Details of Retirement Benefits

RETIREMENT BENEFITS
1. Pension
2. Commutation of Pension
3. Retirement Gratuity
4. General Provident Fund and Incentives
5. Leave Encashment
6. Central Government Employees Group Insurance Scheme
(CGEGIS)
7. TA after Retirement for settlement at a station different
from the place of retirement
Pension
1. 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.
2. The amount of pension is 50% of the last basic pay or average of the
basic pay drawn during the last 10 months of the service whichever is
beneficial.
Commutation of Pension
1. A Central Government servant has an option to commute a portion of
pension, not exceeding 40% of it, into a lump sum payment.
2. 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
3. The formula for arriving for commuted value of Pension (CVP) is
CVP = Amount of pension Commuted X Commutation factor* X 12
Calculation for Commutation Value of Pension
Example:-
If an employee retired on Superannuation whose basic pay is
Rs.1,20,000/- has exercised option to Commute 40% of his
pension, then the calculation for Commuted Value of Pension
for that employee is as follows.
Basic Pay on Retirement = Rs.1,20,000/-
Pension (50% of Basic) = Rs. 60,000/-
Commuted Portion (40% of 60000) = Rs. 24,000/-
Commuted Value of Pension
= Amount of pension Commuted x Commutation Factor x 12
= 24,000 x 8.194 x 12
= 23,59,872
Retirement Gratuity
This is payable to the retiring Government servant. A minimum of 5
years' qualifying service 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 16½ times the Basic
Pay plus DA, subject to a maximum of Rs. 20 lakhs.
Calculation of Gratuity
Retirement Gratuity = Emoluments X No. of Completed Six
4 months service
= Basic + DA x No. of Completed Six

4 months service
Service completed three months or more will be counted as one six

month
Maximum No.of Completed Six months service is restricted to 66
Maximum Gratuity amount admissible is restricted to Rs.20 Lakhs

Example:
1. If an employee retired on Superannuation on 31st January 2023
whose basic pay of Rs.50,000/- and completed service 22 years 9
months then the calculation is as follows:
No. Of Completed Six months service
= (22x2) + 9 months
= 44 + 6 months + 3months
= 44 + 1 +1 (because 3months or more
taken as one 6 month service)
= 46
So the number of six months service completed for this employee 46
Gratuity = Basic + DA x No. of Completed Six
4 months service
= 50,000 + (38% of 50,000) x 46

4
= 50,000+19,000 x 46
4
= 69,000 x 46
4
= 17,250 x 46
= 7,93,500
So Gratuity for the employee is Rs.7,93,000/-

2.If an employee retired on Superannuation on 31st January 2023
whose basic pay of Rs.1,30,000/- and completed service 34 years 2
months then the calculation is as follows:
No. Of Completed Six months service
= (34x2) + 2 months
= 68 + 2 months
= 68 + 0 (because 3months or more only
taken as one 6 month service)
= 68
For this employee the number of completed six months service will be
taken 66 as Maximum No.of Completed Six months service is restricted
to 66
Gratuity = Basic + DA x No. of Completed Six
4 months service
= 1,30,000 + (38% of 1,30,000) x 66
4
=1,30,000+49,400 x 66
4
= 1,79,400 x 66
4
= 44,850 x 66
= 29,60,100
Gratuity amount for this employee is Rs. 20,0,000/- as the maximum
Gratuity amount admissible is restricted to Rs.20 Lakhs
General Provident Fund and Incentives
The final balance amount in the GPF account of the subscriber will be
paid immediately on retirement. No application is required to be
submitted by the subscriber for final payment from the fund.
Leave Encashment
Encashment of leave is a benefit granted under the CCS (Leave) Rules.
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.
i. Cash equivalent to
Leave Salary = Basic+DA x No. of Earned leave at
30 credit (Max of 300)
ii. Cash equivalent to

Half Pay Leave Salary = (Basic/2)+DA x No. Half Pay Leave
30 (300 - No. EL encashed)
Central Government Employees Group Insurance
Scheme
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.
TA for Retiring Employees
Travelling Allowance for Retiring Employees contains four components

similar as in the case of transfer:
(i) Travel entitlement for self and family members from the
last station to the settled down place
(ii) Composite Transfer and Packing Grant
(iii) Transportation of Personal Effects
(iv) Transportation of Conveyance
(i) Travel entitlement to self and family members for retiring
employees is same as the entitlement of the employee in the case of
Tour or Training
(ii) Composite Transfer and Packing Grant (CTG):

80% of the last month's basic pay in case of those employees,
who on retirement , settled down at place other than last station of
their duty located at a distance of or more than 20 km.
ln case of retirement, settle at the last station of duty itself or
within a distance of less than 20 kms may be paid one third of the CTG
subject to the condition that a change of residence is actually involved.
Eligible Mode and Class for Domestic Travel
Premium Trains/premium Tatkal
Pay Level By Air By Train Trains/Suvjdha Trains /
Shatabdi/Rajdhani Trains
14 and above Business Class AC-1st Class Executive / AC-1st class
12 and 13 Economy Class AC-1st Class Executive / AC-1st class
6 to 11 Economy Class AC- II Tier AC-2nd Class/ Chair Car
1st Class/AC-III Tier/ AC-3rd Class/ Chair Car

Below 6 Not Entitled
AC Chair Car
(iii) Transportation of Personel Effects:
Pay Level By Train Steamer By Road
12 and above 6000 Kgs 1 double Container Rs. 50/- per KM
6 to 11 6000 Kgs 1 Single Container Rs. 50/- per KM
5 3000 Kgs 3000 Kgs Rs. 25/- per KM
Below 5 1500 Kgs 1500 Kgs Rs. 15/- per KM
(iv) Transportation of Conveyance:

Pay Level Entitlement
6 and above 1 Motor Car
Below 6 1 Motor Bike / 1 Bicycle

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RETIREMENT BENEFITS

= Basic + DA x No. of Completed Six

Service completed three months or more will be counted as one six

Maximum Gratuity amount admissible is restricted to Rs.20 Lakhs

= 50,000 + (38% of 50,000) x 46

So Gratuity for the employee is Rs.7,93,000/-

ii. Cash equivalent to

Table of Benefit (as issued by Department of Expenditure)

Travelling Allowance for Retiring Employees contains four components

(ii) Composite Transfer and Packing Grant (CTG):

14 and above Business Class AC-1st Class Executive / AC-1st class

12 and 13 Economy Class AC-1st Class Executive / AC-1st class

6 to 11 Economy Class AC- II Tier AC-2nd Class/ Chair Car

1st Class/AC-III Tier/ AC-3rd Class/ Chair Car

(iv) Transportation of Conveyance:

6 and above 1 Motor Car

Below 6 1 Motor Bike / 1 Bicycle

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