Frequently Asked Questions (FAQs)
(Central Civil Pensioners)
Last updated/Reviewed: 04.11.2013
EXTRAORDINARY PENSION
F.1 How the percentage of disability computed? To whom it is applicable?
The computing of percentage of disability is applicable 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 Medical Board. | Percentage to be reckoned for computation of disability pension |
| upto 50% | 50% |
| More than 50 and upto 75% | 75% |
| More than 75 and upto 100% | 100% |
Provided that the above broad banding shall not be applicable to Government servants who are retained in service.
F.2 Whether the element of disability pension and invalid pension will be combined or treated as separate identity?
The invalid pension is granted under Rule 38 of CCS(Pension) Rules, whereas disability pension is granted under CCS(EOP) Rules. The CCS (COP) Rules provides 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.
F.3 What is the revised quantum of ex-gratia lumpsum compensation to Civilian employees who die in performance of their bonafide official duties?
In modification of Deptt. Of Pension & PW’s OM No.45/55/97-P&PW(C) dated 11.9.1998 the ex-gratia lumpsum compensation to Civilian employees who die in performance of their bonafide official duties has been revised as under :
(a) Death occurring due to accidents in course of Performance of duties Rs.10.00 lakhs
(b) Death occurring due to accidents in course of Performance of duties attributable to acts of violence by terrorists, anti-social elements, etc Rs.10.00 lakhs
(c) Death occurring
(a) enemy action in international war or border skirmishes and
(b) action against militants, terrorists, extremists etc.
Rs.15.00 lakhs
(d) Death occurring while on duty in specified high altitude, inaccessible border posts, etc. on account of natural disasters, extreme weather conditions. Rs.15.00 lakhs
F.4 From which date the Constant Attendant Allowance is payable ?
Constant Attendant Allowance is payable from 1.1.2006 and applicable oly for officials retiring under EOP(Rules)
F.5 Whether the pensioners who retired on disability pension before 1.1.2006 would also be entitled to Constant Attendant Allowance ?.
Yes, the pensioners who retired on disability pension before 1.1.2006 and fulfilling the conditions mentioned in para 10.1 of O.M. No. 38/37/08- P&PW(A) dated 2.9.2008 would also be entitled to Constant Attendant Allowance.
F.6 Whether Dearness Relief will be admissible on Constant Attendant Allowance?
No.
GRATUITY
F.7 When will the gratuity withheld at the time of retirement be released?
The withheld amount of gratuity under sub-rule (5) of CCS(Pension) Rules, 1972, the retiring Government employees, shall be paid immediately on production of "No Demand Certificate" from the Directorate of Estates after actual vacation of the Government accommodation.
The Directorate of Estates shall ensure that "No Demand Certificate" shall be given to the Government employee within a period of fourteen days from the actual date of vacation of the Government accommodation and the allottee shall be entitled to payment of interest (at the rate applicable to General Provident Fund deposit determined from time to time by the Government of India) on the excess withheld amount of gratuity which is required to be refunded., after adjusting the arrears of licence fee and damages, if any, payable by the allottee and the interest shall be payable by the Directorate of Estates through the concerned Accounts Officer of the Government employee from the actual date of vacation of the Government accommodation up to the date of refund of excess withheld amount of gratuity.
F.8 Whether retirement gratuity/death gratuity, commuted value of the pension is taxable?
No. Death gratuity/retirement gratuity and commuted value of the pension are fully exempted from Income tax.
F.9 Is there any ceiling on gratuities and if so what is the maximum amount admissible?
Yes. Ceiling on all gratuities has been raised to Rs. ten lakhs w.e.f 01.01.2006 (earlier the limit was Rs.3.5 lakhs). DA admissible on the date of retirement is also to be added with pay for calculation of gratuity.
F.10 Whether retirement gratuity, death gratuity can be paid by PAO/CPAO?
No. The amount of retirement/death gratuity as determined by the PAO shall be intimated to the Head of Office who will draw and disburse the amount to the retired Government servant or to the nominee/family as the case may be.
F.11 Whether 10% gratuity or whole of the Gratuity is to be withheld at the time of retirement of all Government Servants?
No. The Administrative Deptt/Accounts Officer shall not withhold any gratuity unless the Head of Office
a) Enclose instructions received from Directorate of Estate for withholding of 10% gratuity for outstanding license fee.
Or
b) Informs of ongoing disciplinary proceedings.
COMMUTATION OF PENSION
G.1 How much of the pension can be commuted?
A pensioner can opt to commute up to 40% of the pension admissible at the time of retirement.
G.2 Is there any limit on commutation of pension?
A Government servant shall be entitled to commute for a lump sum payment up to 40 per cent of his pension.
G.3 Is there any restriction on commutation of pension?
Yes. No Government servant against whom departmental or judicial proceedings as referred to in Rule 9 of the Pension Rules, have been instituted before the date of his retirement or the pensioner against whom such proceedings are instituted after the date of retirement, shall be eligible to commute a fraction of his provisional pension authorised under Rule 69 of the Pension Rules or the pension, as the case may be, during the pendency of such proceedings.
G.4 Whether the family can be given the benefit of 40 per cent commutation if a pensioner dies before exercising option?
In view of Governments clarificatory orders, no such benefit can be given to the family.
G.5 What will be the effective date of reduced pension if,
a) The applicant is drawing pension from PAO?
b) The applicant is drawing pension from a branch of Public Sector Bank?
c) A Government servant who retired on superannuation and commutation applied in Form 1-A of CCS(Commutation of Pension) Rules before the date of retirement and commutation paid through Head of Office within the first month of retirement ?
a) The reduction in the amount of pension on account of the commutation shall be operative from the date of receipt of the commuted value of pension or at the end of three months after issue of authority by the PAO for the payment of commuted value of pension, whichever is earlier.
(b) The reduction in the amount of pension on account of commutation shall be operative from the date on which the commuted value of pension is credited by the bank to the applicant's account to which pension is being credited.
(c) The reduction in the amount of pension on account of commutation shall be operative from its inception. The commuted value is paid in two stages as such the reduction in the amount of pension shall be made from the respective dates of the payment as per (a) or (b) above, as the case may be.
G.6 How does the period of 15 years for restoration of commuted portion of pension reckon?
The 15-year period for restoration may be reckoned from the date of retirement itself only in case where the payment of commuted value of pension was/is made during the first month of retirement leading to appropriate reduction on account of commutation in the first pension itself. In all other cases, where the commutation of pension led/leads to a reduction in the second or subsequent month, the 15-year period will be reckoned from the date on which reduction in pension became/becomes effective.
G.7 Is any authorization for restoration of commuted portion of pension after 15 years required from PAO/CPAO?
No. Restoration of commuted portion of pension after 15 years (from the date of crediting of commuted value) or as fixed by the Government from time to time is to be made automatically by bank on receipt of application in prescribed proforma from the eligible pensioner. In cases where the date of commutation is not readily available in the PPO, the bank will obtain the information from the concerned PAO who issued the PPO through CPAO before restoring the commuted portion of pension.
G.8 What has the pensioner to do for restoration of commuted portion of pension? From what date is it restored?
Commuted portion of pension is to be restored after 15 years from the date of commutation. This restoration was introduced w.e.f. 1.4.85 i.e. those who completed 15 years on or after 1.4.85, their pension was to be restored. This period of 15 years is to be counted from date of discharge provided commutation was sanctioned simultaneously with service pension in the same PPO.
However, where commutation was sanctioned subsequent to the date of discharge the restoration of commuted portion of pension will be done on completion of 15 years from the date from which the amount of capitalized value is paid or credited to the pensioner's account. Every pensioner has to apply to his PDA (Pension Disbursing authority) through an application after completion of 15 years for restoration of commuted portion of pension.
G.9 Whether restoration of commuted portion of pension is admissible to those who were absorbed permanently in autonomous bodies/PSUs and have drawn 100% lump-sum payment in lieu of pension?
Yes. Only 1/3rd portion of pension may be restored after 15 years from the date of commutation in terms of O.M. dated 6.9.2007, O.M. dated 15.9.2008 and 11.07.2013. Additional pension applicable to old pensioners (80 years and above) and dearness relief on full pension is also payable
G.10 What is restoration of pension and when is it due?
Restoration of the fraction of the pension commuted by the pensioners becomes due for restoration after completion of 15 years period from the date of payment of lumpsum value of commutation.
G.11 What is reduce/residual/residuary pension?
Reduce/residual/residuary pension is the part of pension which is payable after deducting commuted portion of the pension.
G.12 What would be the age to be used for commutation of additional commutable pension and which factor would be used for such additional commuted value of pension ?
The age reckoned for calculation of commuted value of pension at the time of original application for commutation of pension will apply for calculation of commutation value of additional commutable pension. However, as mentioned in the OM dated 2.9.2008, the commutation factor in the revised Table of Commutation Value for Pension will be used for the commutation of the additional amount of pension that has become commutable on account of retrospective revision of pay/pension.
G.13 From which date the reduction in pension on account of additional commutation of pension will take effect?
Reduction in pension on account of additional commutation of pension will be in two stages as per the provisions contained in Rule 6 of the CCS(Commutation of Pension) Rules,1981.
G.14 What will be the date of restoration of additional commutation of pension?
The commuted portion of pension shall be restored after 15 years from the respective dates of commutation as provided in Government of India decision No.1 under the Rule 10 of CCS(Commutation of Pension) Rules,1981. Necessary endorsement should be made on PPO.
G.15 A person with D.O.B. on first of month retires in the previous month. What will be the value to be taken for calculation from commutation table ?
The commutation of pension become absolute on the date following the ate of his retirement. The commutation value taken will be Age on 61st Birthday i.e. 8.194 in the present commutation table
G.16 If the commuted amount is paid in stages then what will be the date of restoration?
If the payment of commuted value is made in stages, the restoration will also be made in stages from the respective dates of payment.
DEARNESS RELIEF
G.17 What is the extent of neutralization of relief granted to pensioners?
100% neutralization of relief is granted to all pensioners at the same rate like serving employees.
G.18 Is the Dearness Relief payable on original basic pension or on reduced pension after commutation?
The Dearness Relief is payable on original basic pension before commutation.
G.19 Is any authorization from PAO/CPAO required for payment of dearness relief on increased rates to pensioners/family pensioners?
No. Whenever any dearness relief on pension/family pension is sanctioned by Government, an intimation to this effect is sent by the Ministry of Personnel, Public Grievances and Pension (Deptt. of Pension and
Pensioners’ Welfare) to the authorised representative of each nominated Public Sector Bank. Each Central Pension Processing Centre will be responsible for ensuring that instructions of the Government have been carried out by the paying branches and payment of additional relief at the revised rates to the pensioners has been commenced by them without any undue delay.
G.20 Are the employed family pensioners and the re-employed pensioners entitled to Dearness Relief (DR) on their family pension/pension ?
Yes, w.e.f. 18/07/97 onwards subject to conditions contained in DoP&W O.M. No. 45/73/97-P&PW(G) dated 2nd July,1999.
NEW PENSION SYSTEM
NPS.1 The CCS(P) Rules are applicable to govt. servants appointed on or before 31.12.2003.Are the employees who joined pensionable establishments of Govt. of India after 31/12/2003 eligible for any benefits under these rules?
In accordance with DoP&PW O.M. No. 38/41/06-P&PW(A) dated 5.5.2009 such employees who joined after 31/12/2003 and/or their families may be given the benefit of disability pension or family pension provisionally till the finalization of rules under the National Pension System (NPS) on death/injury.
NPS.2 What are the guidelines/orders in regard to settlement of dues of the deceased Government employees covered under NPS ?
As per the Department of Pension & PW O.M. No.38/41/06 –P&PW(A) dated 5.5.2009 (available on website) the benefits under the CCS(Pension) Rules has been provisionally extended to the families of deceased employees covered under NPS. Family Pension/gratuity in terms of O.M. dated 5.5.2009 shall be payable to the family of the deceased employee if the deceased employee was covered under NPS and fulfils the conditions. These payments are provisional and will be adjusted as per the final provisions. As per Para 7 of the O.M., the accumulations in pension wealth of deceased employee under NPS will not be paid during the period provisional benefits under the aforementioned O.M. are payable. The Head of Office will prepare the pension papers as per provisions of the relevant rules and proceed as per the procedure for making the provisional payments to eligible Government servants’ families explained in Ministry of Finance O.M. No.1(7)/DCPS(NPS)/2009/TA/221 dated 2.7.2009 read with corrigendum dated 29.9.2009.
NPS.3 What are the guidelines/orders in regard to settlement of dues of the deceased Government employees covered under NPS?
As per the Department of pension & PW O.M. No. 38/41/06-P&PW(A) dated 5.5.2009 (available on website) the benefits under the CCS(Pension ) Rules has been provisionally extended to the families of deceased employees covered under NPS.
Family Pension/gratuity in terms of O.M. dated 5.5.2009 shall be payable to the family of the deceased employee if the deceased employee was covered under NPS and fulfils the conditions. These payments are provisional and will be adjusted as per the final provisions. As per Para 7 of the O.M. the accumulations in pension wealth of deceased employee under NPS will not be paid during the period provisional benefits under the aforementioned O.M. are payable.
The Head of Office will prepare the pension papers as per provisions of the relevant rules and proceed as per the procedure for making the provisional payment to eligible Government servants’ families explained in Ministry of Finance O.M. No. 1(7)/DCPS(NPS)/2009/TA/221 dated 2.7.2009 read with corrigendum dated 29.9.2009.
