover.
Note: A member of CGEGIS 1980 cannot simultaneously be a member of any
other Group Insurance Scheme.
29
II. Subscription

1. Recovery of Subscription
i. At reduced rates: If a Government Servant joins service after 1st January
the subscription from the date of joining to 31st December of that year will be
recovered at the reduced rate as shown in the table given in the end
towards Insurance Fund.

ii. At full rates: After the enrolment as member from 1st January the
subscription at full rates will be recovered as under :

2. Rate of Subscription

Upto 31.12.1989 From 1.1.1990

Group A. Rs.80/ – (24) Rs.120/- (40)


Group B Rs.40/- (12) Rs.60/- (20)
Group C Rs.20/- (6) Rs.30/- (10)
Group D Rs.10/- (3) Rs.15/- (5)
NOTE: Figures in Bracket represent reduced rates.

3. Recovery of Subscription on Foreign Service: Borrowing government


employer shall effect the recovery of subscription and credit to relevant Head of Account.
In respect of Foreign Service, the recovery will be made from the monthly salary of the
government servant and remitted to the parent office.
Note: The transactions relating to this Scheme are being accounted for in the Public
Account of India under the Minor Head “103”, Central Government Employees’ Group
Insurance Scheme’ below the Major Head “8011, Insurance and Pension Funds”.

4. Recovery to be made till end of Service : It is recoverable till the end of service
including the month in which the employee retires, dies, resigns or is removed from
service etc., irrespective of their being on duty, leave or under suspension.

5. Interest of arrears of subscription: If an employee is on E.O.L., the arrears of


subscription will be recovered together with the interest calculated at the compound rate
of interest admissible under the scheme in not more than three instalments. However, no

30
interest shall be levied on arrears of subscriptions if the non recovery is due to delayed
payment of salary.

6. Raising of Subscription on Promotion: On regular promotion of an employee


from one group to another group after 1st January in any year, his subscription will be
raised only from 1st January of the next year.

Note: Subscription once enhanced will not be reduced, even if the employee is
subsequently reverted.

7. Determination of `Group’ of employees on deputation:

i. If the deputation is on regular basis, the Group will be determined with


reference to the post to which he/she has been appointed on deputation.
ii. If the deputation is on ad-hoc basis, the group will be determined with
reference to the post held by him/her on a regular basis in his/her parent
department.
8. Financing from GPF/CPF : This is not permissible except in extreme financial
hardship of the employee, he/she may be permitted to a non refundable withdrawal from
GPF/CPF Account, of an amount equivalent to a year’s subscription.

Note: If an employee dies before recovery of the subscription, the same will be recovered
from the amounts payable to his/her family.

III. Benefits Payable

1. On retirement, resignation etc: He/she will be entitled to the payment of the


lump-sum amount of accumulation in the Saving Fund alone as per Table for the
relevant year.

Calculation of amount payable from Savings Fund where an employee had


subscribed to more than one Group:

i. The amount due to him/her out of the Savings Fund for the entire period of
his/her membership in the lowest Group; plus

ii. The amount or amounts due to him/her for the additional units by which his
subscription was raised on each occasion for the period from which, the
rate of subscription was raised, to the month of cessation of membership.

31
2. Death while in Service: His/her family/nominee(s) will be entitled to the payment
of the lump-sum amount in the Saving Fund and in addition, the amount of appropriate
insurance cover to which he/she was entitled at the time of death.

Note: This is admissible in case of Suicide also.

Important: If an employee dies while in service before becoming a member of the


scheme, his/her family/nominee(s) will be entitled to the payment of appropriate
insurance cover only and no benefit will be payable from Saving Fund.

3. Income Tax Rebate: Income Tax Rebate is admissible for the amount of
subscriptions paid under the scheme as in the case of GPF Contribution, LIC Premia etc
under Section 80-C of Income Tax.

4. Assignment of Insurance Cover and accumulation in the Savings Fund to a


recognised financial institution for the purpose of obtaining housing loan is permissible.

5. No withdrawals/loans/advances permissible from the Funds of the Scheme.

6. Recovery of Government dues is also not permissible.

IV. Nominations

1. Definition of Family: `Family’ means husband, wife or wives, parents, children,


minor brothers, unmarried sisters, deceased son’s widow & children and where no parent
of the subscriber is alive, a paternal grandparent.

If an employee has a family at the time of making the nomination, he/she shall make
such nomination only in favour of a member(s) of his/her family, and any nomination
made before marriage of the employee becomes invalid after marriage.

However, a female subscriber, by notice in writing to the head of office, can exclude her
husband from her family.

2. Payment in absence of valid nomination: The nomination, if any, made under


GPF/CPF Rules, may be accepted.

32
If there is no nomination even for GPF/CPF, Head of Office may make payment in
equal shares to the widow/widows, minor sons and unmarried daughters.

3. Payment, when an employee is missing:

i. In case an employee is missing and his/her whereabouts are not known


despite efforts by police on due complaint to them, the accumulations in the
Savings Fund may be paid to the nominees/heirs after a period of one year
following the month of disappearance.

An Indemnity bond is taken from the nominees / dependents of the employee


that all a payment shall be adjusted against the payment due to the employee in
case he /she appears on the scene and makes a claim.

ii. The Insurance cover may be paid to the nominees or heirs of the missing
employee after a period of seven years following the month of disappearance of
the employee. For this purpose, the claimants have to produce a proper and
indisputable proof of death or a Decree of the Court that the employee
concerned should be presumed to be dead as laid down in Section 108 of the
Indian Evidence Act.

4. Debarring an eligible person from receiving insurance amounts: If a


person who, in the event of death of a Government servant while in service, is eligible
to receive the insurance amounts, is charged with the offence of murdering the
government servant or for abetting in the commission of such an offence, his/her claim
to receive insurance amount shall be suspended till the conclusion of the criminal
proceedings instituted against him/her. On the conclusion of the criminal proceedings,
the person, if convicted, shall be debarred from receiving the share of insurance
amounts, which shall be paid in equal shares to other eligible persons. If acquitted,
his/her share be paid without any interest.

5. Individual Record of Membership: - Form No.13 will be included in the Service


Books of all the members of the Scheme as individual record. Every year, in the month
of January and at the time of transfer of the members, the Head of Office shall record
the following certificate in the remarks column over his dated signature: -

33
“Subscription at the rate of RsYYYYYappropriate to Group YYYY.of the
Scheme recovered from Pay and Allowances or the period from January YYYto
DecemberYYYY”

All other events such as promotion, transfer on deputation / foreign service,


absorption in Public Sector Undertakings / Autonomous Bodies, retirement, etc.
occurring during the service career of the members shall also be recorded in Col. 6 duly
attested.
{O.M. dated 26.2.1990}.

********

34
Chapter – 3
Leave Encashment

I. The authority competent to grant leave shall suo motto issue an order granting cash
equivalent of leave salary for Earned Leave, if any, at the credit of Government servant
concerned, on the last day of his service subject to a maximum of 300 days in respect of the
following categories:

(i) Retirement on attaining the age of superannuation; [39(2)]

(ii) Cases where the service has been extended, in the interest of public service
beyond the date of retirement on superannuation; [39(4)]

(iii) Voluntary/pre-mature retirement; [39(5)]

(iv) Where the services are terminated by notice or by payment of pay and allowances
in lieu of notice, or otherwise in accordance with terms and conditions of
appointment; [39(6)(a)(I)]

(v) Termination of re-employment after retirement; (39(6)(a)(iii)]

(vi) To the family of the deceased Government servant died while in service; [39A]

(vii) Invalidation on Medical ground [39-B]

(viii) Compulsory retirement as a measure of punishment [39(5)(A)]

(ix) Absorption in a Public Sector Undertaking/autonomous body wholly or substantially


owned or controlled by the Central/State Government;(39-D)

(x) Transfer to an industrial establishment; [Rule 6]

II. Leave Encashment

1. Earned Leave: The authority competent to grant leave shall suo-motto issue an
order granting cash equivalent of leave salary for Earned Leave, if any, at the credit of
Government servant concerned, on the last day of his service subject to a maximum of
300 days in respect of the following categories:

35
i. Retirement on attaining the age of superannuation;

ii. Cases where the service has been extended, in the interest of public
service beyond the date of retirement on superannuation;

iii. Voluntary/pre-mature retirement;

iv. Where the services are terminated by notice or by payment of pay and
allowances in lieu of notice, or otherwise in accordance with terms and
conditions of appointment;

v. Termination of re-employment after retirement

vi. To the family of the deceased Government servant died while in service;

vii. Invalidation on Medical ground;

viii. Compulsory retirement as a measure of punishment without reduction in


pension;

ix. Absorption in a Public Sector Undertaking/autonomous body wholly or


substantially owned or controlled by the Central/State Government;

x. Transfer to an industrial establishment;

Half of the leave at credit on the date of cessation of service, subject to a maximum of
150 days is to be encashed in case when a Government servant resign or quits service, of his
own accord. [39(6)(a)(ii)]

Encashment not exceeding 10 days of Earned Leave at a time is permissible for availing
LTC subject to he condition that.

(i) The total leave so encashed during the entire career does not exceed 60 days in the
aggregate.
(ii) A balance of at least 30 days of EL is still available to the credit after taking into account
the period of encashment as well as leave if taken.

36
Cash equivalent of leave salary consist of pay plus appropriate Dearness
Allowance thereon admissible at the time retirement.

Formula for calculation:

(Pay + D.A) admissible on the crucial date x No. of days of EL encashable


30

Limitations: Special Pay is counted for leave encashment. Personal pay for Family Planning
and Hindi Teaching Scheme are also not counted for this purpose.

2. Half Pay Leave

A Government servant is also entitled to encashment of HPL subject to the conditions


that in the following cases the period of Earned Leave plus HPL does not exceed the period
between the date of actual retirement and the date on which he/she would have retired in the
normal course on attaining the age of superannuation

i. Premature or voluntary retirement.


ii. Invalidation on Medical ground (only those permanent and quasi-permanent).

No commutation of half-pay leave is admissible to make up the shortfall in E.L.


encashment.

[This restriction is not applicable if encashment of EL alone is due and granted subject
to maximum of 300 days.]

Formula for calculation:-

Cash HPL admissible on Number of days of HPL at


payment in the date of retirement credit subject to the total of
lieu of HPL = + DA admissible on X EL + HPL not exceeding
component that date 300 days
30

HRA is not taken in to account for leave encashment.

********

37
Chapter – 4
General Provident Fund (Central Services) Rules, 1960

I. Short Title and Commencement (Rule 1)

a) These Rules may be called the General Provident Fund (Central Services) Rules
1960.
b) They shall be deemed to have come into force on 1st April, 1960.

II. Definitions (Rule 2)

a) “Emoluments” means basic pay, dearness pay, leave salary and any
remuneration of the nature of pay received in foreign service.

b) “Family” means - the subscriber’s spouse, parents, children, minor brothers,


unmarried sisters, deceased son’s widow and children and where no parents of the
subscriber is alive, a paternal grandparents; but the female subscriber by notice in
writing to the Accounts Officer can exclude her husband from the definition of
family.

c) “Years” means financial year.

III. Conditions of eligibility (Rule 4)

a) All Temporary Government Servants after completing one year service.

b) All re-employed pensioners (other than those eligible for C.P.F.)

c) All permanent Government Servants.

Note: 1. Temporary Government Servants may subscribe to GPF any time before
the completion of one year service.

2. Apprentices and Probationers shall be treated as temporary Government


Servants.

38
IV. Nominations (Rule 5)

a) Submission of the nomination form by subscriber


A subscriber shall, at the time of joining the fund, submit to the Accounts Officer, through
the Head of Office, a nomination conferring on one or more persons the right to receive
the amount, that may stand to his credit in the fund, in the event of his death.

b) Must be in favour of family if he has family

If a subscriber who has family at the time of making the nomination shall make such
nomination only in favour of a member or members of his family.

c) Share should be specific:

If a subscriber nominates more than one person, he shall specify the amount or share
payable to each of the nominees in such a manner as to cover the whole of the amount.

d). Nomination in prescribed form

Every nomination shall be made in the form set forth in First Schedule.

e) Nomination can be changed at any time.

A subscriber may at any time cancel a nomination by sending a notice in writing. The
subscriber shall, along with such notice or separately, send a fresh nomination.

f) Nomination / Cancellation of nomination take effect from the date it is received by


Accounts Officer.

Every nomination made and cancellation given by subscriber shall take effect on the date
on which it is received by the Accounts Officer. But nomination/cancellation of
nomination of a subscriber held valid even if he dies before it reaches the Accounts
Officer.

g) Nomination can be changed after retirement.

Nomination made while in service can be changed after retirement but before receipt of
the final payment..

h) Nominee facing trial may be denied payment.

39
Nominee facing trial for the murder of the government servant may be denied payment
till the court’s decision.

i) Provident fund assets not to be paid to nominee when the matter is sub-judice.

V. Subscriber’s Account (Rule 6)

An account shall be opened in the name of each subscriber in which shall be shown.

i) his subscriptions.
ii) interest, as provided by Rule 11, on subscriptions.
iii) advances and withdrawals from the fund.

Note: Provident Fund Account Number to be entered at the right hand top of page 1 of the
Service Book.

VI. Conditions & Rates of Subscriptions (Rule 7 & 8)

1. a) A subscriber shall subscribe monthly to the fund except during the period when
he is under suspension. (But on his reinstatement he has to pay in one lump-sum or
in installments the amount of arrears subscription payable for suspension period).

b) A subscriber may, at his option, not subscribe during E.O.L. or H.P.L.

c) A subscriber need not subscribe during dies non.

d) Subscription to be compulsorily discontinued during the last 3 months of service


on superannuation.

e) The subscription shall be expressed in whole rupees.

f) Not less than 6% and not more than total emoluments: Subscription may be any
sum, so expressed not less than 6% of his emoluments and not more than his total
emoluments.

For the purpose of 6% the emoluments of 31st March:

40
2. a) In the case of subscriber who was in government service on the 31st March of
the preceding year, the emoluments to which he was entitled on that date.

b) In the case of subscriber who was not in government service on the 31st
March of the preceding year, the emoluments to which he was entitled on the day
he joins the fund.

3. No change of subscription due to retrospective change of pay: Rate of


subscription once fixed not to be varied during the year on account of retrospective
increase or decrease in rate of pay ordered subsequently.

4. Reduced once enhanced twice: The amount of subscription so fixed may be –


a) Reduced once at any time during the course of the year.

b) Enhanced twice during the course of the year; or

c) Reduced and enhanced as aforesaid.

5. Short/Excess recovery: Short or excess recovery of subscription may be


regularized by adjustment in subsequent months or by actual cash payment.

6. Subscription may become less than 6% due to rounding off.

VII. Interest (Rule 11)

1. Interest, at the prescribed rates, shall be credited with effect from the last day in each
year in the following manner:-

a) On the amount to the credit of a subscriber on the last day of the preceding
year, less any sums withdrawn during the current year- Interest for twelve
months.
b) On the sums withdrawn during the current year – Interest from the beginning
of the current year upto the last day of the month preceding the month of
withdrawal.

41
c) On all the sums credited to the subscriber’s account after the last day of the
preceding year – interest from the date of deposit upto the end of the current
year.
d) The total amount of interest shall be rounded to the nearest whole rupee (fifty
paise counting as the next higher rupee).

2. If delay in the drawal of pay or leave salary: The interest on such delayed
recoveries shall be payable from the month in which the pay or leave salary was due,
irrespective of the month in which it was actually drawn.

3. Interest payable after the date of retirement, death etc. Interest to the end of the
month preceding that in which the payment is made or upto the end of the sixth
month after the month in which such amount, became payable whichever of these
periods be less, shall be payable to the person to whom such amount is to be paid.

Note: Payment of interest on the fund balance beyond a period of 6 months may be authorized
by -
a) The Head of Accounts office up to a period one year; and
b) The immediate superior to the head of accounts officer up to any period
after he has personally satisfied himself that the delay in payment was not part of
subscriber or the nominee and in every such case the administrative delay
involved shall be fully investigated and action, if any required, taken.

4. Excess drawn from the Fund: In case a subscriber is found to have drawn from
the fund an amount in excess of the amount standing to his credit on the date of the
drawl, the overdrawn amount shall be repaid with interest @2.5% over and above the
normal rate of interest on the provident fund in one lumpsum, if possible, or otherwise
in installments.

VII. Advances from G.P.F. (Rule 12)


Purposes

1. Illness: Expenditure in connection with illness, confinement or disability including


the traveling expenses of the official and members of his family or any person
actually dependent on him.

42
2. Education: Cost of higher education including traveling expenses of the
subscriber and members of his family or any person actually dependent on him -

i) for education outside India for academic, technical, professional or vocational


course beyond the high school stage, and

ii) for any medical, engineering or other technical or specialized course in India
beyond the high school stage if the course of study is for not less than three
years.

3. Obligatory expenses: Obligatory expenses in connection with betrothals


marriages, funerals or other ceremonies, including first shradh ceremony.

4. Cost of legal proceedings: Instituted by or against the subscriber, any member


of his family or any person actually dependent upon him (in addition to any
advance admissible for the same purpose from any other Government source).

5. Cost of defence: When he engages a legal practitioner to defend himself in an


inquiry in respect of any alleged official misconduct on his part - [Rule 12(1)]

6. Consumer Durables: Meeting cost of consumer durables such as TV,


VCR/VCP, washing machines, cooking range, geysers, computer, etc.
7. For Pilgrimage and visiting places of eminence of all religion (Rule 12(1)

Amount of Advance Permissible

1. Normal: 12 months’ pay or ¾th of the amount at credit, whichever is less, and
recoverable in not more than 60 equal monthly installments. - Rule 12(1) &
13(1). (amended vide DoPT OM No. 3/2/2017-P&PW(F)(i) dated 7/03/2017).

2. No documentary proof is required to be furnished by the subscriber. A simple


declaration will be sufficient.

3. Consolidation of advances: When an advance is granted before complete


repayment of any earlier advance, the outstanding balance will be added to

43
the new advance and installments for recovery re-fixed with reference to the
consolidated amount. – Rule 12(3).

Sanctioning Authority

1. Normal advances: Authority competent to sanction advance of pay on transfer.


If the applicant himself is the authority, then the next higher administrative
authority – Fifth Schedule. ( Head of Office)
2. Special advances: As in Fifth Schedule to GPF(CS) Rules. (Head of
Department)

Recovery

1. Recovery should commence with issue of pay for the month following the one in
which the advance was drawn, e.g. for advance drawn in April, recovery should
commence from pay for May payable on 31st May. - Rule 12(2).

2. When balance of the previous advance is consolidated with the amount of new
advance, the recovery of previous advance will continue till the recovery of the
consolidated amount commences. - GID (10), Rule 12.

Withdrawals from G P F (Rule 15)


Purposes

1. Education: Cost of higher education including, where necessary, the traveling expenses
of the subscriber or any child of the subscriber for –

i) Education outside India for academic, technical, professional or vocational


course beyond the High School stage, and

ii) For any medical, engineering or the technical or specialized course in India
beyond the High School stage.

2. Obligatory expenses: Obligatory expenses in connection with betrothal and/or


marriage of the subscriber or his sons or daughters or other family relations actually
dependent on him.
44
3. Illness: Expenditure in connection with the illness including the traveling expenses of
the subscriber and members of his family or any person actually dependent on him. –
Rule 15(1)(A).

4. Consumer Durables: Meeting cost of consumer durables such as TV, VCR/VCP,


Washing Machines, Cooking Range, Geysers and Computer [Rule 15(1)(A)].

5. Housing: Building or acquiring a suitable house or ready-built flat including the cost of
site.

6. Repayment of outstanding housing loan: Expressly taken for building or acquiring a


house or ready-built flat.

7. Purchasing a house site: For building a house or repaying any outstanding loan
expressly taken for this purpose.

8. Constructing: A house on a site purchase under item 6 above.

9. Reconstructing: Or making additions/alternations to a house/flat already owned.

10. Renovating ancestral house: Renovating, additions or alternations or upkeep of an


ancestral house at a place other than place of duty or to a house built with the
Government loan at place other than place of duty. - Rule 15(1)(B).

If the ancestral house has not been transferred in the name of the government servant,
he/she should produce proof that he/she is one of the inheritors/nominees to receive the
share of the property. - GID(5), Rule 16.

11. Extensive repairs/overhauling of his motor car – GID(2), Rule 15.

12. Purchase of motor car/motor cycle/scooter, etc. – GID(1), Rule 15.

13. Making deposit to book a motor car/motor cycle/scooter/moped, etc. - GID(3),


Rule 15.

45
14. Once in a financial year towards subscription paid for the Group Insurance
Scheme - Rule 15(1)(D).
15. With in two year of retirement without assigning any reason.
16. Conversion of lease hold property into free hold.
Limits

1. In respect of items 1 to 4 –
a) Withdrawal admissible upto 12 months pay or three-fourths of the amount at
credit whichever is less. In respect of illness, the withdrawal may be allowed upto
90% of balance authority. – Rule 16(I).

2. In respect of items 5 to 10 -

a) Up to 90% of balance at credit.

b) The amount of withdrawal plus the government loan already taken should not
exceed the limits prescribed under the HBA Rules – Rule 16(1) and Proviso.

3. For item 11 to 13 withdrawal is admissible upto ¾th of balance or the actual cost which
ever is less.

4. For item 14, an amount equivalent to one year’s subscription paid towards the Group
Insurance Scheme. Rule 15(1)(D).

5. For item No. 15 an amount equivalent to 90% of the balance available in subscriber
before two years of retirement.

6. For item No. 16 an amount equivalent to 90% of the balance available or actual charges
whichever is less.

Eligibility

1. For items 1 to 4: After completion of 10 years of service (including broken


periods) or within ten years before the date of superannuation, whichever is earlier. -
Rule 15(1)(A).

46
2. For items 5 to 10: Any time during the service - Rule 15(1)(B)

3. For item 14: All officials admitted to the Group Insurance Scheme. However,
withdrawal is permitted if only at any stage the position of a subscriber does not permit
him to subscribe to the Group Insurance and GPF/CPF at the same time. - Rule 15(I)(D)
read with para 10.1 of CGEGIS, 1980.

4. For item 15: Withdrawal without assigning any reason: Within 2 years before
retirement on superannuation, an employee can withdraw, without assigning any reason,
up to 90% of the amount at his credit. This facility can be availed only once. - Rule
15(1)(C).

5. Charges for conversion from leasehold to freehold of property allotted /


transferred by Delhi Development authority / State Housing |Boards / House |Building
Co-operative societies.

Note 1: Only one withdrawal can be allowed for the same purpose. Marriage or
education of different children or illness on different occasions or a further
addition/alternation to a house/flat covered by a fresh plan- these are treated as
for different purposes. – Note 5, Rule 15(1).

2. Betrothal and marriage are treated as separate purposes. –


GID(2), Rule 16(1).
3. Both advance and withdrawal should not be sanctioned for one and the
same purpose. - Note 6, Rule 15(1).

Sanctioning authority: Authority competent to sanction advance for special reasons as in


Fifth Schedule i.e. Head of the Department.

VIII Deposit Linked Insurance Scheme

When a GPF or CPF subscriber dies while in service after rendering 5 years of
continuous service, the person/persons receiving the Fund balance will be paid an additional
amount if the balance at credit had not fallen below the under mentioned limits at any time
during the 3 years preceding the month of death:

47
GPF (VI Pay Commission scale) CPF (IV Pay Commission Scale)

If the subscriber was Minimum If the subscriber has held for Minimum
drawing monthly the greater part of the monthly
balance aforesaid three years a post balance
during the the maximum of the pay scale during the
preceding 36 of which is preceding 36
months months.
Grade Pay of Rs.4,800 p.m. Rs.25,000 Rs.4,000 or more Rs.12,000
or more

Grade Pay of Rs.4,200 p.m. Rs.15,000 Rs.2,900 to Rs.3,999 Rs.7,500


or more but less than Rs.
4,800 p.m.

Grade Pay of Rs.1,400 p.m. Rs.10,000 Rs.1,151 to Rs.2,899 Rs.4,500


or more but less than Rs.
4.200 p.m.

Revised rates based on Seventh Pay Commission pay scales awaited . Rule 33-B, GPF
Rules

2. The additional amount will be equal to the average balance in the account during the
period of 36 months preceding the month of death, subject to a maximum of Rs. 60,000/-
in the case of GPF subscribers and Rs. 30,000/- for CPF subscribers. The maximum limit
is to be applied after arriving at the average of 36 months and not at every stage.

3. The balance for March every year and for the last month of the three-year period will be
inclusive of interest.

4. In the case of CPF, ‘balance’ and ‘average balance’ would mean only employee’s
subscription and interest thereon.

5. Payments will be made by Accounts Officer (Head of Office in the case of Group ‘D’)
without formal sanction and in whole rupees, fraction being rounded to the nearest rupee.

6. In the case of persons appointed on tenure basis / re-employed pensioners, service


rendered from the date of appointment / re-employment, as the case may be, only will
count.

48
7. This scheme does not apply to persons appointed on contract basis.

8. Admissible on death after the working hours of the last working day but before 12
midnight as this will be treated as “death while in service”.

9. In the case of missing employees, payment can be made to the nominee / legal heirs
after expiry of a period of seven years following the month of disappearance of the
subscriber on production of a proper proof of death or a Decree of the Court that the
employee shall be presumed to be dead as laid down in Section 108 of the Indian
Evidence Act – Rules 33-B (GPF), 35-B (CPF), GID(I) and Notes there under.

NOTE: For payment of amount under Deposit Linked Insurance Scheme the
subscriber should have put in at least five years’ service as on date of his death.

Withdrawals from The GPF


Reason Eligibility Limit
Cost of higher education 10 yrs from the joining 12 months pay
(least amt)
Consumer durables -do- or
Obligatory expenses -do- 90% of balance

Illness -do- Upto 90% of balance


Building/acquiring a Any time during service
house/flat
Repayment of housing loan -do- -do-
Purchasing a house site -do- -do-
Reconstruction of house -do- -do-
Construction of house -do- -do-
Renovation of ancestral -do- -do-
house
Without any reason Within 24 months of Upto 90%
superannuation retirement
Subscription for CGEGIS Once in A FY Equivalent amt
Purchase of conveyance 10 years from the joining
3/4th of the balance or
Extensive 3 years from retirement actual cost whichever is
return/overhauling of motor less
car
Payment of conversion Once during service Upto 90% balance
charges of property

********

49
Chapter – 5
Travelling Allowance Admissible on Retirement

1. T.A. on Retirement (also on death of a G.S.)

The entitlements are given below:-

1.1 When the retired employee settles down at a station other than the last station
of duty:
(i) Composite transfer grant;

(ii) The Composite Transfer Grant shall be equal to 80% of last month’s Basic Pay
as per Pay Matrix in case of transfers involving a change of station located at a
distance of more than 20 km from each other. In cases settling at a station,
which are at a distance of less than 20 km from the old station and of transfers
within the same city, the composite Transfer Grant will be restricted to one-third
of the basic pay, provided a change of residence is actually involved. In case of
settlement to and from the Island territories of Andaman, Nicobar &
Lakshadweep, CTG shall be paid at 100% of last month’s basic pay;

(iii) Actual fares for self and family for journey by rail / steamer / air;

(iv) Cost of transportation of personal effects;

(v) Road mileage journey by road between places not connected by rail;

(vi) Cost of transportation of conveyance possessed by the employee.

1.2 The grade of the government servant and the number of fares admissible are
determined with reference to the facts on the date of his retirement. No travelling allowance
is admissible for any member added to the family after the date of retirement.

2. Settles at the same station

(i) No T.A. if no change of residence involved;

(ii) If there is compulsory change of the residence solely due to the retirement;
50
_________________________
5 Based on M.O.F. OM No.19030/1/2017-E.IV dated 13th July 2017

(a) Actual cost of conveyance for self and family limited to the road mileage and
actual cost of transportation of personal effects admissible subject to the
prescribed limits; and

(b) Composite Transfer grant equal to one-third of Pay.

Two stations within a short distance of not more than 20 kms.


(i) No T.A. if no change of residence is involved;

(ii) If change of residence is involved.

(a) Full Transfer TA will be allowed; and

(b) Composite transfer grant equal to one third of Pay.

3. Actual Fares for Self and Family: -

3.1 Actual fare is admissible to self and dependent family member(s) as per entitlements
/ eligibility of the Government servant for claiming mileage allowance for road journeys,
those officers who are entitled to travel by taxi, can claim as per the rates prescribed by the
Department of Transport for taxi/auto rickshaw.

3.2 At places where no specific rates have been prescribed by the Department of
Transport of concerned State or the neighbouring State the prescribed rates are;-

i. For journey performed by own car / taxi Rs.24/- Per KM


ii. For journey performed by auto rickshaw Rs.12/- Per KM

4. Transportation of Personal Effects by Rail

The entitlements for carriage of personal effects are shall be as follows:-

The rates of transportation of personal effects are as per the class of cities viz. X, Y
and Z class city vide G.I.,M.F., O.M. No.19030/1/2017-E-IV dated 13-07-2017. These
revised rates as mentioned below are effective from 1-9-2008:-
51
Pay in pay matrix By Train/ Steamer By Road

Level 12 and above 6000 kg by goods train/ 4 wheeler Rs.50/- per k.m.
wagon/ one double container
Level 6 to 11 6000 kg by goods train/ 4 wheeler Rs.50/- per k.m.
wagon/ one single container
Level 5 3000 kg. Rs.25/- per k.m.
Level 4 and below 1500 kg Rs.15/- per k.m.

5. Transportation of Conveyance
The scales for transportation of conveyance at government expense will be as
follows:-
Pay in pay matrix Reimbursement
Level 6 and above One motor car, or one motor cycle / scooter
Less than Level 6 One motor cycle/scooter/moped, or one bicycle.

5.1 Transport by rail


(i) By Passenger train: Actual freight charged by the Railway;

(ii) By goods train: Cost of packing, cost of transporting the packed car, motor cycle
to and from the goods shed, cost of crating the car, loading and unloading
charges, cost of ropes, etc. are all reimbursable. Claim to be limited to the
amount under (a) above:- SR 16(a) I (iv), Note 3;

(iii) One Second Class fare by the shortest route between the stations from and to
which the car is actually transported by rail can be drawn for a Chauffeur or
Cleaner- (SR 16(a) I (iv), Note 3.

5.2 Transport by Road


(a) Car/ Motor Cycle/Scooter etc.

52
Mode of Transport Between places connected by rail Between places not
connected by rail
(i) When the Actual expenses / amount at the Actual Expenses
conveyance is sent prescribed rate / cost of transportation by limited to the amount
loaded on a truck passenger train, whichever is the least. at the prescribed rate.

(ii) When the Amount at the prescribed rate limited to Amount at the
conveyance is sent cost of transportation by passenger train. prescribed rate fixed
under its own by Directorate of
propulsion Transport.

5.3 Transportation of Conveyance


5.3.1 In partial modification of S.R. 147, the expenditure on transportation of conveyance
by government servants on their retirement shall be reimbursed without insisting on the
requirement that the possession of the conveyance by them while in service at their last
place places of duty should have been in public interest.

5.4 Lump sum Transfer Grant and Packing Allowance


5.4.1 The lump sum transfer grant and packing allowance may also be replaced by the
composite transfer grant equal to 80% of basic pay as per 7TH CPC ) in the case of those
employees who, on retirement, settle down at places other than the last station(s) of their
duty located at a distance of more than 20 km. The transfer incidentals and road mileage
for journeys between the residence and the railway station/bus stand, etc. at the old and
new stations, presently admissible, will also be subsumed in the composite transfer grant
and will not be separately admissible.

********

53
Chapter – 6
New Pension Scheme
1. Introduction

1.1 The Government of India (G.o.I.), being a model employer has all along provided various
welfare schemes to its employees. These schemes have provided a reasonably comfortable and
financially independent life to the Govt. employees while in service and after retirement and also
to their dependent family members even after the death of the Govt. employee.

1.1.1 Two main pillars of the welfare schemes are pension scheme and medical facilities (in
the form of Central Govt. Health Scheme, which covers both serving and retired employees).
The Pension Scheme is the single most important welfare scheme for looking after the
employees and their families after the retirement / death of the employee.

1.1.2 The Pension Scheme as existed prior to 1st January, 2004 has been a system of
‘Defined Benefit Pension Scheme’, which provides a monthly amount as pension and a lump
sum amount as Gratuity to the employee. A portion of the pension could be commuted and
drawn as a lump sum amount at the time of retirement. In the case of death of the employee,
family pension would be available to the spouse for life and after the death of the spouse to the
children, subject to certain conditions.

1.2 Burden of Pension Scheme

1.2.1 In the Defined Pension Benefit Scheme, the employee does not make any regular
contribution from his salary during the service to earn the pensionary benefits after retirement.
Such a scheme is bound to become a great financial burden to the exchequer which could not
be financially sustained for long.

1.2.2 It is a fact that people are currently living much longer than previous generations. The
average 60-year-old is living ten years longer now than their counterparts did in the 1970s. The
impact of this increased longevity on pensions is that they are constantly costing more and more
to the ex chequer.

1.2.3 Therefore, introduction of a self-sustaining pension scheme was the need of the hour.
Such a scheme would require the employee to contribute a regular amount during his service
and the Govt. also to contribute regularly, forming a corpus to provide regular monthly pension

54
income to the employee after retirement depending the contribution accumulated by the
employee during his service period.

1.3 New Pension Scheme (NPS)

1.3.1 Therefore, GoI has introduced a new ‘Defined Contribution Pension Scheme’
(replacing the earlier existing system of ‘Defined Benefit Pension System’) vide Govt.
Notification dated 22 Dec 2003. The scheme is called ‘New Pension Scheme’ (NPS). The NPS
is applicable for all government employees except the three defence forces. The existing
provisions of Defined Benefit Pension and GPF would not be available to new Government
servants joining Government service on or after 1st January, 2004.

i. The system is mandatory for all new recruits to the Central Government service from 1-1-
2004 (except the Armed Forces in the first stage). The monthly contribution is 10 per cent
of the basic pay and DA to be paid by the employee and matching contribution by the
Central Government. The contributions are deposited in a non-withdrawable pension
Tier-I account. The existing provisions of defined benefit pension and GPF would not be
available to the new recruits in the Central Government service.

ii. In addition to the above pension account, each individual may also have a voluntary Tier-
II withdrawable account at his option. Government will make no contribution into this
account. These assets would be managed through fund managers. However, the
employee would be free to withdraw part or all of the ‘Tier -II’ of his money any time. This
withdrawable account does not constitute pension investment, and would attract no
special tax treatment, but Tier –II is yet to be started by the Government.

1.4 Investments

1.4.1 The Pension contributions of Central Govt. employees covered by the New Pension
System (NPS) is invested by professional Pension Fund Managers in line with investment
guidelines of Government applicable to non-Government Provident Funds.

1.4.2 The NPS has been designed to enable the subscriber to make optimum decisions
regarding his/her future and provide for his/her old-age through systemic savings from the day
he/she starts his/her employment. It seeks to inculcate the habit of savings for retirement
amongst the employees.

55
1.5 Pension Fund Regulatory and Development Authority (PFRDA)

1.5.1 PFRDA was established by Govt. of India on 23rd August 2003. The Govt. has through
an executive order dated 10th October, 2003, mandated PFRDA to act as a regulator for the
pension sector. The mandate of PFRDA is development and regulation of pension sector in
India.

1.6 Expansion of NPS

1.6.1 NPS, which was made mandatory to Govt. employees w.e.f. 01.01.2004, has been made
available to every citizen of India from 1st April 2009 on a voluntary basis. The NPS architecture
is transparent and will be web-enabled. It would allow a subscriber to monitor his/her
investments and returns under NPS, the choice of Pension Fund Manager and the investment
option would also rest with the subscriber. The design allows the subscriber to switch his/her
investment options as well as pension funds. The facility for seamless portability and switch
between PFMs is designed to enable subscribers to maintain a single pension account
throughout their service period.

1.7 Pension Schemes for Defence Forces

1.7.1 The NPS is not applicable to the Defence Forces pension and they will continue to be
governed by the existing Defence Benefit Pension Scheme.

1.8 Guidelines for Implementation of Scheme

1.8.1 DDOs / PAOs have to follow the following guidelines for the implementation of the New
Pension Scheme during the interim arrangement: -

i. The new pension scheme becomes operational with effect from 1-1-2004.

ii. Contributions payable by the Government servants towards the Scheme under Tier-I,
i.e., 10% of the (Basic Pay plus DA), will be recovered from the salary bills every month.

56
iii. The scheme of voluntary contributions under Tier-II will not be made operative during the
period of Interim arrangement and therefore no recoveries will be made from the salaries
of the employees on this account till it is put in to operation.

iv. Recoveries towards Tier-I contribution will start from the salary of the month following the
month in which the Government servant has joined service. Therefore, no recovery will
be effected for the month of joining. For example, for employees joining service in the
month of January, 2004, deductions towards Tier-I contribution will start from the salary
bill of February, 2004. No deduction will be made for his salary earned in January, 2004.
Similarly, deductions for those joining service in the month of February, 2004 will start
from the salary bill of March, 2004 and so on.

v. No deductions will be made towards GPF contribution from the Government servants
joining the service on or after 1-1-2004 as the GPF scheme is not applicable to them.

vi. It has been decided that pending formation of a regular Central Record Keeping Agency,
Central Pension Accounting Office will function as the Central Record Keeping Agency
for the above scheme.

vii. Immediately on joining Government service, the Government servant will be required to
provide particulars such as his name, designation, scale of pay, date of birth, nominee(s)
for the fund, relationship of the nominee, etc., in the prescribed form (Annexure-I). The
DDO concerned will be responsible for obtaining this information from all Government
servants covered under the New Pension Scheme. Consolidated information for all those
who have joined service during the month shall be submitted by the DDO concerned in
the prescribed format (Annexure-II) to his Pay and Accounts Office by 7th of the following
month. Annexure-I will be retained by DDOs.

viii. On receipt of Annexure-II from the DDOs, PAO will allot a unique 16-digit Permanent
Pension Account Number (PPAN). The first four digits of this number will indicate the
calendar year of joining Government service, the next digit indicates whether it is a Civil
or a Non-Civil Ministry (for all Civil Ministries this digit will be "1 "), the next six digits
would represent the PAO code (which is used for the purpose of compiling monthly
accounts), the last five digits will be the running serial number of the individual
Government servant which will be allotted by the PAO concerned. PAO will allot the
serial number pertaining to individual Government servant from '0001' running from
January to December of a calendar year. The following illustration may be followed: -

57
The first Government servant joining service under Ministry of Civil Aviation under the
accounting control of PAO (Sectt.), New Delhi in 2004, shall be allotted the following
PPAN:-

Calendar Civil Min. PAO Code Serial Number


Year
2 0 0 4 1 0 4 0 8 6 6 0 0 0 0 1

ix. The Pay and Accounts Office will maintain an Index Register for the purpose of allotment
of PPAN to new entrants to government service in the prescribed format.

x. The PAO will return to the DDO concerned, a copy of the statement duly indicating there
in the account numbers allotted to each individual by 10th instant. DDO in turn will
intimate the account number to the individuals concerned and also note in the Pay Bill
Register.

xi. The particulars of the government servants received from the various DDOs will be
consolidated by the PAO in the format and sent to the Principal Accounts Office by the
12th of every month.

xii. The Principal Accounts Office in tum will consolidate the particulars in the prescribed
format and forward the same to Central Pension Accounting Office by 15th instant. The
CPAO will feed this information in their computer database.

xiii. The DDOs/CDDOs will prepare separate Pay Bill Registers in respect of the government
servants joining government service on or after 1-1-2004. The DDOs/CDDOs will have to
prepare separate pay bills in respect of these government servants covered under NPS
and will send the same with all the schedules to the PAO on or before 20th of the month
to which the bills relate. Cheque Drawing DDOs hereafter in respect of government
servants joining service on or 1-1-2004, they will only prepare pay bills and not make
payment. Such bills will be sent by them to the Pay and Accounts Offices for pre- check
and payment.

xiv. The DDO / CDDO will prepare a recovery schedule in duplicate in the prescribed form for
the contributions under Tier-I and attach them with the pay bills. The amount of the
contributions under Tier-I should tally with the total amount of recoveries shown under
the corresponding column in the pay bill.

xv. Salary bill for the Government servants who join service on or after 1-1-2004, the DDO /
CDDO shall also prepare a separate bill for drawal of matching contributions to be paid
by the government and creditable to Pension account.
58
xvi. The bill for drawal of matching contribution should also be supported by schedules of
recoveries in form.

xvii. On receipt of the salary bills in respect of government servants joining service after 1-1-
2004, PAO will exercise usual checks and pass the bill and make the payments. After the
payment is made and posting done in the Detailed Posting Register, one set of
schedules relating to Pension contributions will be detached from the bills as done in the
case of other schedules such as GPF, Long-term advances. The schedules will then be
utilized for posting the credits of contributions in the Detailed Ledger Account of the
individual.

xviii. The employee's contributions under Tier-I and Tier-II and government's contribution
should be posted in different columns of the individual ledger account (to be maintained
in the format in Annexure- V) and Broadsheet and tallied with the accounts figures as
being done in the case of GPF.

xix. These accounts should not be mixed with GPF accounts and these records / ledger
accounts should be independent of GPF accounts maintained in the case of pre-I-I-2004
entrants.

xx. The PAO will consolidate the information available in the New Pension Scheme
schedules received from the various DDOs and forward the same in a floppy in the
prescribed form to Principal Accounts Office by 12th of the month following the month to
which the credit pertains. Principal Accounts Office in turn will consolidate the
information and send the same in electronic form to the Central Pension Accounting
Office by 15th of each month.

xxi. CPAO on receipt of this information from all the Pr.A.Os (including the Non-Civil
Ministries) will update its database and generate exception reports for missing credits,
mismatches, etc., which will be sent back to the PAOs concerned through the Pr..AOs
for further action.

xxii. Whenever any Government servant is transferred from one office to another either within
the same accounting circle or to another accounting circle, balances will not be
transferred by the PAO to the other Accounts Office. However, the Drawing and
Disbursing Officer shall clearly indicate in the LPC of the individual the unique account
number, the month up to which government servant's contribution and government's
contribution have been transferred to the Pension Fund.

59
xxiii. No withdrawal of any amount will be allowed during the interim arrangement (now
allowe3d and explained in subsequent paragraph). However, provisions’ regarding
terminal payments in the event of untimely death of an employee or in the event of his
leaving the government service has been explained in succeeding paragraph.

xxiv. At the end of each financial year, the CPA 0 will prepare annual account statements for
each employee showing the opening balance, details of monthly deductions and
government's matching contributions, interest earned, if any, and the closing balance.
CPAO will send these statements to the Pr. A.O. for onward transmission to the DDO
through the PAO.

xxv. After the close of each financial year, CPAO will have to report the details of the
balances (PAO-wise) to each Principal Accounts Offices, who will forward the information
to each PAO for the purpose of reconciliation. The PAO will reconcile the figures of
contributions posted in the ledger account of the individuals as per their ledger with
figures as per the books of CPAO.

1.9 Interim Arrangement

1.9.1 Contribution by Government servants and matching contribution by Government will be


kept in Public Account (Account Code list attached).

Tier-Il not operational during interim period.

1.10 Guidelines for DDOS / CDDOS

i. Ensure whether any new appointment is made every month with effect from 1-1-2004.

ii. CDDO / DDO is responsible to get the particulars from new appointed government
servant in Annexure-I.
iii. Annexure-I will be retained by the DDO / CDDO.

iv. Monthly Consolidated information in Annexure-Il be furnished to PAO Office by


7th of the following month.

v. On receipt back of Annexure-Il after issue of 16 digit Permanent Pension Accounts


Number (PPAN) by PAO office, DDO / CDDO will open a separate Pay Bill Register
(PBR) for those who joined service on or after 1-1-2004.
vi. DDO / CDDO will note the unique 16 digit PPAN in the PBR.
vii. Prepare separate Pay Bills.

60
viii. Tier-I contribution is 10% of (Basic Pay plus DA).

ix. Contribution starts from the salary of the month following the month in which the
government servant has joined service. No recovery will be made for the month of
joining.

x. No deduction of GPF contribution for new entrants with effect from 1-1-2004 (GPF
scheme is not applicable).

xi. CDDOs should also prepare and send pay· bills of new entrants to PAO office for
pre-check and payment (CDDOs should not issue cheque at their end).

xii. DDOs / CDDOs should prepare separate schedules in duplicate for contribution
by Government servant in Annexure-III (not printed).

xiii. Prepare separate schedules for government matching contribution in Annexure-


IV.

xiv. Attach schedule Annexure-III with pay bills and send to PAO office on or before
20th of the month.

xv. The amount of contributions under Tier-I in Annexure-III should tally with the
total amount of recoveries shown under the corresponding column in the pay bills.

xvi. Prepare a separate bill for drawal of matching contribution to be paid by


Government and creditable to pension account. Attach the schedules Annexure-IV to this
bill and not with pay bill.
xvii. No withdrawal is allowed from Tier-I contribution. (Now admissible with conditions
and explained in subsequent paragraph)

1.11 Transfer Cases

1.11.1 The CDDO / DDO should clearly indicate in the LPC of the individual, the unique
Permanent Pension Account Number (PPAN), the month up to which Government servant's
contribution and Government's matching contribution have been transferred to the Pension
Fund.

1.12 Annual Statement

1.12.1 CDDOs / DDOs will get the annual account statement through PAO office showing
opening balance, details of monthly deductions and Government's matching contributions,
interest earned, if any, and the closing balance for onward transmission to the individual. Central

61
Pension Accounts Office (CPAO) will be responsible for preparation of these statements.

1.13 Guidelines for PAO

1.13.1 Send back a copy of the Annexure-Il to DDOs/CDDOs after issue of Permanent Pension
Account Number (PPAN).

1.13.2 Send the consolidated particulars of the Government servants received from various
DDOs in the format Annexure-Il-A to Pr. Accounts Office by 12th of the following month to which
the credit pertains along with a floppy generated from software (CPFM).

1.14 Maintaining the Record

1. Index Register
For allotment of 16-digit unique code, i.e., PPAN.

On receipt of Annexure-Il from DDO on 7th, PAO will allot 16 digits PPAN and return
the Annexure-Il to DDO by 10th instant.

Formation/Structure of 16 Digit Code (PPAN)

First four Digit - Calendar Year of the joining government

servant.

Next one digit for Civil Ministries - 1.

Next Six Digits - PAO Code.

Last Give Digit - Running serial number of the individual

Government servant.

2. LedgerFolio
After payment of pay bills and posting in the Detailed Posting Register (DPR), one set of
schedules relating to pension contributions will be detached from the pay bill and used
for posting the credits in the Detailed Ledger Account of the individual.

Contribution under Tier-I and Tier-II and Government's matching contributions should be
posted in different columns of the individual ledger account.

62
3. Broadsheet:

Posting of contributions done in ledger should also be done in Broadsheet and tallied
with accounts figures as being done in the case of GPF for pre-I-I-2004.

1.15 Consolidated Information in a Floppy to Pr. AO.


1.15.1 PAO will consolidate the information received from DDOs / CDDOs and forward the
same in a floppy in the prescribed form to Pr. Accounts Office by 12th of the month following the
month to which the credit pertains.

1.16 Transfer Cases

1.16.1 PAO will not transfer any balance to any PAO.

1.17 Reconciliation After Close of Each Financial Year


1.17.1 After close of each financial year, CPAO will have to report the details of balance PAO
wise to each PA.O., who will forward the information to each PAO for the purpose of
reconciliation. The PAO will reconcile the figure of contributions posted in the ledger account of
the individuals as per their ledger with figures as per the books of CPAO.

1.18 Accounting Heads in the Books of PAO

1.18.1 i. The recoveries of contribution from the individual and the government matching
contributions are classifiable as credits under the following head in the books of PAO: -

Major Head 8342 - Other Deposits


Minor Head 117 - Misc. Deposits
Sub-Head 20 - Defined Contribution Pension Scheme
Detailed 20.01 - Employee’s Contribution under Tier-I
20.02 - Government Contributions under Tier-I
20.03 - Interest on Contribution under Tier-I

ii. On receipt of government's instructions for allowing interest on the accumulation of


the fund, the amount of interest may be debited to the following major head.
Major Head 2049 - Interest Payments

63
Sub-Major Head 60 - Interest on other obligations
Minor Head 101 - Interest on Deposits
Sub-Head 29 - Interest on Defined Contribution Pension Scheme
Detailed Head 29.01 - Interest on contributions under Tier-I
Object Head 29.01.45 - Interest

iii. The expenditure on matching contribution by government is, for time being till
further instructions, to be debited under the Minor Head' 502- Expenditure Awaiting
Transfer to-other Heads / Departments' to be opened below the relevant functional Major
Head of Ministry / Department.

iv. The numeric codes, serial codes and SCCD codes relating to the heads are to b
e given in the D.I. Sheet,

1.19 Guidelines for Pr. Accounts Office


1.19.1 After receiving the floppy in the prescribed form (Annexure-VI) from the PAOs by 12th of
the month following the month to which the credit pertains, the Pr. A.O. will consolidate
the information and send the same in electronic form (through software CPFM) to CPAO
by 15th.

At the end of each financial year, Pr. A.O. will get the annual accounts statement (PAO
wise) for each employee from CPAO and the same be forwarded to each PAO for the
purpose of reconciliation with their ledger / broadsheet and supply the annual
statements to individuals.

1.20 Dates to be Adhered to by DDOs / CDDOs / PAO / Pr.A.O.

1.20.1 By DDOs / CDDOs


i) Forward Annexure-II to PAO on 7th of the following month.

ii) Submit Pay Bill to PAO on or before 20th of the paid month for pre-check and
payment along with schedule (Annexure-III).

iii )Preparation of another Bill towards government's matching contribution of Tier-


I supporting schedule and submission to PAO along with Pay Bills, i.e., on or
before 20th.

64
By PAO

iv) On receipt of Annexure-II from DDOs / CDDOs, allot the PPAN and return a
copy of Annexure-II to DDOs / CDDOs on 10th.

v) Consolidated particulars to Pr.A.O. in Annexure-II-A and Annexure-VI by 12th


in a Electronic Media, i.e., Floppy generated through software CPFM.

By Pr.A.O.

vii) On receipt of Annexure-II-A and Annexure- VI from PAO in floppy media,


consolidate the data and forward to CPAO in Annexure-II-B and Annexure-VI by
15th in electronic media, i.e., floppy generated through software CPFM.

1.21 Codes for D I Sheet

Numeric Description Serial Code SCCD


Code
8342 Other Deposits
117 Miscellaneous Deposits
20 Defined Contribution Pension 83420048
Scheme
20.01 Employee’s Contribution under Tier-I 8320049 312
20.02 Government’s Contribution under 83420050 314
Tier-I
20.03 Interest on Contribution Under Tier-I 83420051 313
2049 Interest Payments
60 Interest on Other Obligations
101 Interest on Deposits
29 Interest on Defined Contribution 20490438
Pension Scheme
29.01 Interest on Contribution under Tier-I 20490439
29.01.45 Interest 20490440 126

65
1.22 Major Changes with effect from 1st April 2008- Appointment of NSDL/ Trustee
Banks

1.22.1 Consequent upon appointment of National Security Depository Limited (NSDL) as the
Central Record Keeping Agency in place of CPAO and Pension Fund Managers, the
contributions are required to be passed on to the Trustee Bank for investment. Any delay in
passing of the same could lead to delay in investment thereof which will consequently result in
drop in the returns thereon. With the view to ensure quicker remittance of funds, the provision
explained in the preceding paragraph stand amended.The CDDOs in Civil Ministries will not,
therefore, submit the monthly salary bills and bills for government contribution in respect of the
government servants covered under the New Pension Scheme, to the Pay and Accounts Offices
with effect from 1-7-2008 in respect of subscribers under their payment control (either directly or
for NCDDOs reporting to them).

1.22.2 Henceforth, CDDOs would be responsible for registering themselves and their NCDDOs
on New Pension Scheme Contribution Accounting Network (NPSCAN) of NSDL and for the
following functions: -

i. Registration of new employees with NSDL as well as notifying NSDL about


changes.

ii. Preparation and passing of monthly salary bills and for government contributions
in respect of the government servants covered under the New Pension
Scheme.

iii. Remittances of employees and government contribution to the Trustee Bank


preferably by RTGSINEFT.

iv. Intimation / uploading of subscriber-wise remittance detail to NSDL online, and

v. Maintenance of detailed ledger account prescribed.

vi. PAOs will also be responsible for the functions specified in this para from (i) to

vi. above in respect of themselves and NCDDOs directly reporting to them. The
particulars regarding the Account Number of the Trustee Bank are given in CPAO’s
O.M. No. CPAO/NPS/Fund Transfer/2007-08/559, dated 29-3-2008.

66
1.23 Procedure for Registration of PAOs and their Non-Cheque Drawing DDOs
(NCDDOs) With NSDL

1.23.1 (i) PAOs would be registered by NSDL on the basis of the legacy data up to 31st March,
2008 submitted by them in the prescribed formats through their Principal Accounts Office (Pr.
AO) to NSDL after validation with the PAO and DDO codes and the mapping available in the
PAO-DDO code Directory of the office of the CGA. Therefore, such PAOs need not re-register
with NSDL again through the physical registration forms.

(ii) All PAOs and Non-Cheque Drawing DDOs-l (NCDDOs-l) who have joined the NPS after the
transfer of the accumulated balances in March, 2008, would take immediate action for
registering themselves through the physical registration forms.

(iii) Where there are no inconsistencies in the subscriber legacy data, NSDL will be
communicating to the PAOs two documents separately (in both hard copy as well as soft copy) -
(i) The PAO Registration Number and (ii) User ID and passwords (I-Pin /T-Pin) to enable the
PAOs to upload the Subscriber Contribution details on NPSCAN as well as access the NPSCAN
system. PAOs will be able to upload the subscriber contribution details on NPSCAN only after
PAO, DDO and subscriber registration numbers; user ID and passwords are allotted by NSDL.

(iv) NSDL would be sending the PAO registration number; DDO registration number; PRAN
(Subscriber Registration Number); User ID and passwords (I-Pin /T-Pin) to the respective PAOs
within fifteen (15) days from the date of receipt of the subscriber legacy data.

(v) The office of the Controller General of Accounts (CGA) has provided to NSDL a directory of
PAOs, CDDOs and NCDDOs along with the PAO – DDO mapping. NSDL will use this data to
identify the PAOs, CDDOs, NCDDOs-l and NCDDOs-2.

(vi) If there is any inconsistency between the mapping in the directory and the legacy data,
NSDL will not change any existing mapping provided in the legacy data on the basis of the
directory. However, NSDL will bring the same to the attention of the respective
Pr.CCAs/CCAs/CAs for further advice.

(vii) Non-Cheque Drawing DDOs-l (NCDDOs-l) preferring bills to PAOs are however, required to
be compulsorily registered afresh with NSDL in the prescribed DDO registration form (Annexure
N3). Pay & Accounts Offices having DDO functions shall also register as a DDO and submit the
DDO Registration form. NCDDOs will take immediate steps to submit the duly completed

67
registration form, to their PAOs. The forms Annexures N2, N3 and N4 can be downloaded from
www.npscra.nsdl.co.in and www.nsdl.co.in.

(viii) On receipt of the duly filled DDO registration forms from its NCDDOs, PAOs will
authenticate / attest in the relevant column of the form and forward it to NSDL along with
Annexure N4. Pending the allotment of the PAO registration number, the PAO shall indicate the
PAO Code (allotted by the office of the CGA) in Column- 9 in Annexure N3 of the DDO
registration form and related fields requiring PAO Registration numbers.

(ix) The PAO shall forward the NCDDO Registration forms along with the prescribed forwarding
letter (Annexure N4) to NSDL preferably by Speed Post. As mentioned in paragraph above,
pending availability of PAO Registration Code, PAO Code may be used in this form also.

Before forwarding the NCDDO registration forms to the PAO, the NCDDOs should ensure that
all information given in the form is correct. Any discrepancy in the form has to be got rectified by
the NCDDO-l.

(x) On successful registration of the NCDDOs-I, NSDL will confirm DDO Registration Number
allotted to each NCDDO-I and intimate the same to the respective PAOs. PAOs shall on receipt
of the DDO Registration Numbers intimate the same to its NCDDOs.

1.24 Subscriber Registration:

(xi) The initial subscriber registration (for existing NPS subscribers) would also be done on the
basis of the legacy data. Therefore, existing subscribers in whose respect balances were
transferred to the Trustee Bank in March, 2008 and legacy data accepted, need not submit the
subscriber registration form for now. However, these subscribers will also be required to submit
the subscriber registration form indicating their complete details.

(xii) The subscribers will be registered on the basis of the legacy data provided as per the
subscriber text files sent to NSDL by the PAOs. Subscribers will be mapped to the DDO on the
basis of the DDO code provided in the legacy data.

(xiii) NSDL would allot and communicate to the PAOs the individual Permanent Retirement
Account Number (PRAN) in respect of each subscriber mapped to the PAO based on the legacy
data. This PRAN will replace the PPAN earlier allotted by the PAO for all purposes. PAOs
should communicate to the DDOs (both CDDOs and NCDDOs) the newly allotted individual
PRAN DDO-wise. The DDOs in turn shall intimate the subscribers under their
payment control of the new PRAN allotted to the individual subscribers.
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(xiv) NSDL will provide data separately in respect of subscribers mapped to PAOs including all
NCDDOs (in the absence of mapping of NCDDO 2s to CDOs) and CDDOs respectively (based
on PAO-DDO code directory provided by office of the CGA). PAOs will segregate the details
regarding all the NCDDO 2s and their subscribers along with the block for CDDOs to the
respective CDDOs and will convey these to CDDOs for inclusion. This will help the PAOs and
CDDOs in identifying the subscribers with respect to whom they are supposed to upload the
Subscriber Contribution Files and remit the NPS contributions. For example, if there are 1000
NPS Subscribers, 100 Subscribers each being linked to 10 DDOs (of which 4 are CDDOs and 5
NCDDO- l and 1 NCDD0- 2) of a PAO, the details provided by NSDL will mention the 600
Subscribers (NCDDO-l / NCDD0-2- wise) from 6 NCDDOs in the first block and 400 Subscribers
(CDDO-wise) from 4 CDDOs in the second block.

PAO will convey:

(a) The CDDO registration number and the PRAN for the subscribers under CDDOs to the
respective CDDOs and

(b) The NCDD02 registration number and the PRAN for the 100 subscribers to the concerned
CDDO.
Therefore, in effect PAOs shall be responsible for uploading the Subscriber Contribution
Files and remittance of the NPS contributions for only 500 subscribers' with effect from 1stJuly,
2008.

(xv) Till such time PAOs have not started uploading Subscriber Contribution Files on NPSCAN
or till further orders, if a new entrant joins the Government of India, PAOs will allot the PPAN to
the new entrant and remit the NPS contribution. PAOs shall also allot PPAN in respect of
subscribers under their CDDOs. However, the responsibility of remitting the NPS contribution in
respect of the new entrant to Trustee Bank will be that of the CDDO.

(xvi) The procedure of registration of the new entrants in NPSCAN in respect of whom the
subscription details were not included in the legacy data, will be intimated by NSDL.

1.25 Uploading of Subscribers Contribution File (SCF) and Remittance of Contribution:

(A) Before Electronic upload of Subscribers Contribution File (SCF)


(xvii). Irrespective of whether the PAO has received the PAO registration number and the User
ID and l-Pin/ T-Pin from NSDL or not, PAOs shall continue remitting the NPS contribution in
respect of its subscribers to the Trustee Bank.
69
(xviii). Pending electronic upload on NPSCAN, PAOs should ensure that while remitting the NPS
contribution through RTGS / NEFT, they have to invariably mention the PAO code (allotted by
CGA) and the month for which remittance is being made in Remarks Column of the RTGS /
NEFT application. Similarly, PAO while remitting the NPS contribution through local cheques to
the local branch of the Trustee Bank (Bank of India) should also invariably mention their PAO
Code and the month for which remittance is being made in their forwarding letter addressed to
the Trustee Bank and also on the reverse of the Cheque.

(xix) The State and District-wise list of Bank of India's (Trustee Bank) Branches authorized to
collect NPS contribution and list of State Bank of India's Branches having correspondent
banking arrangement with Bank of India, where the Bank of India is not present is available on
the Pension Fund Regulatory and Development Authority's (PFRDA) website -
www.pfrda.org.in

(B) On Commencement of Electronic upload of Subscribers Contribution File


(SCF)

(xx) Once PAOs have received their PAO registration number and the User ID and I-Pin / T-Pin
from NSDL, PAOs shall download the File Preparation Utility (FPU) and the File Validation Utility
(FVU) for the purpose of regular upload of the subscriber contribution details NPSCAN. These
utilities and other instructions on uploading and remitting are available and can be downloaded
from NSDL website. www.npscra.nsdl.co.in and www.nsdl.co.in. PAO shall use the User ID and
I-Pin to access the NPSCAN and upload the subscriber contribution details on a monthly basis.

(xxi) PAOs will first upload the subscriber contribution details on NPSCAN following the
instructions of NSDL. NPSCAN will generate a unique Transaction ID for the upload done. PAO
should note down this unique Transaction ID. PAO after uploading the subscriber contribution
details will remit the NPS contribution to the Trustee Bank preferably through RTGS / NEFT.

(xxii) It is mandatory for all PAOs to ensure that the unique Transaction ID and the PAO
Registration Number is clearly mentioned in the remarks column of the RTGS / NEFT
Application form. This will enable NSDL to clearly identify the PAO and reconcile the amount
remitted with the subscriber contribution details uploaded by the PAO.

(xxiii) For those PAOs issuing local cheque to the local branch of the Bank of India (Trustee
Bank), in addition to other requirements by NSDL, they should, clearly mention the unique

70
Transaction ID and the PAO Registration Number in their covering letter and also on the reverse
of the Cheque.

C) Timelines for PAOs and NCDDOs

(xxiv) The responsibility of the correct and timely deduction of the contribution for each
subscriber as mandated under the scheme will rest with the respective NCDDOs. NPS bills
should be preferred so as to reach the PAO by 20th of every month. Accountability is important
since each day's delay in deduction or remittance will cause a monetary loss to the subscriber

(xxv) The responsibility for timely remittance to the Trustee Bank is that of the PAO in respect of
all the subscribers under his domain. Once the upload of subscriber contribution details to
NPSCAN is enabled, the PAO should upload the subscriber contribution details on NPSCAN
and obtain the Transaction ID by the 25th of each month.

(xxvi) If the remittance is through RTGS / NEFT, then it may be ensured that the NPS
contributions (government's and employees) should be credited to the account of the Trustee
Bank by the PAO on the last working day of each month for that month. If the remittance is
through a cheque payable to the Trustee Bank, then the same should be delivered to the local
Branch of the Trustee Bank by the PAO by the 26th of each month marked NPB for the last
working day of the month. (The dates prescribed for remittances are valid even in respect of
remittances by PAOs even before upload of subscriber contribution details to NPSCAN has
commenced.) It is reiterated that accountability is important since each day's delay in deduction
or remittance will cause a monetary loss to the subscriber.

Legend.- (i) NCDDO -1 denotes Non-Cheque Drawing DDO attached with PAO.

(ii) NCDDO - 2 denotes Non-Cheque Drawing DDO attached with CDOO.


(iii) NPSCAN- denotes New Pension Scheme Contribution Accounting Network.

1.26 Accounting Adjustments- Payment to Trustee Banks.

1.26.1 (i)The salary bills and the bills for government contribution are passed by PAOs / CDDOs
after exercising the checks prescribed under the rules. The amounts payable towards salary is
paid to the individual and the employees contribution recovered from the bill will be initially

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classified the Major Head “0071”- contributions and recoveries towards pension and other
retirement benefits-500- Receipts Awaiting Transfer to other “Minor Heads”.(RAT)

(ii) Government contribution bills duly supported by schedules will also be prepared by DDO.
The amount will be debited to Major Head’ 2071” –Pension and Other Retirement Benefits -117 -
DCPS”. After passing the bills by the PAO / CDDO, these amounts will also be booked under
the Major Head ‘0071’- Contribution and Recoveries towards Pension and other Retirement
Benefits-500 –Receipts Awaiting Transfers to Minor Head.

(iii) After the bills are passed, the PAO / CDDO will upload the data relating to contribution (Both)
into NPSCAN and also tally the figures uploaded with that booked under the Head “RAT”. After
uploading its completed, PAO / CDDO will get Transaction ID and draw the total amount by
minus crediting the Head “RAT” mentioned above either by cheque in favour of Trustee bank or
remit the amount through RTGS / NEFT.

(iv) Now the contribution will not be parked under the Major Head of Account “8342- Other
Deposits-117 Defined Contribution Pension Scheme” even as a temporary measure.

1.27 Benefits admissible at the time of Superannuation or otherwise under New


Pension Scheme
1.27.1 Retirement on Superannuation

1.27.1.1 (i) When subscriber on attaining the age superannuation retires, then 40 per cent
of accumulated pension wealth of such subscriber shall be mandatory utilized for purchase of
annuity or any other for a monthly or any other periodical pension, and 60 percent balance of the
accumulated pension wealth, after such utilization, shall be paid to the subscriber.

(ii) In this case the annuity contract shall provide for annuity for life of the subscriber and his or
her spouse (if any) with provision for return of purchase price of annuity and upon the demise of
such subscriber, the annuity be re-issued to the family members in the purchase price required
to returned under the annuity contract (until all the family members in the order specified below
are covered): -
(a) Living dependent mother of the deceased subscriber:
(b) Living dependent father of the deceased subscriber.

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After the coverage of all the family members specified above, the purchase price shall be
returned to the surviving children of the subscriber and in the absence of children, the legal heirs
of the subscriber, as may be applicable.

1.28 In case the subscriber does not want to withdraw the balance amount.

1.28.1 (i) Where the subscriber does not want to withdraw the balance amount, after purchase
of mandatory annuity, such subscriber shall have the option to defer the withdrawal of the lump
sum amount until he or she attains the age seventy years, provided the subscriber intimates his
or her intention to do so in writing in the specified form at least fifteen days before the attainment
of age of superannuation.

(ii) Further where the subscriber desires to defer the purchase of annuity, he or she shall have
the option to do so for a maximum period of three years from the date of attaining the age of
superannuation and should intimate his intention in the prescribed form at least fifteen days
before the attainment of age of superannuation. In case of death of the subscriber occurs
before such due date of purchase of an annuity after the deferment, the annuity shall mandatory
be purchased by the spouse (if any) providing for annuity for life of the spouse with provision for
return of purchase price of the annuity and upon the demise of such spouse e re-issued to the
family members in the order of preference provided at a premium rate prevalent at the toe of
purchase of annuity utilizing the purchase price required to be returned under the contract (until
all the members given below are covered);

a. Living dependent mother of the deceased subscriber:


b. Living dependent father of the deceased subscriber.
After the coverage of all the family members specified above, the purchase price shall be
returned to the surviving children of the subscriber and in the absence of children, the legal heirs
of the subscriber, as may be applicable.

(iii) When a subscriber desires to defer the withdrawal of lump sum amount or, the purchase
of annuity, the subscriber shall be allowed to do so, provided the subscriber agrees to bear the
maintenance charges of the PRAN, including the charges payable to the CRA, Pension Fund,
and Trustee Bank etc.

(iv) Where the accumulated pension wealth in the Permanent Retirement Account of the
subscriber is equal to or less than a sum of two lakhs rupees, the subscriber shall have the
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option to withdraw the entire accumulated pension wealth without purchasing annuity and upon
such exercise of this option, the right of such subscriber to receive any pension or other amount
under the National Pension System or from the government shall extinguish.

1.29 Voluntarily Retirement or Exit before Retirement.


1.29.1 (i) In case a subscriber, before attaining the age of superannuation, voluntarily retires or
exits, then at least eighty percent out of the accumulated pension wealth of the subscriber shall
be utilized for purchase of annuity and the balance of the accumulated pension wealth after such
utilization shall be paid to the subscriber in lump sum.
The annuity contract shall provide for annuity for life of the spouse of the subscriber (if any) with
provision for return of purchase price of the annuity and upon the demise of such spouse be re-
issued to the family members in order of specified at the premium r5ate prevalent at the time of
purchase of the annuity, utilizing the purchase price required to be returned under the contract
(until all the members given below are covered):

a. Living dependent mother of the deceased subscriber:


b. Living dependent father of the deceased subscriber.

After the coverage of all the family members specified above, the purchase price shall be
returned to the surviving children of the subscriber and in the absence of children, the legal heirs
of the subscriber, as may be applicable.

(ii) When the accumulated pension wealth of the subscriber is more then than one lakh
rupees but the age of the subscriber is less than the minimum age required for purchasing any
annuity from any of the empanelled annuity service providers as chosen by such subscriber,
then he /she has to subscribe to the NPS until he or she attains the age of eligibility for purchase
of any annuity.

(iii) Further if the accumulated pension wealth is equal to or less than one lakh rupees, such
subscriber shall have the option to withdraw the entire amount without purchasing any annuity
and after exercising such option the right of the subscriber to receive any pension or other
amount under NPS shall extinguish.

(iv) In case , a subscriber before attaining the age of sixty years, dies, then 80% of the
accumulated pension wealth will utilized for purchase of annuity and balance will be paid in lump

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sum to the nominee. The annuity contract shall provide for annuity for life of the spouse of the
subscriber (if any) with provision for return of purchase price of the annuity and upon the demise
of such spouse be re-issued to the family members in order of specified at the premium r5ate
prevalent at the time of purchase of the annuity, utilizing the purchase price required to be
returned under the contract (until all the members given below are covered):

a. Living dependent mother of the deceased subscriber:


b. Living dependent father of the deceased subscriber.

After the coverage of all the family members specified above, the purchase price shall be
returned to the surviving children of the subscriber and in the absence of children, the legal heirs
of the subscriber, as may be applicable.

(v) In case the accumulated wealth in PRAN account of the subscriber at the time of death is
equal to less than two lakhs rupees, then the nominee has the option to withdraw the entire
amount , then his / her right of pension etc. shall be extinguish.

1.29.2 (i) No pension or accumulated pension wealth in Tier-I account of the Permanent
Retirement Account of the subscribe under the NPS on account of past or present service, shall
be liable to seizure, attachment, or sequestration by process of any court at the instance of
creditor, for any demand against the subscriber, or in the satisfaction of a decree or order of any
court except where the NPS Trust or its authorized representative has accorded prior sanction
for assignment of the pension wealth accumulated in the pension account of the subscriber.

(ii) Only President of India or the Governor of a State , as the case may bee , if so provided in
the service rules, governing the employment of the subscribe, reserve the right of withholding
the part of pension wealth, accumulated through co-contributions made by the central
government orthe State Government, as employer to the Tier-I account of the NPS account of
the subscribe and the investment income accruing thereon, for the purpose of recovery of the
whole or part of the any pecuniary loss caused to the Central government or the State
government, provided that such loss is established, in any departmental or judicial proceedings,
initiated against such subscribe by the employer concerned.

(iii) The right of withholding shall have to be exercised prior to the date of superannuation of the
subscribe, pursuant to the notice to be given to the National Pension System Trust or any entity

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to whom such authorization has been given, and seeking to withhold the said pension wealth of
such subscriber. Upon such right of withholding being validly exercised: -

(a) The pension wealth which are payable under the NPS shall not be paid to such
subscribe until the conclusion of the departmental or judicial proceedings, as the case
may be and subject to the final orders, passed in such proceedings;

(b)The amount withheld shall remain subscribed to the scheme and final settlement of
the withheld amount shall be made by the NPS Trust, normally with in ninety days of
receipts of final order

1.30 Withdrawal admissible from the Tier –I {In terms of PFRDA Gazette Notification No.
PFRDA/12/RGL/139/8-dated 11th May 2015.}

1.30.1 The subscriber shall submit an application form for withdrawal from the Tier-I of the NPS
and partial withdrawal not exceeding twenty –five percent of the contribution made by the
subscriber and excluding contribution made by employer, if any, at any time before exit from
NPS with the following conditions:
Purpose:
i. Higher education of his or her children including a legally adopted child;
ii For the marriage of his or hr children, including a legally adopted child.
iii. For the purchase or construction of a residential house or flat in his or her own name
or in a joint name with his or her legally wedded spouse.
iv For treatment of the following specified illness for self and dependent family members;
(i) Cancer
(ii) Kidney failure
(iii) Arterial Hypertension
(iv) Multiple Sclerosis
(v) Major Organ Transplant
(vi) Coronary Artery Bypass Graft
(vii) Aorta Graft Surgery
(viii) Heart Valve Surgery
(ix) Stroke
(x) Myocardial Infraction
(xi) Coma
(xii) Total Blindness
(xiii) Paralysis
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(xiv) Serious AccidentLimits
(a)The subscriber should been in the NPS at least for a period of last ten
years from the date of his joining.
(b) Maximum limit not exceeding 25% of the balance in his individual
account.
Frequency:
The subscriber shall be allowed to withdraw only a maximum of three times during the
entire service, and not less than a period of five years shall have elapsed from the last date of
each of such withdrawal. The condition of five years between two withdrawals can be relaxed
for treatment purposes.

1.31 Admissibility of Retirement Gratuity / Death Gratuity in case Retiring on


Superannuation/ Death under NPS.

1.31.1 Subscriber who is retiring on attaining the age of superannuation under the New Pension
Scheme are also entitled to Retirement Gratuity as admissible under the CCS(Pension) Rules,
1972 and Death Gratuity in case of death of a government servant.

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