KNOW ABOUT – RETIREMENT BENEFITS
BENEFITS ACCRUING ON
G E N E R A L
1. The age prescribed for retirement on superannuation is 60 years for all Government servants.
2. Retirement is effective from the afternoon of the last day of the month in which age of superannuation is attained.
3. An employee whose date of birth is the 1st of the month shall retire on the afternoon of the last day of the preceding month.
4. The date of retirement on superannuation will be deemed as a working day.
5. In case of premature retirement/Voluntary retirement, the day of retirement will be treated as a non-working day.
6. Entire gratuity will be withheld for non-vacation of quarters and during pendency of departmental or judicial proceedings.
7. Life certificate should be furnished to the pension disbursing authority by the pensioner/family pensioner in the month of November every year.
8. An amount equal to three months’ basic pay or Rs.8,000/- whichever is less is payable as immediate relief [Funeral Advance] to the family of an employee who dies while in service. This amount will be recoverable from the death gratuity payable. [RBE No.191/99]
9. Pension will be calculated and paid including the day of death of pensioner/family pensioner.
1. PROVIDENT FUND:
This is paid to the employee at the time of his/her retirement from his / her own contribution to Provident fund together with interest thereon.
2. PENSION:
2.1 A full bench of Supreme Court has declared in their historical judgment that PENSION is to live from want in one’s fall of life, with decency, independence and self respect and at a standard equivalent at the pre-retirement level.
Pension is not only compensation for loyal service rendered in the past but it has a broader significance in that it is a measure of socio-economic justice which inherits economic security in the fall of life when physical and mental prowess is ebbing corresponding to aging process and, therefore, one is required to fall back on savings. One such saving in kind is when your best in the heyday of life to your employer, in days of invalidity, economic security by way of periodical payment is assured. The term ‘pension’ has been judicially defined as stated allowance or stipend made in consideration of past service or a surrender of rights or emoluments to one retired from service. Pension is not a bounty payable on the sweet will and pleasure of the Government. Right to superannuation including its amount is a valuable right vesting in a government servant. [ D.S. Nakara Vs. UOI 1983 1 SLJ ]
2.2 The Fourth Central Pay Commission declared that Pension stands on a high pedestal.
2.3 The Fifth Central Pay Commission stated that Pension is statutory, inalienable, legally enforceable right of retired employees and it has been earned by the sweat of their brow.
2.4 The Sixth Central Pay Commission introduced certain modifications in the Rules regulating Pension.
2.5 Definition of Pension & its eligibility:
This is a monthly recurring payment made to the Railway employees consequent upon their retirement with a qualifying service of not less than 10 years. The amount of pension depends upon two factors, viz.,
[i] The qualifying service rendered by the employee and
[ii] 50% of the emoluments (pay last drawn) or the average emoluments drawn during the last 10 months of service, whichever is more beneficial to the Railway servant.
Employees with less than 10 years of service are entitled to receive Service Gratuity in one lumpsum at half months’ emoluments for every 6 months’ service, in lieu of monthly pension.
2.6 Qualifying Service:
Qualifying service means the service rendered by the employee and it commences from the date he takes charge of the post to which he is first appointed either substantively or in an officiating/temporary capacity, provided officiating / temporary service is followed, without break, by confirmation. {Authority: Rule 20 of RSPR, 1993} The minimum qualifying service for reckoning pension, retirement/death gratuity is 10 years.
The following will constitute qualifying service:
a) Pre-recruitment Training period.
b) Joining time.
c) All kinds of leave with leave salary.
d) Deputation and Foreign Service.
e) Extraordinary leave taken on medical grounds and extra-ordinary leave for prosecuting higher studies.
f) Military service rendered (subject to the Military authority certifying that they would have been eligible for military pension on completion of the requisite minimum number of years of service) [RBE No.101/2001]
g) 50% Casual Labour Service rendered after attaining temporary status (in case of Casual labour from 01.01.1961 and for Project Casual Labour from 01.01.1981)
h) Full Substitute service rendered after grant of temporary status followed by regular absorption.
2.6.1 The following periods will not qualify for pension:
a) EOL taken otherwise on medical grounds and for prosecuting higher studies.
b) Service rendered before attaining the age of 18 years.
c) Periods of unauthorised absence.
d) Suspension, if not regularized as duty/leave
e) Dies-non.
2.6.2 Rounding off Qualifying Service:
1.Less than 3 months – Ignored
2. More than 3 but less than 9 months – Half year
3. More than 9 months – One year
[Authority: Rule 69(3) of RS PR, 1993]
2.7 ‘Emoluments’ means pay drawn in the prescribed pay band plus grade pay drawn immediately before retirement / death of an employee and will also include non-practising allowance and charge allowance. In case of running staff, 55% of basic pay will be taken into account. [Authority: Rule 49 of RS PR, 1993]
2.8 Average emoluments:
Emoluments drawn during the last ten months of service. In case of running staff, 55% of pay and in case of Doctors, 25% of pay will also be added. If during the last ten months of service, the employee was on EOL/Suspension, the said period will be disregarded in the calculation of average emoluments and equal period before the ten months will be taken. The period of absence or suspension will be dis-regarded for calculation of Average emoluments.
In the case of railway servant who was on LAP during the last ten months, increment due, though not drawn, in the leave period not exceeding 120 days’ leave will also count for average emoluments.
In case an employee is promoted to higher grade within ten months before retirement, the pension so arrived after calculation of emoluments should not be less than 50% of the minimum of the scale of promoted grade.
2.9 Calculation of Pension:
Pension is calculated for a qualifying service of 20 years @ 50% of the emoluments or average emoluments received during the last ten months or last pay drawn whichever is higher, subject to a minimum of Rs.3500/- P.M. Fraction of a rupee, if any, in the pension finally calculated will be rounded off to the next higher rupee. The maximum pension shall be 50% of the highest pay in the Govt. (The highest pay in Govt. is Rs.90,000 since 1.1.2006).
Pension = Last 10 months’ average emolument / 2
Where Q.S. is less than 20 years
Last 10 months average emoluments X Qualifying service/ 2 X 20
2.10 IIustration:
Average emoluments is Rs.20000 and Qualifying service is 20 years.
Pension = 20000 = Rs.10000 + Relief / 2
Average emoluments is Rs.10000 and Qualifying service is 19 years.
Pension = 10000 x 19 / 2 X20 = Rs.4750 + Relief
2.11 The quantum of pension available to the old pensioners shall be increased as follows :-
Age of Pensioner
|
Additional quantum of Pension
|
From 80 years to less than 85 years
|
20% of basic of pension
|
From 85 years to less than 90 years
|
30% of basic pension
|
From 90 years to less than 95 years
|
40% of basic pension
|
From 95 years to less than 100 years
|
50% of basic pension
|
100 years or more
|
100% of basic pension
|
2.12 Who are eligible to receive pension?
Employees who retire on superannuation / Voluntary retirement/ or retired Compulsorily (as a measure of penalty) or Prematurely (on review of service) / Invalidation having qualifying service of not less than 10 years.
2.13 Pension – Can it be withheld?
Pension and /or gratuity can be withheld or withdrawn either in full or in part whether permanently or for a specified period by the President if the railway employee is held guilty of charges of grave misconduct or negligence in the disciplinary/judicial proceedings.
2.14 Can pension be granted during pendency of departmental/judicial proceedings.
A Railway servant against whom disciplinary proceedings for major penalty or judicial proceedings are pending on the date of retirement shall be granted only provisional pension and such provisional pension shall not be allowed to be commuted.
2.15 Different Kinds of Pension:
Superannuation Pension: This is granted to a railway servant who is retired on his attaining the age of compulsory retirement.
Retiring Pension: This is granted to a railway servant who retires, or has retired before attaining the age of compulsory retirement.
Invalid Pension: This is granted to a railway servant who retires from service on account of any bodily or mental infirmity which permanently incapacities him for the service.
Compensation Pension: This is granted to a railway servant who is selected for discharge owing to abolition of his permanent post.
Compulsory retirement Pension: This is granted to a railway servant compulsorily retired from service as a penalty. Employees who are compulsorily retired from service as a penalty may be granted by the competent authority pension or gratuity or both at a rate not less than two thirds of pension and not more than the compensation pension admissible on the date of compulsory retirement.
Compassionate allowance: Employees who are dismissed or removed from service shall forfeit pension and gratuity. However, in deserving cases, the competent authority may sanction a compassionate allowance not exceeding two thirds of pension subject to a minimum of Rs.3500/-.
III. COMMUTATION OF PENSION:
3.1 Employees retiring on superannuation/Voluntary retirement can commute a portion/fraction of their monthly pension not exceeding 40% (of the pension) for a lumpsum payment. Any fraction in the amount offered for commutation will be ignored. The value of the commutation of the pension will be:-
12 X Amount of pension X commutation value
offered for commutation relevant to age on
next birthday.
3.2 Commutation Value for a pension of Re.1 per annum
Age
next
birth-
day
|
Commu-tation
value expressed as
number of
years of
purchase
|
Age
next
birth-
day
|
Commu-tation
value expressed as
number of
years of
purchase
|
Age
next
birth-
day
|
Commu-tation
value expressed as
number of
years of
purchase
|
20
|
9.188
|
41
|
9.075
|
62
|
8.093
|
21
|
9.187
|
42
|
9.059
|
63
|
7.982
|
22
|
9.186
|
43
|
9.040
|
64
|
7.862
|
23
|
9.185
|
44
|
9.019
|
65
|
7.731
|
24
|
9.184
|
45
|
8.996
|
66
|
7.591
|
25
|
9.183
|
46
|
8.971
|
67
|
7.431
|
26
|
9.182
|
47
|
8.943
|
68
|
7.262
|
27
|
9.180
|
48
|
8.913
|
69
|
7.083
|
28
|
9.178
|
49
|
8.881
|
70
|
6.897
|
29
|
9.176
|
50
|
8.846
|
71
|
6.703
|
30
|
9.173
|
51
|
8.808
|
72
|
6.502
|
31
|
9.169
|
52
|
8.768
|
73
|
6.296
|
32
|
9.164
|
53
|
8.724
|
74
|
6.085
|
33
|
9.159
|
54
|
8.678
|
75
|
5.872
|
34
|
9.152
|
55
|
8.627
|
76
|
5.657
|
35
|
9.145
|
56
|
8.572
|
77
|
5.443
|
36
|
9.136
|
57
|
8.512
|
78
|
5.229
|
37
|
9.126
|
58
|
8.446
|
79
|
5.018
|
38
|
9.116
|
59
|
8.371
|
80
|
4.812
|
39
|
9.103
|
60
|
8.287
|
81
|
4.611
|
40
|
9.090
|
61
|
8.194
|
[Basis: LIC (94-96) ultimate tables and 8.00 % interest]
IIustration:
Basic monthly pension Rs.5000
DOR on attaining the age of superannuation 31.12.09
Commutation:
40% of 5000 X 12 X 8.194 = 2000 X 12 X 8.194
= Rs.196656
NOTE: A pensioner who has commuted a part of his pension shall receive only the balance of the pension monthly. Dearness Relief after commutation would be calculated in the above illustration on Rs.5000.
3.3 In case of medical unfitness/compulsory retirement as a measure of penalty and for those who have not applied for commutation within one year, commutation will be payable after medical examination.
3.4 Restoration of Commuted value of pension:
The commuted value of pension will be restored on completion of 15 years from the actual date of commutation.
NOTE: Commutation has no effect on family pension.
- FAMILY PENSION:
4.1 Definition & entitlement:
Family pension is a social security benefit paid monthly to the surviving widow/widower or minor child/parents wholly dependent on a Railway servant in the case of death of the employee irrespective of whether death occurs during service or after retirement. This is also payable to families of removed/dismissed employees if they were in receipt of compassionate allowance at the time of death. Post retrial spouse is also eligible for family pension.
4.2 Calculation of Family Pension:
The amount of family pension is calculated @ 30% of basic pay subject to a minimum of Rs.3500 plus relief admissible from time to time and maximum of 30% of the highest pay in the Govt. [The highest pay in the Govt. is Rs.90000 since 1.1.2006]. Qualifying service is irrelevant for sanction of family pension at normal rates.
The enhanced family pension under Rule 75(4)(i)(a) of RS(Pension)Rules, 1993 shall be payable to the family of a Railway servant who dies in service from the date of death of the Railway servant for a period of ten years, without any upper age limit. Rule 75(4)(i)(a) stands modified accordingly.
4.3 The quantum of pension available to the old family pensioners shall be increased as follows :-
Age of Pensioner
|
Additional quantum of Pension
|
From 80 years to less than 85 years
|
20% of basic of pension
|
From 85 years to less than 90 years
|
30% of basic pension
|
From 90 years to less than 95 years
|
40% of basic pension
|
From 95 years to less than 100 years
|
50% of basic pension
|
100 years or more
|
100% of basic pension
|
4.4 Entitlement of Family Members to receive Family Pension:
For the purpose of grant of Family Pension, the ‘Family’ shall be categorized as under :
Category-I
1. Widow or Widower, upto the date of death or re-marriage, whichever is earlier.
2. In case of childless widow, she is eligible even after the re-marriage provided her income does not exceed Rs.3500 P.M.
3. Son / daughter (including unmarried/widowed/ divorced daughter), upto the date of his / her marriage/ re-marriage or till the date he /she starts earning or till the age of 25 years, whichever is the earliest.
Category-II
1 . Unmarried / Widowed / Divorced daughter, not covered by Category-I above, upto the date of marriage/re-marriage or till the date she starts earning or upto the date of death, whichever is earliest.
2. Parents who were wholly dependent on the Railway servant when he /she was alive provided the deceased employee had left behind neither a widow nor a child. Family pension to dependent parents and unmarried/divorced/widowed daughter will continue till the date of death.
3, Family pension to unmarried/widowed/divorced daughters in Category-II and dependent parents shall be payable only after the other eligible family members in Category-I have ceased to be eligible to receive family pension and there is no disabled child to receive the family pension.
4. The dependency criteria for the purpose of family pension shall be the minimum family pension along with dearness relief thereon.
RETIREMENT GRATUITY:
5.1 This is a lumpsum payment granted to a Railway servant or his/her nominee on his/her retirement.
The amount of Retirement Gratuity depends on the qualifying service and the last pay drawn by the employees. “Emoluments” for the purpose of calculation of Retirement / Death gratuity means last pay drawn and the full Dearness allowance admissible thereon on the date of retirement/death. It is calculated @1/4th of the emoluments for each completed six monthly period of qualifying service subject to a maximum of 16-1/2 times of emoluments or Rs.20 lakhs whichever is less.
For Non-Running staff:
Retirement = [Basic Pay + DA] X Qualifying Service/ 2
Illustration:
(i) Non-Running Staff
Basic Pay Rs.17650 [9300-34800+4200]+DA @ 16% (1-7-2008)
Total Qualifying service 30 years.
Retirement Gratuity=17650+2824×33/2= Rs.3,37,821/-
(ii) For Running Staff Retirement Gratuity
[(Basic Pay+55% of basic pay)+DA on Basic pay
Plus 30% thereon
X qualifying service / 2
Last drawn basic pay Rs.17650 [9300-34800+4200] DA @ 16% (1-7-2008) of a Passenger Guard [Running staff] retiring on 31.12.2008. Total qualifying service 37 years, restricted to 33 years. DA is calculated on basic pay + 30% thereon, while for pay, basic pay+ 55% thereon is taken into account
Retirement Gratuity =(17650+9708)+3671x 33/2
= Rs.5,11,979
5.2 Death Gratuity:
In case of death of railway servant while in service, Death Gratuity is granted at the following rates depending upon the length of qualifying service put in by the deceased employees:-
Length of Service
|
Rate of Death Gratuity
|
Less than one year
|
2 times of emoluments
|
One year or more but less than 5 years
|
6 times of emoluments
|
5 years or more but less than 20 years
|
12 times of emoluments
|
More than 20 years
|
Half of emoluments for every completed six monthly period of qualifying service subject to a maximum of 33 times of emoluments and shall not exceed Rs.10 lakhs
|
Illustration:
Date of death of an employee : 01.12.2008
Basic Pay at the time of death : Rs.17220/-
Total qualifying service : 31 years
DA @ : 16%
Death Gratuity =Pay+DA x Q.S.=(17220+2755) x31/2
= Rs.309613
5.3 Ex-Gratia on death while on duty:
Payment of Ex-gratia lumpsum compensation to the families of Railway employees who die in harness in performance of bonafide official duties
Death occurring due to accidents in the course of performance of duties: Rs.10 lakhs
Death occurring in the course of performance of duties attributable to acts of violence by terrorists, anti-social elements etc.: Rs.10 lakhs
Death occurring during (a) enemy action in international war or border skirmishes and (b) action against militants, terrorists, extremists etc.: Rs.15 lakhs
Death occurring while on duty in the specified high altitude, inaccessible border posts etc. on account of natural disasters, extreme weather conditions: Rs.15 lakhs
[RBE No. 136/2008].
- LEAVE ENCASHMENT
6.1 Leave salary is a one time lumpsum payment for the unavailed leave at credit at the time of retirement or death.This is limited to a maximum of 300 days of LAP. It is calculated on the last pay drawn plus dearness allowance. Charge allowance, Depu-tation Duty Allowance and Training
Allowance drawn at the time of retirement are also treated as pay for this purpose. Other allowances such as HRA, CCA shall not be reckoned as emoluments for this purpose. Encashment of leave is a pensionary benefit.
Formula for calculation of Leave Encashment : LAP
Basic Pay + D.A. X No. of days of LAP
30
(Authority:Rule 550 of Indian Railway Establishment Code Vol.I–1985 Ed.)
Employees resigning from service may be granted cash equivalent of unutilized LAP to the extent of 50% of leave at credit subject to a maximum of 150 days.
6.2 Leave Encashment – LHAP
With effectfrom 01.09.2008, encashment of both earned leave and half pay leave is allowed subject to overall limit of 300 days. The cash equivalent payable for half pay leave shall be equal to leave salary as admissible for half pay leave plus D.A. admissible on the leave salary without any reduction being made on account of pension and pension equivalent of other retirement benefits payable. To make up the shortfall in earned leave, no commutation of half pay leave is permissible. The cash equivalent for half pay leave shall be as under:
Cash payment Half pay leave No. of days
in lieu of half pay salary admissible of half pay
leave component = on the date of X leave at
retirement plus credit
D.A. admissible on subject to
that date the total of
30 earned
leave and
half pay
leave at
credit not
exceeding
300 days
VII. DEPOSIT LINKED INSURANCE SCHEME:
Deposit linked insurance is a lumpsum payment to be paid only to the family of the deceased employee at twice the amount standing at the credit of the PF account of the deceased subject to maximum of Rs.60,000/- provided, the following balance was maintained in the PF account during the last 3 years immediately preceding the date of death. The deceased employees should have put in at least five years service at the time of death.
Minimum Amount of Balance in PF account
|
Employees holding post with maximum of pay
|
Rs.25000
|
Rs.12000 & above
|
Rs.15000
|
Rs.9000 but less than Rs.12000
|
Rs.10000
|
Rs.3000 or more but less than Rs.9000
|
Rs.6000
|
Less than Rs.3500
|
VIII. CENTRAL GOVERNMENT EMPLOYEES GROUP INSURANCE SCHEME, 1982:
In the case of retirement the railway servants are paid the savings fund value with interest under the Group Insurance Scheme.
In the event of death of the employee while in service, the family will be paid full insurance value plus saving fund value with interest.
Insurance amount cannot be withheld and no government dues can be recovered except the amount claimed by the financial institutions as due from the employee on account of HBA.
In case of missing employees, Group Insurance shall be payable to the family after the death is conclusively established or on the expiry of 7 years period from the date of missing.
The subscription for the scheme shall be in units of Rs.15/- p.m. and the amounts of Insurance cover shall be Rs.15000/- for each unit of subscription w.e.f. 01.01.1990. Thus the rate of subscription per member of the scheme and the amounts of Insurance cover shall be as follows:
Group ‘A’ Rs.120/- For 8 Units Rs.1,20,000
Group’B’ Rs.80/- For 4 Units Rs.80,000
Group’C’ Rs.30/- For 2 Units Rs.30,000
Group’D’ Rs.15/- For 1 Unit Rs.15,000
Illustration:
A Group ‘C’ employee retiring on 31.12.2002 had been a member of Central Government Employees Group Insurance Scheme right from01.01.1982 and contributed at Rs.20/- (two units) with effect from 01.01.1982 upto 31.12.1989 and at Rs.30/- (2 Units) from 01.01.1990 wards. The amount of savings fund accruing to him as per the table for the year of cessation of membership for 2002 is Rs.8580 x 2 = Rs.17,160/-
- SETTLEMENT PASS:
Both in cases of retirement or death, a pass in the entitled class may be issued to a railway servant who is retiring or to his widow or family in the event of his death for travel to the railway station in India nearest his home or place of retirement.
- COMPOSITE TRANSFER GRANT ON RETIREMENT:
To settle down at places other than the last station of their duty located at a distance of or more than 20 kms., the Composite Transfer Grant shall be computed as below :
(i)
|
Officers in the pay scale of HAG+ and above
|
One month’s basic pay last drawn in the pay scale.
|
(ii)
|
All other Officers
|
Equal to one month’s pay last in the prescribed pay band plus the applicable grade pay.
|
[RBE No.193/2008]
- XI. REST HOUSE ACCOMMODATION & HOLIDAY HOMES:
Retired officers are permitted to occupy Railway rest house/rest room for a maximum period of seven days at a time.
Retired employees are eligible to book holiday home s on payment of charges of Rs.12/- for Group D, Rs.25/- for Group C and Rs.35/- for officers upto JA grade and Rs.75 for officers above JA grade per suite per day. [Bd’s letter No.E(W)2000/WE-2/2 dated 14.12.2000]
XII. RETENTION OF QUARTERS:
12.1 Retirement:
A Railway employee on retirement including voluntary retirement may be permitted to retain the railway accommodation for a period of 4 months on payment of normal rent.
12.2 Death:
The family will be permitted to retain the Railway accommodation for a period of 2 years on payment of normal rent/flat rate of licence fee/rent. If the deceased employee has a house at the last station of posting, the family will be allowed retention of railway accommodation only for a period of one year. Death gratuity will not be released to the family till the railway quarters in occupation is vacated.
XIII. MEDICAL FACILITIES:
Retired railway employees/spouses of the Railway employees who die in harness covered under RELHS-1997 will be provided with full medical facilities as admissible to serving employees under the Railway Medical Attendance Rules.
XIV. MEDICAL ALLOWANCE:
With effect form 01.12.1997, Pensioners are entitled to a medical allowance of Rs.100/- per month if they are residing 2.5 kms. outside the City/Municipality/town where the Railway Hospital/Health Unit/Dispensary is situated. It is in lieu of out patient treatment and admissible irrespective of possession of medical card.
- XV. POST RETIREMENT COMPLIMENTARY PASSES:
Eligibility for post retirement complimentary passes is as under. The class of pass will be determined based on the pay drawn prior to retirement.
Entitled to travel in Rajdhani/Shatabdi Express trains as per the quota prescribed by the Railway Board.
Qualifying Service rendered on Railways
|
No. of complimentary passes per year
| ||
Group A & B
|
Group C
|
Group D
| |
20 years and above but less than 25 years
|
2 sets
|
1 set
|
1set
|
25 years and above
|
3 sets
|
2 sets
|
1 set
|
XVI. WIDOW COMPLIMENTARY PASS:
- Widow/widower of the railway employee is eligible for half the number of post retirement passes that the spouse would have been eligible for, after retirement.
- The widow of any railway employee who dies while in service shall be entitled to a maximum of one set of pass every alternate year, even if the service of the deceased is less than the service prescribed for entitlement for post retirement complimentary pass.
XVII. APPOINTMENT ON COMPASSIONATE GROUND:
Appointment on compassionate grounds are offered to the eligible wards, only in cases of retirement on total medical unfitness, death of the railway employee while in service and missing railway employees. The competent authority has to consider each case on merits.
XVIII.Grant of settlement dues to eligible family members of railway servant who has suddenly disappeared and whose whereabouts are not known:
If an employee is missing, and his whereabouts are not known, his family can be paid the following retirement benefits, provided the family has lodged a complaint with the police station concerned and obtained a report that the employee has not been traced after all efforts had been made:
- a) Benefits payable in the first instance: salary due, leave encashment, and the accumulations in the provident fund.
- b) After the expiry of one year: Retirement gratuity, and family pension at normal rates and accumulations under the savings fund under the CGEGIS.
- c) After three years: Compassionate appointment to the eligible ward on condition that the appointment would be cancelled when the employee is traced. This facility is, however, subject to the condition that the missing employee has more than 2 years of service to retire from the date he is reported missing and is not suspected to have committed fraud/joined terrorist organization/gone abroad. The powers to consider such compassionate ground appointments are vested with General Manager.
- d) After seven years – Difference between the retirement gratuity and death gratuity, insurance cover admissible under group insurance.
- EXEMPTION FROM INCOME TAX:
The following Retirement/Death benefits are fully exempted from Income Tax.
Sl. No.
|
Benefit
|
Section under which exempted
|
1.
|
Retirement/Death gratuity
|
Clause 10 of Section 10 of IT Act
|
2.
|
Commutation of Pension
|
Sub clause (i) of clause 10 (A) of Section 10 of IT Act.
|
3.
|
Leave encashment
|
Sub clause (i) of clause 10 (AA) of Section 10 of IT Act.
|
DOCUMENTS GIVEN TO THE PENSIONER AT THE TIME OF RETIREMENT
1. Service Certificate
2. Pension Pay Order
3. Statement showing the details of settlement dues paid
4. Silver Plated Gold Medal
