answersLogoWhite

0

19 comments at 1:12 PM In a development that could well encourage more civil servants and armed forces personnel to opt for careers in the private sector, the government has decided to grant full pension benefits to all government employees who leave after 20 years in service, against the current 33 years.

The Union Cabinet has accepted this proposal, along with other recommendations of the Sixth Pay Commission on pension benefits for the estimated 3.84 million central government pensioners at a meeting here on Thursday. Experts said the reduction in the number of years of service to 20 years to earn full pension benefit was a liberal move and would end stagnation in government service.

Government officials told Business Standard that several other recommendations have also been accepted. These include raising the gratuity limit to Rs 10 lakh, higher pension for octogenarians, exclusion of earned leave encashed while in service from the overall limit, clubbing of earned leave and half-day pay leave for encashment.

Pensioners to get 40% raise, more gains for octogenarians.

Octogenarians will now be paid an additional 20 per cent of their basic pension, while those aged 85 will get 30 per cent more, rising to 100 per cent additional pension for centurions.

Officials said the final award for pensioners accepted by the government implied that central government pensioners would receive an overall increase of 40 per cent in pension. As a result the total estimated pension liability of nearly Rs 29,900 crore of the central government will go up by nearly Rs 1,400 crore annually.

Based on the Invest India Incomes and Savings Survey, 2007, it is estimated that 5.3 per cent central government employees (170,000) are likely to retire in the two years till 2009-10.

Another proposal to change the commutation formula and outsource the process to public sector banks, which would have saved the government Rs 2,344 crore annually, is also likely to have been accepted. If implemented, the government will bear only a notional subsidy on account of the interest payable to banks by employees who decide to commute a part of their pension, against the entire amount plus interest.

The central government had estimated 3,321,210 employees (excluding defence personnel) on its rolls in 2007, with the number projected to go up marginally to 3,329,682 in 2008.

User Avatar

Wiki User

16y ago

What else can I help you with?

Related Questions

How much is the pension for army captain after 6th pay commission?

Pension of an army captain after implementation of 6th pay commission is approx sixteen thousand.


What will be pension after Sixth pay commission if one is getting pension of Rs 3750?

Sir, I am Ex-sgt. gbhaskarao(697331) retired on 28-2-2006 as a Airframe fittertrade. I have received a corrigendum PPO on 25-sep-2009 but not able to know how much money i Should get from DSRG and COMMUTATION money. secondly, 8400 rupees have been deducted for ECHS. Let me know how much money is fixed for ECHS of ex-sgt and family. Also, I have not received pending 60% of arrears till today. Let me know when should I get this amount and how much. Thanks!


How much pension is fixed to the employees wh0o retired prior to 01-01-2006?

what will the revised pension those retired from defence service prior to 1.1.2006


Is commissions a fixed or variable costs?

Sales Commission varies with volume of sales that's why it is a variable cost as much the sales as much the sales commission, high sales high sales commission and vice versa.


Is sales commissions a fixed or variable cost?

Sales Commission varies with volume of sales that's why it is a variable cost as much the sales as much the sales commission, high sales high sales commission and vice versa.


How much do presidents wives get after leaving office?

There is no fixed pension, but widows of ex-presidents usually are awarded some money if they need it.


How much can you make before afecting the pension?

I am on widows pension and I work. How much can I earn.


What will be your pension after 6th pay commssion as earlier it is Rs3280- as full pension of defence?

what will be the basic pension and how much arrears will someone get if the basic pension earlier was Rs.2465/-?


How much pension will I receive?

The amount of pension you will receive depends on factors such as your years of service, salary, and the specific pension plan you are enrolled in. It is best to contact your pension provider for an accurate estimate of your pension benefits.


How much pension in UK?

The basic state pension is currently £102.15 per week.


How much is Michigan teachers pension?

Too much


How much pension does a paramedic get?

Zero!