Retirement and Pension-Officers

Chapter III
Pensionary Benefits

0301. Introduction

Based on the recommendations of the Vth Pay Commission, the Government has abolished the standard pension of the rank. The normal retiring pension is purely based on two factors i.e. Qualifying Service and Average Monthly Emoluments.

0302. Type of Benefits

If the minimum qualifying service required has been completed officers are eligible for

• Retiring Pension
• Retirement Gratuity

0303. Minimum Qualifying Service

In case officers have not rendered the minimum qualifying service for pension, then they are entitled to

• Retiring Gratuity
• Retirement Gratuity

0304. Qualifying Service

It shall mean the actual qualifying service rendered plus a weightage (in years) appropriate to the last rank held (as given subsequently below). The minimum qualifying service (without weightage) to be eligible for retiring pension is 20 years (15 years in case of a late entrant). The maximum qualifying service including weightage reckonable for pensionary benefits is 33 years.

0305. Counting of Other Service

Full pre-commissioned service rendered under the Central Government whether in a Civil Department or in the Armed Forces shall be taken in account while working out the Qualifying service for pensionary benefits and determining the minimum Qualifying service for retiring pension.

0306. Calculation of Fraction of Year for Qualifying Service

To calculate the length of the Qualifying service, fraction of a year equal to 3 months and above but less than 6 months shall be treated as a completed one half year and reckoned as Qualifying service.

0307. Weightage

The object of the weightage for calculating the Retiring Pension is to give the benefit of entitlement to Retiring pension as close as possible to 50% of reckonable emoluments which is the maximum admissible after 33 years of service. The weightage allowed is as follows

Weightage

Rank	Weightage
Sub Lt/Lt	9 years
Lt Cdr	8 years
Cdr	7 years
Capt (TS)	7 years
Captain (with less than 3 years and10 months service)	7 years
Captain (with 3 years and 10 monthsand more service)	5 years
Admiral/Vice Admiral/Rear Admiral	3 years

0308. Reckonable Emoluments

For the purpose of working out the Retiring Pension the term Reckonable Emoluments means the average of the Pay. Dearness Pay, Non-practising Allowance and the Rank pay and Stagnation Pay, if any, drawn during the 10 months immediately preceding the date of retirement.

0309. Quantum of Retiring Pension

• The retiring pension is calculated at 50% of average emoluments. The amount so determined is the retiring pension for 33 years of reckonable qualifying service. For lesser period of reckonable qualifying service, this amount is proportionately reduced. The minimum pension shall not be less than Rupee 1,275/- per month wef 01 Jan 1996.
• Further with effect from 01 Apr 2004, since 50% of Dearness Allowance converted into Dearness Pay is counted for retirement benefits, pension/family pension shall be calculated at 50% and 30% respectively of the pay plus Dearness Pay subject to minimum of Rupee 1,913/- and maximum of 50% and 30% respectively of the highest pay plus Dearness Pay in the Government. The highest pay in the Govt wef 01 Jan 96 is Rupee 30,000/-. The highest pension, as of now, comes to Rupee 22,500/- (i.e. basic pension Rupee 15,000/- + dearness pay Rupee 7,500/- = total pension Rupee 22,500/-).

0310. Protection of Retiring Pension

Retiring Pension in the rank of Cdr, Commodore (Captain with 3 years and 10 months , or more service) and Rear Admiral shall in NO CASE be less than the pension admissible to the officer as a Lt Cdr, Captain (with less than 3 years and 10 months service) or as a Commodore, as the case may be, had the officer not been promoted to the higher rank.

0311. Retirement/Retiring Gratuity

Please see the details in Chapter IV on Gratuity.

0312. Pension Disbursing Authorities

The officers may claim the pension through Govt. Treasury/Pension Payment Masters/ Defence Pension Disbursing Officers. They may also draw the pension through Public Sector Banks, if they so desire. With effect from 09 Jul 05, pensioners can operate the joint account of pension with his/her spouse.

0313. Illustration

An illustration showing the procedure for calculation of Retiring Pension is given at appendix H. For a near exact amount of pension and gratuity, officers are advised to browse the NPO website https://www.navpay.gov.in .