A brief on Pension and NPS applicable to Central Government Employees

A brief on Pension and NPS applicable to Central Government Employees – Salary / Pension to Retired Employees

Minister’s reply to Lok Sabha regarding Pension benefits

GOVERNMENT OF INDIA
MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS (DEPARTMENT OF PENSION AND PENSIONERS WELFARE)

LOK SABHA STARRED QUESTION NO. 371
(TO BE ANSWERED ON 21.03.2018)

SALARY/PENSION TO RETIRED EMPLOYEES

*371. SHRI PARESH RAVAL:
SHRI DEVUSINH CHAUHAN:

Will the PRIME MINISTER be pleased to state:

(a)       whether the Government has made any rule to give salary/pension to the Government employees after their retirement; and
(b)       if so, the details thereof?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS AND MINISTER OF STATE IN THE PRIME MINISTER’S OFFICE (DR. JITENDRA SINGH)

(a) & (b):    A statement is laid on the Table of the House.

*******

STATEMENT REFERRED TO IN REPLY TO PARTS (a) & (b) OF LOK SABHA STARRED QUESTION NO. 371 for 21.03.2018.

(a) & (b) Central Government civil servants appointed before 1.1.2004 are governed by the Central Civil Services (Pension) Rules, 1972. In accordance with Rule 49 of these rules, on retirement after completing a qualifying service of not less than 10 years, a Government servant is entitled to a pension calculated @ 50% per cent of his last drawn pay or 50% of the average of last 10 months’ pay, whichever is more beneficial to him, subject to a minimum of Rs. 9,000/- per month and a maximum of Rs.1,25,000/- per month.

2. A Government servant appointed on or after 1.1.2004 is governed by the National Pension System. Under this system, a Government servant is required to mandatorily contribute during service 10% of his pay and dearness allowance to his pension account and an equal amount of 10% of pay and dearness allowance is contributed by the Government to the employee’s pension account. On retirement on superannuation, the retiring Government employee is mandatorily required to invest at least 40% of the accumulated pension wealth to purchase an annuity from an insurance company regulated by the Insurance Regulatory Development Authority (IRDA) and a maximum of 60% of the accumulated pension wealth is given to the individual in lump sum.

On retirement, all Government servants are entitled to a retirement gratuity based on their qualifying service subject to a maximum of Rs.20 lakh.

This was stated by the Minister of State for Personnel, Public Grievances & Pensions and Prime Minister’s Office, Dr. Jitendra Singh in a written reply to question in the Lok Sabha today.

Source : Lok Sabha