Death-cum-Retirement Benefit Rules Simplified
Published in Finance. Tags: Family Pension, Gratuity, Pension.
Classification of pension:
(a) Compensation Pension
(b) Invalid Pension
(c) Superannuation Pension
(d) Retiring Pension
Compensation Pension
Option in case of abolition of permanent post. If an officer is selected for discharge owing to the abolition of permanent post, he shall, unless he is appointed to another post the conditions of which are deemed by the authority competent to discharge him to be at least equal to those of his own, have the option–
(a) of taking any compensation pension or gratuity to which he may be entitled for service he has rendered; or
(b) of acceptation another appointment of transfer to another establishment even on a lower pay, if offered, and continuing to count his previous service for pension.
Invalid Pension
Invalid pension when awarded.- An invalid pension is awarded, on his retirement from public service, to an officer who by bodily or mental infirmity is permanently incapacitated for public service, or for the particular branch of it to which he belongs.
Superannuation Pension
When superannuation pension is granted.- A superannuation pension is granted to an officer entitled or compelled under rules prescribed in chapter X of West Bengal Service Rules, Part-I, to retire at a particular age.
Retiring Pension
Retiring pension when granted.- A retiring pension is granted to an officer who is permitted to retire after completing qualifying service.
For more detail visit: West Bengal Services (Death-Cum-Retirement Benefit) Rules, 1971
Pension Matters Simplified:
The pensionary benefits in respect of the West Bengal Govt. Employees who retire after 01.01.2006 shall be determined as follows:
- Last Pay
- Qualifying Service
- Pension
- Additional Pension
- Family Pension
- Additional Family Pension
- Retiring Gratuity/ Death Gratuity
- Commutation of Pension
Last Pay: Basic Pay + Grade Pay
Qualifying Service Calculation: Date of Superannuation – Date of appointment – Period of E.L – Period of suspension. Below 3 months of service will not be counted. Three or more than three months of service will be counted as next 6 months qualifying service.
Illustration: A qualifying service of 23 years 7 months 11 days calculated above will be taken as 23 years 6 months. Similarly 23 years 9 months will be taken as 24 years.
Pension Calculation:-
- Minimum qualifying service for eligibility in pension is 10 years.
- Full Pension is applicable for qualifying service of 20 years or more.
- For qualifying service between 10 and 20 years, proportionate reduction in pension is applicable.
- Full pension = 50% of Last Pay.
- Maximum ceiling of pension = Rs. 35,000/-
- Minimum amount of pension = Rs. 3,300/-
Illustration:-
- For a service period of 33 years and last pay of Rs. 30,000/-, pension will be Rs. 15,000/-.
- 20 years of service period and last pay Rs. 30,000/-, pension will be Rs. 15,000/-
- 15 years of service period and last pay Rs. 30,000/-, pension will be Rs. 15000*15/20 = Rs. 11250/-
- 8 years of service period and last pay Rs. 30,000/-, pension will be Rs. NIL.
Additional Pension
The amount of pension increases with the increase of age of the pensioner by the following:
| Age of Pensioner | Additional Quantum of Pension |
|---|---|
| From 80 years to 85 years | 20% of the basic pension |
| From 85 years to 90 years | 30% of the basic pension |
| From 90 years to 95 years | 40% of the basic pension |
| From 95 years to 100 years | 50% of the basic pension |
| 100 years or more | 100% of the basic pension |
Family Pension
- Family Pension is 30% of the last pay.
- Maximum ceiling of family pension is Rs. 21,000/-
Additional Family Pension
The amount of pension increases with the increase of the age of the family pensioner by the following methods:
| Age of Family Pensioner | Additional Quantum of Pension |
|---|---|
| From 80 years to 85 years | 20% of the basic family pension |
| From 85 years to 90 years | 30% of the basic family pension |
| From 90 years to 95 years | 40% of the basic family pension |
| From 95 years to 100 years | 50% of the basic pension |
| 100 years or more | 100% of the basic pension |
Retiring Gratuity/ Death Gratuity
- Retiring gratuity is 16½ times the last pay.
- Death gratuity is applicable if the employee dies while in service.
- Death gratuity is 33 times the last pay.
- Maximum amount of retiring gratuity/ death gratuity is Rs. 6,00,000/-.
- In case of death gratuity it is calculated as follows:
- Less than 1 year of qualifying service, 2 times the last pay.
- 1 year to 5 years of service, 6 times the last pay.
- 5 years to 20 years of service, 12 times the last pay.
- 20 years or more of service, last pay x qualifying service (which is maximum 33 years)
- Last Pay means Basic Pay, Grade Pay plus Dearness Pay & Allowances in calculation of Gratuity only.
Illustration:-
- For a service period of 20 years and last pay of Rs. 15,000/-, DA Rs. 3000/- retirement gratuity will be Rs. 2,97,000/- and death gratuity if applicable would be Rs. 5,94,000/-.
- An employee of 3 years of qualifying service having last pay of Rs. 15,000/-, D.A Rs. 3000/-, retirement gratuity will be Rs. 6 x 18,000 x 3 = Rs. 1,62,000/-.
Commutation of Pension
A Government employee is entitled to commute up to a lump sum of 40% of pension as per the following table:
| Age on next birthday | Commutation value expressed as number of year’s purchase | Age on next birthday | Commutation value expressed as number of year’s purchase |
|---|---|---|---|
| 20 | 9.188 | 51 | 8.808 |
| 21 | 9.187 | 52 | 8.768 |
| 22 | 9.186 | 53 | 8.724 |
| 23 | 9.185 | 54 | 8.678 |
| 24 | 9.184 | 55 | 8.627 |
| 25 | 9.183 | 56 | 8.572 |
| 26 | 9.182 | 57 | 8.512 |
| 27 | 9.180 | 58 | 8.446 |
| 28 | 9.178 | 59 | 8.371 |
| 29 | 9.176 | 60 | 8.287 |
| 30 | 9.173 | 61 | 8.194 |
| 31 | 9.169 | 62 | 8.093 |
| 32 | 9.164 | 63 | 7.982 |
| 33 | 9.159 | 64 | 7.862 |
| 34 | 9.152 | 65 | 7.731 |
| 35 | 9.145 | 66 | 7.591 |
| 36 | 9.136 | 67 | 7.431 |
| 37 | 9.126 | 68 | 7.262 |
| 38 | 9.116 | 69 | 7.083 |
| 39 | 9.103 | 70 | 6.897 |
| 40 | 9.090 | 71 | 6.703 |
| 41 | 9.075 | 72 | 6.502 |
| 42 | 9.059 | 73 | 6.296 |
| 43 | 9.040 | 74 | 6.085 |
| 44 | 9.019 | 75 | 5.872 |
| 45 | 8.996 | 76 | 5.657 |
| 46 | 8.971 | 77 | 5.443 |
| 47 | 8.943 | 78 | 5.229 |
| 48 | 8.913 | 79 | 5.018 |
| 49 | 8.881 | 80 | 4.812 |
| 50 | 8.846 | 81 | 4.611 |
[Basis: LIC(94-96) Ultimate Tables and 8.00% interest]
Illustration: An employee with last pay of Rs. 30,000/-, qualifying service 22 years, then pension is Rs. 15,000/-, Commutation is Rs. 15,000 x 40% = Rs. 6000/-. If the age at next birthday is 61 years then Commutation Values for Pension (CVP) from the above table = Rs. 6000 x 8.194 x 12 = Rs. 5,89,968/-, Reduced pension is Rs. 9000/-.