Government released new pension guideline
Government job is considered to be the safest in the country, but sometimes during service, some employees take ‘Compulsory Retirement’. The biggest worry after retirement is that if someone takes retirement, will he get pension? How will his gratuity be calculated? The Central Government has now made the rules completely clear regarding all these things. The government has issued a new ‘Office Memorandum’ in this regard, in which it is clearly stated on what conditions and how much pension or gratuity will be given to the employees who get forced retirement.
These new guidelines have been implemented under Rule 44 of ‘Central Civil Services (Pension) Rules 2021’. With this step of the government, now the employees will be able to get accurate information about what will be their financial rights if they are given compulsory retirement during service.
Why was there a need for these new guidelines?
In fact, till now there was a lot of ambiguity in the rules regarding the financial benefits to be received in case of compulsory retirement. Employees were not able to know exactly under which formula their pension and gratuity would be calculated based on their service period.
In particular, there was maximum confusion regarding the calculation of gratuity amount and period of service. Due to lack of this information, employees were not able to make financial plans for their future. This new step of the government has been taken to end this uncertainty. The entire process has been clearly explained in the new memorandum.
What will happen to those with more than 10 years of service?
In the new rules, the government has divided the employees into two main categories on the basis of their period of service. The first category is of those employees who have completed 10 years of their service. The government has clarified that if a central employee retires after completing at least 10 years of service, he will be entitled to ‘Compulsory Retirement Pension’.
However, it is very important to understand here that this pension will not be equal to the full pension received on normal superannuation. According to the memorandum, the amount of this pension will be a ‘fixed percentage’ of your normal retirement pension. What this percentage will be, 50%, 60% or anything else, will be decided by the concerned department or ‘Competent Authority’ on a case-by-case basis. That is, it may vary from case to case, but it is clear that on completing 10 years of service, the employee will definitely get the benefit of pension.
Those whose job is less than 10 years will get this benefit of gratuity.
Now the question arises that what will happen to those employees whose service is less than 10 years and they take retirement? Will they have to return home empty handed? The government has completely clarified the rules for this situation also.
According to the new guidelines, employees who retire before completing 10 years of service will not be entitled to pension. But employees will be given ‘Compulsory Retirement Service Gratuity’.
This amount will also be a fixed percentage of their normal superannuation gratuity. As in the case of those with more than 10 years of service, here also the right to decide the final amount of gratuity or its percentage has been reserved with the competent authority. This means that the employee will get a lump sum amount, but the amount will be decided only by the competent authority.