Pension
- Which Rules govern pension and gratuity to the employees retiring from Jharkhand Government.
Pension and Gratuity of the employees retiring from Jharkhand Government is regulated by the Jharkhand Pension Rules, 2000.
- Who is eligible for pension?
A Govt. servant appointed in a pensionable establishment before 01.01.2005 and retired from Government service with a qualifying service of 10 years or more is eligible for pension.
- How is pension calculated?
With effect from 01.01.2006 pension is calculated @ 50% of emoluments (last pay) or average emoluments (for last 10 months), whichever is more beneficial to the retiring Govt. servant.
- What is the amount of minimum and maximum pension after 6th CPC & 7th CPC?
The pension shall not be less than Rs. 3500/- from 01.01.2006, Rs. 9000/- from 01.01.2016 and shall not be more than 50% of highest pay in Government i.e. Rs. 45,000/- & Rs. 1,25,000/-, respectively.
- Whether older pensioners will get higher rate of pension?
Yes, from 01.01.2006, the quantum of pension/family pension available to old pensioners/family pensioners has been increased as follows:-
Finance Department, Govt. of Jharkhand Resolution No.660 dated 28/02/2009
| Age of pensioner/family pensioner | Additional quantum of pension |
|---|---|
| From 80 years to less than 85 years | 20% of basic pension/family pension |
| From 85 years to less than 90 years | 30% of basic pension/family pension |
| From 90 years to less than 95 years | 40% of basic pension/family pension |
| From 95 years to less than 100 years | 50% of basic pension/family pension |
| 100 years or more | 100% of basic pension/family pension |
- Is additional pension admissible to old family pensioners also?
Yes, the rates related to additional pension as applicable in the case of old pensioners hold good for family pensioners, as well.
- Whether the provision of added years in qualifying service for computation of pension is still in force?
The benefit of added years of qualifying service for computation of pension/related benefits has been withdrawn with effect from 01.01.2006.
- What is the meaning of the following terms?
- Pension Disbursing Authority
- Pension Sanctioning Authority
- PPO issuing/authorizing Authority
| Pension Disbursing Authority | Bank Branch/Treasury paying your pension |
| Pension Sanctioning Authority | The Authority who sanctions your pension before forwarding the case to Accountant General(A&E), Jharkhand, Ranchi |
| PPO issuing Authority | The Accountant General(A&E), Jharkhand, Ranchi is the PPO issuing authority. |
- Can Income Tax be deducted at source be made from pension payments?
Yes, the paying branch will be responsible for deduction of Income tax at source from pension payments in accordance with the rates prescribed from time to time. While deducting such tax from pension payments the paying branch will also allow deduction on account of relief available under Income Tax Act from time to time on production of proper and acceptable evidence of eligible savings by pensioners. The paying branch will also issue the pensioner in April each year a certificate of tax deducted in the form prescribed in the Income Tax Rules.
- Whether retirement gratuity/death gratuity, commuted value of the pension is taxable?
No, retirement gratuity/death gratuity and commuted value of the pension are fully exempted from Income tax.
- 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 with effect from 01.01.2006 (earlier the limit was Rs. 3.5 lakhs) and Rs. Twenty lakhs with effect from 01.01.2016.
- 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.
- Whether the family can be given the benefits of 40% commutation if a pensioner dies before exercising option?
No, since the commutation does not become absolute in such cases the benefit cannot be given to the family.
- 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 firs pension itself. In all other cases, where the commutation of pension led/leads to 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.
- 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.
- Whether a person who has commuted some percentage of his pension, can commute remaining part up to maximum of 40% afterwards (e.g. if a person have commuted 20% of his pension on retirement and the same was duly authorized, whether he can commute the remaining 20% of his pension)?
There is no provision for section option for commutation after the first option becomes absolute.
- 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.
- What are the reasons for the difference in the pensionary benefits calculated by the Department and that admitted by A.G.?
The difference may be due to error in arriving at the qualifying service and some erroneous pay fixation done by the Department.
- Family pension involving two wives.
Where a Government servant leaves behind more than one widow, the death benefits will be divided in two parts. Ist part will be authorized in favour of Ist wife and children therefrom and 2nd part will be authorized in favour of children from 2nd wife.
- How to get PPO transferred from one district to another district?
The pensioner has to approach the Pension Disbursing Authority i.e. District Treasury Officer with an application for transfer. The Disbursing Authority shall transfer the PPO to the respective Treasury Officer of the District for further payment with intimation to the AG.
- How to get the PPO transferred from Jharkhand to another State?
The pensioner has to approach to his Disbursing Authority with an application for transfer of pension mentioning there his/her new communication address and name of new Treasury with State where PPO is to be transferred. The Disbursing Authority shall forward the PPO with last payment details to the State AG and State AG shall forward the PPO to the concerned AG Office of the other accounting circle under “Special Seal Authority” to arrange for payment of pension through respective District Treasury as opted by the pensioner.