TENTH PAY REVISION COMMISSION
PART II PENSION STRUCTURE
One of the terms of reference of the Pay Revision Commission ( PRC ) is to examine and review the existing structure for pensioners and make recommendations which may be desirable and feasible .
The present rules that govern the pensionery benefits are based on the A . P Revised Pension Rules , 1980 which came into force with effect from 29th October , 1979 as amended from time to time . Government have been sanctioning Pension on the last pay drawn , provided the employee drew pay in that post , in a regular vacancy at least for a period of two months . Otherwise the pension is based on average emoluments drawn for the last ten months . The minimum service to get pension is 10 years . Government allows a weightage of 5 years for superannuation pension and for voluntary retirement . In either case , the maximum qualifying service is 33 years for getting full pension i . e . 50 % of pay drawn at the time of retirement .
The Pay Revision Commission 2010 reviewed the pension structure and fixed the minimum pension as Rs . 3350 / - a month . The commutation of pension was recommended to be continued @ 40 % and no change was recommended in the existing provision in case of restoration of commuted pension .
The maximum limit of Retirement Gratuity was recommended to be enhanced from Rs . 3,50,000 toRs . 7,00,000 . Subsequently the same was enhanced to Rs . 8,00,000 . The D . A . at thetime of retirement should be added to the basic pay at gratuity be calculated .
22 . ( a ) In the light of the above , do you consider whether the existing Pension scheme is sufficient ?
No
( b ) If “ No ” what modifications you would like to suggest ?
Present pension scheme is not adequate
- Maximum Qualifying service for getting full pension should be reduced to 30 years from present 33 years .
- Weightage allowing after superannuation pension or for voluntary retirement should be 5 years which is the same at present .
23 . ( a ) Do you consider that the present formulae and quantum of pension , family pension , retirement gratuity and
calculation of Average Emoluments require any modification ?
Yes
( b ) If “ yes ” what modifications would you like to suggest ?
- Family Pension should be enhanced to 40 % from Present 30 %
- At present Retirement Gratuity is ¼ months ( 7.5 days ) for unit ( 6months of service ). We proposed to enhance retirement Gratuity to 10 days for unit ( six months of service )
( c ) Whether the existing ceiling on Retirement Gratuity is
adequate or do you suggest any enhancement ?
Existing ceiling on Retirement Gratuity is not adequate . It has to be enhanced to Rs 16,00,000 / -
24 . ( a ) Is the present percentage of commutation and restoration of commuted portion of pension adequate ?
No
( b ) If “ No ” what modifications do you suggest ?
At present commuted portion of the pension is being restored after 15 years . We proposed that the period should be reduced to 10 years
25 . ( a ) Does the present scheme of Voluntary retirement require any modification ?
No
( b ) If “ Yes ” suggest modifications .
26 . ( a ) Is the weightage of 5 years allowed on superannuation / voluntary retirement respectively justified ?
Yes
( b ) Suggest modifications if any . 27 . Additional Quantum of Pension :
( a ) Do you feel that additional quantum of pension above the age of 75 years to 100 years or more is adequate ?
No
If No , suggest the modifications .
Average life expectancy rate in India is 67 as per 2011 census . So very few people can survive after 75 years of age . Hence we are proposing that additional Quantum of pension given to the pensioners who are above 75 years age should be changed . Our Proposels
Additional Quantum of Pension Should be Allowed
After attaining 70 years of age - 55 % 72 years - 60 % 74 years - 65 % 76 years - 70 % 78 years - 75 % 80 years - 80 % 82 years - 85 % 84 years - 90 % 86 years - 95 % 88 years - 100 %
28 . ( a ) Is the quantum of death relief i . e ., a lumpsum amount equal to one month ’ s pension subject to minimum of
Rs . 10,000 / - to the pensioners paid at present adequate ?
No
If “ No ” what are the suggestions you would like to make ?
Quantum of death relief i . e . a lumpsum amount equal to one month pension subject to pHé 2013
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