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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