RETIREMENT AND PENSION RULES

PRESENTED BY: CH.ABDUL HAMEED

RETIREMENT AND PENSION RULES Retirement: Retirement means to retire from service, to go on

retirement or relieve from service after completing 60 years of age.

Pension: When the term pension is used, it means pension and

gratuity or commutation. Civil servant pension rules 1963: These rules are called “the Punjab civil servant pension

rules 1963”. These rules apply to all government servants under the

rule making control of govt. of Punjab. Service qualifying for pension: These services must be under govt. The service must not be pensionable. The service must be paid by the govt. from the provincial

consolidated fund.

The rules shall not apply to: GOVT. Servants paid from contingency or

on-work changed establishment. GOVT. servant engaged on contract,

which contains no stipulation for pension under rules.

Any person whose appointment and conditions are made under any law for the time being enforce.

Any GOVT. servant who may be excluded by a competent authority from the application of the rules.

•Any GOVT. servant who holds a post declared non-pensionable by the competent authority.•Any person who is merely paid for work done, such as GOVT. pleaders and law officers not debarred from private practice.•Pension rules:•Ordinary pension:•Ordinary pension means pension on superannuation age i.e. on 60 years age & other than extra ordinary pension.

Extra-ordinary pension: Extra-ordinary pension means unfit medically

or service less than 10 years.  Full pension: Full pension means the amount of ordinary

pension admissible including commuted portion of the pension, if any.

Good conduct: Good conduct is an implied condition of every

kind of pension. GOVT. may withhold or withdraw a pension or any part of it if the pensioner be convicted of serious crime or be found to have been guilt or gave misconduct either during after the completion of his service.

•GOVT. Reserves the right of recovery from the pension of GOVT. pensioner an account of loses found in judicial or departmental proceedings.•In case the amount of pension granted to the pensioner be found to be in excess.•No pension may be granted to GOVT. servant dismissed, removed or misconduct corruption, sub-versive activities and inefficiency.•But if he deserves special consideration he may be granted a compassionate allowance not exceeding 2/3 of the pension admissible to him if he is retired on invalid pension.

Temporary officiating service: GOVT. service on temporary establishment who have

rendered more than five years continuous temporary service shall count such service for the purpose of pension or gratuity .

Temporary and officiating service followed by a confirmation shall also count for pension or gratuity.

If a permanent post, on which a GOVT. servant holds his lien, is abolished under circumstances entitling him to get a compensation pension or gratuity, his service thereafter a temporary post under GOVT. qualifies for pension.

Apprentices and probations: one half ½ of the period of apprenticeship qualifies for pension.

The service of probationers who is subsequently confirmed in a permanent post without interruption qualified for pension.

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•Training: the time spent by a GOVT. servant in approved training shall count as service qualifying for pension.•Leave: all leave other than extra-ordinary leaves count as qualifying service for pension.•Deputation: time spent by a GOVT. servant holding pensionable post on deputation to another GOVT. , foreign service or service on temporary or non-pensionable post under GOVT. counts for pension.•Suspension: suspension period of GOVT. servant shall count for pension, if it is followed by reinstatement.•However if the period of suspension is treated as ( an extra-ordinary leave) it shall not count for pension

Procedure to apply for retirement/pension: First of all a person is going to be retired have to

apply to his appointing authority to issue retirement notification.

Ordinary one year before the date of retirement. At least three months ago. The documents needed to apply for

retirement notification: Photo copy of Service statement of first four pages of service

book. Matriculation certificate. National identity card (date of birth on matric

certificate and NIC must be tallied) No demand certificate. No enquiry certificate.

•No audit Para certificate.•Photographs of the concerned person.•Application for the issuance of retirement notification to the appointing authority.•Under rules particulars have to send the appointing authority of retiring GOVT. servant before one year.•Usually at least three months before the date of retirement a person has to apply for issuance of retirement notification.•On issuing notification, pension papers have to complete about one month before the retirement, one have to apply for the pension to the accounts officer of the concerned district.

Completion of pension papers: Original service book Retirement notification Matriculation certification attested copies National identity card Photographs of the concerned person. No demand certificate. Income tax clearance certificate. No demand certificate from building

department. List of family members. No audit Para certificate.

• Particulars in family list:•Name.•Age.•Relation with pensioner•Married/unmarried•Pension paper sets, a person have to be prepared /submit one set for each officiating officer and the original set of pension papers goes to the district accounts office.

Different kinds of pension: Superannuation pension. Retiring pension. Invalid pension. Family pension. Compensation pension. Superannuation pension: A Superannuation pension is granted to a GOVT.

servant, who retires on attaining the age of 60 years. Retiring pension: A retiring pension is granted to a GOVT. servant who

is not being eligible for superannuation pension. Opts to retire after 25 years qualifying service or such

less time. If compulsory retired, by the competent authority,

after 25 years qualifying service.

•Family:•The term family for the purpose of payment of gratuity /pension shall include the following relatives of the GOVT. servant:•Wife/wives in the case of male servants.•Husband in the case of female servant.•Children of the GOVT. servant unmarried or below 24 years of age.•Father/mother of the GOVT. servant.

Invalid pension: A GOVT. servant who is bodily incapable to work or

mentally retarded can get invalid retirement before reaching to superannuation age of 60 years.

Such person shall apply to his head of dept. and board, who will issue him medical certificate or incapability for further service. On the basis of that very certificate he will go on invalid retirement.

Family pension: If a GOVT. servant died during service. If a GOVT. servant died after retirement, his family

is granted pension. If he dies before retirement, his family shall be

paid. A gratuity equal to commuted value of ¼ of his full

pension

•Pension at the rate of 75% of the full pension for life.•If he dies after but within ten years of retirement, payment shall be made to his family at the rate of 75%of his pension for life. That pension shall not be less than 1000/month.•If the beneficiary of the family is the widow or widows, shall be paid for life until remarriage.•If the widow dies, her family pension shall be divided equally among the serving sons not above 24 years and unmarried daughters of the died pensioner and died widows

1-7-86 50% 50%

1-12-2001 40% 60%

1-7-2005 35%65%

•If the permanent post of GOVT. servant is abolished ,unless he is appointed to equivalent post , he has the option of taking compensation pension and gratuity entitled for his service, he has already rendered or•Of accepting another post offered to him and continuing to count his previous service of pension.Rate of pension and gratuity:•If there is death case, it is called gratuity.•If the person is alive, it is called commutation.

FROM PENSION GRATUITY

From 1-7-86 to 30-11-2001 a GOVT. servant retires at superannuation age could get his restoration of pension after fifteen years.

  After 30-11-2001 restoration system has been

stopped. Now there is no restoration. Pension formula is as under Last pay x 7 x no. years served 300 Benevolent fund: BF deduction per month of Govt. servant’s

pay is 0.3%. In case of death benefits:

Scale wise monthly aid is given to widow as under

BS-1-10 1000/month

BS-11-15 1700/month

BS-16&17 3500/month

BS-18&ABOVE 5000/month

•Rs.10, 000 is given to widow to meet death expenditures.•To the family of retired Govt. servant in case his/her death occurs within fifteen years of retirement RS. 40,000 – Marriage grant is given to each daughter.•To the family of Govt. servant who dies while in service 40,000 marriage grant for his each daughter and with death 40,000 is given.

•If the Govt. servant dies during service his/her three children without any merit are given educational scholarships after matric, F.A, B.A, M.A, M.PHIL, P.H.D etc.•In case of death during service or due to invalid retirement one child is given Govt. service under rule 17-A up to BPS 5 and widow is given monthly grant from BF, while children are given educational scholarships

In case of appointment as J/c will be appointed in BS-7.

In case of death of a Govt. servant during service financial assistance is granted to widow family from B.F as under

BS AMOUNT

1-4 200,000

5-10 300,000

11-15 400,000

16-17 500,000

18-19 800,000

20&above 1000,000

B.F EDUCATION: Educational scholarship is paid to the

children of Govt. servants from B.F – as under

GAZETTED NON-GAZETTED

F.A 14,000 F.A 6,000

B.A/M.A 16,000 B.A/M.A 10,000

Note: B.F deduction from 1-1/2008 is 3%of gazette and non-gazzetted Govt. servants.•GAZZETED OFFICER:•Under graduate 14,000/-yearly.•Graduate and post-graduate 16,000/-•Two children of retired Govt. servant are given scholarships on merit on 60% of marks.•Fare well grant at retirement (one month pay last pay drawn).

GROUP INSURANCE: Scale wise deduction is made from the

pay of Govt. servant for group insurance. Scale wise group insurance amount is

given to widow , wife , father and mother Unmarried sons and daughters below 24

years of age are granted the said insurance.

If widow is not alive then group insurance will be given to his children and then to father and again then his mother.

If there is no nomination then any close relative will receive the said insurance.

•If no one above said relative is alive then close relative will get succession certificate from the court and get said insurance.•If Govt. servant who dies during service, his relatives will get lump sum of the said insurance.•If he is retired on superannuation age and dies during five years of his retirement, then heirs would get his group insurance.•If he dies after five years of retirement, then nothing will be paid to his relatives.

G.P FUND: Monthly deduction is made from the pay

of govt. servant during his service and lump sum amount with interest is paid to him at the time of retirement.

During his service 80% of GP fund a Govt. servant can draw advance and have to pay back in regular installments.

In case of death, legal heirs will be entitled to get GP fund.

GP fund is deducted scale wise. Interest rate of GP fund changes every

year. 

•If Govt. servant on reaching fifty years of age can get full of his GP fund advance for house/building repair.•Less than 50 years of age 80% GP fund advance can get a Govt. servant for house building/repair.•In general a Govt. servant can get equal to 3 month’s pay or 50%of his total GP fund , whichever is less.

THANK YOU !