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7th CPC Retirement Benefit and Fixation – Retired on 31.12.2015 – Important Judgement 

Central Administrative Tribunal 

Principal Bench 

New Delhi

OA No.571/2017

Order Reserved on: 13.02.2018

Pronounced on: 17.04.2018

Click Here To Download Judgement

Source : Confederation

Review of Work Performance under FR 56(j) and Rule 48 of Central Civil Services (Pension) Rules, 1972

The below statement said in written reply to a question in Lok Sabha on 1st August, 2018 regarding steps taken to identify dull officers and action taken against such officers…

Review of performance of Government servants is an ongoing process under Fundamental Rule 56(j) and Rule 48 of Central Civil Services (Pension) Rules, 1972, which provide that the performance of a Government servant on attaining a specified age or qualifying years of service is to be reviewed and he/she can be retired in public interest.The instructions on the procedure to be adopted and various aspects to be kept in view while conducting periodical review under provisions of the said rules have been issued from time to time.

As per available information provided by cadre controlling authorities, performance of a total of 25,082 Group ‘A’ and 54,873 Group ‘B’ officers has been reviewed up to May 2018; and provisions of Fundamental Rule 56 (j)/ relevant rules were invoked/ recommended against 93 Group ‘A’ and 132 Group ‘B’ officers out of these.

Confidential Rolls (CRs) / Performance Appraisal Reports (PARs) of IAS officers are written for each financial year or as may be specified by the Government in the form and as per the schedule prescribed in the All India Services (Performance Appraisal Report) Rules, 2007.The appraisal form of IAS officers, inter alia, provides for comments on the overall quality of officers including areas of strength and his attitude towards weaker sections.

Retirement Benefits For CG Employees

Pension

The minimum eligibility period for receipt of pension is 10 years. A Central Government servant retiring in accordance with the Pension Rules is entitled to receive pension on completion of at least 10 years of qualifying service.

In the case of Family Pension the widow is eligible to receive family pension on death of her spouse after completion of one year of continuous service or even before completion of one year if the Government servant had been examined by the appropriate Medical Authority and declared fit for Government service.

W.e.f 1.1.2006, Pension is calculated with reference to emoluments (i.e.last basic pay) or average emoluments (i.e. average of the basic pay drawn during the last 10 months of the service) whichever is more beneficial. The amount of pension is 50% of the emoluments or average emoluments whichever is beneficial.

Minimum pension presently is Rs. 9000 per month. Maximum limit on pension is 50% of the highest pay in the Government of India (presently Rs. 1,25,000) per month. Pension is payable up to and including the date of death.

Commutation of Pension

A Central Government servant has an option to commute a portion of pension, not exceeding 40% of it, into a lump sum payment. No medical examination is required if the option is exercised within one year of retirement. If the option is exercised after expiry of one year, he/she will have to under-go medical examination by the specified competent authority.

Lump sum payable is calculated with reference to the Commutation Table. The monthly pension will stand reduced by the portion commuted and the commuted portion will be restored on the expiry of 15 years from the date of receipt of the commuted value of pension. Dearness Relief, however, will continue to be calculated on the basis of the original pension (i.e. without reduction of commuted portion).

The formula for arriving for commuted value of Pension (CVP) is

CVP = 40 % (X) Commutation factor* (X)12

* The commutation factor will be with reference to age next birthday on the date on which commutation becomes absolute as per the New Table annexed to the CCS (Commutation of Pension) Rules, 1981.

Death/Retirement Gratuity

Retirement Gratuity

This is payable to the retiring Government servant. A minimum of 5 years’ qualifying service and eligibility to receive service gratuity/pension is essential to get this one time lump sum benefit. Retirement gratuity is calculated @ 1/4th of a months Basic Pay plus Dearness Allowance drawn on the date of retirement for each completed six monthly period of qualifying service. There is no minimum limit for the amount of gratuity. The retirement gratuity payable for qualifying service of 33 years or more is 16 times the Basic Pay plus DA, subject to a maximum of Rs. 20 lakhs.

Death Gratuity

This is a one-time lump sum benefit payable to the nominee or family member of a Government servant dying in harness. There is no stipulation in regard to any minimum length of service rendered by the deceased employee. Entitlement of death gratuity is regulated as under:

Maximum amount of Death Gratuity admissible is Rs. 20 lakhs w.e.f. 1.1.2016

Service Gratuity

A retiring Government servant will be entitled to receive service gratuity (and not pension) if total qualifying service is less than 10 years. Admissible amount is half months basic pay last drawn plus DA for each completed 6 monthly period of qualifying service. This one time lump sum payment is distinct from retirement gratuity and is paid over and above the retirement gratuity.

Issue of No Demand Certificate

Dues owed by the retiring employees on account of Licence Fee for Government accommodation, advances, over payment of pay and allowances are required to be assessed by the Head of Office and intimated to the Accounts Officer two months in advance of the date of retirement so that these are recovered from retirement gratuity before payment. For this purpose the Licence Fee for those in occupation of Government accommodation is taken into account up to the end of the permissible period for which accommodation can be retained after retirement under the Rules on normal rent. The recovery of Licence Fee beyond that period is the responsibility of the Directorate of Estates. If, for any reason final dues cannot be assessed on time, then 10% of gratuity is withheld from gratuity on the basis of a commutation from the Directorate of Estates in this regard.

General Provident Fund and Incentives

As per General Provident fund (Central Services) Rules, 1960 all temporary Government servants after a continuous service of one year, all re-employed pensioners (Other than those eligible for admission to the Contributory Provident Fund) and all permanent Government servants are eligible to subscribe to the Fund. However, these rules are not applicable to any of the Government Servants who join service on or after 1.1.2004. A subscriber, at the time of joining the fund is required to make a nomination, in the prescribed form, 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, before that amount has become payable or having become payable has not been paid. A subscriber shall subscribe monthly to the Fund except during the period when he is under suspension. Subscriptions to the Provident Fund are stopped 3 months prior to the date of superannuation. Rates of subscription shall not be less than 6% of subscribers emoluments are not more than his emoluments. Rate of interest varies according to notifications of the Government issued from time to time. The rules provide for drawal advances/ withdrawals from the fund for specific purposes.

The conditions for withdrawal from the fund have been liberalized and now no documentary proof is required to be furnished by the subscriber for GPF withdrawal. On retirement of a subscriber, instructions have been issued for immediate payment of final balance on retirement. No application is required to be submitted by the subscriber for final payment from the fund. .

Deposit Linked Insurance Scheme

Under the GPF Rules, on the death of subscriber, the person entitled to receive the amount standing to the credit of the subscriber shall be paid an additional amount equal to the average balance in the account during the 3 years immediately preceding the death of the subscriber subject to certain conditions provided in the relevant Rule. The additional amount payable under that Rule shall not exceed Rs. 60,000/-. To get this benefit, the subscriber should have put in at least 5 years service at the time of his/her death.

Contributory Provident Fund

The Contributory Provident Fund Rules (India), ,1962 are applicable to every non-pensionable servant of the Government belonging to any of the services under the control of the President. A subscriber, at the time of joining the Fund is required to make a nomination in the prescribed Form 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, before that amount has become payable or having become payable has not been paid.

A subscriber shall subscribe monthly to the Fund when on duty or Foreign Service but not during the period of suspension. Rates of subscription shall not be less than 10% of the emoluments and not more than his emoluments. The employer’s contribution at that percentage prescribed by the Government will be credited to the subscriber’s account and this is 10%. The Rules provide for drawal of advances/ withdrawals from the CPF for specific purposes. As in GPF Rules, the CPF Rules also provide for Deposit Linked Insurance Scheme.

Leave Encashment

Encashment of leave is a benefit granted under the CCS (Leave) Rules and is not a pensionary benefit. Encashment of Earned Leave/Half Pay Leave standing at the credit of the retiring Government servant is admissible on the date of retirement subject to a maximum of 300 days.

Central Government Employees Group Insurance Scheme

A portion of monthly contributions paid while in service is credited in a Saving Fund, on which interest accrues. A Government servant while entering service has to apply in Form No. 4 of the above Scheme to the Head of Office, who shall issue a sanction for the payment of subscriber’s accumulation in the Savings Fund segment together with interest and arrange for its disbursement, soon after retirement. Payments under this Scheme are made in accordance with the Table of Benefit (as issued by Department of Expenditure) which takes in to account interest up to the date of cessation of service. Insurance cover benefit under this Scheme is available to the family in the event of death of the subscriber.

Retirement Benefits for Central Govt Employees

Pension: The minimum eligibility period for receipt of pension is 10 years. A Central Government servant retiring in accordance with the Pension Rules is entitled to receive pension on completion of at least 10 years of qualifying service.

In the case of Family Pension the widow is eligible to receive family pension on death of her spouse after completion of one year of continuous service or even before completion of one year if the Government servant had been examined by the appropriate Medical Authority and declared fit for Government service.

W.e.f 1.1.2006, Pension is calculated with reference to emoluments (i.e.last basic pay) or average emoluments (i.e. average of the basic pay drawn during the last 10 months of the service) whichever is more beneficial. The amount of pension is 50% of the emoluments or average emoluments whichever is beneficial. 

Minimum pension presently is Rs. 9000 per month. Maximum limit on pension is 50% of the highest pay in the Government of India (presently Rs. 1,25,000) per month. Pension is payable up to and including the date of death.

Commutation of Pension: A Central Government servant has an option to commute a portion of pension, not exceeding 40% of it, into a lump sum payment. No medical examination is required if the option is exercised within one year of retirement. If the option is exercised after expiry of one year, he/she will have to under-go medical examination by the specified competent authority.

Lump sum payable is calculated with reference to the Commutation Table.  The monthly pension will stand reduced by the portion commuted and the commuted portion will be restored on the expiry of 15 years from the date of receipt of the commuted value of pension. Dearness Relief, however, will continue to be calculated on the basis of the original pension (i.e. without reduction of commuted portion).

The formula for arriving for commuted value of Pension (CVP) is CVP = 40 % (X) Commutation factor* (X)12

* The commutation factor will be with reference to age next birthday on the date on which commutation becomes absolute as per the New Table annexed to the CCS (Commutation of Pension) Rules, 1981. (Click here to view Commutation Table)

Death/Retirement Gratuity

Retirement Gratuity: This is payable to the retiring Government servant. A minimum of 5 years' qualifying service and eligibility to receive service gratuity/pension is essential to get this one time lump sum benefit. Retirement gratuity is calculated @ 1/4th of a month�s Basic Pay plus Dearness Allowance drawn on the date of retirement for each completed six monthly period of qualifying service. There is no minimum limit for the amount of gratuity. The retirement gratuity payable for qualifying service of 33 years or more is 16� times the Basic Pay plus DA, subject to a maximum of Rs. 20 lakhs.

Death Gratuity: This is a one-time lump sum benefit payable to the nominee or family member of a Government servant dying in harness. There is no stipulation in regard to any minimum length of service rendered by the deceased employee. Entitlement of death gratuity is regulated as under:

Qualifying Service Rate

Less than one year 2 times of basic pay

One year or more but less than 5 years 6 times of basic pay

5 years or more but less than 11 years 12 times of basic pay

11 years or more but less than 20 years 20 times of basic pay

20 years or more Half of emoluments for every completed 6 monthly period of qualifying service subject to a maximum of 33 times of emoluments.

Maximum amount of Death Gratuity admissible is Rs. 20 lakhs w.e.f. 1.1.2016

Service Gratuity: A retiring Government servant will be entitled to receive service gratuity (and not pension) if total qualifying service is less than 10 years. Admissible amount is half month�s basic pay last drawn plus DA for each completed 6 monthly period of qualifying service. This one time lump sum payment is distinct from retirement gratuity and is paid over and above the retirement gratuity.

Issue of No Demand Certificate: Dues owed by the retiring employees on account of Licence Fee for Government accommodation, advances, over payment of pay and allowances are required to be assessed by the Head of Office and intimated to the Accounts Officer two months in advance of the date of retirement so that these are recovered from retirement gratuity before payment. For this purpose the Licence Fee for those in occupation of Government accommodation is taken into account up to the end of the permissible period for which accommodation can be retained after retirement under the Rules on normal rent. The recovery of Licence Fee beyond that period is the responsibility of the Directorate of Estates. If, for any reason final dues cannot be assessed on time, then 10% of gratuity is withheld from gratuity on the basis of a commutation from the Directorate of Estates in this regard.

General Provident Fund and Incentives: As per General Provident fund (Central Services) Rules, 1960 all temporary Government servants after a continuous service of one year, all re-employed pensioners (Other than those eligible for admission to the Contributory Provident Fund) and all permanent Government servants are eligible to subscribe to the Fund. However, these rules are not applicable to any of the Government Servants who join service on or after 1.1.2004. A subscriber, at the time of joining the fund is required to make a nomination, in the prescribed form, 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, before that amount has become payable or having become payable has not been paid. A subscriber shall subscribe monthly to the Fund except during the period when he is under suspension. Subscriptions to the Provident Fund are stopped 3 months prior to the date of superannuation. Rates of subscription shall not be less than 6% of subscriber�s emoluments are not more than his emoluments. Rate of interest varies according to notifications of the Government issued from time to time. The rules provide for drawal advances/ withdrawals from the fund for specific purposes. 

The conditions for withdrawal from the fund have been liberalized and now no documentary proof is required to be furnished by the subscriber for GPF withdrawal. On retirement of a subscriber, instructions have been issued for immediate payment of final balance on retirement. No application is required to be submitted by the subscriber for final payment from the fund. .

Deposit Linked Insurance Scheme: Under the GPF Rules, on the death of subscriber, the person entitled to receive the amount standing to the credit of the subscriber shall be paid an additional amount equal to the average balance in the account during the 3 years immediately preceding the death of the subscriber subject to certain conditions provided in the relevant Rule. The additional amount payable under that Rule shall not exceed Rs. 60,000/-. To get this benefit, the subscriber should have put in at least 5 years service at the time of his/her death.

Contributory Provident Fund: The Contributory Provident Fund Rules (India), ,1962 are applicable to every non-pensionable servant of the Government belonging to any of the services under the control of the President. A subscriber, at the time of joining the Fund is required to make a nomination in the prescribed Form 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, before that amount has become payable or having become payable has not been paid.

A subscriber shall subscribe monthly to the Fund when on duty or Foreign Service but not during the period of suspension. Rates of subscription shall not be less than 10% of the emoluments and not more than his emoluments. The employer's contribution at that percentage prescribed by the Government will be credited to the subscriber's account and this is 10%. The Rules provide for drawal of advances/ withdrawals from the CPF for specific purposes. As in GPF Rules, the CPF Rules also provide for Deposit Linked Insurance Scheme.

Leave Encashment: Encashment of leave is a benefit granted under the CCS (Leave) Rules and is not a pensionary benefit. Encashment of Earned Leave/Half Pay Leave standing at the credit of the retiring Government servant is admissible on the date of retirement subject to a maximum of 300 days.

Central Government Employees Group Insurance Scheme: A portion of monthly contributions paid while in service is credited in a Saving Fund, on which interest accrues. A Government servant while entering service has to apply in Form No. 4 of the above Scheme to the Head of Office, who shall issue a sanction for the payment of subscriber's accumulation in the Savings Fund segment together with interest and arrange for its disbursement, soon after retirement. Payments under this Scheme are made in accordance with the Table of Benefit (as issued by Department of Expenditure) which takes in to account interest up to the date of cessation of service. Insurance cover benefit under this Scheme is available to the family in the event of death of the subscriber.

Retirement Age 65 for General Duty Medical Officers, Specialist Grade doctors

“Enhancement of age of superannuation of General Duty Medical Officers, Specialist Grade doctors”

Cabinet approves enhancement of age of superannuation of General Duty Medical Officers, Specialist Grade doctors and Teaching Medical Faculty working in Bhopal Memorial Hospital and Research Centre, Bhopal

The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approvedthe proposal of Department of Health Research, Ministry of Health & Family Welfare to enhance the age of superannuation of General Duty Medical Officers, Specialist Grade doctors and Teaching medical faculty working in Bhopal Memorial Hospital and Research Centre, Bhopal to sixty-five years at par with doctors of Central Health Services and doctors working under other Central government hospitals/institutes.

The age of superannuation in respect of General Duty Medical Officers and Specialists included in Teaching, Non-Teaching and Public Health sub-cadres of Central Health Services was increased to sixty-five years vide a Notification in January, 2018.

The Government decision will meet the shortage of faculty and specialist doctors in the BMHRC and improve the patient care facility to the victims of Bhopal Gas Tragedy and members of their families.

Decision of the Cabinet for enhancement of age of superannuation of Dental Doctors under Ministry of Railways.

GOVERNMENT OF INDIA

MINISTRY OF RAILWAYS

(RAILWAY BOARD )

New Delhi Dated: 26.12.2017

Sub: Decision of the Cabinet for enhancement of age of superannuation of Dental Doctors under Ministry of Railways

Ministry of Health & Family Welfare (MoH&FW) vide OM No. A.12034/1/2017- CHS-V dated 30.09.2017 has communicated (i) post-facto approval of the Cabinet for enhancement of age of superannuation of doctors of Indian Railway Medical Service; (ii) approval of Cabinet for enhancement of age of superannuation of Dental doctors under Ministry of Railways to 65 years; and (iii) that Doctors shall hold the administrative post till the date of attaining the age of 62 years.

2. Accordingly, the age of superannuation of Dental Doctors under Ministry of Railways is enhanced from 60 years to 65 years.

3. Doctors shall hold administrative posts till the date of attaining the age of 62 years and thereafter their services shall be placed in Non-administrative positions.

4. Consequent upon enhancement of the age of superannuation of Dental Doctors, all Zonal Railways/Production Units are requested to review the vacancies arising from retirement in regard to direct recruitment as well as promotion so that there is no over recruitment or litigation or review DPCs because of change in “Zone of Consideration” as a result of reduction in the number of retirement vacancies.

5. This issues with the concurrence of Finance Directorate of the Ministry of Railways.

sd/-

(Anil Kumar)

Dy. Director Estt. (P&A)-I

Railway Board

Department of Public Enterprises (DPE) issued OM No. W-02/0017/2014-DPE(WC) dated 01.02.2017 clarifying the term “technical formality clause” as mentioned in point xvi) of OM No. W-02/0017/2014-DPE (WC) dated 21.05.2014. This has no effect on the provisions of the OM dated 21.05.2014.

In term of para vii) read with para x) of Department of Public Enterprises (DPE)’s OM dated 21.05.2014, any employee resigning from service of CPSEs and joining another CPSE having broadly similar schemes of pension and post superannuation medical benefit the entire amount of employer’s and employee’s contribution along with interest accrued thereon would be transferred to such CPSE. The services rendered in CPSEs prior to resigning would also be counted for the schemes. Thus, these provisions are available even prior to issue of the OM dated 01.02.2017 on ‘Technical formality’.

This information was given by Minister of State in the Ministry of Heavy Industries and Public Enterprises Shri Babul Supriyo in reply to a written question in the Rajya Sabha today.

Service/Retirement Benefits

The Minister of DoPT Shri Jitendra Singh said in a written reply in Parliament to a questin about the deputation and early retirement policies on 15th March 2017 as follows…

The service and retirement benefits are decided and reviewed as per the recommendations of the Central Pay Commission (CPC) and acceptance/rejection of the same by the Government thereon. The recommendations of Seventh CPC have been considered by the Government and necessary resolutions have already been published in the Gazette of India.

Vide DoPT’s O.M. No. 2/6/2016-Estt.Pay-II dated 17.02.2016, the Administrative Ministries/Departments and other borrowing organisations have been delegated powers to extend a deputation tenure upto seven years where absolutely necessary in public interest. This shall be subject to fulfilment of conditions prescribed in DoPT’s O.M. No. 6/8/2009-Estt.(Pay-II) dated 17.06.2010.

The voluntary retirement policy of AIS officers have also been aligned with other Central Government employees vide this Ministry’s Gazette Notification No. 24012/04/2016.AIS-II(Pension) dated 27.02.2017.

The retirement age of medical officers in the Armed Forces Medical Service (AFMS) is based on their rank, which ranges from 56 years in the rank of Lieutenant Colonel (& equivalent) to 60 years in case of Major General (& equivalent). In certain cases, Director General of AFMS in the rank of Lieutenant General and other Lieutenant Generals (& equivalent) may retire respectively at the age of 61 & 62 years.

There is no proposal to equate the retirement age of medical officers of AFMS to those doctors working in the civil sector as the terms and conditions of service for the two categories of doctors are totally different.

The present total authorised strength of AFMS is 7073 out of which 843 posts are vacant. Recruitment drives are conducted from time to time to fill up the vacancies.

This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri Shrimati Chhaya Verma and Shri Vishambhar Prasad Nishad in Rajya Sabha today.